Hong Kong Yearbook - Annual Report for the Year 1982

HONG KONG 1983

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書館

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NG KONG PUBLIC LIBRAR

URBAN COUNCIL LIBRARIES

Reference Library City Hall

HONG KONG 1983

A review of 1982

#

市政局公共圖書館UCPL

3 3288 03033008 0

HONG KONG 1983

Editor:

Melinda J. Parsons,

Government Information Services

Designer:

Arthur Hacker,

Government Information Services

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

Government Information Services

Statistical Sources:

Census and Statistics Department

The Editor acknowledges all contributors and sources

Copyright reserved

URBAN COUNCIL PUBLIC LIBRARIES

Acc. No. 476764

Class. 951.25

Author

HON

HKC

Frontispiece: In January, fireworks bursting over Hong Kong heralded the Lunar New Year of the Dog. The 20-minute display, set off to music from boats in the harbour, was provided by Jardine Matheson and Company Limited and marked the start of their 150th anniversary.

Contents

Chapter

1

THE CONSTITUTION OF HONG KONG

A PERSONAL VIEW

Page

2

INDUSTRY AND TRADE

3

FINANCIAL SYSTEM AND ECONOMY

4

EMPLOYMENT

5

PRIMARY PRODUCTION

6

EDUCATION

98

1

17

37

52

60

67

7

HEALTH

89

8

HOUSING AND Land

103

9

SOCIAL WELFARE

125

PUBLIC ORDER

135

11

IMMIGRATION AND TOURISM

156

12

PUBLIC WORKS AND UTILITIES

162

13

TRANSPORT

171

14

COMMUNICATIONS AND THE Media

188

15

THE ARMED SERVICES AND AUXILIARY SERVICES

198

16

RELIGION AND CUSTOM

204

17

RECREATION AND THE ARTS

210

18

THE ENVIRONMENT

225

19

POPULATION

237

20

NATURAL HISTORY

240

21

HISTORY

244

22

CONSTITUTION AND ADMINISTRATION

252

APPENDICES

269

INDEX

318

Frontispiece

Yesterday and Today

Events

Energy

Markets

Youth

Illustrations

Between pages

4-5

12-3

28-9

60-1

92-3

Sha Tin

108-9

Security

140-1

Transport

172-3

Religion

Forestry

END-PAPER MAPS

Front:

Hong Kong, Kowloon and the New Territories

Back:

District Board Electoral Boundaries Hong Kong

204-5

220-1

Appendix

1

Appendices

UNITS OF MEASUREMENT

Page

272

2

Overseas REPRESENTATION

273

3-4

INDUSTRY AND TRADE

276

5-12

FINANCIAL SYSTEM AND ECONOMY

280

13-16

EMPLOYMENT

290

17-19

PRIMARY PRODUCTION

295

20-23

EDUCATION

24-27

HEALTH

28-29

HOUSING AND LAND

297

299

301

30-33

PUBLIC ORDER

303

34

PUBLIC WORKS AND UTILITIES

307

35-36

TRANSPORT

308

37

COMMUNICATIONS AND The Media

310

38

RECREATION AND THE ARTS

311

39

THE ENVIRONMENT

311

40-42

CONSTITUTION AND ADMINISTRATION

312

43

Social Welfare

316

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 1982, the middle market rate was about HK$6.5=US$1.

*

*

*

Some figures in the text are estimated; actual figures appear in the appendices.

1

The Constitution of Hong Kong: The Hub of the Wheel of State A personal view by John Griffiths, Q.C.

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In the year that the Commonwealth Law Conference is held in Hong Kong, the Attorney General contributes an analysis of the legal structure of Hong Kong, and the reasons for its success.

HONG KONG has been seen through the eyes of many different commentators in as many different colours. All, from an American President, to academic writers, journalists and British politicians, have tried to encapsulate its essence in varying epithets, slogans and titles:

'An Economic Nature Reserve,' 'Borrowed Place Living on Borrowed Time,' 'A Shop Window of the Free Way of Life in Asia,' 'Capitalist Paradise,' 'A Living Fossil of Early Imperial Government,' 'A Rumbling Volcano,' 'A Shopper's Paradise,' 'A Commercial Miracle,' 'Emporium of the East,' 'The Home of Laissez-Faire.' The territory's success story is now well known. The barren island off the southeast coast of China whose acquisition amused Queen Victoria and annoyed Palmerston, devoid of natural resources, shattered in 1941 by war, inundated since then by successive waves of refugees, has survived all. Propelled by the work-ethic and industry of its inhabitants, and the skill and flexibility of its entrepreneurs, given by its Government social and financial stability as well as the necessary ambience and infrastructure, it has thrust itself into the very front ranks of commercial and trading centres, and indeed of trading nations.

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The figures speak for themselves: Hong Kong is now the third largest container port, not just in Asia, but in the world; its Gold and Silver Exchange has become the world's third largest gold-dealing centre; the presence of 128 licensed banks, including the giants from every leading and indeed secondary financial nation, has made it the financial capital of Asia and exceeded only by New York and London as a banking and financial centre. In the economically turbulent decade throughout the world to 1982, the average annual growth of the gross domestic product (GDP) in Hong Kong, in real terms, was just over 9.6 per cent so the economy expanded two and a half times. The real income of the people per head doubled over those 10 years. Government expenditure trebled in real terms, notwithstanding that it was met from fiscal revenue entirely and not from reserves, which continued to accumulate despite a maximum tax upon wages and salaries of only 15 per cent and upon corporation profits of not more than 17 per cent. Out of the population of some 54 million, following budget changes in 1982 which took 92 000 people out of the tax net, there were only about 218 000 persons liable to salaries tax; and of these some 13 000 paid over half the total receipts. The stock of public housing increased at such a pace that by 1981 the Hong Kong Government had become the largest landlord of rented accommodation in the world; during the decade to 1983 about two million people, some 40 per cent of the entire population, will have moved into new housing in

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the private or the public sector. Public works and civil engineering projects approved or under construction in 1982 in value exceeded those in those in the United Kingdom at the same period.

      But what was the secret behind the success? What was the driving force behind all the activity and growth, and what were the essential conditions that fostered success? There has been no lack of speculation on how this economic success, hailed as miraculous by some and perverse by others, has occurred.

A Geographical Accident

     There is no doubt but that the accident of geography had something to do with it, allowing 'that barren rock' to become not merely the entrepôt of the China trade, but at the same time one of the most active trading cities in the world, and indeed the financial capital of Asia.

Hong Kong's position and its relationship to China has played no small part in its growth a part that will surely increase as the programme of 'the four modernisations' advances. In the quinquennium 1976-81, the value of domestic exports to China multiplied over 120 times, from $24 million to $2,924 million; in 1981 China was also by far the largest source of goods re-exported from Hong Kong: 31 per cent of the total value of re-exports were goods originating in China, a 53 per cent increase in the year. China too was by far the largest market for the re-export of goods emanating from other countries, 19 per cent by total value, a rise of 73 per cent in that year.

But despite that huge growth, the China trade nevertheless remained only a small part, some five per cent, of the world-wide base upon which Hong Kong's commerce rested in 1981. In that year, despite the economic troubles which beset the world in general and Hong Kong's major United States and European Economic Community markets in particular in the late '70s and early '80s, in real terms domestic exports rose by 7.6 per cent to total $80,500 million, and re-exports by 24 per cent, so that total exports rose some 12 per cent. Again GDP rose by almost 10 per cent and, at a time of world recession, unemployment was only 3.7 per cent of the labour force.

Though the figures for 1982 are not available at the time of writing, it appears likely that the detailed picture for that year will be different, for Hong Kong has not been isolated from a world depression of a severity unprecedented for over 50 years. Exports have declined in real terms, and government revenue has done so too. But Hong Kong appears to have held its end up better than most places: an estimated rise in GDP of some four per cent, though poor by recent standards, nevertheless is better than the minimal or negative growth shown in so many other economies, leaving Hong Kong as one of the few growth markets in the world in 1982. Equally important, though unemployment has risen slightly, fortunately it remains far less than half the double digit figures seen in so many other places during the year - for the style of the Hong Kong business community in hard times, both employers and employed, is to accept under-employment rather than to create unemployment.

So that happy accident of geography undoubtedly has played its part; nor has it exhausted its gifts. Situated midway between Peking and Indonesia, halfway between Tokyo and India, with Californian financiers ending their day's work as Hong Kong hurries to the office, and London financial markets opening as those in Hong Kong close, the territory is well placed to benefit as much in the decades ahead as it has in the past from the opportunities given by its fortunate geographical position. As was remarked at an International Arbitration Conference held in Hong Kong in 1982:

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"... one of the fundamental world changes in the past two decades has been the rise of the Orient as a trading and financial area. Think of the countries bordering the Pacific basin: Japan; California; Australia; China like a slumbering giant being roused by the four modernisations; Indonesia, with the world's third-largest population; India, only five hours' flight from Hong Kong; not to mention Korea, Singapore and Hong Kong itself.'

Free Trade

A natural deep-water harbour, a convenient position in Southeast Asia, and the guarantee of free trade - the formula recognised by a percipient observer writing in the Canton Register so long ago as 1860 as being likely to produce 'the greatest mart East of the Cape' - have all played their part.

Of these three ingredients it is free trade, its advantages, disadvantages and elusive definition, which has most exercised the minds of observers, commentators and bureaucrats over the years. The Government's policy, indeed doctrine, of non-interference with the commercial activities of the population has been described in many phrases: 'laissez-faire,' 'free trade,' 'positive non-interventionism,' all are said to be the accepted hallmarks of Hong Kong, even if those who use the phrases do not always understand them in the same way. The policies called by those titles have been those of the Government of the day, though perforce articulated and explained on its behalf by successive Financial Secretaries. Over the decades they have consistently proclaimed as their credo the belief that market forces act to solve problems more effectively and certainly more swiftly, than bureaucratic control or guidance ever could do. That this approach, broadly speaking, has been accepted and indeed welcomed by the merchants and people of Hong Kong is beyond argument - though in its detailed application it has not commanded the support of all of the people all of the time.

     The philosophy is of course not a Hong Kong invention: other times and other places saw its birth and development. Indeed as long ago as 600 B.C. the Taoist sage, Lao Tsu, a contemporary of Confucius, was advancing a not dissimilar thesis and including amongst his precepts:

and

'The world is best ruled by letting things take their course. It cannot be ruled by interfering.'

'Do not intrude in their homes. Do not harass them at work. If you do not interfere they will not weary of you.'

(Lao Tsu: Tao Te Ching)

      But what is unusual in the modern world is the consistency of enunciation and of application of the thesis. So we read in 1946, so soon after the ravages of the Japanese occupation, when the world was in an economic strait-jacket and such staples of Hong Kong's entrepôt trade as rice, flour and sugar were in short supply and some strictly rationed, the Department of Supplies, Trade and Industry was commenting in its Annual Report:

'While the merchant's natural belief in laissez-faire could not be fully accepted, it was recognised that the fullest freedom compatible with the welfare of the people and international obligations must be accepted.'

To similar effect in 1982, the new Governor in his first Annual Address opening the session of the Legislative Council, summarised the future economic policy of his Government thus:

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'It will I think become evident to Honourable Members as I review the activities of the Government that its philosophy and objectives remain unchanged . . . (In the economic field)...it aims to leave the industrial, commercial and financial sectors free and unfettered to compete in domestic and world markets, regulating only where the orderly conduct of business, fair treatment of the workforce, and the good name of Hong Kong so require. More positively it aims to provide the infrastructure and the environment in which modern techniques and good industrial relations can flourish, and initiative and hard work bring their rewards. Only thus can our economy adjust continuously and grow."

It is the predictability and continuity of the economic and financial environment taken together with the commercial and social stability given by a strict adherence to the Rule of Law so that arbitrary decisions or unconstitutional changes are not just unlikely but impossible - which have been essential elements in creating the climate for success.

      But restraint from bureaucratic interference is not the soft option arising from passivity; it has never been the basic economic philosophy of Hong Kong just to stand back and let economic forces rip. Sir David Trench, Governor from 1964 to 1971, later reflected that 'Hong Kong's generally laissez-faire economic policies have always been based on considered decisions, not mere paralysis of mind and will.' Prudential supervision and the willingness to regulate if necessary where the animal spirits of capitalism go to excess are both known conditions within which the private sector operates. Not even the most buccaneering of Hong Kong's past or present entrepreneurs would argue that non- interference should mean an absence of any law or regulation.

Yet the secret of Hong Kong's commercial success does not lie in those policies alone; rather they are the soil in which the adaptiveness and skills of managers and workforce alike have flourished. In his first Budget speech, the present Financial Secretary, erstwhile Chairman of Cathay Pacific Airways and of a multinational conglomerate, resident in Hong Kong for over 30 years, publicly proclaimed the Government's faith in the business community and its workforce:

  'Our entrepreneurs and industrialists are nimble on their feet, adept at seeking and turning to good account new opportunities, motivated by profits that arise from free markets open to all the talents, and unfettered by heavy taxation. They are well served by our labour force, which too is hard working and highly motivated. Thus in our business community the successful prosper. The unsuccessful are not carried by Government subsidy. Businesses either sink or swim as they adapt to changing competitive conditions. A policy directed towards the survival of the fittest may seem harsh and unfeeling, but it has been shown to be appropriate in the particular circumstances of Hong Kong. As a community we cannot afford to carry industrial or commercial failures.'

     Nor should the overall purpose of the Government's free-market approach ever be forgotten or misunderstood. The raison-d'être for it all was encapsulated in a sentence in that Budget speech in 1982:

'It should be clearly understood that the whole long-term purpose of our policy of the encouragement of the creation of wealth is not to enable the rich to get richer, but rather to achieve an improving standard of life in all its aspects for the whole community.' It is the doubling of average real income per head in the decade to 1982, the greatly increased stock of housing, the low unemployment, the introduction of free, compulsory secondary education to 16, the development of a net of social services designed and introduced to catch those individual citizens who through misfortune or disability cannot

YESTERDAY

AND TODAY

美圖

NG PUP

Previous page, top: Victoria Harbour in 1858, viewed from Jardines Point, shows Kellett Island lying mid-harbour, and Victoria Peak rising majestically above the town. Previous page, below: Today, the reclaimed waterfront extends to Kellett Island while Victoria Peak is girdled with skyscrapers.

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Opposite page: The city of Victoria in 1886, when the elegant square tower of St John's Cathedral, completed in 1849, dominated the landscape. Above: The cathedral, almost a century later, is dwarfed by towering bank and office buildings, synonymous with the commercial progress of Central District.

་་

玩古齋寶

THE MAIN BRANCH

"CAT STRE YUE PO CHAI CURIOS

IMPORT & EXPORT WHOLESAL

 Above: A hubbub of hawkers crowds the forecourt of Man Mo Temple on Hong Kong Island, built soon after the territory was founded as a British settlement. Below: The temple itself shows little structural change today despite the orderly surroundings and Hollywood Road's urban and commercial development.

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make their fair way in society . . . it is these things, and the like, which are the precious fruits of Hong Kong's economic growth and success, even though much still remains to be done. But the creation of material wealth and the spread throughout the community of its fruits is not the sole objective, for Man does not live by bread alone. It is as important to ensure the existence and continuance in society of freedom, fairness and justice. The aim, succinctly described at the opening of the 1982-3 Session of the Legislative Council, is that 'services such as housing, social welfare, health, education and recreation, so essential to the well-being of the individual, are provided - but all this in a society in which the rights of the individual are respected, and law and order can prevail.'

The Climate for Success

But what has been the oil that allowed the commercial and financial wheels to turn so smoothly, ever accelerating? What were and are the essential features creating the ambience in which the economy has flourished? It is the stability arising from a Constitution which is known to give no arbitrary or oppressive powers to any individual or body (save emergency powers if the whole internal security of the territory were to be in actual danger); and, perhaps even more important, the trust, based on long historical experience, that no such powers will ever be taken. This, even more than the sophistication of the territory's legal, commercial and bureaucratic structures, has made its virile economy possible. That stability and the international confidence it alone can create and maintain, as well as the existence of those structures, has inspired the business community of the world over the years to migrate to Hong Kong to set up their regional offices and manufacturing operations, and to make here their multi-million dollar investments and deals. It is without doubt the Constitution and the laws of Hong Kong, paying not mere lip-service but giving total adherence to the Rule of Law, which is the bedrock upon which that confidence rests, and which has created the ambience which has permitted prosperity to grow and flower.

      The Hong Kong system is secured by a comprehensive code of law based on the English model but adjusted to suit local needs; it is designed to provide the maximum degree of freedom but with a minimum of those very restrictions which make possible and guarantee that freedom. It is buttressed by an independent Judiciary. It is served by a government machinery which, because those responsible for deciding policy are not elected, takes the more care to be sensitive to catch even the whispers of the public, and to seek to be responsive to them. Those unelected members, by virtue of that very fact, have the freedom to represent the interests of the entire community, and not just of some faction or political party in it. Yet, perhaps because the policy-makers do not have to seek re-election, there is a continuity rare in any democracy. Policy decisions are based upon concern for the welfare of the people qualified by a judgment of what is practicable at any time, and never consciously ascribed to any political theory. But, most importantly, those policies are fashioned and honed following a most elaborate and widespread network of consultation -- Hong Kong's version of Athenian democracy.

It is only a highly developed system of commercial law, serviced both by lawyers of multi-national expertise, and by a Judiciary whose integrity and competence are recognised world-wide, which can inspire sufficient confidence in the international business community for it to permit any place to become one of its capitals. To be acceptable to strangers and persuade them freely to permit their multi-million dollar deals to be subject to the jurisdiction of the courts, any system of contractual law must be familiar, its rules well known and respected; it must be certain and not arbitrary in operation. Hong Kong's rise as an international commercial and financial capital has been in no small measure due to its

URBAN COUNCIL LIBRARIES Reference Library City Hall

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possession of these attributes. Certainly without them it would never have occurred, nor could it continue.

The law merchant of England has developed over the centuries; the principles of English commercial law retain pre-eminence throughout the trading world despite changing world politics and patterns of trade. They are the model which all the common law jurisdictions follow - American, African, Indian, Australasian, Canadian and Commonwealth. Hong Kong's laws gain from their adoption a strength, familiarity and acceptability they could not otherwise possess.

In short, it is a combination of Hong Kong's Constitution and of its laws which have created the international confidence which is the precondition of prosperity. The essential ingredients creating that confidence are the absence of arbitrary power and the knowledge that unconstitutional change will not occur.

The Structure of the Constitution

Territories outside the United Kingdom which are dependencies of the British Crown are ruled pursuant to the Royal Prerogative, of which Letters Patent and Orders in Council are legislative manifestations. But, in the constitutional monarchy that is the United Kingdom, the Crown acts on the advice of the Prime Minister and Government of the day; and they are responsible to Parliament. So it is the British Foreign Secretary who answers today to Parliament for the affairs of Hong Kong; he it is who is the 'one of our Principal Secretaries of State' referred to in Article II of the Hong Kong Letters Patent.

     Hong Kong, unlike the United Kingdom, has a written constitution, though the legal basis on which the Government of Hong Kong rests is remarkably laconic. The Letters Patent and Royal Instructions, first enacted in 1843 as a Royal Charter, the present form of which, passed under the Great Seal of the United Kingdom, dates from February 14, 1917, and which has been amended a dozen times since, most recently in 1982, provide the essential structure:

'I. There shall be a Governor and Commander-in-Chief in and over Our Colony of

Hong Kong and its Dependencies...

II. We do hereby authorise, empower, and command Our said Governor and Commander-in-Chief. . . to do and execute all things that belong to his said office, according to the tenor of these Our Letters Patent and of any Commission issued to him under Our Sign Manual and Signet, and according to such Instructions as may from time to time be given to him, under Our Sign Manual and Signet, or by Order in Our Privy Council, or by Us through one of Our Principal Secretaries of State, and to such laws as are now or shall hereafter be in force in the Colony.' Two Councils are created to assist the Governor in his duties:

'V. There shall be an Executive Council in and for Hong Kong, and the said Council shall consist of such persons as We shall direct by Instructions under our Sign Manual and Signet . .

VI. There shall be a Legislative Council in and for Hong Kong and the said Council

shall consist of such persons as we shall direct by Instructions . . .

VII. The Governor, by and with the advice and consent of the Legislative Council, may

make laws for the peace, order and good government of Hong Kong.'

It is upon the legal base of the twenty-four Articles of the Letters Patent and the thirty-seven Royal Instructions which flesh them out in more detail, that rests the edifice that is the Government of Hong Kong, with its 154 000 civil servants, 22 000 policemen, 128 judges and magistrates and 409 statutory ordinances.

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The Letters Patent have reserved residual power to the United Kingdom Parliament to legislate for Hong Kong; and the power, if it were ever to prove necessary, to disallow legislation enacted in Hong Kong. By these means, in strict constitutional theory, the Government of Hong Kong is made subject to the will of the British Parliament; and Hong Kong's administrators and legislators are appointed by and subject to dismissal by the British Government.

      But how different is the practice from the strict theory! From the earliest days the Governor chose and recommended his own advisers in the Executive Council, who were subsequently confirmed in office by the English Monarch of the day. It is more than half a century since the power has been exercised of disallowing legislation passed by the Legislative Council in Hong Kong. Since at least 1945 it has been rare indeed for British legislation to be applied directly to Hong Kong, so that with a few exceptions, all the legislation governing Hong Kong has risen out of the Legislative Council, not the British Parliament.

The Governor of Hong Kong

The Governor, the Queen's appointee and representative, is the very pinnacle of the Government of Hong Kong. His position is high, his powers wide, his responsibilities for the welfare of the nearly 5 million people in the territory are awesome and grave. In Hong Kong, as in all constitutions framed on the British model, Montesquieu's classic vision as adopted and propounded by Dicey of the separation of the powers of the Executive, Legislature and Judiciary is found. But in the office of Governor the edges of that separation are blurred; it is only over the Judiciary, once appointed, that he has no power whatsoever.

      He is head of the Executive; the ultimate power of direction over the administration rests in his hands. The Executive Council, the policy-deciding organ of the Government, performing the function of a Cabinet, over which he presides, enunciates all its decisions as 'The Council Advised and the Governor Ordered that . . .' He presides too over the Legislative Council and, as Article X of the Letters Patent provides, may 'according to his discretion' give or refuse his assent to Bills passed in that unicameral assembly. He is titular Commander-in-Chief of Her Majesty's Forces in Hong Kong. The Commissioner of Police under the Police Force Ordinance is subject to his directions. He is personally given under the Letters Patent the power to deal with 'any lands that may lawfully be granted or disposed of by Us'; he is empowered to appoint judges and magistrates; the prerogative of pardon or remission of sentence rests in his hands; he is given both an original and a casting vote in Legislative Council; the power to commute the death sentence is his alone, and he must, after 'receiving the advice of the Executive Council', extend or refuse the prerogative of mercy 'according to his own deliberate judgment'.

      But his powers, though so wide, are not unrestrained, for he too is subject to the Rule of Law. As Lord Denning observed in the English Court of Appeal in a case concerning the prerogative powers of the Attorney General of England and Wales:

'To every subject in this land, no matter how powerful, I would use Thomas Fuller's words over 300 years ago: "Be you never so high, the law is above you"."

So, if the Civil Service on his behalf, or even the Governor himself, exceeds his legal powers he may be challenged in the courts, which have the power to restrain him. Apart from this ultimate sanction the checks and balances of the Hong Kong Constitution also limit and bind the Governor's powers. Article X of the Royal Instructions expressly orders that, save in urgent emergency and the like, 'in the execution of the powers and authorities

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     granted to the Governor . . . he shall in all cases consult with the Executive Council'; and the composition of that body, described below, ensures that the advice he receives fully represents the views of the community. He is empowered to act contrary to that advice 'if he shall deem it right to do so; but in any such case he shall report the matter to Us by the first convenient opportunity, with the grounds and reasons for his action.' Such a case has not arisen since long before the Second World War. A similar provision controls his power of commutation.

So far too as legislation is concerned, the Legislative Council, upon which private members of the community sit in the majority, retains in effect a power of veto, for whilst the Governor may assent or not to Bills as he feels right, he can only exercise this power if and when legislation has first been passed. The consent of the Legislative Council is a pre-requisite to the passage of any legislation, including of course financial provision under Appropriation Bills. Nor has there been any occasion within living memory when the Governor has refused his assent to a Bill duly voted and passed.

The Rule of Law: The Judiciary's Task

But most important of all as guardian of the Constitution and of the rights of every single citizen stands Hong Kong's independent Judiciary. Though the judges are formally appointed by the Governor, he is bound by law before doing so to take the advice of the Judicial Services Commission - an independent statutory body presided over by the Chief Justice and upon which, as well as the Attorney General, serve a High Court Judge, a barrister and a solicitor in private practice, and a prominent layman, presently an internationally-known and respected doctor who in the past has served on both the Legislative and Executive Councils. The judges, both of the Supreme Court and also of the District Court, have security of tenure in office until they reach retirement age; they are irremovable unless and until the Judicial Committee of Her Majesty's Privy Council in London, after due process of law, advises the Queen that the particular Judge 'ought to be removed from office for inability arising from infirmity of body or mind, or for misbehaviour."

     It is these judges of the Supreme Court, secure and independent in office, who ensure the supremacy of the law above all other powers in the State. It is they who rule upon the prerogative writs which any individual in Hong Kong may issue to test the legality of any of the government's actions which affect him. The writ of habeas corpus runs to protect the individual against unlawful arrest or incarceration. It is an Order from the Court to whoever holds the individual, whether a public servant, policeman or anyone else, to show good cause why he should not be released at once and unless lawful reason for the detention is shown, the court enforces his release. Similarly the writs of certiorari and mandamus question the legality of administrative decisions or actions; again, unless such are affirmatively shown by evidence to be within lawful powers granted by legislation or law, then the court can forbid the action or reverse the decision, never mind who made it. In 1979, for instance, the courts ordered the police to return all documents seized under a search warrant issued by a magistrate, and all copies made, on the grounds that their action was unlawful because their powers of search under the ordinance did not extend to assisting a foreign force to investigate where there was no connection with any crime in Hong Kong.

     So it is that in Hong Kong, as in all the other common law jurisdictions in the world, the ultimate bulwark of the Rule of Law, protecting the individual and enforcing legality, is the system of prerogative writs administered by a strong, fearless and independent Judiciary.

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There are those who point to the concept of parliamentary democracy as Britain's great gift to the world. But that system has not always proved easy to transplant, nor has it always flourished upon other shores. Many would argue with force that the greater contribution has been the transplantation of the English common law, and with it the Rule of Law, into so many countries on every continent throughout the globe. Certain it is that the Rule of Law has played an inestimable part in creating amongst outsiders that trust and confidence in Hong Kong upon which the economic miracle has been and is totally dependent. Without it, Hong Kong could not be what it is today.

       The determination of the law that the individual must never be subject to arbitrary oppression explains too the way that the criminal law is enforced. Neither the Government nor even the Governor himself has any control over criminal proceedings. The Attorney General, subject to direction from no man, has sole responsibility for them. The Court of Appeal in 1980 affirmed that his powers and duties in that area of the Royal Prerogative are identical to those of his English counterpart. In 1924, in Parliament, the Attorney General, later to become Viscount Simon, stated the law thus:

'The Attorney General should absolutely decline to receive orders even from the Prime Minister or Cabinet or anyone else... (as to whether). . . he should prosecute or not.' On February 16, 1959, the Prime Minister, Mr Harold MacMillan, reiterated the same proposition in the House of Commons, and went on to say:

    'I think it would be . . . a very bad thing if this House or the Cabinet of the day tried to influence the semi-judicial functions of the Law Officers in the institution or dropping of prosecutions . . .'

       So in Hong Kong today, the decision whether any citizen should be tried for crime rests not with the police or the Government but in the quasi-judicial hands of a Law Officer of the Crown, Her Majesty's Attorney General for Hong Kong. But his power is only to charge, or to stop the proceedings by entering a nolle prosequi. He cannot convict. It is the independent Judiciary, in appropriate cases with the assistance of a jury of his fellow citizens, which has the task of deciding a man's guilt or innocence, and thereafter of imposing the proper penalty on those found guilty.

The Role of the Government

In England the origins of the Civil Service are to be found in that small body of servants, the most famous of whom perhaps was Samuel Pepys, who assisted the private advisers surrounding the Monarch. As the role of the constitutional monarchy developed, so the advisers became Ministers in Parliament and their helpers burgeoned into the Civil Service as we know it today. In Hong Kong too the Civil Service is the handmaiden of the Executive; by Article XIV of the Letters Patent the Governor, as head of the Executive, is empowered to 'constitute and appoint such . . . public officers', and under Article XVI to him is reserved the prerogative powers of dismissal, suspension or other disciplinary action. The Royal Prerogative remains the foundation upon which the Civil Service rests.

      The division of responsibilities under the Constitution gives to the Executive, the Government of Hong Kong led by its Governor, the duty to conceive, appraise, refine and then propose new policy or legislation. But the Executive and Legislative Councils, each in their respective fields, have the veto. The Government may propose, but ExCo and LegCo dispose; in the Finance Committee of the Legislative Council the Unofficial Members have an overwhelming majority and so control all details of the disposition. The decisions of the Councils once taken, it is the government then who must implement and execute approved legislation or policy.

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      The Governor's duties and responsibilities are extensive; his job is hard; his days perforce are full, some say overfull. Though his ultimate responsibility remains, time alone would prevent him personally overseeing the implementation of policy, or even the conception, still less the development of more than a tithe of the new policies demanded each year by Hong Kong's increasing sophistication. So, whilst he retains the ultimate direction of affairs, decides priorities and exerts the major influence over the most important initiatives and innovations, to the Civil Service are delegated the rest of his responsibilities.

The Chief Secretary, the head of the Civil Service and chief executive of the Hong Kong Government, is responsible to the Governor for the formulation and the efficient execution of all save financial or economic policy, these being the responsibility of the Financial Secretary. He plays personally a large part in policy formulation; most files from departmental or branch heads seeking gubernatorial decision are routed via him; he is, as it were, Hong Kong's Chief Minister. Only he, the Financial Secretary and the Attorney General have, by convention, the right of direct personal access to the Governor.

The conventional distinction in other jurisdictions between politicians, initiating and publicising policy, and anonymous civil servants loyally accepting and administering but not making that policy, does not and cannot exist in Hong Kong. But, within the Civil Service, the same strict functional division into policy-makers and executive administrators was introduced in 1972, after the management consultants, McKinsey and Company, had been hired and had advised the Government.

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Today the Government is organised into 11 policy-formulating branches - Education, Housing, Health and Welfare, Security, Transport and the like, each headed by a Secretary - and into 55 executive departments, ranging alphabetically from Agriculture and Fisheries, through Education, Fire Services, Industry, Labour, Medical and Health, and Trade, to Urban Services. The head of each department reports for policy guidance to his Branch Secretary, but is responsible for the implementation in his own field of approved govern- ment policy. It is perhaps the grey areas on the boundaries which lead Secretaries and their heads of department sometimes to be seen in such a state of healthy, but hopefully creative, tension.

Secretaries act as both Minister, publicly announcing and discussing policy, and as a Permanent Under-Secretary, in day-to-day charge of all the public servants working in their department. Each surveys his field, responsible for initiating new policies to suit the changing times. He it is who must refine and hone the first ideas; consult within the Government and the community and take account of their views; take expert advice from home or abroad; polish the final result until it is revealed shining brightly on the pages of its ExCo paper; and await, sometimes in nervous trepidation, the decision of Executive Council. Most too are members of the Legislative Council and there introduce their Bills, reply to the speeches and criticism of the Unofficials, and at question time answer their sometimes probing questions.

The Executive Council

     On top of the government's consultative machinery stands ExCo, as the Council is universally called, Hong Kong's equivalent of the Cabinet. Its place in the constitutional scheme is critical. The requirement in the Letters Patent to seek its advice is the principal curb on what otherwise would be the almost unlimited power of the Governor in some fields. Lacking an electoral mandate, it is its presence and composition, more than all else, which enables the administration to govern with the consent, and usually the approval, of the people.

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       But who are its members, and how does it work? At its private meetings every Tuesday the Governor presides; the various branches responsible for initiating policy put papers before it for decision; the Members advise and the Governor then orders. No legislation is introduced into the Legislature without ExCo's imprimatur first: no government policy, nor any change in existing policy, is made without its prior advice and agreement: sitting as 'The Governor-in-Council' it acts quasi-judicially to decide administrative appeals under many ordinances or to consider petitions; it is responsible for enacting most subsidiary legislation.

Its Constitution, laid down in the Royal Instructions, fits it uniquely for its role. The four senior members of the Government - the Chief Secretary, Financial Secretary, Attorney General and Secretary for Home Affairs are Ex-Officio Members, as is the Commander of the British Forces, usually a Major-General. One other governmental official is an appointed member. But the majority of the council, the remaining nine, are all Unofficials - members from the private sector; some, but not all, are also Legislative Councillors. When one is absent from Hong Kong an alternate, usually from that council, sits in his place. The provenance of the Unofficials is very wide; the careers of the men and women who in the recent past have advised in ExCo reveal a bewildering variety of talents: a scientific technocrat with a PhD, the executive chairman of one of the world's largest banks, directors of others, a Jesuit priest, Queen's Counsel and solicitors, a headmistress herself in holy orders, doctors and accountants, taipans and textile magnates, retailers, merchants and managers. Their practical experience and personal knowledge range over fields as wide as high finance, education, medical care for the disabled or the problems of labour. Little wonder when to this personal expertise is added their intimate knowledge of the small place that is Hong Kong its ways, its needs, its people that the talents and performance of ExCo bear comparison with Cabinets anywhere: 'by their deeds and results shall ye know them'.

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By his oath on appointment each member, whether Official or Unofficial, swears to give personal and independent advice and counsel according to his conscience 'for the good management of the public affairs of Hong Kong'; so it is that on occasions Ex-Officio Members may oppose proposals put forward by the administration of which they are part, whilst on others Unofficials may argue strenuously against the sometimes selfish interest of the sector of commerce or industry in which they work. Many proposals go no further than ExCo, or are considerably amended, on the advice of members, who may doubt the wisdom of a proposed course of action, or consider the principles underlying the proposal are not acceptable, or that the timing is inapt. It is to the wise advice of the members of ExCo and their predecessors over the years that the success and stability of Hong Kong have been in no small measure due.

      The discussions in Council are secret, the minutes are decision minutes, but its procedure is well known. The agenda item is reached; any member with an interest to declare does so and retires from the room unless invited by the Governor for special reasons to remain; the public servants who produced the paper, along with any necessary experts, enter the Chamber and sit at the end of the long table; questions are asked by members to clarify points or raise new matters; the discussions commence, by convention usually the Senior Unofficial, who is almost invariably Chinese and who has a particular standing both in the council and in the community, first offering his advice; others state their views; the debate continues until usually a consensus emerges, but if not, a straw vote is taken or the decision deferred; finally the Governor announces his decision which the clerk records in the minutes. Later, on receipt of the relevant minute, the government machinery starts to

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implement the decision or, where legislation is concerned, it goes forward for introduction into the Legislative Council.

The Legislative Council

    LegCo's most obvious and primary constitutional function is clearer for the public to see and understand than that of ExCo. Yet the role of the Unofficial Members is significantly different, at least in kind, from that in most other legislatures. The previous Governor, then Sir Murray MacLehose, so described it in 1975:

'Members can call directly for confidential government files about cases which come to their attention, as indeed they frequently do . . . They collaborate positively in the preparation of legislation, and by intervention constantly influence administration... To perform their role in the Chamber, of opposition or support or spur as their judgment dictates, requires very considerable experience. . . Lacking, as is unavoidable, any electoral mandate, members are required to try to think and plan and speak for the interests of the community as a whole as they see it, and not, as would be so much easier, for the narrow interests of a party, a group, a profession, an area or a class.' (Hong Kong Hansard, 1975-6, pp. 44-5) Presently composed of 27 Unofficial and 23 Official Members, presided over by the Governor, the council meets every Wednesday fortnight to transact its legislative business; its proceedings are broadcast live in English and Cantonese on both radio and television. Its procedure and standing orders are modelled on those of the House of Commons. But those accustomed to BBC broadcasts of debates in that Chamber, where the banging of the Speaker's gavel and his cries of 'Order, Order' can sometimes hardly be heard above the argumentative din of the members, must be struck by the politeness and almost orchestrated calm of the Council where Hong Kong's legislation is enacted. Never are heard outraged shouts of 'disgrace,' 'resign' - some spectators ask why, whilst others merely draw for themselves the wrong conclusions.

One reason undoubtedly stems from Hong Kong's consultative system. From the first tentative discussions, through consultations, if appropriate, with District Boards, Advisory Committees, pressure groups, other departments of Government, chambers of commerce and trade associations, social welfare agencies, clans or guilds, and finally in ExCo itself, the original idea has been amended, honed, pruned, re-drafted, had clauses inserted, had clauses removed, until the final proposition, when it reaches LegCo in the form of a Bill is, if not uncontentious, at least unlikely to precipitate demonstrations by disaffected citizens. Nor does the vetting end there, for some of LegCo's most important work is done not in public but in private sessions in the offices of the Unofficial Members of the Executive and Legislative Councils (UMELCO). Here Unofficials meet deputations voicing their concerns about some Bill, and scrutinise its principles and detailed drafting before arguing for their desired amendments at closed meetings with the Official Member in charge of it. Strong words may flow on these occasions. But the convention is that Unofficials will not in the end press for amendments against the weight of reasoned argument, and any Bill or clause in it is dropped by the administration if it becomes clear at the end of these private meetings that a majority of Unofficials still oppose it. The joint objective of Unofficials and Officials alike is to achieve the most sensible and efficacious result, not to score political or personal points, still less to gain cheap publicity when the Bill returns into the public arena. Public dispute is not the Hong Kong style. So back in the Chamber the Bill proceeds on its now agreed course, giving sometimes an air of a carefully contrived piece of theatre of oriental formality, where all eventualities have been foreseen and reactions carefully rehearsed.

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Previous page: Sir Edward Youde and Lady Youde, photographed shortly after Sir Edward took up office in May as the territory's 26th Governor. Above: Retiring Governor Sir Murray MacLehose (now Lord MacLehose of Beoch), and Lady MacLehose leave Queen's Pier on the first stage of their homeward journey.

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British Prime Minister, the Rt Hon Margaret Thatcher, inspects a model of the completed Castle Peak Power Station at Tap Shek Kok which she officially opened during her three-day visit to Hong Kong in September.

  Warm moments are shared between HRH the Duchess of Kent and youngsters exercising with the aid of floats at the Duchess of Kent Children's Hospital at Sandy Bay on Hong Kong Island during the visit of TRH the Duke and Duchess of Kent at the end of October.

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A keen eye kept the Japanese archery contingent on target during the Far East and South Pacific Games for the Disabled when more than 800 athletes from 23 countries and territories competed at the newly-opened Jubilee Sports Centre in Sha Tin.

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  1982 was the wettest year on record for Hong Kong: severe downpours in May and August caused flooding and landslips resulting in serious disruption in urban areas and loss of livestock and crops in the New Territories.

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   Hong Kong residents from all walks of life were encouraged to vote in the District Board elections in March and September to choose representatives for the 132 constituencies in the New Territories and urban districts as part of the District Administration Scheme.

  The Hong Kong Jing Ying Dance Troupe delighted audiences at gala evenings in Manchester, Edinburgh and Birmingham organised by the Hong Kong Government Office in London to highlight links between Hong Kong and the United Kingdom.

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Though legislation may on occasions be the wind of change which reshapes society, nevertheless perhaps even more important than its legislative scrutiny is LegCo's second constitutional function, to control public expenditure. 'He who holds the purse-strings rules the world.' Its Finance Committee, chaired by the Chief Secretary, with all 27 Unofficials as members but only the Financial Secretary and the Secretary for Lands and Works from the official side, meets in closed session to scrutinise all public expenditure and vote or refuse funds as it wills. Without its sanction, no programme involving the spending of public money can commence even though in principle ExCo may have approved it. Again the wide expertise of the Unofficials drawn as they are from such differing parts and sections of the community Cantonese, British, Shanghainese, Portuguese, Indian and encompassing over the years vice-chancellors and dons, social workers, captains of commerce, priests, personnel managers, teachers, lawyers, engineers, bankers, businessmen, unionists and a host of others is of inestimable value in assessing the merits and cost-effectiveness of proposals, and in ensuring that the public get value for money.

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The third constitutional role of the Council is to question the effectiveness of government, to ensure it knows where and how much the public's shoes pinch, and to act as a spur to put things right. This it does through the Public Accounts Committee, and during the question time with which each meeting of the Council commences. That committee, established by resolution of the council in 1978 and consisting of seven Unofficials, meets to examine the report of the independent Director of Audit, who annually audits the Government's accounts, searching for waste or misapplication of public funds, charged with seeing whether the public have had full value for their money. The committee calls heads and controlling officers of departments to give explanations, and ultimately its report to the full Council is laid on the table, and becomes public property.

Question time affords Unofficial Members the opportunity publicly to question senior members of the Government on every aspect of life in Hong Kong, from abandoned and broken-down vehicles in the streets, or crime prevention in the countryside, to the problems of illegal immigration or the re-settlement abroad of Vietnamese refugees. Such public exposure keeps departments on their toes, for if egg lands on the face of its head in public, it is likely to be followed rapidly by reverberations down the line. Sometimes the objective of questions may not at first be entirely foreseen:

Miss Dunn: 'Sir, what are the regulations governing the employment of women workers

at night in the manufacturing and the commercial sectors?'

Commissioner for Labour: 'Sir, this is governed by the Factories and Industrial Under- takings Regulations. Briefly these state that women workers cannot be employed before 6 a.m. or after 8 p.m. . . .'

Miss Dunn: 'Sir, in these enlightened times, what is the logic behind divesting adult

women of their own free will to choose to work at night?'

Commissioner for Labour: '. . . There is at present a debate in the ILO, EEC and elsewhere concerning what is the right balance between equality of rights of women and restrictions designed for their protection. I shall observe these debates carefully and review the situation fundamentally in a year or two.'

Miss Dunn: 'Sir, is it not inconsistent to restrict night work for women workers in the manufacturing sector but not in the commercial sector, where conditions of work may not necessarily be more tolerable?'

Commissioner for Labour: 'Miss Dunn certainly has a point in logic, although there is

not in that sector the employment of women in shift work on a large scale. ...'

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Miss Dunn: Will the Government consider abolishing all restrictions on the

employment of adult women workers at night . . .?' Commissioner for Labour: 'Not at this time, Sir."

Mr Cheung: 'On the whole, is not the lot of women employed in factories and in commercial establishments much better than that of the housewife who has to work at home without servants (laughter)?'

Commissioner for Labour: 'That is a matter on which I think I would be wiser not to

pass a personal opinion (laughter)!'

(Hong Kong Hansard, 1979-80, pp. 279-80) Nor must the philosophical and creative role of members be forgotten. Twice a year, in the major wide-ranging debates which follow the Governor's Address in October at the opening of the new session of the council, and in March following the introduction of the Budget, Unofficial Members have the occasion to voice their ideas, concerns or criticisms. The Government takes note of them, and the Official Member responsible for the subject replies. The debates are widely covered in the 15 or so major daily newspapers published in Hong Kong, so the public can observe and judge both the original speeches and the responses. Not infrequently the seeds that grow into new policies and programmes can be traced back to ideas first put forward by Unofficials in these debates.

Consulting the People

Every Constitution grows its own distinctive features. Much in Hong Kong's the separation of the powers of Executive, Legislature and Judiciary; the control over finance by the Legislature; the independence of the judges; the crucial role of the Rule of Law - is drawn and adapted from Britain's long experience. But the great Hong Kong innovation, the really local and distinctive feature of its system of government, is its elaborate consultative process. The deep and wide-ranging system by which Government seeks, obtains and acts on advice from the private sector of the community is a home-grown plant of which Hong Kong can justly be proud. The effectiveness of such consultation is vital to social stability in a community whose Government is not and cannot be elected.

Politics in Hong Kong truly, and necessarily, are consensus politics, as the Secretary for Home Affairs suggested in an address to the Hong Kong Management Association in 1975: 'The Hong Kong Government proceeds by consensus rather than debate. . . A Government newly-elected on the basis of a political programme can ride roughshod over even quite substantial minorities; this we would not and cannot do here. Consensus implies consultation, negotiation and compromise on a scale that would be unacceptable to a party returned to power by an election . . . (these) all require participation by the public. . . and on its side the Government has to be amenable to public opinion.'

...

In Hong Kong there is no less political argument in the wide meaning of the words, no fewer different opinions, no less pressure from interested groups, than elsewhere in the world. The difference is that in Hong Kong the Government seeks reconciliation of differing opinions, on whatever subject, through a process of discreet and patient consultation which aims to achieve the most rational and pragmatic advice. 'What will work best in practice?' is the question asked rather than whether the decision fits any preconceived political theory.

So, in the Hong Kong scheme, interested and expert groups at all levels in the com- munity play a vital part in the processes of government. Beneath ExCo and LegCo, but unconnected directly with them, sits a network of advisory boards and committees, some

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320 in all, composed mainly of unpaid private citizens, knowledgeable and experienced in their subject. These bodies may be organised on a functional, a regional or an ad hoc basis. They exercise not just a significant but often a crucial influence in the formulation of policy, and act too as an important weathervane of its likely acceptability. The members inject their practical experience and expertise into areas where civil servants may sometimes possess only a theoretical knowledge. So, allying the practical to the theoretical, a pragmatic Hong Kong solution to most problems is achieved.

      Of the boards and committees, some are concerned with particular industries or trades, such as the Textiles Advisory Board which sat in session in Brussels for a fortnight in 1982 advising whilst the Government negotiated with the EEC; others deal with subjects of concern to the public or sections of it, such as transport, banking, law reform, social welfare, housing, tertiary education and most other topics under the sun; yet others are regional: for instance local committees taking an active part advising how to 'Fight Crime' or 'Clean Hong Kong' in their own area. The Heung Yee Kuk, the long-established elected body representative of villagers in the New Territories, speaks with a particularly influential voice for the indigenous inhabitants of those areas.

In 1982 there was a significant extension of the consultative process with the addition of elected members to the District Boards, so that the knowledge of the inhabitants about their locality, its problems and needs, could be tapped, and their advice made available to the public servants from Housing, Transport, the Police and Urban Services who form the local District Management Committees. In 1983, the Urban Council, that body which like Topsy has grown and grown from its first genesis in 1887 as the Sanitary Board until today its functions range from liquor licensing and control of hawkers to the provision of recreational facilities and entertainment in the parks and concert halls of Hong Kong, is to have its 15 elected members each also representing a constituency.

So, at every level and in every area, the people put forward the advice which guides and forms policy, until in ExCo and LegCo the final decisions are taken which shape the society in which all live.

The Hub of the Wheel of State

     This article is a view and an explanation, as one man sees it, of what Hong Kong has become today, and what has allowed it to flourish and grow. One sees in action and interaction the Constitution, the Laws, the Rule of Law, the whole elaborate network of consultation, each part dependent upon the others: remove just one of them and the inter-linked machine might well break down. Together they comprise a formula which has worked well in practice, and is the bedrock on which the increasing prosperity of the people has been built. But this short explanation necessarily falls short of being the full story of Hong Kong's evolution. That is a strange story. Caught between two worlds, East and West, taking some would say the best from each, a society with many of the trappings of a State has emerged. To an outsider, Hong Kong will probably always be hard to comprehend, for he can know little of its past, and the influences which have shaped its growth. He expects to find a hybrid, the differing strains of whose lineage can be isolated and identified. But not so, for a historian observing Hong Kong and its institutions today, would be likely to see not a hybrid but the sole species of a unique genus.

In default therefore of the perfect analysis, we should perhaps accept an image from nature. What was once 'that barren island' in the terms of Hong Kong's most famous cliché has raised a flourishing society. The prosperity of that society, of the polyglot city called Hong Kong, depends ultimately on confidence and confidence is a very fragile

URBAN COUNCIL LIBRARIES Reference Library City Hall

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flower. Its roots are fed by, and are totally dependent upon, an international appreciation which is shared by its own businessmen, merchants and professionals, whether local or foreign, that Hong Kong has set its face absolutely against sudden change by headstrong Government. Indeed that an absence of arbitrary action is not only guaranteed by the Constitution but also, just as important, has long been demonstrated as a fact by history. To develop the image, the Constitution and its conventions, as I describe them above, are the fertile topsoil in which the flower of confidence, delicate though it is by nature, has been enabled to grow and set forth its blooms.

     But vital to prosperity and success though the Constitution and the Laws have been, they alone have not produced prosperity; they have been a conduit through which the irrepressible enterprise and industry of the people has been enabled to flow. To borrow another ancient metaphor, the Constitution is the point around which the economy turns:

"Thirty spokes share the wheel's hub;

But it is the axle hole which alone makes it useful.'

(Lao Tsu: Tao Te Ching)

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Industry and Trade

FACED with a prolonged recession in many of Hong Kong's major trading markets, the manufacturing industry as a whole did well to record an overall rate of growth during 1982, although not surprisingly it was below that set in 1981.

     The value of domestic exports in 1982 amounted to $83,032 million three per cent more than in 1981.

To streamline the government's role in industry and trade, the Trade Industry and Customs Department was divided into three separate departments from August 1, 1982- the Trade Department, the Industry Department and the Customs and Excise Department. Also a new policy branch was created within the Government Secretariat, under a Secretary for Trade and Industry.

The responsibilities of the three new departments largely match those of the former three sub-departments in the Trade Industry and Customs Department. The Secretary for Trade and Industry has taken over from the Secretary for Economic Services policy responsibility for trade and industry, as well as for those functions of the Customs and Excise Department which relate to trade controls and the enforcement of international trade obligations. Policy responsibility for revenue protection and anti-narcotics func- tions of the Customs and Excise Department remain with the Finance Branch and the Security Branch.

      Meanwhile the major factors that have given Hong Kong its international reputation as a leading manufacturing and commercial centre were maintained. Among these 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 port, 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, and neither protects nor subsidises manufacturers.

Industrial Development and Industrial Land

Light manufacturing industries, producing mainly consumer goods, predominate in Hong Kong. About 67 per cent of the total industrial workforce is employed in the textiles,

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clothing, electronics, plastic products, toys, and watches and clocks industries. These industries accounted for 72 per cent of Hong Kong's total domestic exports in 1982 and are likely to continue to predominate, despite the fact that industrial diversification continues to be a feature of the overall economic scene.

The Hong Kong Industrial Estates Corporation, a statutory body established in March 1977, develops and manages industrial estates which are intended to accommodate industries with a relatively high level of technology that cannot be operated in ordinary multi-storey factory buildings which house the bulk of Hong Kong's industries. The first two stages of the Tai Po Industrial Estate now provide 45 hectares of land for allocation to industries while the third stage, presently under construction, will produce a further 20 hectares by 1985. A second estate, which is now being built at Yuen Long, will provide an additional 65 hectares of land. This estate is scheduled for completion in 1983. By the end of the year, 193 applications had been received by the corporation and sites had been granted to 37 companies in the Tai Po and Yuen Long Industrial Estates.

     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 factories are fully serviced four-storey buildings with units constructed with maximum flexibility to suit the varied requirements of potential occupiers.

     Outside the industrial estates, 26 sites with an overall area of 101 380 square metres were sold for industrial use in 1982. Special development conditions were attached to nine 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 accom- modate, in permanent buildings, squatter workshops and small operators cleared for public purposes. Four factory blocks were completed in 1982 comprising 5 038 units normally of 25 square metres each.

Industrial Development Board

    During 1982, the Industrial Development Board continued its work in respect of industrial support facilities and technical back-up services for industry. On its advice, the Industry Department made progress in establishing a standards and calibration laboratory to provide facilities for industry's needs, with a view to later extension to other fields of measurement. Consultants from Australia and Hong Kong were commissioned to advise on accreditation of testing laboratory services, technology transfers, and, based on techno-economic studies, the development of the electronics industry and the metals and light engineering industries. With the board's support, three micro-electronic projects were under various stages of implementation in the two universities and the Hong Kong Polytechnic.

     The Industrial Development Board is chaired by the Financial Secretary and comprises representatives of trade and industry, the academic field and government officials. It has two committees, the Advisory Committee on Science and Industrial Research to advise on technical matters relating to science and industrial research, and the Advisory Committee on Technical Information for Industry Services to advise on the provision and dissemination of technical information to industry.

INDUSTRY AND TRADE

Industrial Investment Promotion

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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.

Industrial investment promotion missions were undertaken in Australia, Austria, Britain, Denmark, the Federal Republic of Germany, France, Italy, Japan, Norway, Sweden and the United States. These missions were combined, where appropriate, with participation in or visits to industrial and technology exchange fairs. The Industry Department also held a series of investment seminars in Japan and Europe to publicise the investment climate in Hong Kong.

       1982 saw the establishment of industrial investment promotion offices in Japan, Britain, West Germany and the United States. Details are at Appendix 2. These offices enlarge the scope of Hong Kong's overseas industrial promotion activities and are assisted at their home base in Hong Kong by a One Stop Unit which provides the necessary support and follow-up on projects generated by the overseas offices.

      Recognising the important role played by local entrepreneurs in Hong Kong's industrial development, the Industry Department placed emphasis on publicising the services of the One Stop Unit locally and organised a series of investment seminars for local industrialists in conjunction with the Chinese Manufacturers' Association of Hong Kong, the Hong Kong General Chamber of Commerce, the Federation of Hong Kong Industries, the Hong Kong Industrial Estates Corporation and the Hong Kong Productivity Centre. A large number of local companies responded and have registered their interests in co-operation. with overseas companies.

       The United States continued to be the biggest single source of industrial investment in Hong Kong, accounting for some 47 per cent of the total. In second place was Japan with 30 per cent and Britain was in third place with about six per cent of the total. A survey in August 1981 indicated that altogether the companies with overseas interest employed some 90 000 workers, representing about 10 per cent of the total industrial employment in Hong Kong. These companies had a combined output of over HK$17,000 million of which over HK$11,000 million-worth of products was exported, representing some 17 per cent of Hong Kong's domestic exports. The principal activities of these companies are in electronics, textiles, electrical products, chemicals, watches and clocks, and food and beverages.

      The Hong Kong/Japan Business Co-operation Committee continued to work closely with its counterpart in Japan. Its activities during the year included the organisation of a series of investment seminars in Japan.

Textiles and Clothing

The textiles and clothing industries are Hong Kong's largest, together employing about 41 per cent of the total industrial workforce and producing some 41 per cent by value of total domestic exports. The spinning and weaving sectors experienced adverse con- ditions in 1982 due to sluggish demand and strong competition. Export earnings by the clothing sector remained stable in 1982, despite the continued implementation of measures contained in the export restraint agreements which Hong Kong has negotiated with the most important of its overseas trading partners. Total domestic exports of textiles and clothing in 1982 were valued at $33,876 million, compared with $33,590 million in 1981.

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The output of cotton yarn was 127 million kilograms in 1982, compared with 129 million kilograms in 1981. Production of man-made fibre yarn and cotton/man-made fibre blended yarn was 25 million kilograms in 1982, compared with 37 million kilograms in 1981, and production of woollen and worsted yarn was four million kilograms, compared with five million kilograms the previous year. Most of the yarn produced was used locally.

The weaving sector, with 22 935 looms, produced 618 million square metres of woven fabrics of various fibres and blends, compared with 713 million square metres in 1981. The bulk of the production - 90 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.

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     The knitting sector exported 13 million kilograms of knitted fabrics of which 22 per cent was of man-made fibres or blended cotton/man-made fibres, and 78 per cent was of cotton compared with 14 million kilograms in 1981. 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 texturising, multi-colour roller and screen printing, transfer printing, pre-shrinking, per- manent pressing and polymerising.

The clothing sector is the largest single sector within the manufacturing industry, employing some 277 776 workers or about 32 per cent of the total industrial workforce. Domestic exports of clothing in 1982 were valued at $28,824 million, compared with $28,288 million in 1981.

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 1982 were valued at $8,455 million, compared with $9,174 million in 1981. The industry com- prises 1 305 factories employing 85 946 workers. It produces a wide range of products, including radios, computer-memory systems, calculators, transistors, integrated circuits, wafer chips for integrated circuits, semi-conductors, prepackaged electronic modules, television sets, electronic games, smoke detectors, burglar alarm systems, micro-computers and telecommunication equipment comprising digital dialers, cordless telephones and telephones with built-in memories. 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 1982. Domestic exports during the year were valued at $7,869 million, compared with $6,706 million in 1981. The industry has 5 104 factories and 83 043 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 experienced a difficult year in 1982, particularly the electronic watches and clocks sector due mainly to over-supply and strong competition among local manufacturers and from neighbouring countries. The industry also encountered serious import restrictions in France. Domestic exports during the year were valued at $7,452 million compared with $7,409 million in 1981. The industry has 1810 factories employing 45 414 workers. Production includes both mechanical and electronic watches, clocks, watch cases, dials, metal watch bands, assembled watch movements and watch straps of various materials.

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Other important light industries produce travel goods; handbags and similar articles; metal products; jewellery; domestic electrical equipment; electrical machinery, apparatus and appliances; and optical and photographic goods.

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 and, more recently, the construction of oil rigs for exploration activities.

       The port of Hong Kong, which ranks among the top three container ports in the world, handled approximately 1.69 million TEU's 20-foot equivalent units in 1982.

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

The manufacture of machinery, machine tools and their parts provides support to other local industries and also contributes to Hong Kong's export trade. Of particular importance are blow moulding, injection moulding, and extrusion machines of up to 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 electroplating equipment.

Industry Department

The Director of Industry is assisted by a deputy director and four assistant directors who head the Environment and Resources Division, the Industrial Development Division, the Promotion Consultancy Division and the Science and Technology Division.

       The Environment and Resources Division handles a wide variety of issues in its effort to look after the interests of the industrial sector. The division maintains close liaison with local trade and industrial organisations in representing their views to relevant government departments. Among specific subjects dealt with are the monitoring of raw material supplies (in particular fuel and other essential oil products), the provision of adequate infrastructural facilities including the smooth movement of freight within and outside Hong Kong at equitable freight rates, and the examination of the effects of environmental legislation on industry.

      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 organisations. It also advises the government on industrial land matters.

      The Promotion Consultancy Division is responsible for providing comprehensive infor- mation about Hong Kong to potential investors and assisting them in the evaluation and establishment of manufacturing projects in Hong Kong. Overseas industrial pro- motion offices are established in Japan, the United States of America, West Germany and Britain.

      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, transfers of technology, and research and development; an Electrical and Electronics Standards Measurement and Calibration Laboratory which provides calibration service to both the public and private sectors; a Standards Branch responsible for the administrative aspects of product standards, quality certification services and accreditation of testing laboratories; a Weights and

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Measures Branch responsible for up-dating current legislation on weights and measures and subsequent implementation; and an Exhibition Centre Branch responsible for the management of an overseas consultancy for the planning of an international exhibition centre in Hong Kong.

External Trade

Total merchandise trade in 1982 amounted to $270,277 million, an increase of four per cent over 1981. Imports went up by three per cent to $142,893 million; domestic exports by three per cent to $83,032 million and re-exports by six per cent to $44,353 million. Domestic exports and re-exports together, valued at $127,385 million, registered an increase of four per cent. Appendices 3 and 4 provide summary statistics of external trade.

     Hong Kong is almost entirely dependent on imported resources to meet the needs of its population of over five million and its diverse industries. In 1982, imports of raw materials and semi-manufactured goods totalled $56,444 million, representing 40 per cent of total imports. The principal items imported were fabrics of man-made fibres ($6,068 million), iron and steel ($4,035 million), woven cotton fabrics ($3,657 million), transistors, diodes, semi-conductors and integrated circuits ($3,528 million), watch and clock movements, cases and parts ($3,437 million), and plastic moulding materials ($2,828 million).

     Imports of consumer goods, valued at $38,614 million, constituted 27 per cent of total imports. The major consumer goods imported were clothing ($6,464 million), diamonds ($3,660 million), radios, television sets, gramophones, records and tape recorders ($2,984 million), watches ($2,724 million), jade and precious stones, ivory, jewellery, goldsmiths' and silversmiths' wares ($1,580 million).

     Imports of capital goods amounted to $19,943 million, or 14 per cent of total imports. Imported capital goods consisted mainly of transport equipment ($3,600 million), electrical machinery ($2,674 million), electronic components and parts for machines ($2,591 million), office machines ($1,263 million), and industrial machinery other than electrical and textile machinery ($1,073 million).

Imports of foodstuffs were valued at $16,785 million, representing 12 per cent of total imports. The principal imported food items were fish and fish preparations ($2,697 million), fruit ($2,252 million), meat and meat preparations ($2,024 million), and vegetables ($1,907 million).

     Some $11,107 million of mineral fuels, lubricants and related materials were imported in 1982, representing eight per cent of total imports.

China and Japan were the two principal suppliers of imports in 1982, providing 23 per cent and 22 per cent, respectively, of the total; China alone supplied 47 per cent of Hong Kong's imported foodstuffs. The United States ranked third, providing 11 per cent of total imports, followed by Singapore, Taiwan, the United Kingdom, the Republic of Korea and West Germany.

     Clothing remained the largest component of domestic exports in 1982, valued at $28,824 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 $15,589 million, representing 19 per cent of total domestic exports. Photographic apparatus, equipment and supplies, optical goods, watches and clocks amounted to $8,148 million, or 10 per cent of the total. Domestic exports of electrical machinery, apparatus and appliances, valued at $6,055 million, contributed another seven per cent of the total. Other important exports included telecommunications and sound recording and reproducing apparatus and equipment

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23

(seven per cent of the total), textiles (six per cent), and office machines and automatic data processing equipment (three per cent).

The direction and level of Hong Kong's export trade are very much influenced by economic conditions and commercial policies in major overseas markets. In 1982, 61 per cent of all domestic exports went to the United States and the European Economic Community. The largest market was the United States ($31,223 million or 38 per cent of the total), followed by the United Kingdom ($7,187 million or nine per cent), West Germany ($7,031 million or eight per cent) and China ($3,806 million or five per cent). Domestic exports to Japan and Australia increased to $3,167 million and $2,832 million respectively, with Japan representing four per cent and Australia three per cent of total domestic exports. Other important markets were Canada and Singapore.

      Re-exports continued to increase in 1982, accounting for 35 per cent of the combined total of domestic exports and re-exports. The principal commodities re-exported were textiles ($6,431 million), electrical machinery, apparatus and appliances ($3,420 million), photographic apparatus, equipment and supplies, optical goods, watches and clocks ($3,218 million), and clothing ($3,021 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 Department within the framework of a basically free trade policy. Hong Kong practises, to the full, the rules of the General Agreement on Tariffs and Trade (GATT). Virtually the only restrictions maintained on trade are those required by international obligations. Most prominent among these are restraints on textile exports to major trading partners in Europe and North America. All these restraint arrangements were negotiated under the Arrangement Regarding International Trade in Textiles, commonly known as the Multi- Fibre Arrangement (MFA). A feature of the MFA is the Textiles Surveillance Body (TSB) which supervises its implementation. A Hong Kong representative sat on the TSB as an alternate member to the representative of the Republic of Korea in 1982.

The third term of the MFA, for four years and seven months, came into effect on January 1, 1982. It has been accepted by Hong Kong and over 40 countries, including Hong Kong's major trading partners.

Co-ordination among developing exporting members of the MFA which contributed significantly to the preservation of their interests during its renegotiation in 1981, con- tinued in 1982. At the two formal co-ordination meetings held in Geneva in April and August/September, developing exporting members arrived at a common interpretation of certain provisions of the protocol extending the MFA and exchanged views on their bilateral textile negotiations with developed importing countries. Hong Kong participated in both meetings.

Following two rounds of textile negotiations held in February and March, a bilateral agreement was concluded covering Hong Kong's exports of cotton, man-made fibre and wool textiles to the United States. The agreement has a duration of six years from January 1, 1982, and incorporates a new restraint structure.(Exports in 24 categories of textile products are subject to specific restraint while exports in all other categories, constituting one-third of Hong Kong's textile exports to the United States, have been liberalised. These latter categories have been placed under an export authorisation surveillance system operated by the Trade Department.

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The bilateral textiles agreement between Hong Kong and the European Economic Community covering the five years commencing 1978 expired at the end of 1982. Following negotiations under the MFA, a new bilateral agreement was concluded with the EEC which has a duration of four years from January 1983, and covers all Hong Kong's exports of cotton, man-made fibres and wool textiles, to the EEC. Under the new agreement, exports in 46 categories of textile products are subject to quantitative restraint, while exports in the remaining categories are subject to the department's Export Authorisation System.

      Negotiations between Hong Kong and Canada were held in February 1982 with a view to concluding a long-term agreement governing most of Hong Kong's exports of cotton, man-made fibre and wool textiles to Canada. As a result of these negotiations, an agreement of five years' duration was reached with effect from January 1, 1982. The agreement provides for specific restraint on 16 textile categories while exports in 10 other categories are subject to the export authorisation surveillance system.

      Under the MFA, bilateral agreements were renegotiated during the year with Finland, Switzerland and Austria. The agreement concluded with Sweden in 1981 remains effective until March 1983. Under the terms of the agreements, exports of certain textiles from Hong Kong to these countries were placed under restraint or surveillance.

      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, in its report submitted to the GATT Council in March 1980, concluded 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.

      France maintains quantitative restrictions against imports from Hong Kong in respect of a number of products, including quartz watches. Hong Kong believes that the French action is discriminatory against Hong Kong and is in contravention of France's obligations under the GATT. Several rounds of consultations on the issue were held with the Commission of the European Communities, representing France, but did not produce a mutually acceptable solution. As a result, in September 1982 Hong Kong requested the GATT to convene a panel to consider its complaints against the French action and to make a ruling on the matter.

     A major event in GATT activities during 1982 was the ministerial meeting held in November in which Hong Kong participated fully. The meeting was designed to give impetus to improve the multilateral trading system. At the meeting, ministers discussed the problems affecting the trading system, the position of developing countries in world trade, future prospects for the development of trade, and future priorities for co-operation among GATT contracting parties. The meeting concluded with the adoption of a ministerial declaration whereby the contracting parties of the GATT reaffirmed their commitment to abide by their GATT obligations and to further liberalise international trade. The declaration also covered various specific issues, of which the most significant to Hong Kong concerned world trade in textiles and clothing. It was agreed that an in-depth study on that

INDUSTRY AND TRADE

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sector of trade and an examination of the methods of procedure of further liberalisation would be carried out speedily.

       Generalised schemes of preference are operated by most developed countries to promote the export of goods from developing countries and territories. Apart from Finland, all developed countries operating such schemes include Hong Kong as a beneficiary. The schemes allow duty-free or reduced tariff entry for most agricultural and industrial products from beneficiaries, but certain products from Hong Kong are specifically excluded from the schemes operated by Australia, Austria, Japan, Norway, Switzerland and the USA. Hong Kong has consistently made it clear that it seeks no special advantages under these schemes, but simply treatment similar to that accorded to close competitors. The difference in treatment has been the subject of continuing official exchanges which have resulted in gradual improvement of Hong Kong's position in certain schemes. In 1982, Switzerland decided to phase out by 1983 the unfavourable tariff treatment for two products from Hong Kong under its scheme.

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. All import licences and export licences covering products other than textiles are issued free. A fee is, however, charged on each application for a textile export licence and certain other applications under the textiles export control system.

Since August 1, 1980, all textile imports have been 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. In accordance with action taken by the United Kingdom, the government enacted the Import Prohibition (Argentina) Regulations 1982 on April 13 to prohibit imports from Argentina except those for transhipment or re-export to China. The regulations were amended on April 20 to prohibit, in addition, imports of Argentinian products from third countries and to exempt those goods which left Argentina before April 13.

      With Hong Kong's dependence on the export of manufactured goods - mostly made from imported materials - and on the substantial re-export trade, a certification of origin system to meet the requirements of overseas customs authorities is important. The Trade Depart- ment 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 the Customs and Excise Department, overseas customs 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 Manufacturers' Association of Hong Kong and the Chinese General Chamber of Commerce. The value of domestic exports covered by certificates of origin issued by the department and the five approved organisations during 1982 was estimated at $19,284 million, of which $11,590 million was covered by government-issued certificates.

       Form 'A' certificates are issued by the Trade Department to support exports claiming preferential entry into countries which grant tariff preferences to Hong Kong under generalised preference schemes. The five government-approved certification organisations are authorised to issue Form 'A' certificates for exports to Austria, Canada, Japan, New Zealand, Norway and Switzerland. In 1982, the value of exports covered by Form 'A' certificates amounted to $16,174 million.

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Eight Commonwealth countries continue to grant Commonwealth preferential rates of duty to Hong Kong products. To support claims of preference to these countries, the Trade 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 1982 was $9 million.

An estimated 43.6 per cent of Hong Kong's domestic exports are covered by origin certificates of one type or another - 33.9 per cent of them by government-issued certificates. The Hong Kong Trade Facilitation Council (TFC), which became an independent incorporated body in 1981 and whose main function is to simplify trade documents and procedures, is partly subvented by the government and composed of representa- tives of government, trade and industrial organisations. A number of modern methods to facilitate the preparation of trade documents was introduced in 1982. Representa- tives of the TFC also attended a series of international trade facilitation meetings held in Europe and China. These provided opportunities for Hong Kong to learn from, and exchange views with, other bodies concerned with trade documentation and trade procedures.

Trade Department

The responsibilities of the Trade Department include the conduct of overseas commercial relations, certification of origin, and export and import licensing, including textiles and reserved commodities.

On matters of policy affecting trade, the Director of Trade relies on advice from the Trade Advisory Board and the Textiles Advisory Board, through the Secretary for Trade and Industry.

The department's work is assisted by four overseas offices of the Hong Kong Government, in London, Brussels, Geneva and Washington. Details are at Appendix 2. Previously part of the Trade Industry and Customs Department, the offices are now administered by the Councils and Administration Branch of the Government Secretariat, although much of their business remains trade related. They represent Hong Kong's commercial relations interests on a day-to-day basis and provide information on international developments which may affect Hong Kong. During the year, the decision to establish a further office - in New York - was announced.

      The Director of Trade is assisted by two deputy directors and five assistant directors. One deputy heads the Multilateral and North America Group while the other heads the Rest of the World and Textile Systems Group.

      The Multilateral and North America Group comprises two divisions, each headed by an assistant director. One division is responsible for Hong Kong's external commercial relations and internal quota administration in respect of North America (USA and Canada) including the preparation for, and conduct of, trade negotiations, and the collection and dissemination of information on trade policy measures taken by the countries concerned which may affect Hong Kong. The second division is responsible for Hong Kong's multilateral 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 director. One division is responsible for Hong Kong's external commercial relations and internal quota administration in respect of the EEC, Portugal, Spain and Turkey, including the preparation for, and the conduct of, trade negotiations,

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and the collection and dissemination of information on trade policy measures taken by the countries concerned which may affect Hong Kong. Another division has the same responsibility for the other regions (that is, other than the EEC and North America). The third division is responsible for over-seeing 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, origin certification, the import and export licensing of commodities other than textiles, and a rice control scheme.

Customs and Excise Department

The Customs and Excise Department was established on August 1, 1982, following the division of the Trade Industry and Customs Department into three separate departments. The head of the department is the Commissioner of Customs and Excise. He is assisted by a deputy commissioner and two assistant commissioners, one of whom is in charge of the Customs and Excise Service while the other heads the Administration and Trade Controls Division.

The Customs and Excise Service is a disciplined and uniformed 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 and Trade Controls Division is responsible for the receipt of trade declarations and the collection of the ad valorem charge and clothing levy; for routine inspections of factories and consignments in connection with applications for certificates of origin, import and export licences, trade declarations, manifests and reserved commodities; investigation of fraud in this field and the enforcement of the Trade Descriptions Ordinance and design copyright aspects of the Copyright Ordinance; and the handling of trade complaints generally.

In 1982, the division completed 40 757 inspections of factories and consignments, 1 611 costing checks in connection with applications under the Generalised Systems of Preference (Form 'A'), and 24 403 inquiries and verifications relating to trade declarations and manifests. It conducted 7 678 associated assessments resulting in the collection of $2.4 million in ad valorem charges and administrative penalties.

      The division also completed a total of 1 276 cases resulting in the imposition by the courts of fines amounting to $6.8 million and prison sentences of up to two years. Under the Trade Descriptions Ordinance, goods valued on the market at $20 million were seized, while goods valued at $5.4 million were forfeited to the Crown.

Hong Kong Trade Development Council

A statutory body established in 1966, the Hong Kong Trade Development Council 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 council 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 miscellaneous income from sources such as advertising fees and sales of publications.

      The staff of the council carried out an extensive trade promotion programme in 1982, organising about 80 major international projects. These included an economic mission to Europe, covering Austria, Belgium, France and the Netherlands, and another to Australia and New Zealand. These missions were aimed at developing trade opportunities

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by strengthening high-level contacts with senior government officials and business and industrial leaders in the host countries.

In addition to activities in Hong Kong's major trading partner nations, the council also mounted a number of promotions in less-developed markets during the year, including a major exhibition of Hong Kong-made products in Jeddah, Saudi Arabia, with a view to helping manufacturers diversify their export markets. Reflecting the growing role of China in Hong Kong's external trade, members of an official mission of the council to China held meetings in Beijing, Shanghai and Guangzhou in late October and early November to discuss the development of mutually beneficial trade between Hong Kong and China. Other promotional activities organised in 1982 included promotions of Hong Kong products, particularly garments, with chain stores in Japan, and participation in many international trade fairs around the world notably the Nuremburg International Toy Fair, the American Toy Fair in New York, 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 International Toy Fair, and Cairo International Fair.

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In addition, the Trade Development Council organised business group visits to Europe, North and South America, the Middle East, Africa, Japan and Australia both to explore new markets and consolidate existing trade ties. Similar groups from overseas regularly visit Hong Kong, and in 1982 the council received inward missions from Panama, Britain, France, Germany, China, Japan, Mexico, Austria, Sweden and the USA.

The council organised the eighth Hong Kong Toy and Gift Fair and acted as advisor to the Hong Kong Electronics Fair and to the first Hong Kong Watch and Clock Exhibition. All three were held in Hong Kong in October.

     The Trade Development Council produces four regular publications, mainly for circu- lation 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. It also puts out several newsletters in various languages to keep overseas businessmen informed of the latest financial and industrial developments in Hong Kong.

     In 1982, the council expanded and upgraded its international network with the opening of a new office in Mexico City and a move to larger premises in Sydney. Besides its headquarters in Hong Kong, and a local branch in Tsuen Wan, the council has staff in 22 cities, and consultants in three cities, throughout the world. Details are at Appendix 2.

Hong Kong Export Credit Insurance Corporation

In the climate of world recession during 1982, the government-owned Hong Kong Export Credit Insurance Corporation (ECIC) provided a valuable safeguard for Hong Kong's manufacturers and traders.

     Protection against country and buyer risks is provided by the ECIC at 90 per cent indemnity. Increasing use of the corporation's facilities continued during the year: some developing countries were suffering from a shortage of foreign exchange or involved in wars, while in developed countries - where Hong Kong's major customers are found - the incidence of bankruptcy grew considerably.

The ECIC covers all manner of short term credits and payment methods such as open account invoices, documents against acceptance, documents against payment, and a range of letters of credit, up to a maximum credit period of 180 days after delivery. The corporation's protection is also available for the sale overseas of capital and semi-capital

ENERGY

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Providing the Power

Rising demand for energy in Hong Kong has spurred major power development programmes to meet the needs of its manu- facturing and service industries, and as heavier domestic consumption resulting from better standards of living. The two main electricity companies have commis- sioned new plants: at Castle Peak, to serve Kowloon and the New Territories and on Lamma Island to provide power for nearby Hong Kong Island, as well as Lamma and Ap Lei Chau. These massive schemes will ensure that electricity require- ments are met until late into the 1990s. Generators at the new plants are designed to be fired by either coal or oil, with coal at present the preferred fuel on grounds of cost and availability. Even so, with oil exploration underway in the South China Sea, exciting prospects may emerge for Hong Kong. The territory is well- positioned to play a major role as a service centre for offshore exploration and sub- sequently as a support base in any oil field development. An area of land on Lantau Island has already been pin-pointed as such a base. And one of Hong Kong's oldest industries, shipbuilding, has con- tributed to the energy industry's world- wide requirements with the launching of the first locally-built offshore jack-up oil rig during the year. With gas as another important source of power, an extensively redeveloped Towngas plant in Kowloon became fully operational in May. Solar power, a natural source of energy, is also being used for lighting and water heating in some commercial buildings. And feasi- bility studies into the construction of a joint China-Hong Kong nuclear power station in Guangdong continue.

Previous page: Advanced technology

comes to tranquil Lamma Island with the construction of a power station to serve Hong Kong's electricity needs. Left: A solar-powered lighthouse aids shipping approaching Victoria Harbour; solar panels heat the water supplies for a Tsim Sha Tsui office block; early 1900s gas lamps retained in Central District.

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Conveyor belts will transfer some 2.6 million tonnes of coal annually from ship to shore on Lamma Island to fuel Hong Kong Electric Company's 1 700-megawatt power station when the plant is running at full capacity.

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Technicians and maintenance staff are dwarfed by a 120-megawatt turbo generator being overhauled at Tsing Yi Power Station. Operated by China Light and Power Company, the plant supplies electricity to Kowloon and the New Territories.

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Initial alignment of a turbine rotor for a 350-megawatt unit takes place at Castle Peak Power Station, officially opened in September 1982 by British Prime Minister the Rt Hon Margaret Thatcher. The plant and transmission involve an investment of $30 billion by China Light and Power Company and Eastern Energy.

Two additional naphtha plants, each producing some 390 000 cubic metres of gas per day, were commissioned during the year as part of the expansion programme for the production of Towngas at the Ma Tau Kok works.

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   One of Hong Kong's smaller islands, Cheung Chau, which is well-populated, has its own power station serving 18 000 households.

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The final stages in the construction of the first Hong Kong-built offshore jack-up oil rig, launched in April at a Tsing Yi Island shipyard. A joint venture between local and British interests, the project marked the start of a new industry for Hong Kong.

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INDUSTRY AND TRADE

29

goods sold on medium or long-term credit with instalments over five years or longer. It provides its clients with a credit control service, and through an international credit information network checks the credit rating of all overseas buyers of its policy-holders. Trading and financial records are kept of some 40 000 overseas buyers

                                                         the most comprehensive confidential reference library of its type in Hong Kong.

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

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

      The corporation's paid up capital of $20 million was provided by the government, which also guarantees the corporation's liabilities created by its insurance and guarantees operations. The statutory limit of this guarantee was raised from $2,500 million to $3,000 million in May 1982. The corporation does not receive any subvention and operates on a break-even basis taking one year's results with another. In its daily business activities, the corporation resembles private enterprise and markets its services in a commercial manner.

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

During 1982, more than $4 billion-worth of goods and services were insured by the ECIC, which earned a premium income of close to $21 million. Some 149 claims were paid, involving a total of nearly $24 million, and the ECIC suffered an underwriting loss.

Highlights of the year included hosting the winter meeting of the Berne Union during February, when 110 delegates from 29 countries gathered in Hong Kong. The ECIC's computer systems were further developed during the year, and simpler and more efficient means of providing policyholders with protection were established.

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, representing 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 consultancy and technical services ranging from electronic data processing, feasibility studies and production management, to techno-economic studies and technology transfer. It also conducts a wide range of training programmes in industrial technology, management techniques and electronic data processing. In addition, it organises industrial exhibitions and overseas study missions, and operates a technical information service.

30

INDUSTRY AND TRADE

      The centre's facilities include seven classrooms, electronic data processing facilities, a microprocessor application laboratory, a low cost automation unit, an industrial chemistry laboratory, a metal finishing laboratory, a heat treatment unit, a die-casting unit, an environmental control laboratory, a technical reference library and an on-line information retrieval service.

      With the implementation of the relevant recommendations of the Advisory Committee on Diversification, the role of the centre has been expanded from what was essentially a training and consultancy organisation to one charged with the broader responsibilities of providing industry support services.

During the year, the centre was commissioned by the Industrial Development Board to carry out the techno-economic studies on the metals and the electronics industries. Funding was approved for the expansion of the centre's microprocessor application laboratory and the expansion of the metals finishing unit as part of the metals industry development project. The centre was appointed by the government to carry out a detailed study of the scope for designing specialised multi-storey factory buildings and modifying certain industrial processes.

The response of industry to the enlarged industry support facilities approved by the Industrial Development Board was favourable. Following an active promotion campaign, there was an increase in demand for heat treatment services. Services were expanded to include the treatment of components (e.g. springs and high quality screws) in addition to the treatment of tool steels. In the field of microprocessor technology, the centre undertook 25 projects covering feasibility studies, in-plant problem solving, design and implementation of complete process control systems and the development of automatic testing equipment. It also offered a comprehensive analytical service to industry on pollution control, covering air pollution, waste water treatment, solid waste management and noise control. Two effluent treatment systems were designed for a group of leather dressing factories in the New Territories. The centre's environmental control services were also sought by major consultancies and the government, with 26 environmental control projects being completed.

During the year, the centre organised 286 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 working, electrical and electronic products, building and construction. It completed over 230 consultancy and technical assistance projects and organised three industrial exhibitions on microprocessor technology, electronics and machine tools. It sponsored two study missions and continued its publication programmes to provide up-to-date information on Hong Kong industry, trade, employment, salaries and technology transfer opportunities.

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 and comprises over 2 800 companies covering all branches of commerce and industry. The chamber is actively involved in promoting Hong Kong's trade and attracting new industries and is represented on a number of government and other boards and committees. It is a member of the International Chamber of Commerce and has also been 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 member- ship broadly representative of all industries. To encourage and improve industrial design, the federation established the Hong Kong Industrial Design Council which offers practical

INDUSTRY AND TRADE

31

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, elec- trical, electronic, engineering, food, footwear, gemmological, microbiological, packaging, 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 2 400 members. The association, a member of the International Chamber of Commerce, has played an important role in the industrial development of Hong Kong. It is active in promoting product development and holds the annual Hong Kong New Products Competition. It operates services to introduce new technology, encourage investment, and promote trade. The association's Testing and Certification Laboratories provide a variety of services which include product testing, certification, production and preshipment inspection, and technical consultancy.

The association is active in promoting industrial safety, and takes a keen interest in com- munity and social services. It runs a prevocational school which offers technical education for more than 1 000 students. A second prevocational school is now under construction.

Consumer Council

      Established in 1974, the Consumer Council is a statutory body charged with the responsi- bility of protecting and promoting the interests of consumers of goods and services. Its chairman and members, appointed by the Governor, are drawn from various walks of life. Although financed by an annual subvention from the government, the council is independent in formulating and carrying out its own programmes.

The council operates within a variety of consumer protection areas, including consumer representation, legislation, complaints, advice, comparative product testing, research and surveys, education and information, and publications. These activities are directed by 10 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.

Over the years the council has won recognition as the authority in the field of consumer protection. Increasingly it is invited by the government to tender advice on matters affecting the interests of consumers. Members now sit on government committees set up specifically to deal with matters such as travel agents, insurance, cigarette smoking and public health, toxic substances, pharmaceuticals, trade descriptions, advertising, marking order on gold and precious metals, school textbooks and supplies, and metrication. These committees advise the government on consumer protection measures as well as legal reform. The council liaised closely with the government during the year on consumer product safety, in particular in the choice and use of gas water heaters following a number of fatal accidents. New measures were introduced to afford better protection to buyers of flats in un- completed real estate developments. One measure involves the use of a standard form of Agreement for Sale and Purchase which must contain certain mandatory clauses aimed at plugging some of the loopholes of the present conveyancing systems and at rectifying certain unfair practices in property dealing.

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INDUSTRY AND TRADE

      The problem of pyramid selling - a scheme to defraud unwary consumers by the lure of profits in product sales - received considerable publicity during the year. This has led to concern over unfair trading practices and the council has begun a study of unfair trading legislation in countries such as Britain and the United States.

The provision of shopping advice and counselling continued to be a popular service with consumers. During the year, three new advice centres were opened bringing the total number of centres to eight. The primary objective is to operate at least one advice. centre in each of the 18 administration districts throughout Hong Kong. A total of 45 346 enquiries for advice were received, representing an increase of 56 per cent over the previous year. Shopping pamphlets on many consumer durables are available free at the centres.

The number of consumer complaints was 7962 and in 92 per cent of the cases which could be substantiated in favour of the aggrieved consumers, the council was successful in effecting reasonable redress to them. In certain cases, the council helped consumers to pursue their complaints through the Small Claims Tribunal for a more satisfactory settlement. Some cases were referred to the relevant government law-enforcing departments. During the year, the council conducted comparative testing on a diversity of consumer products including disposable baby diapers, binoculars, zoom lenses, dehumidifiers, mosquito electrocutors/repellers, 35 mm non-reflex cameras, box fans, pearl cream, orange beverages, household rubber gloves, hair curlers and glass cleaner. Results of the tests, complete with information on brand names, are published in the council's monthly magazine Choice.

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. Its continuous 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 consumer matters and a series entitled For the Consumer, consisting of 10 30-minute episodes, was produced and shown to a large television audience. The council also worked closely with the Education Department to promote consumer education in schools. Activities included an annual consumer education seminar, talks, a teaching kit, competitions, exhibitions, slide shows and films.

The Consumer Council is a council member of the International Organisation of Consumers Unions (IOCU) and its executive director is the Chairman of the IOCU Consumer Education Committee.

Trade in Endangered Species

The possession, importation and exportation of endangered species of animals and plants, including parts and certain products, into and out of Hong Kong is strictly regulated in accordance with the Animals and Plants (Protection of Endangered Species) Ordinance which gives effect to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). The ordinance is administered by the Agriculture and Fisheries Department and is enforced by officers of the department and the Customs and Excise Department. The Trade Department is authorised to issue certificates for ivoryware carved in Hong Kong.

      Licensing policy follows the principles of the convention to allow legitimate trade in scheduled specimens to proceed. However, in certain cases, import licences may not be granted at all if this will help the survival of the species. For example, there has been a total

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ban on the import into Hong Kong of rhino products of all species of Rhinocerotidae since February 1979.

Illegal trade is investigated and prosecutions follow if there is evidence of a breach of the ordinance. During 1982, there were 250 seizures and 200 prosecutions under the ordinance.

Metrication

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

       A Metrication Committee, with an unofficial chairman and consisting of government officials and representatives of industry, commerce, management and consumer affairs, was appointed by the Governor in January, 1978. The committee is the focal point of liaison on all matters concerning metrication, and it advises and encourages various groups within the private sector in the framing of their programmes for metrication. 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. The Lands, Urban Services, Rating and Valuation, and Education Departments now use metric units exclusively. Customs tariffs are in metric units and the Imports and Exports Classification List requires data to be in metric units. All other departments are well advanced in their implementation programmes.

      In the private sector, petrol and petroleum products have been sold in metric units since 1981. The metric conversion programme for the plastics industry, which commenced in April 1981, is scheduled to be completed by 1983. The piece goods and the tailoring industries began their metric conversion in November 1982. The year also saw the start of a programme to encourage the use of metric units in the sale of electrical appliances, starting with television sets and refrigerators; it is expected that all other electrical appliances will be sold in metric units by the end of 1983. Other programmes of metric conversion have been drawn up for electrical wires and cables, conduit accessories, pharmaceutical products, detergent and soap, and chemical products; metric units will be progressively adopted in these industries during 1983. The sale of consumer goods at the wholesale level is almost entirely in metric units and adoption of metric units at the retail level is becoming more widespread.

      A continuing effort has been made in the field of publicity and public education. Apart from the production of promotional leaflets, posters and radio and television commercials, a territory-wide 10-day metric public awareness and participation programme will be conducted in January 1983.

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

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INDUSTRY AND TRADE

Ordinance before it may be accepted for registration. During 1982, 6206 applications were received and 2734, including many made in previous years, were accepted and allowed to be advertised. A total of 3 000 marks were registered. The principal countries of origin were:

Hong Kong

United States

Japan

United Kingdom

France

740

675

West Germany Switzerland

277

Italy

267

200

Australia Netherlands

222

118

131

59

47

The total number of marks on the register at December 31, 1982, was 39 142.

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 558 patents were registered during the year, compared with 654 in 1981.

Companies Registry

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

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      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 the government.

On incorporation, a company pays a registration fee of $300 plus $4 for every $1,000 of nominal capital. In 1982, 12 983 new companies were incorporated - 2 894 less than in 1981. The nominal capital of new companies registered totalled $3,939 million. Of the new companies, 130 had a nominal share capital of $5 million or more. During the year, 3 971 companies increased their nominal capital by amounts totalling $19,451 million on which fees were paid at the same rate of $4 per $1,000. At the end of 1982, there were 108 302 local companies on the register, compared with 96 261 in 1981.

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, 213 of these companies were registered and 61 ceased to operate. At the end of 1982, 1 699 companies were

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35

registered from 56 countries, including 393 from the United States, 232 from Britain and 187 from Japan.

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

Insurance Registry

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 obtaining 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 trans- acting 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 transacting motor vehicle third party risks insurance business. There are 306 insurance companies including 135 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.

A new, comprehensive Insurance Companies Bill which covers all classes of insurance business was published in the Government Gazette on May 7, 1982. The bill is expected to be enacted in 1983.

Money Lenders

The present system of registration of money lenders is based on the Money Lenders Ordinance which came into force on December 12, 1980. Anyone wishing to carry on business as a money lender must now 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. Any person, whether a licensed 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 agreement for the repayment of any such loan or any security given in respect of such loan shall be unenforceable. At the end of the year there were 572 licensed money lenders.

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Bankruptcies and Liquidations

INDUSTRY AND TRADE

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, but nevertheless it has increased considerably since 1980. During the year there were 142 petitions in bankruptcy and 266 petitions for the compulsory winding-up of companies. The court made 105 receiving orders, four administration orders and 199 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 1982 amounted to $112.7 million. In addition to these compulsory liquidations, 614 companies went into voluntary liquidation - 589 by members' voluntary winding-up and 25 by creditors' voluntary winding-up.

3

Financial System and Economy

1982 was a relatively difficult year for the Hong Kong economy with the effects of the world recession adversely affecting trade and reducing the growth rate of the gross domestic product to about one quarter of that recorded in each of the previous five years. Although the process of adjusting to this lower growth rate caused strains in some sectors, the economy generally adjusted well. The rate of inflation, in terms of consumer prices, eased, and the unemployment rate rose only moderately. The slowdown in the economy's growth rate inevitably impinged on the public finances, and the succession of increasingly large budget surpluses generated in the past few years came to an end.

The Economy

In 1982, the performance of the Hong Kong economy was very much affected by the world recession, considered by many to be the most severe since the 1930s. The economies of most of Hong Kong's major export markets, including the United States, the United Kingdom and the Federal Republic of Germany, remained generally depressed throughout the year. Although the economy of the United States showed some faint signs of improvement in the fourth quarter, this had not resulted in any noticeable revival in the demand for Hong Kong's products by the end of the year. By contrast, China, Canada and Singapore were more promising markets where some growth in domestic exports was recorded. On the whole, domestic exports in real terms showed a decline of about 2.7 per cent, which is the first decline in eight years.

      With a small and open economy which is heavily dependent on external trade, Hong Kong also experienced a year of slower growth overall. Preliminary estimates indicate that the growth rate in real terms of the gross domestic product (GDP) was about 2.4 per cent in 1982, compared with 11 per cent in 1981 and 12 per cent in 1980. A growth rate of about 2.4 per cent in the midst of the world recession is nevertheless significant.

      Despite the poor performance of domestic exports, domestic demand and activity in the tertiary services sectors continued to provide the impetus to economic growth in 1982. Because the export sector is still the backbone of the Hong Kong economy, the situation in which for two consecutive years economic growth has been led by domestic demand and not domestic exports is one that inevitably causes uneasiness. The growth rate in real terms of domestic demand at 1.2 per cent was, however, substantially lower than in 1981 and 1980 at 11 per cent and 15 per cent respectively. Influenced by the recession, the growth rates of both consumer demand and investment demand slowed down. This was accompanied by a deceleration in the growth rates in real terms of retained imports of consumer goods and of capital goods during the year.

      The entrepôt trade was also affected by the world recession. Re-exports, which ex- perienced annual growth rates in real terms of about 30 per cent during the four years

38

FINANCIAL SYSTEM AND ECONOMY

     1978 to 1981, showed little growth in 1982. Reflecting the weak consumer demand and investment demand in Hong Kong and the generally uncertain export prospects, imports in real terms dropped by 2.7 per cent. As the decline in the growth rate of the value of imports was relatively faster than that of the value of total exports, the visible trade gap (that is the proportion of the value of imports not covered by the value of total exports) narrowed. This represents an improvement over the previous year, when a widening in the visible trade gap was recorded.

A strengthening in the overall exchange value of the Hong Kong dollar in the first nine months of the year, coupled with a general softening of world commodity prices, caused the rate of increase in Hong Kong's import prices to slow down for much of the year. Moreover, while the gross domestic product grew by about 2.4 per cent in real terms, total final demand, after excluding the effect of entrepôt trade, showed no growth. This implies an easing of the pressure of aggregate demand in the economy on the general price level. Thus the rate of inflation, as indicated by the various Consumer Price Indexes, slowed down during the year, and wage rates for most employees, except for those in manufacturing, showed some improvement in real terms.

Labour Market

In Hong Kong, wage rates are determined by conditions in the labour market. During the year, the growth rate of the labour force remained relatively stable, as the influx of immigrants, which had been very substantial during the previous few years, abated. However, the labour force participation rate, which declined in the first part of the year, increased again in September 1982. As a result, the growth rate of the labour force picked up slightly in the second half of 1982. Because the growth rate of the supply of labour was slightly higher than the growth rate of the demand for it, the seasonally adjusted unemployment rate, which had been decreasing throughout 1981, increased, reaching 3.5 per cent in March 1982 and 4.0 per cent in September. Under-employment also increased.

As the size of the employed labour force remained largely unchanged, economic growth in 1982 represents generally an increase in labour productivity, defined as GDP per person employed. In part the increase in productivity reflected the relative shift in activity in the economy from the manufacturing sector to the tertiary services sectors. Consistent with the performance of domestic exports, employment in the manufacturing sector showed a net decrease during the year. The fall in employment in the manufacturing sector and on building and construction sites was, however, largely offset by an increase in employment in the tertiary services sectors.

      Due to the slowing down in the rate of increase of consumer prices and to the more stable growth rate of the labour force, wage rates in the manufacturing sector showed some improvement in real terms in the first half of the year. But as the economy continued to adjust to the effects of the economic recession, there was a slight decrease in manufacturing wage rates in real terms in the second half. Taking the 12 months ending September 1982, wage rates recorded a slight decline of 1.0 per cent in real terms, compared with an increase of 2.3 per cent for the 12 months ending September 1981. There was, however, an increase in real terms for salaries in the tertiary service sectors. Construction wage rates also rose slightly in real terms. Together with the relatively stable prices of building materials such as cement and steel bars, the increase in building and construction (including civil engineering) costs in 1982 was moderate.

FINANCIAL SYSTEM AND ECONOMY

Property Market

39

      Closely related to the building and construction sector is the property market. The vacancy position for all types of property was very high at the end of 1981 and this trend continued during 1982. Although there were indications that developers had been making adjustments in the pace of ongoing building work, completions in terms of total usable floor area continued to be substantial in 1982. Against the background of a generally abundant supply in relation to demand, and affected by the economic recession, property prices and rentals on the whole declined throughout the year, with prices falling faster than rentals.

       Trading in the residential property market in 1982 remained depressed. During the year, a few large marketing exercises in respect of small flats close to Mass Transit Railway stations reported some success, but these seemed to be exceptions rather than the rule. Although the continuous easing of the mortgage rate from the historically high level of 21 per cent in October 1981 to 12 per cent in November 1982 led to a substantial reduction in monthly mortgage payments, prices of flats were still high relative to the average incomes of potential home buyers. In view of the uncertainty about the general economic situation and in anticipation of further price falls, potential home buyers appeared to be reluctant to commit themselves. The property market was given some encouragement in November and December when a number of banks and financial institutions offered new 20-year mortgage schemes to potential owners of property.

      Rentals for residential property followed a declining trend during the year. So far as rentals for existing leases were concerned, meaningful interpretations are difficult to make because increases in rents for most private domestic accommodation were controlled, apart from those at the upper end of the scale.

      On commercial property, the additional supply of commercial premises, including shops and offices, was substantial. As a result of the previous increases in prices and rentals, and the generally weak performance of the Hong Kong economy, demand for commercial property slowed down. On the whole, prices and rentals which had been increasing in 1981 declined in 1982. The decline was particularly marked for those in areas with gross over-supply. Demand for industrial property was also affected by the poor performance and uncertain prospects of the export sector. Given the high vacancy position at the end of 1981 and substantial completions in 1982, prices and rentals also continued to decline.

Inflation

In 1982, the rate of inflation as measured by the Consumer Price Index (A), which is representative of the price increase faced by the relatively less well-off 50 per cent of households in Hong Kong, showed an increase of 10.6 per cent. This represents a significant slowing down when compared with increases of 15 per cent in 1981 and of 16 per cent in 1980. Apart from the easing of the rate of inflation elsewhere in the world, the influence of internal factors was also favourable. In contrast with the previous year, aggregate demand in the economy was not imposing much pressure on aggregate supply and hence the general price level and the underlying growth rates of the money supply and of credit were slower than in 1981. The decline in property prices and rentals also contributed to the slowing down in the rate of inflation. The weakness of the Hong Kong dollar in the fourth quarter could, however, affect the price level adversely in due course.

Public Sector

For the purpose of formulating annual budgetary policies, the public sector is defined in terms of the deployment of funds under the government's control. Public sector expenditure

40

FINANCIAL SYSTEM AND ECONOMY

therefore comprises, apart from the General Revenue Account, expenditure by the Urban Council and the Housing Authority, expenditure financed from certain statutory funds, and expenditure on public works projects financed with loans from the Asian Development Bank. Expenditure by institutions in the private or quasi-private sector is included to the extent it is met by government subventions, but not included is expenditure by those organisations in which the government has only an equity position, such as the Mass Transit Railway Corporation.

The Urban Council, operating through the Urban Services Department, draws up its own budget and expenditure priorities. This expenditure is financed mainly from the Urban Council rates and from fees and charges for services provided by the council. In 1981-2 the council's expenditure totalled $979.4 million, and for 1982-3 the council's budgetted expenditure is $1,263.9 million.

      The Housing Authority, operating through the Housing Department, is also financially autonomous. Its income is derived mainly from rents. Where cash flow is inadequate to meet the construction costs of new estates, the authority borrows from the Development Loan Fund on concessionary terms. The authority is provided with land at nil premium, but the value of the land is shown in the authority's balance sheet as a government contribution. In 1981-2, the authority's recurrent expenditure totalled $1,273 million, of which $152 million was financed from the General Revenue Account for such activities as squatter control and the management of temporary housing and industrial areas. For 1982-3 the authority's budgetted recurrent expenditure is $1,852 million, of which $198 million will be met from the General Revenue Account. At March 31, 1982, the outstanding loans borrowed by the authority from the Development Loan Fund for the construction of estates amounted to $4,599 million, and this is expected to increase to $7,095 million by March 31, 1983.

      The statutory funds included in the public sector comprise the Home Ownership Fund, the Development Loan Fund, the Lotteries Fund, the Student Loan Fund and the Capital Works Reserve Fund.

The Home Ownership Fund finances the cost of land and the construction of flats for sale under the Home Ownership Scheme. The Housing Authority is the government's agent for the design, construction and marketing of these flats. The fund was initially established by a transfer from the General Revenue Account, and derives its income from the proceeds of sales of the flats. In 1981-2, total expenditure from the Home Ownership Fund amounted to $1,054 million, and budgetted expenditure for 1982-3 is $993 million. The Development Loan Fund is used mainly to finance social and economic develop- ments including, in particular, loans to the Housing Authority for the construction of public housing estates. Transfers are made from the General Revenue Account to the fund to meet the loan requirements of the Housing Authority. Otherwise the fund's income is derived from interest payments and capital repayments. In 1981-2, total payments from the Development Loan Fund amounted to $2,138 million, and budgetted payments for 1982-3 amount to $3,276 million.

The Lotteries Fund is used to finance the development of social welfare services through loans and grants. It derives its income mainly from a share of the proceeds of the Mark Six Lotteries. In 1981-2, total loans and grants made available from the Lotteries Fund amounted to $34 million, and estimated loans and grants in 1982-3 amount to $113 million. The Student Loan Fund is used to finance loans to students of the two universities, the Hong Kong Polytechnic and other approved post-secondary institutions, and to Hong Kong students studying in the United Kingdom. Transfers are made as necessary from the General Revenue Account to the fund to enable the fund to meet its commitments, the

FINANCIAL SYSTEM AND ECONOMY

41

only other source of funds being loan repayments. In 1981-2, total loans paid from the Student Loan Fund amounted to $102 million, and estimated loans for 1982-3 amount to $130 million.

      The Capital Works Reserve Fund was established on January 20, 1982, for the purpose of financing the Public Works Programme and land acquisitions, expenditure on these being previously met directly from the General Revenue Account. The fund's income is entirely derived from transfers from the General Revenue Account, and the amount of such transfer each year is determined in the light of available resources, particularly from the proceeds of land sales. In 1981-2, total expenditure from the General Revenue Account on public works and land acquisitions amounted to $6,938 million, and estimated expenditure from the Capital Works Reserve Fund in 1982-3 is $8,372 million.

      Budgetary policy seeks to relate the growth rate of the public sector to the growth rate of the gross domestic product (GDP). The growth rate of the public sector in real terms accelerated from 5.2 per cent in 1976-7 to 15.5 per cent in 1977-8 and to 21 per cent in 1978-9, but was slowed down to seven per cent in 1979-80. It accelerated again to 17.8 per cent in 1980-1. The average annual growth rate for these years taken together was 13.1 per cent, which exceeded the growth rate of the GDP at 12.3 per cent over the same period. In 1981-2, an attempt was made to slow down the growth rate of the public sector to 12.8 per cent, but in the event increased expenditure which was not anticipated and could not be avoided, resulted in a further acceleration to 21.8 per cent, well in excess of the growth rate of the GDP in 1981 of 11 per cent. The budget for 1982-3 provided for a slowing down of the growth rate of the public sector to 10.7 per cent against a forecast growth rate at that time of the GDP of eight per cent. Actual performance will be very different, particularly in respect of the growth rate of the GDP.

      The relative size of the public sector increased steadily from 14.2 per cent in 1976-7 to 20.3 per cent in 1980-1. It increased again to 22.9 per cent in 1981-2 and is further expected to increase in 1982-3 to at least 24 per cent.

General Revenue Account

Expenditure on the General Revenue Account is usually around 88 to 90 per cent of public sector expenditure taken as a whole, and the General Revenue Account is thus the main instrument of budgetary policy. It is estimated expenditure on the General Revenue Account that makes up the draft Estimates of Expenditure which are presented by the Financial Secretary to the Legislative Council when he delivers his annual Budget Speech, and it is the total estimated expenditure on the General Revenue Account for which appropriation is sought in the Appropriation Bill introduced into the Legislative Council at the same time. The Estimates of Expenditure contain the details of estimated recurrent and capital expenditure of all government departments, including estimated payments to subvented organisations and estimated transfers to the various statutory funds. They also provide for the repayment of the public debt.

In the financial year 1981-2, total gross expenditure on the General Revenue Account was $27,778 million, comprising recurrent expenditure of $16,295 million and capital expenditure of $11,483 million. Estimated expenditure in 1982-3 is $35,523 million, com- prising recurrent expenditure of $19,466 million and capital expenditure of $16,057 million.

Surplus and Deficit

With only two exceptions, the General Revenue Account has shown a surplus at the end of each year in the past 20 years. The exceptions were 1965-6 when a deficit of $137

42

FINANCIAL SYSTEM AND ECONOMY

million occurred, and 1974-5 when there was a deficit of $380 million. In 1981-2 a surplus of $7,092 million was obtained, and for 1982-3 a surplus of $2,783 million has been budgetted. However, this is now unlikely to be achieved. Detailed breakdowns of revenue by source are given at Appendices 7 and 7a, and of expenditure by function at Appendices 8 and 8a. A comparative statement of recurrent and capital revenue and expenditure is given at Appendix 9.

      The accumulated net surpluses on the General Revenue Account form the government's fiscal reserves, and these secure the government's contingent liabilities and ensure that it is able to cope with any short-term tendency for expenditure to exceed revenue or for revenue yields to fall below expectations. At March 31, 1982, the accumulated reserves stood at about $22,571 million. At the same date the public debt amounted to $245 million.

Duties

     There is no general tariff on goods entering Hong Kong but duties are charged on four groups of commodities - alcoholic liquors, tobacco, certain hydrocarbon oils and methyl alcohol - irrespective of whether they are imported or manufactured locally. All firms engaged in the import, export, manufacture or sale of dutiable commodities must be licensed.

On liquors, the basic duty rates are in equivalence from $0.37 a litre on Hong Kong brewed beer to $27.05 a litre on brandy. On tobacco, rates range in equivalence from $8.15 a kilogram on Chinese prepared tobacco to $44.45 a kilogram on cigarettes. Rates on hydrocarbon oils are $1.20 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 $2.20 a litre. A statement of revenue from duties is given at Appendix 10.

Rates

     Rates are levied on the occupation of landed property at a percentage of the assessed rateable value which is, briefly, the annual rent at which the property might reasonably be expected to let.

The percentage rate charges are determined annually by resolution of the Legislative Council. For 1982-3, general rates are charged at three and a half per cent of the rateable values of tenements and Urban Council rates at eight per cent of rateable values in the urban areas. The total rates currently charged in the urban areas are therefore 11 per cent of rateable values. General rates at percentages below 114 per cent are charged in the New Territories. No Urban Council rates are levied in the New Territories because the council has no jurisdiction there.

Rates are payable quarterly in advance and exemptions are few. However, the govern- ment generally provides financial assistance towards the payment of rates to educational, charitable and welfare organisations if the premises they occupy are being run in accordance with 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. The estimated rates revenue for 1982-3 is $1,650 million, of which about $950 million will go to the Urban Council.

Internal Revenue

The Inland Revenue Department collects the taxes, duties and fees making up the internal revenue. These consist of betting duty, business registration fees, entertainments tax, estate duty, hotel accommodation tax, earnings and profits tax, and stamp duty. In the financial

FINANCIAL SYSTEM AND ECONOMY

43

year 1982-3, the estimated yield from internal revenue is $14,626 million compared with actual collections of $14,216 million for 1981-2. The estimate for 1982-3 takes account of the cost to internal revenue, amounting to $1,371 million, of various tax concessions announced by the Financial Secretary in his 1982 Budget Speech.

      Betting duty is imposed on bets on authorised totalisators or pari-mutuels, and on proceeds of the Mark Six Lottery. The rate of duty is either 7 per cent or 11 per cent, depending on the type of bet placed, and 25 per cent on the proceeds of lotteries. The anticipated yield for the financial year 1982-3 is $1,220 million compared with actual collections of $998 million for 1981-2.

      Business registration is compulsory for every company incorporated in Hong Kong, every overseas company with a place of business in Hong Kong, and every business operating in Hong Kong, except those carried out by charitable institutions. The annual registration fee is $175, but exemption from payment is granted when an unincorporated business is very small. The total yield from these fees, service fees for copies of documents and other fees for 1982-3 is estimated at $67 million.

Entertainments tax is imposed on the price of admission to cinemas and race meetings at rates which vary with the prices charged for admission. This averages about nine per cent in the case of cinemas and 29 per cent in the case of race meetings. The estimated yield for 1982-3 is $65 million.

      Estate duty is imposed on that part of a deceased's estate which is situated in Hong Kong. From June 4, 1982, estates valued at under $2 million (previously $1 million) are exempt and the rates of duty now charged range from a minimum of 10 per cent (previously 15 per cent) on estates valued between $2 million and $2.5 million (previously $1 million and $1.5 million) to a maximum of 18 per cent on estates valued in excess of $4 million. The estimated yield for 1982-3, after deducting $42 million due to the increased exemption limit, the reduced rates of duty, and the exemption from duty of the principal matrimonial home of the deceased, is $238 million compared with the actual collections of $316 million in 1981-2.

Hotel accommodation tax is imposed on hotel and guest house accommodation at the rate of four per cent on the accommodation charges paid by guests. For the 1982-3 financial year the anticipated yield is $65 million.

Earnings and profits tax is levied 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 taxed at 16 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. As in 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.

44

FINANCIAL SYSTEM AND ECONOMY

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 personal allowances. The current levels of the various allowances are: for the taxpayer himself $20,500; for his wife $20,500; for the first child $8,000; for the second child $5,500; 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 $8,000 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, premises owned by clubs and trade associations, for certain ancestral property, and for 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. However, interest paid or payable after February 24, 1982, on a foreign currency deposit is exempt from interest tax, and the tax rate in respect of interest payable after the same date on a Hong Kong currency deposit is reduced to 10 per cent, provided such deposits are made with financial institutions carrying on a business in 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 the allowances).

Taxes on earnings and profits are estimated to yield $11,216 million in the 1982-3 financial year compared with actual collections of $10,567 million for 1981-2.

The Stamp Duty Ordinance imposes fixed and ad valorem duties on different classes of documents relating to assignments of immovable property, leases and share transfers. The estimated yield for 1982-3 is $1,755 million compared with actual collections of $2,168 million in 1981-2. The 1981-2 collections reflected the buoyant property and share market conditions which prevailed during much of that year.

FINANCIAL SYSTEM AND ECONOMY

Other Revenue

45

Other revenue arises from taxes for the registration of motor vehicles, fines, forfeitures and penalties, royalties and concessions, yields from properties, investments and land transactions, reimbursements and contributions, government utilities, and from fees and charges for the provision of a wide range of goods and services.

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, and the ordinance provides that he shall not be subject to the direction or control of any other person or authority.

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. 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 ranks as one of the world's leading international financial centres. Banks and other deposit-taking companies; insurance companies, pension funds, unit trusts and similar operations; foreign exchange and money brokers, stock and commodity brokers - these and other financial organisations combine to present a wide range of financial services to both local and international customers. While the overseas links are particularly strong within Southeast Asia, Hong Kong's position as a bridge in the time difference between Japan and Europe has given the territory a vital role to play in world finance.

But the emergence of Hong Kong as a financial centre has not simply been a matter of geography. The government has continually worked towards developing a favourable environment, with sufficient regulation to ensure, so far as possible, sound business standards and confidence in the institutions but without unnecessary impediments of a bureaucratic or fiscal nature.

In contrast to the international dimension, small local operations such as credit unions, pawnbrokers and moneylenders, all of which are subject to some basic statutory regulation, continue to help meet the needs of Hong Kong people.

are

      Unlike other financial centres, Hong Kong has no central bank. Those functions which might typically be performed by one such as supervising financial institutions, managing official foreign exchange reserves, or providing banking services to the government carried out by the relevant government offices, in conjunction with the government's commercial bankers where appropriate. Since the government has not needed to issue any conventional government debt in recent years because of habitual budget surpluses, and since there are no controls on foreign exchange dealing in Hong Kong, the range of central bank functions that have to be undertaken is narrower than in many other economies

46

FINANCIAL SYSTEM AND ECONOMY

The financial scene in 1982 was dominated by a crisis of confidence, which broke towards the end of September, stemming principally from concern over Hong Kong's future. Up until then, financial markets were comparatively steady, and any anxieties on this score muted; but these came to the fore following the visit of the British Prime Minister, the Rt Hon Margaret Thatcher, to China and Hong Kong. The exchange rate of the Hong Kong dollar and stock market prices then declined very sharply. Despite official assurances regarding the future stability and prosperity of Hong Kong, the markets remained weak and unduly susceptible to rumours for the remainder of the year.

      The property market was particularly affected by the 1997 issue, at a time when it was anyway experiencing a cyclical downturn. As a result, a number of companies involved in property development found themselves in serious financial difficulty. Their problems, and the decline in property prices, in turn placed some financial institutions under strain. Partly because of this, but sparked by the alleged insolvency of one deposit-taking company for reasons apparently unconnected with Hong Kong's future or the property market, a growing loss of confidence in the deposit-taking company sector as a whole developed in November. Reassurances from major banks and the government helped to restore general confidence in the sector, although a handful of individual companies continued to face difficulties.

      Before these developments hit the headlines, the event which perhaps drew the most public attention was a rare bank run. Branches of a local bank came under siege for a couple of days in early September from thousands of nervous depositors following entirely groundless rumours that the bank was connected with a jewellery company -- part of whose business involved the issue of gold certificates to the customers recording the company's holding of physical gold for them which had suddenly ceased trading. Following reassuring statements from the government and from other banks, the run subsided without having spread and without the bank concerned being forced to close its doors.

Monetary Sector

During 1982, a further nine banking licences were granted, bringing the number of licensed banks to 131, of which 35 are local companies. The banks maintain a total of 1 474 offices in Hong Kong. In addition there are 115 representative offices of foreign banks.

      Absolute discretion in the granting of banking licences rests with the Governor-in- Council, in accordance with the provisions of the Banking Ordinance. However, certain guiding criteria are applied. Currently, a bank incorporated outside Hong Kong which wishes to apply for a banking licence is required to show total assets (net of contra items) of at least US$12,000 million (this figure is reviewed annually), and its country of incorporation must apply an adequate form of prudential supervision and offer some acceptable form of reciprocity to Hong Kong banks. In addition, the Governor-in-Council will have regard to the number of banks from the applicant's country of incorporation which already hold licences, and to the state of Hong Kong's commercial relations with that country.

A domestic company (one incorporated in Hong Kong and predominantly beneficially owned by Hong Kong interests) must satisfy a separate set of criteria in order to be considered for a banking licence: it must have a paid-up 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 $1,750 million and have total assets of at least $2,500 million (these minima are also reviewed annually). Banks may accept deposits from the public of any size and any maturity, but the interest rate rules of the Hong Kong Association of Banks result in the setting of maximum

FINANCIAL SYSTEM AND ECONOMY

47

rates payable for maturities up to and including one year. However, with effect from March 1982, no limits apply on individual deposits in excess of $500,000 of less than three months term to maturity.

      Apart from banks, no company may take deposits from the public unless licensed or registered under the Deposit-taking Companies Ordinance. Licensed status, which is granted at the discretion of 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 regarding size, ownership and quality of management. Licensed deposit-taking companies may take deposits from the public of any maturity, but in amounts of not less than $500,000. Since the status of licensed deposit-taking company was introduced in 1981, 22 licences have been granted.

      Meanwhile there are 343 registered deposit-taking companies. Since April 1981, the Commissioner of Deposit-taking Companies has restricted new registrations to companies which, as well as meeting certain basic criteria such as minimum paid-up capital of $10 million, are more than 50 per cent owned by banks in Hong Kong or elsewhere. Registered deposit-taking companies are restricted to taking deposits in excess of $50,000 and of at least three months term to maturity. Neither registered nor licensed deposit-taking companies are subject to any restrictions on the rates of interest they offer.

      The Commissioner of Banking, who is also the Commissioner of Deposit-taking Companies, exercises prudential supervision over all these institutions, as provided for by the Banking and Deposit-taking Companies Ordinances. Amendments made to these ordinances in 1982 empower him to obtain information on the overseas operations of Hong Kong banks and deposit-taking companies, so enabling him better to supervise their global activities and hence to play a full part in the increasingly important business of international banking supervision.

Foreign Exchange Market

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. The following month, the government announced the pegging of the Hong Kong dollar to the United States dollar, with provision for fluctuations of up to 2 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 (see Appendix 5).

      There is now a well developed foreign exchange market where the Hong Kong dollar and other currencies are traded, mostly against the US dollar. A number of factors contribute to the market's activity: there are no exchange controls; international banks may trade through their Hong Kong offices while other centres are closed; some banks or deposit-taking com- panies seek to buy foreign currency as a means of holding their obligatory liquidity, while others, without a sufficient local deposit base, seek to buy Hong Kong dollars in order to fund local lending. Some of these are features peculiar to Hong Kong. Meanwhile, as in other centres, the day-to-day requirements of industry and commerce themselves ensure a considerable turnover in both the foreign exchange and other financial markets.

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FINANCIAL SYSTEM AND ECONOMY

With effect from February 25, 1982, the government exempted interest paid on foreign currency deposits in Hong Kong from interest withholding tax, which had previously been levied at 15 per cent. (At the same time, the rate of interest tax on Hong Kong dollar deposits was reduced to 10 per cent.) The remainder of the year witnessed a very substantial expansion of foreign currency deposits held with banks and deposit-taking companies, as deposits were switched to Hong Kong from other centres and as some existing Hong Kong dollar deposits were switched into foreign currencies. All in all, the foreign currency deposit base of the monetary sector has been strengthened and the position of Hong Kong as an international financial centre enhanced.

       Through its bankers the government is active in the foreign exchange market to the extent that the portfolio management considerations of the Exchange Fund require, and the timing of transactions can be varied with a view to their impact on the exchange rate of the Hong Kong dollar. The government may on occasions intervene more positively, but such intervention generally seeks only to smooth out erratic movements in the rate rather than to challenge more fundamental underlying trends.

      The exchange value of the Hong Kong dollar strengthened in the early part of the year and remained quite firm well into the third quarter, no doubt helped by the narrowing of the visible trade gap. The currency was then hit by the anxieties about Hong Kong's future. Over the year as a whole the trade-weighted exchange rate index, which is calculated against the currencies of Hong Kong's 15 principal trading partners on a trade-weighted basis, showed a depreciation of 6.8 per cent. Meanwhile, reflecting in addition the marked overall strength of the United States currency, the Hong Kong dollar depreciated by 12.7 per cent against the US dollar.

Domestic Money Market

In Hong Kong wholesale transactions in the local currency are concentrated in the inter-bank market, which comprises large deposits taken by one bank or deposit-taking company from another. In particular, institutions with a local deposit base lend to those without such a base.

Other short-term instruments are less in evidence than in some other centres. There is no marketable direct government debt. Some bills of exchange are held in portfolios, but they are rarely traded. To some extent the same is true of locally issued certificates of deposit, but both the volume of such certificates in issue, and the extent to which they are traded on the secondary market, have increased considerably in the past year or so. During 1982, in the context of a long-standing commitment by the government to seek a resolution to problems which might be inhibiting the development of the secondary market for local certificates of deposit, officials held discussions with the institutions concerned. These were aimed in particular at determining whether such paper, held by banks and deposit-taking companies, could justifiably be allowed to count as a liquid asset for the purposes of meeting their statutory liquidity ratios.

The only direct government debt now outstanding is due to the Asian Development Bank, and amounted to the equivalent of $285 million at March 31, 1982. There is a small amount of marketable government-guaranteed debt, issued by government-owned bodies: this comprises $400 million of 10-year bonds and $206.75 million of five-year notes issued by the Mass Transit Railway Corporation, and $230 million of notes issued by the Hong Kong Building and Loan Agency Limited. The Mass Transit Railway Corporation also has a commercial paper facility, which was developed in 1979. The paper takes the form of negotiable bills of exchange accepted by the corporation.

FINANCIAL SYSTEM AND ECONOMY

Monetary Aggregates and Interest Rates

49

The Monetary Statistics Ordinance of 1980 paved the way for the collection of improved statistics for monitoring monetary developments. Appendices 11 and 12 are based on these new series. During 1982, the Hong Kong dollar money supply grew more slowly than in 1981, but the total money supply grew much more rapidly, being influenced in particular by the increase in foreign currency deposits once interest on them became exempt from interest tax.

Hong Kong dollar interest rates declined on balance during the year, largely in sympathy with similar movements in the world's major economies, particularly the United States. The government is able to exert some influence on local rates: under an operational arrangement with one of its bankers it can draw funds from, or inject funds into, the local money market thereby tightening or easing market rates. The government can have a further, limited influence in the money market by altering the mix of the Exchange Fund's deposits with banks, between those at maturities of seven days or less, against which the banks must hold 100 per cent liquidity, and those at more than seven days, against which the liquidity requirement is only 25 per cent. Meanwhile, the Hong Kong Association of Banks is obliged to consult the government regarding the level of maximum rates set under the association's interest rate rules, although any decision rests ultimately with the association.

Stock Market

The Stock Exchange of Hong Kong Limited, the company recognised for the purpose of promoting, and in due course operating, a single unified exchange in Hong Kong, celebrated the second anniversary of its incorporation in July. At the end of 1982 the company had 942 members and three associate members.

In February, a site adjacent to the Connaught Centre in Central District was sold by the government by public tender for a record price of $4,755 million. Conditions of sale of this site required the successful tenderer to provide accommodation for the unified exchange on the podium level of the building to be constructed. Construction of a twin-tower building to be called Exchange Square has commenced.

In the meantime, trading continues on the existing four exchanges. The turnover for 1982 was: Far East Exchange, $21,109 million; Hong Kong Stock Exchange, $9,858 million; Kam Ngan Stock Exchange, $15,193 million; and Kowloon Stock Exchange, $69 million. The total of $46,229 million was 56.4 per cent lower than in 1981. The Hang Seng index, having lost ground sharply after worries about Hong Kong's future came to the fore in late September and as the weakness of the property market became apparent, ended the year at 783.82 (July 31, 1964100), compared to 1 405.82 at the end of 1981.

       Staff of the office of the Commissioner for Securities continued to monitor securities transactions and to scrutinise unusual movements in the prices of securities. The year also saw the publication of the Insider Dealing Tribunal's first report. In July 1980, the tribunal had started formal hearings of an inquiry into possible insider dealing in the shares of Hutchison Whampoa Limited at some time prior to September 26, 1979. The tribunal reported in March 1982 that there had been no insider dealing in these shares in the Hong Kong market and that it had found no evidence of culpable insider dealing elsewhere.

      The Takeovers Committee, a sub-committee of the Securities Commission which is chaired by the Commissioner for Securities, continued to administer the Hong Kong Code on Takeovers and Mergers. In 1982, 14 takeovers and mergers occurred where the offeror

50

FINANCIAL SYSTEM AND ECONOMY

came to hold 35 per cent or more of the voting shares of the offeree. There were also six instances of the acquisition of substantial minority stakes where shareholdings of less than 35 per cent of the voting shares were acquired. There were two instances of companies 'going public', nine rights issues and four 'shell' companies were re-activated.

During 1982, the office of the Commissioner for Securities, acting as the executive arm of the Committee on Unit Trusts, a sub-committee of the Securities Commission, 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, on the recommendation of the Committee on Unit Trusts, was 15. During the year, one unit trust had its authorisation withdrawn. The total number of authorised unit trusts and mutual funds at December 31, 1982, was 87.

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, 1982. Deposits lodged by dealers other than stockbrokers stood at $12 million. The purpose of these deposits is to give some protection to investors against any defaults by dealers who are not members of a stock exchange.

At the end of 1982, 2931 individuals and corporations were registered under the Securities (Dealers, Investments Advisers and Representatives) Regulations 1974.

Commodity Exchange and Gold Markets

The Hong Kong Commodity Exchange Limited is the one company licensed under the Commodities Trading Ordinance to operate a commodity exchange trading in futures contracts in Hong Kong. It operates four futures markets: cotton, sugar, soybeans and gold. The turnovers reported on these four markets for 1982 were: cotton, no trading; sugar, 350 977 lots of 50 long tons each; soybeans, 747 943 lots of 30 000 kg each; gold, 10 910 lots of 100 troy ounces each.

      In June 1982, the Commodities Trading Ordinance was amended so as to increase substantially the penalties for dealing by unregistered dealers. The ordinance now provides for a maximum penalty of $500,000 and five years' imprisonment for carrying on a business of dealing in commodity futures contracts while unregistered.

A working party was established during the year, under the chairmanship of the Commissioner for Commodities Trading, to review the operation of the Hong Kong Commodity Exchange and to consider whether the terms of the exchange's licence require modification. A major review of the Commodities Trading Ordinance has also been put in hand. The Hong Kong Commodity Exchange had set up a working party to study the possible establishment of a financial futures market.

At the end of 1982, 1 483 individuals, corporations and firms were registered under the Commodities Trading (Dealers, Commodity Trading Advisers and Representatives) Regulations 1976.

The Commodity Exchange Compensation Fund, established to compensate those who suffer pecuniary loss as a result of default by shareholders of the exchange, amounted to $8 million at the end of the year. Deposits lodged by dealers, other than shareholders of the Hong Kong Commodity Exchange, stood at $1 million. The purpose of these deposits is to give some protection to investors against any defaults by dealers who are not shareholders of the exchange.

Trading in gold on the Chinese Gold and Silver Exchange Society was fairly active in 1982, while membership of the society remained closed at 194 member firms. Prices, after allowing for exchange rate fluctuations, paralleled those in the other major markets of

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FINANCIAL SYSTEM AND ECONOMY

51

London, Zurich and New York, rising from $2,714 per tael of 99 per cent fine gold at the end of 1981 to $3,492 at the end of 1982. (One tael is equal to 37.429 grams.)

      The international gold market in Hong Kong continued to grow during the year. Dealings principally take place in US dollars per troy ounce of 99.95 per cent fine gold, with delivery in London. The price of gold loco London rose from US$400 per troy ounce at the end of 1981 to US$448 at the end of 1982.

Exchange Fund and Currency

The Hong Kong Government Exchange Fund was established by the Currency Ordinance of 1935 (later renamed the Exchange Fund Ordinance), with the stated purpose of regulating the exchange value of the Hong Kong dollar. 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 certifi- cates 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. 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. Thus the bulk of the government's financial assets are now held in the Exchange Fund. To-day, the principal role of the fund is the management of these assets and, associated with that, regulation of the exchange value of the Hong Kong dollar to the extent that this is deemed desirable or necessary. Another function related to the fund is the supply of notes and coin to the banking system.

      The Exchange Fund is managed by the Monetary Affairs Branch of the Government Secretariat under the direction of the Financial Secretary, who is also advised by an advisory committee which includes prominent members of the banking community. The fund's assets are held in bank deposits in Hong Kong dollars and certain foreign currencies, and in various interest-bearing instruments in foreign currencies.

      Currency notes in everyday circulation are $10, $50, $100, $500 and $1,000 and may only be issued by the two note-issuing commercial 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, 10 cents and five cents, and currency notes of one cent denomination, are issued by the government. In July, a new, smaller 10 cent coin was introduced, and the old one is gradually being withdrawn from circulation. The introduction of this new coin completes the modernisation of the coinage of Hong Kong which resulted from the report of the Coinage Review Committee in 1974. The seventh of a series of $1,000 gold coins minted to commemorate the 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 1982, and details of its composition, are shown at Appendix 11.

4

SDIC

Employment

     HONG KONG has a resourceful and energetic workforce of 2 405 000 - comprising 1 550 100 men and 854 900 women as estimated from findings of the September 1982 General Household Survey. They are engaged in: agriculture and fishing, mining and quarrying, 34 800; manufacturing, 876 800; electricity, gas and water, 12 100; construction, 209 600; wholesale and retail trade, restaurants and hotels, 518 900; transport, storage and communications, 193 500; financing, insurance, real estate and business services, 125 400; community, social and personal services, 433 700; and unclassifiable activities, 200.

      An establishment survey of Employment, Vacancies and Payroll in the manufacturing sector, held in September, recorded 856 137 people engaged in 47 089 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 362 955 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

     During 1982, 13 items of labour legislation were enacted to provide for higher standards in the safety, health and welfare of workers. This brings the total number of items of labour legislation enacted in the past decade to 157.

The Employment Ordinance was amended in 1982 to raise the wage ceiling for non-manual employees from $6,000 to $7,500 and to increase the number of statutory holidays. Minor amendments were made to the regulations made under the ordinance. The Employees' Compensation Ordinance was amended to provide for compulsory insurance, for the establishment of a two-tier Employees' Compensation Board to assess the amounts of compensation, and for measures to expedite the processing of employees' compensation cases.

      The Factories and Industrial Undertakings Ordinance was being considered to give effect to remaining recommendations in the Labour Adviser's report. A new set of regulations was introduced to ensure workers' safety in connection with the use of electricity in industrial undertakings. The Factories and Industrial Undertakings Regulations were amended to provide for the provision and wearing of ear protectors. The

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53

Factories and Industrial Undertakings (Work in Compressed Air) Regulations were amended to lengthen the intervals for radiographic examinations of people employed in compressed air.

The Vocational Training Council Ordinance was enacted to provide for the establishment of a statutory body to co-ordinate the development of a comprehensive system of technical education and training in industry and commerce.

      The Apprenticeship Ordinance was amended to transfer most of the functions under the ordinance from the Commissioner for Labour to the Director of Technical Education and Industrial Training, and to introduce other amendments consequential upon the establishment of the Vocational Training Council. With effect from April 1, 1982, a new Technical Education and Industrial Training Department was set up, merging the Industrial Training Branch - previously part of the Labour Department with the Technical Education Division of the Education Department.

      Minor amendments, including the revision of fines, were made to the Boilers and Pressure Receivers Ordinance and its subsidiary regulations.

      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.

As at December 1982, Hong Kong had applied 31 conventions in full and 19 with modification, making a total of 50. This compares favourably with most member nations in the region.

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 and a month for monthly-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. On the other hand, monthly rates of pay are most common for workers in the non-manufacturing industries. Men and women receive the same rate for piece-work, but women on average are paid less when working on a time-basis as there may not be strict job-comparability.

      Wage rates of manufacturing workers continued to increase in money terms during 1982. Although the effect of immigration on the labour force gradually lessened and the rate of inflation eased, manufacturing wage rates remained stagnant in real terms. During the 12 months ending September, 1982, the index of average daily wages in the manufacturing sector increased by 11 per cent in money terms. During the same time, the Consumer Price Index (A) went up by the same amount resulting in almost no change in the index of real average daily wages.

A Consumer Price Index (A), based on a household expenditure survey conducted from October 1979 to September 1980 and covering about 50 per cent of urban households in Hong Kong, was compiled as an indicator of the average price changes experienced by

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urban households spending between $1,000 and $3,499 a month in the base period of 1979-80. In December, 1982, this index stood at 135. (See Appendix 16). A Consumer Price Index (B) was compiled to show the average price changes experienced by urban households spending between $3,500 and $6,499 a month in 1979-80. This covers about 30 per cent of the urban households in Hong Kong.

In September, 1982, 75 per cent of workers engaged in manufacturing industries received daily wage rates (including fringe benefits of $56 or more (males $68 and females $53), and 25 per cent received $84 or more (males $103 and females $75). The overall average daily wage rate was $73 (males $87 and females $67).

Besides granting rest days, statutory holidays, paid annual leave and other entitlements under the Employment Ordinance, many employers in the manufacturing industries 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.

Starting in March, 1982, a new expanded survey of wages, salaries and employee benefits was introduced to replace the existing wage survey. As a result, wage rate statistics for non-manual workers in the manufacturing industries as well as for manual workers and non-manual workers in the non-manufacturing industries are available. Both the new and the old series were published for March for linking purposes. From then on the old series was discontinued.

Employment of children under the age of 14 in the industrial sector has long been prohibited by law. These statutory provisions were extended to all economic sectors from September 1, 1979. Moreover, in line with the government's policy of compulsory junior secondary education, since September 1, 1980, the minimum age for employment in all sectors has been 15 years. The only exceptions are that children aged 13, or above, may be permitted to work in non-industrial establishments subject to very stringent conditions aimed at ensuring their education to Form III and at protecting their health, safety and welfare.

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. A meal or rest break of at least 30 minutes must be given to women and young people aged 16 and 17 after five hours continuous work. In the case of young people under the age of 16, the break must not be less than one hour. Overtime employment for women is restricted to 200 hours a year, while young people are not permitted to work overtime. In addition, work for all young people may not start earlier than 7 a.m. nor end later than 7 p.m. while work for women may not start earlier than 6 a.m. nor end later than 8 p.m. The regulations also prohibit the employment of women and young people working at night, underground, or in dangerous trades. 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.

Since November, 1980, the labour inspectorate of the Labour Department has taken on additional enforcement responsibilities included in the Immigration Ordinance which aimed at stopping the influx of illegal immigrants into Hong Hong. Under the ordinance, all employees are required to carry their proof of identity and employers are required to maintain up-to-date employees' records. Employers are also prohibited from employing anyone who does not possess a valid proof of identity and those Vietnamese refugees who have been prohibited from being employed under the ordinance.

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55

In 1982, the labour inspectorate made 272 590 day and night inspections to industrial and non-industrial establishments. Three special campaigns were conducted against the employment of children and illegal immigrants, covering 28 106 establishments. During the year, 277 cases involving 277 children were brought before the courts.

Under the Factories and Industrial Undertakings Regulations, no male employee 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 Hong must be registered under the Trade Unions Ordinance administered by the Registrar of Trade Unions. Once registered, they are corporate bodies and enjoy immunity from certain civil suits.

During the year, 15 new unions were registered, of which eight were formed by civil. servants. At the end of the year, there was a total of 429 unions comprising 378 employees' unions with about 346 300 members; 35 merchants' or employers' organisations with some 3 180 members; 16 mixed organisations of employees and employers with about 28 560 members; and a trade union federation of three employees' unions.

About half 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 71 affiliated unions with about 177 140 members. A further 21 unions are friendly towards this federation and they have about 22 290 members. The affiliated and associated unions are concentrated in shipyards, textile mills, public transport, public utilities, and the printing and carpentry trades.

      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 a membership of about 35 930, and 11 associated unions with some 1960 members. These unions are mainly in the catering and building trades.

      The remaining 205 employees' unions are politically independent and have a membership of about 108 980, mostly drawn from the civil service and the teaching profession.

Labour Administration and Services

The Labour Department has an establishment of 1 679 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 affairs. 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 14 divisions: administration, staff training and development, air pollution con- trol, development, employees' compensation, employment services, factory inspectorate, occupational health, labour relations, women and young persons, mines, prosecutions, selective placement, youth employment advisory service, and overseas employment service.

Labour Relations

The Labour Relations Ordinance provides machinery for special conciliation, voluntary

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     arbitration and boards of enquiry for settling trade disputes that cannot be resolved through ordinary conciliation.

      In 1982, 174 trade disputes were handled by the conciliation service provided by the Labour Relations Service of the Labour Department. These disputes led to 34 work stoppages, resulting in 17 960 working days lost, compared with 15 319 days lost in 49 stoppages in 1981.

The service also dealt with 16 501 labour problems in 1982. 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 303 advisory visits to employers to promote joint consultation and good labour-management relations. It organised nine training courses on the Employment Ordinance for 834 management personnel and trade union officials, and another 21 similar training courses for 612 workers on a district or industry basis.

      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 employers with a minimum of formality. The tribunal deals with claims of right, wherever possible in the language of the parties. It complements the Labour Relations Service and does not supersede the conciliation services of the Labour Department. During 1982, the tribunal heard 5 132 cases involving employees as claimants, and a further 352 cases in which the claims were initiated by employers. More than $15 million was awarded by presiding officers. Of the cases dealt with by the tribunal, 92.3 per cent were referred by the Labour Relations Service after unsuccessful conciliation attempts.

Finding Employment

The Local Employment Service provides free placement service from 15 offices. These offices are linked by a facsimile system for efficient transmission of information on employment opportunities. During the year, 33 732 people were successfully placed in employment.

      The Special Register of the Labour Department provides assistance to graduates of overseas and local universities and job-seekers possessing post-secondary or professional qualifications. A total of 224 people found employment through this register. Another departmental register is the agency for the recruitment of artisans and labourers for all government departments.

      The Selective Placement Service provides employment assistance to deaf, blind and physically disabled people and operates from two offices in Hong Kong and Kowloon. During 1983, similar employment assistance will be extended to the mentally disabled and to ex-mental patients, while the Employment Service of the Hong Kong Council of Social Service and other voluntary agencies will continue for the time being to be responsible for the placement of socially disadvantaged job-seekers. During 1982, 372 physically handicapped people found employment through the Selective Placement Service.

Overseas Employment

The Contracts for Overseas Employment Ordinance controls contracts entered into in Hong Kong between overseas employers, or their authorised representatives and all manual workers proceeding overseas for employment. Such contracts must be attested by the Commissioner for Labour before workers leave Hong Kong. During the year, 205 contracts were attested, compared with 227 in 1981.

EMPLOYMENT

Foreign Domestic Helpers

57

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, 15 137 such contracts were attested.

Employment Agencies

The Employment Agency Regulations made under the Employment Ordinance require all profit-making employment agencies to obtain a licence from the Commissioner for Labour before starting operation. During the year, the department issued 151 licences to employment agencies dealing with local employment and 28 to those catering for employment overseas.

Careers Service

The Youth Employment Advisory Service of the Labour Department is engaged in a planned programme of activities geared to helping students and young people choose a career best suited to their talents, interests and abilities. In 1982, officers of the service gave 358 talks on careers to about 70 439 students in 333 secondary schools. The service also organised, with the Hong Kong Associaton of Careers Masters, six regional careers conventions and took part in 32 other activities to provide careers information to students, teachers, parents and interested parties. The service has produced 42 careers pamphlets on job opportunities in commerce, industry, the services and government. It also produces a monthly careers newsletter which is distributed free of charge to secondary schools, youth centres and other youth organisations.

www

     The service operates three careers information centres on Hong Kong Island, in Kowloon and in Tsuen Wan. Each centre is equipped with a careers reference library with about 1 250 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 1982, some 25 673 students and young people visited the centres.

The Labour Department's 11th Annual Careers Exhibition was held at the City Hall in November. Altogether, 22 exhibitors from commerce, industry and the government took part in the exhibition which attracted 115 655 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 safety and health 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, two sets of new regulations were introduced. The Factories and Industrial Undertakings (Electricity) Regulations became effective in December 1982, providing for the safe use of electricity in industrial undertakings. The Factories and Industrial Undertakings (Amendment) Regulations 1982, which became effective in December, require the proper maintenance of machinery and plant to minimise noise and the use of ear protectors by workers in industrial undertakings exposed to excessive noise. The shipbuilding and ship repairing industry safety sub-committee and the plastics industry safety sub-committee, set up in May, became the third and fourth tripartite,

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industry-based safety sub-committees to be formed under the Labour Advisory Board Committee on Industrial Safety and Accident Prevention. Sub-committees for the construction industry and the textile industry were established in 1980 and 1981 respectively. These safety sub-committees bring together representatives of employers, workers and the Labour Department to promote work safety in various industries.

      The factory inspectorate, with the Government Information Services, continued to expand its publicity programme for the promotion of industrial safety through extensive use of the media and other means. Safety Extravaganza, an audio-visual presentation on industrial safety, was attended by over 30 000 people at the Hong Kong Polytechnic in February. Subsequently, the show was staged in Wong Chuk Hang, Tsuen Wan and Wong Tai Sin as a joint safety promotion activity with the district boards. 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 was organised by the shipbuilding and ship repairing industry safety sub-committee for workers in the two industries.

      Throughout the year, the Industrial Safety Training Centre of the Factory Inspectorate provided safety training courses for workers from various industries and technical students. In conjunction with the Hong Kong Polytechnic, the centre organised for the fourth year an evening course leading to a certificate of proficiency in industrial safety. A variety of machine guards, models depicting safe working practices on construction sites and various types of personal protective equipment were on display at the centre.

Pressure Equipment

The Pressure Equipment Unit of the Labour Department enforces the requirements of the Boilers and Pressure Receivers Ordinance and the Gasholders Examination Ordinance ensuring the safe use and operation of all equipment covered by the ordinances. This includes steam boilers, compressed air receivers, and gasholders for storage of Town Gas. The unit also gives industry, the fire services and other government departments technical advice on matters relating to pressure equipment, especially those governed by the Dangerous Goods Ordinance.

The unit conducts examinations of boiler attendants for the issue of certificates of competency. Initial design, scrutiny and physical inspection of pressure equipment under the Boilers and Pressure Receivers Ordinance is carried out by engineers in the private sector, although their suitability for appointment is assessed by the unit. At the end of the year, there were 45 appointed examiners under the ordinance.

Occupational Health and Hygiene

The Occupational Health Division (formerly known as the Industrial Health Division) of the Labour Department provides an advisory service to government and industry on matters concerning the health of workers, the hygiene of the workplace and occupational health standards and practice. The aim of occupational health is to maintain and improve the physical and mental well-being of workers, to protect them against any health hazard arising from their employment and to help in their adjustment to their tasks.

A prime responsibility of the division is to investigate notified occupational diseases and potential health 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 radiation, government divers and compressed air workers aims at

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ensuring that workers are physically fit and that the work does not adversely affect their health.

      Occupational health officers 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 to deal with cases of silicosis under the Pneumoconiosis (Compensation) Ordinance.

      The division's laboratory carries out analytical tests on biological samples from workers' urine, blood, and other samples from the working environment such as the 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 Employees' Compensation Ordinance and the Pneumoconiosis (Compensation) Ordinance. The division ensures that injured employees and dependants of deceased employees covered by the Employees' Compensation Ordinance obtain from their employers, without undue delay, compensation in respect of injuries or death caused by accidents or occupational diseases arising out of and in the course of employment. It also ensures that people covered by the Pneumoconiosis (Compensation) Ordinance obtain compensation as soon as possible from a special fund.

Further important legislative changes were introduced during the year with the enactment of the Employees' Compensation (Amendment) Ordinance 1982. These changes, to be operative in stages commencing in mid-1983, represent the final stage in the implementation of the recommendations of the working party appointed by the Commissioner for Labour in 1978 to carry out a comprehensive review of the Workmen's Compensation Ordinance - retitled the Employees' Compensation Ordinance in 1980. They include the introduction of compulsory insurance; the establishment of a statutory two-tier Employees' Compensation Assessment Board; the introduction of a simple certification system for the settlement of minor claims; various measures to expedite the processing of employees' compensation cases; and miscellaneous amendments aimed at removing ambiguities and deficiencies, and improving effectiveness.

      The Pneumoconiosis (Compensation) Ordinance which came into operation on January 1, 1981, provides for compensation for people suffering from silicosis and asbestosis. Compensation is paid from the Pneumoconiosis Compensation Fund financed by a levy imposed on the construction and quarry industries and administered by the Pneumoconiosis Compensation Fund Board.

LA

5

18

童禁

Primary Production

HONG KONG has a very small agricultural base with only about nine per cent of the total land area being suitable for crop farming. Yet, its people, according to the United Nations' Food and Agricultural Organisation, are among the world's highest consumers of protein. Each day, the people of Hong Kong consume about 1 000 tonnes of rice, 1 500 tonnes of vegetables, 10 000 pigs, 650 head of cattle, 150 tonnes of poultry, 400 tonnes of fish and 1 000 tonnes of fruit. Much of this is imported, but Hong Kong farmers - less than one per cent of the economically active population - help to satisfy some of this demand. In quantity terms, local farmers produce about 38 per cent of fresh vegetables, 55 per cent of live poultry, 21 per cent of live pigs, and 14 per cent of fresh water fish, while the fishing fleet of nearly 5000 vessels supplies about 80 per cent of all fresh marine fish eaten. The locally-produced food is generally of a higher quality than the imported foodstuffs and thus fetches higher prices in the markets.

      Foodstuffs account for about 25 per cent of Hong Kong's imports from China. Local production, aimed at maintaining a degree of self-sufficiency, is geared to complement rather than compete with major food imports. Local produce consists of mainly high-value, perishable foods and full advantage is taken of the local consumers' preference for fresh food, as opposed to the frozen or chilled versions.

      Severe rainstorms in May and August caused considerable damage to crops, fish ponds and livestock in the New Territories, resulting in temporary shortages of locally-produced food supplies. In May, 1 000 hectares of crops and 500 hectares of fish ponds were flooded while 10 000 pigs and some 400 000 chickens were drowned. The August rainstorms were less severe, but still resulted in the flooding of 450 hectares of crops and 310 hectares of fish ponds and the drowning of 7 000 chickens and 100 pigs.

Agriculture and Fisheries Department

The policy of the Agriculture and Fisheries Department is to encourage optimum use of agricultural land throughout the rural areas. It assists in the development of agriculture, especially in the form of irrigation projects and other long-term improvement schemes. New concepts, techniques and material input to the farming and fishing industries are evaluated and actively promoted. Controls are exercised to prevent the introduction and spread of plant and livestock pests and diseases.

     Low interest loans are administered by the department to help farmers and fishermen to finance their operational or long-term investment requirements. It also organises and finances vocational and technical training for those directly and indirectly involved in primary production. In addition, it is responsible for the registration and supervision of co-operative societies and credit unions. The department manages large areas of open countryside and is responsible for soil and water conservation, woodland management and

12

MARKETS

Something for Everyone

With the local population's preference for fresh food, open-air markets are still a way of life in Hong Kong despite the rapid growth of supermarkets and the availabil- ity of a large variety of imported frozen produce. By dawn, the wholesale markets are stacked with freshly-cut vegetables, and the previous night's catch delivered by the fishing fleet. There are seven wholesale fish markets and one wholesale market for fruit and vegetables and these supply more than 80 retail markets and 36 000 licensed hawkers as well as numerous other outlets. Retail outlets are under the control of the Urban Council in the urban areas of Hong Kong Island and Kowloon, and the government in the New Territories. The Urban Council is engaged in an extensive development programme to re-provision old market buildings and to provide modern multi-purpose market complexes. During 1982, five new retail markets were completed, taking increasing numbers of hawkers and stalls off the streets. Yet while these new premises provide hygienic, efficient facilities and orderly marketing arrangements, traditional traders still offer plenty of rewards to the thrifty shopper. Every conceivable household item, as well as toys, electrical goods, clothing, curios, even jade, and a myriad other bargain buys, can be found at the wide range of market stalls throughout the territory.

Previous page: A colourful flower stall at the quayside market on Cheung Chau Island offers chrysanthemums and gladioli that grow year-round in the territory. Left: Brightly coloured banners (known as fa pai) mark the opening of an Urban Council market complex in Tuen Mun; the Fish Marketing Organisation manages the Cheung Sha Wan wholesale fish market; at the wholesale market managed by the Vegetable Marketing Organisation, fresh vegetables await distribution.

林記自己 林杞

名茶!

批發

錦與凍肉

Crowds of eager shoppers are attracted to Pei Ho Street in Sham Shui Po, Kowloon, typical of the bustling, traditional street markets found throughout Hong Kong.

L

30

TEEL

  Bargaining for clothes for all the family is part of the sales routine for both local people and tourists at the market streets in Central District.

▪|

miston

Hakka women, distinctive in their broad-brimmed hats, sell locally-made wares at the rural market place at Luen Wo near Fanling in the New Territories.

Shopping is a serious business for all generations at neighbourhood stalls. Sai Ying Pun market on Hong Kong Island supplies foodstuffs and every household need.

Seng

I

When the bargain-hunting is over, cooked food stalls and fortune tellers are a major attraction at Temple Street night market in Kowloon which comes to life only after dark.

  At Canton Road jade market in Kowloon even the youngest buyer can eventually find a piece to his liking.

A

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61

landscape repair as well as fire-fighting and the development of recreational services in country parks.

Consumer demand and local primary production, within the context of world food production and supply, are monitored to enable appropriate development planning. 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 identify areas for 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. Experiments are conducted on government farms 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, supplies improved and exotic breeding stocks of pigs and poultry, and provides an artificial insemination service for pigs.

       For fisheries, research is conducted into marine resources, aquaculture, hydrography and the effects of marine pollution. In marine resources research, emphasis is placed on investigating new fish stocks for commercial exploitation within the range of the Hong Kong fleet and on monitoring the performance of existing capture fisheries. The fisheries. research vessel Tai Shun, a 565 GRT combination trawler and purse-seiner, was employed to conduct acoustic quantitative evaluation surveys of midwater resources in the northern part of the South China Sea, and related fisheries hydrographic research. She will also be used in exploratory fishing on the edge of the northern continental shelf.

Aquaculture research is concerned with the development of more efficient culture systems and methods of producing the fry of marine fish; 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 fisheries, particularly mariculture. A new 21-metre marine pollution vessel is being designed by the Marine Department for construction in 1983. The vessel will be used jointly by the Agriculture and Fisheries Department and the Environmental Protection Agency for pollution research in the territorial waters of Hong Kong.

Development Farming and Fishing

     Owing to the shortage of farm labour in Hong Kong and its rising cost, the main development in the agricultural industry in recent years has been the introduction of labour-saving devices. Farmers use pre-emergence herbicides for weed control in market garden crops and there is widespread use of small farm machines and sprinkler irrigation. At the end of 1982, there were 3 800 rotary cultivators and 2 150 sprinkler units in use on vegetable farms.

      The plastic net house, designed to aid vegetable growing in adverse weather, is the subject of an active development programme by the Agriculture and Fisheries Department. The net houses, which are particularly suitable 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 the installation of plastic net houses for better farming results.

      Straw mushroom cultivation has gained considerable popularity in recent years and at the end of 1982 there were 60 mushroom farms. The locally-produced mushroom has about a. 30 per cent share of the local market.

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      Teams of agricultural development officers are posted by the department throughout the New Territories to deal with farming and pollution problems, and to liaise 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 841 farmers attended farm discussion groups led by professional and technical officers from the department. Some 13 field demonstrations of new strains of mushroom spawn isolated by the department were conducted for the benefit of growers. Officers also made more than 70 000 visits to farmers and co-operative societies. Visits were also arranged for farmers to see 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. Training classes in navigation and business management for coxwains, engineers and radio-telephone operators working on fishing boats are organised in the main fishing ports.

      Education is provided for the children of fishermen at 14 schools run by the Fish Marketing Organisation. At the end of 1982, more than 3 825 children were attending these schools. A further 45 were attending other schools on scholarships awarded by the organisation.

      Close contact with the fishing community is maintained through liaison with producer associations and fishermen's co-operative societies. Ten Fish Marketing Organisation liaison offices operate in the main fishing centres to provide a link with the fishermen.

Loans

-

     Loans are available to the agricultural industry through three main 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. By December 31, 1982, loans issued since the inception of these three funds had reached a total of $157 million. Of this, $149 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, is also 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, 1982, loans issued since the inception of these four funds totalled $117 million, of which $103 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 other matters as mediation in disputes and dissolution of the co-operative societies when necessary. At the end of the year, some 11 835 farmers and more than 1 912 fishermen were members of co-operative societies. There were 79 societies and two federations among

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63

the farming community, and 68 societies and four federations supported by fisherfolk. A further 253 societies and one federation formed by co-operative building societies with about 8 804 members operate in the urban area. The majority of the co-operative building societies were 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 64 credit unions with about 15 515 members registered with the Agriculture and Fisheries Department. There were 31 credit unions comprising groups of people having a common bond of association; 26 unions of people having bonds of employment; and seven unions formed by groups each with a common bond of residence.

Land Usage

     Hong Kong's land area totals 1 064 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 effect of the losses in the total area of agricultural land have been offset by more intensive farming on remaining areas. The Lands Department is responsible for land administration throughout Hong Kong.

Class

Approximate area (square kilometres)

Percentage of whole

(i) Urban built-up lands

96

9.0

(ii) Rural developed lands

74

7.0

(iii) Woodlands

125

11.7

(iv) Grass and scrub lands

624

58.7

(v) Badlands

46

4.3

(vi) Swamp and mangrove lands

1

(vii) Arable

80

0.1 7.5

(viii) Fish ponds

Remarks

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. 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 lands, including orchards and market gardens, under cultivation and fallow.

18

1.7

Fresh and brackish water fish farming,

excluding coastal marine fish farms.

Agricultural Industry

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

      Common crops are vegetables, flowers, fruit and other field crops. The value of crop production has increased from $89 million in 1963 to $420 million in 1982

a rise

64

PRIMARY PRODUCTION

of 472 per cent. Vegetable production accounts for more than 89 per cent of the total value, having increased from $58 million in 1963 to $375 million in 1982.

      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. 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 are also produced, using industrial cotton waste as the growing medium.

-

      Among the common types of flowers, gladioli and chrysanthemums grow all the year round; dahlias, roses, asters, snapdragons and carnations are produced in winter; and ginger lilies and lotus flowers in summer. A wide range of ornamental plants - including philodendrons, dieffenbachia, bamboo palms and poinsettia - are produced in commercial nurseries. Peach blossom and ornamental citrus are grown especially for the Lunar New Year. The area of land under vegetables and flowers increased from 910 hectares in 1954 to 4 970 hectares in 1976 but has since declined gradually to 2 950 hectares in 1982 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 less than 10 hectares in 1982. Rice production has given way to intensive vegetable pro- duction, which gives a far higher return. Much former paddy land around the more remote villages has fallen into disuse and now lies fallow.

      Various types of fruit are grown in Hong Kong. The principal crops are longan, lychees, wampei, tangerines, local lemons, bananas, guavas and pineapples. Land under orchards in 1954 totalled 390 hectares; by 1982 it was 700 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 70 hectares were under rain-fed crops in 1982, 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 1982 amounted to $223 million.

      With an annual production value of $675 million, the poultry industry - including ducks, pigeons and quail - continues to develop. Many farmers have adopted advanced methods of management, successfully adapting them to local conditions. During 1982, local chicken production increased by 15 per cent to about 20 million birds, representing 61 per cent of total consumption. The value of hen eggs produced amounted to $40 million for the year.

Friesian cattle 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. In March there was an outbreak of anthrax resulting in the death of three cows on a dairy farm on Hong Kong Island. 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 remained in force throughout the year. These include 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 area. The rabies-infected area was reduced in size in April to cover only the frontier closed

PRIMARY PRODUCTION

65

area. By the end of the year, 18 727 dogs had been humanely destroyed and another 28 379 licensed and inoculated against rabies.

      As a 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. Importation for breeding purposes is also subject to strict control.

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 175 000 tonnes with a wholesale value of $1,420 million in 1982. These figures represent a decrease of four per cent in weight but an increase of three per cent in value compared with 1981. Of the total production, 96 per cent in weight came from marine capture and four per cent from culture fisheries. In terms of wholesale value, 89 per cent came from marine capture and 11 per cent from culture fisheries.

An estimated 28 000 fishermen work a fleet of 4 800 vessels, of which over 92 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 1982. The total landed catch of live and fresh marine fish available for local consumption in 1982 amounted to 74 000 tonnes, with a wholesale value of $500 million. This represented 89 per cent of the local consumer demand.

Pond fish farming is the most important culture activity. Fish ponds covering 1 800 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 7 000 tonnes, or 15 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 1982, live marine fish supplied by this activity from 50 culture areas amounted to 1 000 tonnes valued at $58 million.

Marketing

- -

     Much of the wholesale marketing of primary products particularly fresh foods is the responsibility of the Agriculture and Fisheries Department, and of the vegetable and fish marketing organisations. During 1982, 34 per cent of the total quantity of locally-produced vegetables, and 75 per cent of the total landings of marine fish, were sold through the organisations.

The Vegetable Marketing Organisation operates under the Agricultural Products (Marketing) Ordinance, which also provides for the establishment of a Marketing Advisory Board to advise the Director of Marketing (the Director of Agriculture and Fisheries). The

66

PRIMARY PRODUCTION

organisation is responsible for 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 maximise returns to farmers by minimising marketing costs. It also provides ancillary services such as the acquisition and sale of agricultural supplies to farmers and the awarding of tertiary education scholarships to the children of farmers. During the year, 77 500 tonnes of vegetables valued at $204 million were sold through the organisation.

The Fish Marketing Organisation operates under the Marine Fish (Marketing) Ordi- nance, which also provides for the establishment of a Fish Marketing Advisory Board. The ordinance provides for the control of the landing, wholesale marketing, and the import and export of marine fish. The Fish Marketing Organisation operates seven wholesale fish markets. Revenue arises from a six per cent commission on the proceeds of sales. Surplus earnings are channelled back into the industry in the form of various services such as low interest loans to fishermen; improvements to the markets; financial support for the 14 schools for fishermen's children; and scholarships for secondary and tertiary education. In 1982, the wholesale fish markets handled 78 000 tonnes of marine fish, crustacea and molluscs which were sold for some $480 million. This included 500 tonnes of imported marine fish sold through these markets.

Facilities in the existing wholesale markets are becoming inadequate for handling the ever-increasing quantities of imported fresh vegetables, fruit, poultry, eggs, freshwater fish and crustacea. Marketing activities have spilled onto adjacent public streets causing obstruction and traffic congestion. To improve the situation, plans are going ahead to establish new wholesale markets in Kowloon and on Hong Kong Island to centralise the wholesale marketing of fresh foodstuffs. In the interim, the government has brought a number of temporary wholesale markets into operation, the latest being the Western District temporary wholesale fruit market which opened in August.

Mining

Although mining activity has declined rapidly over the last decade, quantities of kaolin, feldspar and quartz were worked by openpit methods during 1982. At the end of the year, no mining leases or prospecting licences were in effect but four mining licences issued by the Commissioner of Mines were in operation. Details of leases and licences are published twice a year in the Government Gazette.

      The Mines Division of the Labour Department enforces legislation and safety regulations relating to mining and explosives. It processes mining and prospecting applications; inspects mining and prospecting areas, stone quarries, blasting sites and explosives stores; and issues shortfirers' 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 explosives sub-depot at Mount Butler Quarry, which was set up in October 1981, has been supplying explosives exclusively to sites associated with the Mass Transit Railway Island Line. Additional storage space was provided for some five tonnes of fireworks for a display in January to mark the Lunar New Year festivities. Approval was given in April for the importation and use in Hong Kong of Chinese-manufactured explosives and blasting accessories after storage and firing tests of the dangerous goods were undertaken by the Mines Division. The consumption of explosives during the year was 5 255 tonnes.

6

Education

ES30

THE year saw continued expansion in education, largely in accordance with the policy set out in the 1981 White Paper on Primary Education and Pre-primary Services. Some $934 million in capital expenditure and $3 987 million in recurrent expenditure was provided for education in the government's estimate for 1982-3, representing 13 per cent of the total budget for Hong Kong.

      An international panel of visitors, appointed by the government in June 1981 after close consultation with the Organisation for Economic Co-operation and Development (OECD) to carry out an overall review of the local education system, returned in late March 1982 for two plenary sessions. These were attended by about 80 local representatives from various educational groups as well as six overseas delegates - from the United Kingdom, Malaysia, Singapore, Denmark, Japan and Canada to give the discussions a wider international dimension. The four-man panel submitted the final report to the government at the end of 1982.

      The introduction of a new system of admission to Primary 1 classes in schools in the public sector was announced in July. The system, which will come into effect in September 1983, is designed to eliminate much of the pressure imposed on young children by the intense competition to enter popular primary schools and the adverse effect this has on education at the kindergarten level.

       The Education Ordinance was amended to make three years eight months the normal age of entry to kindergarten education. The Education Regulations were also amended to provide new standards for the size of classes and the provision of space in kindergartens. In order to give kindergarten operators time to adjust to these changes, the new provision concerning age will come into force on September 1, 1985, and the new provisions concerning class size and space on September 1, 1986.

       In September, a rent reimbursement scheme for non-profit-making kindergartens and a fee assistance scheme for needy families with children requiring pre-primary services was introduced. A curriculum development team of practising kindergarten teachers was also formed.

       Secondary education continued to expand in accordance with the proposals contained in the 1974 and 1978 White Papers. Twenty-two new secondary schools providing a total of 24 200 additional places were completed during the year, bringing the total number of schools completed in the Secondary Schools Building Programme to 92. A further 38 schools, including 12 prevocational schools, are expected to be ready by 1985-6. In September, 57 previously private, non-profit-making schools were granted a full government subsidy on completion of a phased conversion scheme.

As a measure to improve the quality of education, the government established the Institute of Language in Education in September to train and re-train non-graduate

68

EDUCATION

teachers of Chinese and English in specialist language teaching skills, and at the same time provided additional teachers in secondary schools for more effective language teaching. The government also began research into the language of instruction in schools, set up curriculum development teams of secondary school teachers and made provision for the installation in primary and secondary schools of a wire-free induction loop system to support language lessons.

      To promote and facilitate the use of Chinese for communication, study, work and leisure, a working party was set up to study the feasibility of establishing an independent Chinese Language Foundation. The working party's report is being considered by the government.

       The Junior Secondary Education Assessment (JSEA) System is designed to select and allocate Form 3 leavers to Form 4 places in the public sector. A total of 433 schools were registered for the 1981-2 JSEA, including 64 Chinese middle schools, 362 Anglo-Chinese schools and seven special schools. The total number of pupils involved in the assessment was 82 757. Of these, 2 217 discontinued schooling before the second internal assessment or failed to submit their choice of school, while 1 053 were admitted into full-time craft courses at Hong Kong's five technical institutes. Over 65 per cent (52 091) of the remaining pupils were allocated Form 4 places in government and aided schools, with nearly 80 per cent of these (41 511) allocated back to their own schools.

      In February, the government approved for schools in the public sector the provision of additional graduate and non-graduate teachers in secondary schools, and increased the teacher-to-class ratio from 1.1:1 to 1.2:1 in primary schools. The additional staff in secondary schools will improve the standards in Chinese and English through more remedial language teaching; strengthen the staffing resources for remedial teaching in other subjects; provide guidance and career counselling for pupils; and extend extra-curricular activities and community involvement. Similarly, additional staff in primary schools will enable schools to implement various measures for the improvement of primary education - including the establishment of class libraries, improvements to audio-visual aid services, the release of staff to attend refresher courses, and more remedial teaching.

Kindergartens

In September, there were 709 kindergartens in Hong Kong providing pre-school education for about 205 200 children in the three-to-five 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. In-service training for teachers is provided through seminars, exhibitions and training courses, including a two-year part-time course conducted at the Grantham College of Education and a 12-week part-time course run twice yearly by the Advisory Inspectorate of the Education Department. Other government assistance to kindergartens includes the re- imbursement of rents and rates to non-profit-making kindergartens and the allocation of premises in public housing estates to suitable sponsoring bodies for the operation of kindergartens.

Primary Education

Primary education has been free in all government schools and in nearly all aided schools since September, 1971. In the few aided primary schools where fees are charged, they may be remitted 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 $135 per pupil

EDUCATION

69

is available to 25 per cent of pupils enrolled in government and aided primary schools. A minority of parents continue to send their children to private primary schools, although places are available for them in the public sector.

      In September, the primary school enrolment totalled 538 458 compared with 537 123 the previous year. In addition, 9 054 pupils attended primary-level night schools for adults. During the past year, 30 240 primary places were provided in new and developing schools and more are planned to meet the needs of developing areas, particularly in the new towns in the New Territories.

Primary 6 leavers wanting 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, and takes into account parental choice of secondary schools.

In July, all the 83 833 Primary 6 pupils participating in the SSPA were allocated Form 1 or Middle 1 places in government and aided schools, private non-profit-making schools in receipt of per capita grants, and private independent schools in the 'bought places' scheme. With effect from September 1983, a system of controlling Primary 1 admission will be introduced. Under the new system, no tests or any form of examination will be permitted in the selection of children for Primary 1 places. Allocation of 35 per cent of the places will be based on parental choice and place of residence, and will be made centrally by the Education Department. A points system will be used by schools for the admission of children to fill the remaining 65 per cent of Primary 1 places. The territory has been divided into 60 school districts with the scheme designed to enable at least 65 per cent of Primary 1 places in each district to be filled by children living in the district. The first stage of the system, including the drawing-up of the school districts and the issue and collection of application forms, commenced in early 1982.

The Student Guidance Scheme launched in September, 1978, continued to expand and was providing school social work service in 934 primary schools at year's end.

Secondary Education

There are four main types of secondary school in Hong Kong: Anglo-Chinese secondary schools, Chinese middle schools, secondary technical schools and prevocational schools. The 346 Anglo-Chinese grammar day schools had enrolments totalling 383 900, compared with 385 543 in 1981. They offer a five-year secondary course in a broad range of academic and cultural subjects leading to the Hong Kong Certificate of Education Examination (HKCEE) with the medium of instruction mainly in English. Students with suitable results in the HKCEE may enter a two-year sixth-form course leading to the Hong Kong Advanced Level Examination for admission to the University of Hong Kong. Many also sit for the United Kingdom General Certificate of Education Examination at both ordinary and advanced levels.

       In 1982, there were 72 Chinese middle schools accommodating 40 742 pupils, compared with 78 in 1981. Pupils at these schools also take courses leading to the HKCEE. Instruction is mainly in Chinese, with English taught as a second language. A number of Chinese middle schools also offer a one-year Middle 6 course leading to the Hong Kong Higher Level Examination for admission to the Chinese University of Hong Kong.

Secondary technical courses were provided for 19 554 students in 21 schools; 10 of these schools are run by the government and 11 are government-aided. Secondary technical schools prepare their students for the HKCEE, but emphasis is placed on technical and commercial subjects. Suitably qualified candidates can continue their studies

70

EDUCATION

in Form 6 or at technical institutes, the Hong Kong Polytechnic, or the Technical Teachers' College.

Prevocational schools are government-aided secondary schools offering three years of junior secondary education. These schools provide students with a general education and an introduction to wide-ranging technical skills upon which future vocational training may be based. It is envisaged that after completion of Form 3 a high proportion of prevocational students will enter approved craft apprenticeship schemes with associated part-time day-release courses at technical institutes. 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 Vocational Training Council (formerly 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 to 3. The technical content is reduced to about 30 per cent in Forms 4 to 5. The senior secondary curriculum has been designed to give credits or exemptions for entry to technician programmes in the technical institutes. This two-year course is available to about one third of the Form 3 prevocational school leavers; the rest may go on to employment, often involving craft apprenticeship, or to unsubsidised education in the private sector.

At present, there are 12 prevocational schools providing a total of 10 680 places. A further 12 schools of this type have been included in the school building programme and are expected to be completed by 1985.

Special Education

The provision of special education continued to develop in line with the objectives of the White Paper on Rehabilitation published in October 1977. A total of 24 593 special places for handicapped children was provided in 1982. At present there are 70 special schools three for the blind, four for the deaf, 20 for the physically handicapped (including 12 hospital schools), 34 for the mentally handicapped, eight for the maladjusted and socially deprived, and one for children with learning difficulties.

       In addition, there are 128 special and resource classes in 56 ordinary government schools - 63 for children with learning difficulties, nine for the partially-sighted, 35 for the partially- hearing and 21 for the maladjusted. There are also 471 special and resource classes in 303 ordinary aided schools - 448 for children with learning difficulties and 23 for the maladjusted. These special and resource classes, and a school for children with learning difficulties, are for the less severely handicapped and include both primary and junior secondary levels (up to Form 3). In addition, 1 363 less severely handicapped children are integrated into ordinary classes in government and aided schools.

       A notable development in special education has been the implementation of a policy to provide educational places for all mentally handicapped children, irrespective of the degree of their disability. In the past, children with a moderate or severe mental handicap were given training in centres operated or subvented by the Social Welfare Department. In April 1979, however, the Director of Education started a phased take-over of responsibility to provide education for these children. The process was completed in 1982.

Preventive and follow-up measures in the form of screening, assessment and remedial services are undertaken in order to identify special educational needs among school-age children and to allow remedial action to be taken as early as possible. During the year, 290 535 children were screened, assessed or provided with remedial services by the Special

EDUCATION

71

     Education Section of the Education Department. Of these, 260 788 primary school children underwent group testing and screening programmes which included vision, audiometric and speech screening. Assessment and remedial services - including audiological, speech and psychological assessments, adjustment groups, teacher and parent counselling, speech and auditory training, and speech therapy - were also expanded substantially. As a result of these assessments, 29 747 children were given further help by the Education Department's special education services centres.

The expansion of special education has necessitated an increased effort in the training of specialist staff. Overseas training is provided for the specialist staff of the Special Education Section and local in-service courses are run for teachers in special schools and classes. During 1982, five in-service training courses were run by the Special Education Section 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 maladjusted and socially deprived, and for teachers who assist in speech therapy work. A total of 104 teachers enrolled in the various courses during the year.

Up to 1981, the operation of these courses for teachers of all types of handicapped children had been the responsibility of the Special Education Section of the Education Department. To improve the quality of training provided, the Sir Robert Black College of Education in September 1981 started to assume responsibility for running the courses, initially for teachers of children with learning difficulties and mentally handicapped children. The bulk of the transfer process was completed in September 1982 when the college started to run the other courses for teachers of the blind and the partially-sighted, the deaf and the partially-hearing, the physically handicapped, the maladjusted and the socially deprived. The Special Education Section continued to organise short courses, seminars and workshops for teachers in ordinary schools and for trainee-teachers at colleges of education. The responsibility of subventing boarding care and transport facilities in some special schools was transferred from the Social Welfare Department and the Medical and Health Department to the Education Department in October 1981, with the boarding sections of 14 special schools taken over by the Education Department for subvention purposes.

Vocational Training Council

The Vocational Training Council was established as a statutory body in February under the Vocational Training Council Ordinance. It took over the advisory functions of the former Hong Kong Training Council and was granted various executive functions. The objectives of the council are to advise the Governor on the measures required to ensure a comprehensive system of technical education and industrial training suited to the developing needs of Hong Kong; to institute, develop and operate schemes for training operatives, craftsmen, technicians and technologists required to maintain and improve Hong Kong's industry, commerce and services; and to establish, operate and maintain technical institutes and industrial training centres.

To support the work of the council, the government established in April a new Department of Technical Education and Industrial Training as the council's executive arm. This was formed by the merger of the Technical Education Division of the Education Department and the Industrial Training and Apprenticeship Divisions of the Labour Department. Most of the officers in the department work directly to the council through its executive director, who is also the head of the department.

On the council's recommendation, the Governor also established 19 training boards and six general committees. The training boards cover the major economic sectors: accountancy;

72

EDUCATION

automobile repairs and servicing; banking; building and civil engineering; clothing; electrical; electronics; hotels, catering and tourism; insurance; jewellery; journalism; machine shop and metal working; merchant navy; plastics; printing; shipbuilding and ship repairs; textiles; transport and physical distribution; and wholesale, retail, import and export trades. The six general committees deal with apprenticeship and trade testing; training in electronic data processing; management and supervisory training; technical education; technologist training; and translation.

The training boards determine manpower needs and recommend measures to meet such needs, prescribe job specifications, and design training programmes and trade test guidelines. They also perform functions delegated by the council, such as operating and maintaining training centres. The general committees are responsible for specific training areas common to all or several sectors of the economy. Training boards and general committees are serviced by Technical Education and Industrial Training Department staff. During the year, eight manpower surveys were conducted in the following sectors: accountancy; automobile repairs and servicing; banking; electronics; machine shop and metal working; shipbuilding and ship repairs; printing; and wholesale, retail, import and export trades. Two special surveys were also carried out on management and supervisory training and on technical education. During the same period, the training boards prepared or revised manuals of job specifications, training programmes and trade test guidelines, and a glossary of common commerce and services term is being finalised. Many of the survey reports and manuals are on sale at the Government Publications Centre.

Industrial Training

The government accepted the former Hong Kong Training Council's recommendations to establish eight training centres to provide basic off-the-job training for the following sectors: automobile repairs and servicing; electrical; electronics; hotels; machine shop and metal working (including welding); plastics; printing; and textiles. It also approved a practical training scheme for engineering graduates to help them meet the training requirements of their professional institutions. Two sites, at Kowloon Bay and Kwai Chung, have been ear-marked for building two complexes to house the eight training centres.

Technical Education

The five technical institutes provide an increasing range of courses at craft and technician levels on a full-time, block-release, part-time day-release or evening basis. The main disciplines include construction, electrical engineering, mechanical engineering, marine and fabrication, textiles and clothing, commercial studies, industrial technology, design, printing, hotel-keeping and tourism, as well as general studies. New short courses in computing and low pressure gas domestic appliance installation were also offered to meet the urgent needs of industry and commerce. Most of the technician level courses were validated by the Technician Education Council (TEC) in Britain. TEC qualifications are recognised for qualifying or exemption purposes by many professional and technician bodies in the United Kingdom. A computer centre, opened at the Lee Wai Lee Technical Institute, with terminals linking all five institutes, enables the study of computer applications to be included in most technician and commercial courses.

       The demand for technical institute courses remained high. During the first term of the 1982-3 academic year, there were about 3 700 full-time, 10 600 block-release and part-time day release, and 20 800 part-time evening students. In September, the teaching establish- ment of the technical institutes was about 450 plus about 350 support staff. The annual

EDUCATION

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employment survey of full-time students completing their courses showed that graduates had no difficulty in finding employment in fields in which they had trained.

In order to meet the demand for more technical institute courses, a series of expansion programmes has been undertaken. A purpose-built waterfront annex for yacht and boat building courses offered by the Haking Wong Technical Institute was completed in April and began operation in September. Another development was the start of construction work for an additional storey and an annex for the Lee Wai Lee Technical Institute.

Training Authorities

The Clothing Industry Training Authority and the Construction Industry Training Authority are statutory bodies established in 1975. The Clothing Industry Training Authority is empowered to collect a training levy on the 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 construction work undertaken in Hong Kong. The revenues are used to operate the Clothing Industry Training Centre and the Construction Industry Training Centre which provide practical training in key occupations. for the two industries. A second Construction Industry Training Centre, at Kwai Chung, was commissioned in October, and the Clothing Industry Training Authority was granted a site in Kowloon Bay to establish a second training centre for the clothing industry.

Apprenticeship

The Apprenticeship Ordinance, which came into effect in 1976, provides a legal framework for the training of craftsmen and technicians. On April 1, 1982, the Apprenticeship (Amendment) Ordinance 1982 transferred to the Director of Technical Education and Industrial Training most of the functions of the Commissioner for Labour under the Apprenticeship Ordinance. The ordinance requires an employer to enter into a contract of apprenticeship when engaging an untrained or not fully trained person aged between 14 and 18 in a designated trade. The contract must be registered with the Director of Technical Education and Industrial Training. 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 Technical Education and Industrial Training Department for voluntary registration.

      By the end of 1982, there were 38 designated trades as recommended by the former Hong Kong Training Council.

      The Apprenticeship Section of the Technical Education and Industrial Training Depart- ment 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. 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 1982, the section registered 3 767 apprenticeship contracts, of which 634 were for non-designated trades. These contracts covered 3 283 craft apprentices and 484 technician apprentices. By the end of the year, 10 172 apprentices were being trained in accordance with the ordinance. 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.

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Services provided for the disabled in technical education and vocational training continued to expand in 1982. The first vocational assessment centre capable of dealing with about 450 cases annually commenced operation in April, located in the World Rehabilitation Fund Day Centre in Kwun Tong.

At the same time, the training capacity of the day centre increased from 204 to 288 places. During the year, as a follow-up to a 1981 visit, two one-month missions were undertaken separately by two International Labour Organisation experts to assist in the develop- ment of vocational assessment service and training programme designs. In the technical education area, a total of 50 disabled students were enrolled in various courses offered by the technical institutes. The Technical Education and Industrial Training Department also assumed responsibility for subventing vocational training centres some with residential facilities - operated by private non-profit-making organisations. Together, these centres provide 212 training places for the disabled.

Post-Secondary Education

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

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      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 2 941 students. The Hong Kong Shue Yan College, registered in 1976, has three faculties - arts, social sciences and commerce. The college has 13 departments offering day and evening courses with an enrolment of 3 496 students. Lingnan College, registered in October 1978, has three faculties - arts, business and music - and an enrolment of 940 students.

Various student grant and interest-free loan schemes are made available by the government to post-sixth form students at these registered post-secondary colleges.

In 1979, the Hong Kong Baptist College and Lingnan College revised their course structure in line with proposals set out in the 1978 White Paper on the Development of Senior Secondary and Tertiary Education. Under this arrangement, the colleges offer two years of sixth-form study, two years of post-sixth form study, and a fifth year of post-sixth form end-on courses. The government provides financial assistance for the first four years of study at both colleges. The Hong Kong Shue Yan College, which opted not to restructure its courses, continues to operate its four-year diploma programme without government financial assistance.

      Following assessments of the Hong Kong Baptist College, made by the United Kingdom Council for National Academic Awards in 1981, the government has extended financial assistance to the fifth year end-on course at the college. Furthermore, the University and Polytechnic Grants Committee (UPGC) will advise on the financing of post-sixth form courses at the college beginning in 1983-4.

      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 institutions receives aid from the government.

Higher Education

     The two universities and the polytechnic are important in providing opportunities for school leavers to continue their education and to contribute to Hong Kong's economic and social well-being. Education at this level is expensive and, in deciding the scope and

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direction of development, particular attention is being paid to subject areas with priority needs, as well as to the demand from sixth-form school leavers which is expected to increase as the results of the expansion of secondary education begin to be felt.

      In determining policies in higher education, the government takes advice from the UPGC, which also provides specific expert and impartial advice on grants to individual institutions. The UPGC also enables the institutions to maintain their autonomy, an increasingly important factor as various government departments identify manpower requirements for social programmes, leading to requests for additional graduates in, for example, medicine, education and social work.

      A further pressure on the local institutions is the increasing difficulty which Hong Kong students find in pursuing their studies overseas. The government has introduced a scheme whereby means-tested loans are made to Hong Kong students on degree and higher national diploma courses in the United Kingdom. These loans are designed to assist towards the difference between home and overseas fees. In 1982-3, loans totalling $18.9 million were made to 922 students, compared with $21.3 million to 1 073 students in 1981-2.

Against this background, a series of important decisions was made in 1982 affecting the future of higher education in Hong Kong. First, new student targets should be set for the universities taking account of specific requirements identified by the government in addition to internally generated growth. The intention is that by 1987-8 there should be a university student population of 15 100 (11 620 in 1983-4), providing 3 500 first year undergraduate places (2 600 in 1983-4). Of the total, 7 100 would be at the Chinese University of Hong Kong and 8 000 at the University of Hong Kong, which has also been invited to prepare plans to increase its student population to some 10 000 by the mid-1990s. Second, the Hong Kong Polytechnic should increase its student numbers from a full-time equivalent of around 12 000 in 1983-4 to 13 500 by 1987-8. Third, a new polytechnic should be built, initially with a full-time equivalent student population of 8 000, but with the capacity to expand to 13 500 should the need for technician and higher technician courses be established. This new polytechnic, on a 12.2 hectare site in Kowloon Tong West, will be governed by its own council but will benefit from help to be provided by the Hong Kong Polytechnic. It is envisaged that the first students will enrol before 1987. Fourth, the Hong Kong Baptist College is to be included in the terms of reference of the UPGC, which expects to be able to make grant recommendations in 1983 for the 1983-4 academic year. These proposals will mean that by 1990 there should be first year degree places for about six per cent of the 17 to 20 age group, rising to eight per cent in the mid 1990s, comparing favourably with the present provision of two to three per cent, and not unfavourably with higher education in developed countries. At the same time the non-university institutions will be contributing significantly to the improved opportunities for Form 5 and 6 school leavers to pursue non-degree courses. In this area, the opportunities are expected to double over the same period.

      Existing schemes will continue whereby students attending full-time higher level courses in Hong Kong receive grant and loan assistance towards fees and living expenses, the policy being to ensure that no student is prevented from accepting a full-time place because of lack of means. This scheme applies to students at the two universities and the polytechnic and, from 1982-3, full-time students taking post A-level diploma courses at the Hong Kong Baptist College also became eligible. In the 1982-3 academic year, 9 859 students received assistance totalling $83.2 million, of which $20.6 million was in grants and $62.6 million in loans.

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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 19 teaching departments grouped under four divisions. The divisions are: the Division of Applied Science (comprising the departments of applied science, mathematical studies, nautical studies, and the school of social work); the Division of Commerce and Design (comprising the departments of accountancy, business and manage- ment studies, computing studies, design, institutional management and catering studies, and languages); the Division of Construction and Land Use (comprising the departments of building and surveying, building services engineering, civil and structural engineering, and the centre of land and engineering surveying); and the Division of Engineering (comprising the departments of electrical engineering, electronic engineering, mechanical and marine engineering, production and industrial engineering, and the industrial centre). 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.

The Division of Construction and Land Use, covering building services engineering, and land and engineering surveying, was established in March 1982, with the building and surveying, and civil and structural engineering departments being transferred to this new division from the Division of Applied Science and the Division of Engineering respectively. At present, the polytechnic offers full-time, sandwich, part-time day release and part-time evening programmes of one to four years' duration in a variety of technical and commercial subjects. Successful completion of these courses leads to the awards of associateship, advanced higher diploma, professional diploma, higher diploma, diploma, endorsement certificate, higher certificate, certificate, technician certificate, certificate of proficiency and other qualifications.

      In October, 12 professional diploma programmes were offered for the first time in the departments of accountancy, business and management studies, building and surveying, and the Institute of Medical and Health Care. Generally, the level and course content of these professional diploma programmes is related to the academic requirements stipulated by the relevant professional institutions for corporate membership.

      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 according to individual needs and circumstances. A number of part-time programmes are also 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 submitted degree course proposals in early 1981 to the UPGC. The United Kingdom Council for National Academic Awards (CNAA), which serves as an adviser to the UPGC in the assessment of polytechnic degree proposals, visited the polytechnic in November 1981. In July 1982, the government approved four degree courses to start in October 1983: social work, electronic engineering, computing studies, and combined studies (mathematics and science). During the year, a number of degree course proposals in other academic fields were under preparation.

Since 1972, student and staff numbers have increased greatly. At the beginning of the 1982-3 academic year there were approximately 8 150 full-time students (including those in sandwich and mixed-mode programmes); 3 720 part-time day release and 13 700 part-time

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evening students, and 280 students taking short full-time courses. In July 1982, the staff strength stood at 2.125 - comprising 752 teaching, 211 senior administrative, and 1 162 technical, clerical and ancillary staff.

A notable event of the year was the celebration of the 10th Anniversary of the Hong Kong Polytechnic. A series of functions was organised to mark the occasion, including the 10th Anniversary Open Day on March 5, opened by the Governor; a series of 10 anniversary lectures; the publication of a booklet on the polytechnic's first 10 years; and a supplement in local newspapers.

      Campus development in 1982 included the design of the Fong Shu Chuen Hall -- a general purpose hall for examinations, conferences, exhibitions and other functions - and the extension of the fourth floor of the main building - to provide additional space for the Department of Nautical Studies. Both projects are due for completion in 1983. In addition, planning is in progress for the construction of the Phase IIB building to provide additional accommodation for staff and students.

      The polytechnic library has a large collection of scientific, engineering and business. materials. In addition to stocking approximately 300 000 volumes, it is equipped with slides, film loops, and audio and video cassettes.

Staff are encouraged to offer their services to commerce and industry as consultants within their fields of expertise, and are also actively engaged in research work of direct relevance to Hong Kong. Most research projects receive grants from the Polytechnic Research Committee which is responsible for overall research policies and utilisation of research funds while other research projects receive funding and assistance from commerce and industry, and from the government.

University of Hong Kong

The University of Hong Kong was 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, with the exception of a small number of law students, are full-time 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 mainly 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). Under the auspices of the Committee for International Co-operation in Higher Education, it has the benefit of expert opinion 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 include the establishment of a Faculty of Dentistry in July - though the first students were admitted in September 1980 - and the establishment of a Department of Music. The university is in the midst of a substantial development phase: new buildings for the study of science and to provide residential

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facilities for postgraduate students and visitors were opened during the year, and work is under way 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. Nearly 25 000 students each year attend a wide variety of around 800 vocational or professional courses or courses of general or cultural interest.

The numbers of undergraduates registered in the various faculties and schools at the beginning of the 1982-3 academic year were: arts 1 135, science 679, medicine 768, dentistry 223, engineering 864, social sciences 854, architecture 264, and law 225. There were also 1711 post-graduate students: 877 reading for higher degrees and 834 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 Law. 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. At the request of the government through the UPGC, the university is considering plans for a 50 per cent expansion in the student intake to the faculty.

       The university is well-equipped with libraries and laboratories. A total of 600 000 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 actively pursues its own specialist research interests and in some areas these are centred on problems of particular relevance and concern to Hong Kong. The Centre of Asian Studies serves 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.

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

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       The university offers a wide range of undergraduate courses, which fall into 40 disciplines, through its five faculties. Four of these the faculties of arts, business administration, science and social science offer four-year programmes leading to BA, BBA, BSc and BSSc degrees respectively. The fifth faculty, the Faculty of Medicine, admitted its first class of students in 1981. The curriculum is a five-year programme with the first two years devoted to pre-clinical studies, followed by three years of clinical work to be conducted

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at the Prince of Wales Hospital in Sha Tin. Apart from students in the first-year pre- clinical course, the university has also been admitting potential medical students since September 1981. Potential medical major students who have successfully completed a one-year science course are eligible for selection to the Faculty of Medicine's first-year pre-clinical course the following year. The university will confer its first MB, ChB degrees in 1986.

      At the post-graduate level, a total of 35 academic and professional higher degree programmes and a Diploma in Education are now offered by the university's graduate school. Higher degrees offered include Doctor of Philosophy, Master of Philosophy, Master of Business Administration, Master of Social Work, Master of Divinity and Master of Art.

      To meet the growing demand by working adults for higher education and professional training, the university offers part-time courses leading to the Diploma in Education, Master of Business Administration, Master of Social Work and Bachelor of Social Science (Social Work). In 1982, three new part-time Bachelor programmes - Chinese-English, music, and business administration - were inaugurated.

      Apart from the new part-time undergraduate courses, other programmes launched in 1982 were doctoral and master's programmes in basic medical sciences, master's pro- grammes in education (by course work) and government and public administration, and Bachelor programmes in psychology and statistics.

      The undergraduate enrolment in September totalled 4 520 and comprised: arts 1 029, business administration 846, medicine 139, science 1 277, and social science 1 229. There were also 92 students enrolled in part-time undergraduate programmes. In addition, 730 students were enrolled in the graduate programmes. These included 338 reading Diploma in Education courses and 36 overseas students and scholars enrolled in the university's international Asian studies programme.

The number of candidates who sat for the 1982 Hong Kong Higher Level Examination. totalled 18 558, of whom some 4 636 fulfilled the entrance requirements. Of these, 1 191 were admitted to the university for the 1982-3 academic year.

      A total of 1 243 students graduated from the university in 1982. They included one Doctor of Philosophy, 39 Masters of Philosophy, 77 Masters of Business Administration, 16 Masters of Arts (Education), three Masters of Divinity, two Masters of Social Work, 259 Bachelors of Arts, 241 Bachelors of Business Administration, 293 Bachelors of Science and 312 Bachelors of Social Science.

In the 1982-3 academic year, the Department of Extra-mural Studies offered more than 1 000 courses covering a wide range of subjects with a total enrolment of over 30 000. These courses were conducted in Cantonese, Putonghua and English, some leading to the award of diplomas and certificates.

      The library system comprises the main university library and three branch libraries in the colleges. The combined holdings of the libraries in 1982 totalled 384 654 volumes in Oriental languages; 366 792 volumes in Western languages, and 5 992 current periodical titles.

      Building projects completed or under way during the year included a 300-bed student hostel and an extension to the Science Centre Complex. Plans were also in hand for the construction of additional staff quarters, student hostels and buildings for academic and administrative purposes.

As in previous years, the university was a busy venue for international conferences and meetings, generally organised by the university in conjunction with local and over- seas organisations.

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      With the establishment of the university's Faculty of Medicine, the government gazetted the Medical Registration (Amendment) Bill in July 1982, extending to the university the privileges enjoyed by the University of Hong Kong under the Medical Registration Ordinance. Under the provisions of the bill, a certificate of experience for the purpose of obtaining full registration may now be obtained from both universities, and membership of the Hong Kong Medical Council will be expanded to include a representative from the Chinese University of Hong Kong.

      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 translation 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 with 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 materials. 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 agriculture 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 wastes and used tea-leaves. The third centre, 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 Humanities. 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 its focus on communication concepts, patterns and principles in traditional and contemporary Chinese society, while the Social Research Centre conducts research on 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 adminis- tration in Hong Kong. The Geographical Research Centre studies recent developments

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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.

Teacher Education

Teacher education is provided at the three Colleges of Education - Grantham, Northcote and Sir Robert Black - and at the Hong Kong Technical Teachers' College, all run by the Education Department. Since September 1980, the three colleges of education have restructured their full-time courses - replacing the traditional two-year course with a new three-year full-time course for students with Hong Kong Certificate of Education qualifi- cation - in accordance with the recommendations set out in the 1978 White Paper on the Development of Senior Secondary and Tertiary Education. A newly-structured two-year full-time course was introduced 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 continued to offer the Advanced Course of Teacher Education, in 10 subject areas, for both trained serving teachers in government and aided schools and students who completed an initial full-time course in the 1981-2 academic year. From September 1982, only serving teachers were admitted to the advanced course. Part-time in-service courses are also provided for teachers in primary and secondary schools who seek further professional training, as well as for kindergarten teachers and teachers of special education.

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       There was a large increase in student intake in the three colleges of education during the year, caused by the demand for more non-graduate teachers as a result of the improved teacher to class ratio in primary schools from 1.1:1 to 1.2:1 - and the new systematic re-training programme for serving primary school teachers. In September, there were 1 560 students in the three-year course; 369 students in the two-year course; 100 students in the advanced course; and 1 509 students in the in-service training course.

       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. Substantial grants are offered to attract suitable recruits from commerce and industry. The two-year full-time course for secondary technical school- leavers was phased out in July and replaced by a three-year, full-time course for secondary school-leavers who have prior studies in either technical or commercial subjects. A one-year full-time supplementary course in design and technology is offered to graduates of the old two-year full-time course. The college also provides in-service courses for serving teachers, and courses for supervisors and instructors employed in industry. In September, there were 167 students in the full-time courses and 333 students in the part-time day and short courses.

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

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

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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 19 subvented voluntary organisations.

      A credit unit system was introduced in September for the diploma course, offering studies in Chinese literature, philosophy and sociology to secondary school-leavers, run by the Evening School of Higher Chinese Studies. Previously of three years' duration, the course may now be completed over three to five years by taking the basic core units of the diploma course and other units in aspects of Chinese classics and culture.

      The Evening Institute offers courses ranging from literacy to secondary and post- secondary studies at its 121 centres. A general Adult Education Course provides funda- mental 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, knitting, cookery and woodwork. There are also two courses at secondary school level the Secondary School Course and the Government Secondary School Course for Adults which prepare students for the Hong Kong Certificate of Education Examination. To improve proficiency in English, an English course is offered covering Primary 4 to Form 5 to prepare adult students for the English Language paper (Syllabus B) of the Hong Kong Certificate of Education Examination. Classes of Form 6 standard are organised to prepare students for the ordinary level English Language paper (Syllabus B) of the General Certificate of Education Examination. At post-secondary level, teachers' courses provide additional in-service professional training in a variety of subjects. During the year, some 23 000 people enrolled in these formal courses.

      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 and organisations, such as Radio Television Hong Kong, the Independent Commission Against Corruption, the Urban Council and Urban Services Department, and the Family Planning Association. During the year, about 20 000 people were enrolled in the non-formal courses.

Adult education retrieval courses run by voluntary bodies were subvented on a recurrent basis, beginning with the 1982-3 school year, due to their success in the previous two years. Altogether, 25 projects from 19 voluntary organisations were granted government subsidies totalling $1.02 million in the 1981-2 school year. This rose to 47 projects from 28 organisations participating in the scheme in 1982-3.

Advisory Inspectorate

The main function of the Education Department's Advisory Inspectorate is to improve teaching standards. This involves visits to schools by subject inspectors to advise on curriculum matters, teaching methods and utilisation of resources, and the provision of in-service training courses, seminars and workshops for teachers. The inspectorate evaluates textbooks and instructional materials; it also carries out educational research and curriculum development. Close liaison is maintained with the universities, the polytechnic, the post-secondary colleges, the Hong Kong Examinations Authority, the British Council, the Consumer Council and other government departments.

During 1982, 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

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     new or revised syllabuses were organised for kindergarten, primary and secondary teachers and heads. Material was published for distribution to schools to keep teachers abreast of developments in various subject areas.

      Following recommendations in the 1978 White Paper on the Development of Senior Secondary and Tertiary Education to broaden the curriculum, two new subjects, computer studies and human biology, were introduced in 1982 at senior secondary level at 30 schools and 20 schools respectively. The inspectorate also launched new curriculum development projects, encouraging a large number of teachers from kindergartens, primary and secondary schools to produce their own teaching materials for specific subject areas.

      Recommendations in the 1981 White Paper on Primary Education and Pre-Primary Services encouraged more schools to pursue the activity approach - a less formal and more child-centred approach to teaching in primary schools. Special courses, seminars, workshops and visits were organised during the year for heads and teachers implementing this approach.

      The Textbooks Committee continued to give positive guidance to schools on the selection of books while a comprehensive list of recommended textbooks for kindergartens, primary and secondary schools was issued quarterly. 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, science, mathematics and social subjects.

       During the year, the Chinese Language Teaching Centre conducted 41 refresher courses and workshops, and 12 seminars, which were attended by over 1 700 teachers. The teaching resources units of its Kowloon and Hong Kong centres were open to teachers of primary and secondary schools on specified days of the week. In addition the units accommodated prearranged group visits from schools. In July, about 800 primary school teachers visited a three-day display of primary pupils' work, and materials contributed by 13 participating schools, used in the Chinese supplementary reading scheme, held in the centre. Both primary and secondary schools benefited from the centre's free dubbing service; over 1 000 recordings of teaching tapes were made during the year.

      The English Language Teaching Centre organised 50 intensive courses, workshops, seminars, and guest talks for 2262 teachers during 1982. Follow-up visits were made to selected teacher participants. The centre also provided schools with a free dubbing service for teaching tapes. About 6 000 language-teaching tapes were issued to 377 schools. The centre has a specialist library of about 5 550 books on English language teaching and linguistics, and a display room for exhibiting modern English teaching aids.

       The Field Studies Centre in Sai Kung continued to function as an educational and resource centre for ecological and geographical studies by secondary school teachers and sixth form students. During the year, 29 residential ecology or geography courses of four days' duration were arranged for 1 139 sixth formers from 59 secondary schools. The course programme was predominantly academic but recreational activities were often included. A special residential course was organised for 40 social studies teachers attending Northcote College of Education; two courses on stream pollution for geography teachers and an orientation course for biology teachers were organised to familiarise them with techniques in field studies and the Sai Kung environment; a two-day residen- tial course was held for 45 biology teachers; a student conservation leaders' training camp was organised in conjunction with the Agriculture and Fisheries Department;

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and the University of Hong Kong conducted a first-year geography and geology students' field camp at the centre. Talks with slide shows on countryside education and conservation were organised at weekends for campers at the Sai Kung Outdoor Recreation Centre.

      More than 2000 primary and secondary school science teachers and laboratory technicians visited the Science Teaching Centre to attend seminars, refresher courses, workshops and meetings. The centre was also used for distribution of materials for practical science teaching and extra-curricular activities. In addition to the regular displays of resource materials and new science equipment at the centre, a large-scale exhibition was organised jointly with the Hong Kong Association for Science and Mathematics Education. in July.

      Local and overseas delegates participating in the 4th International Council of the Association for Science Education Asia Symposium, held at the University of Hong Kong in December, visited the Field Studies Centre and the Science Teaching Centre as part of their programme.

The Mathematics Teaching Centre on Hong Kong Island continued to serve mainly as a resource centre and training venue for primary school mathematics teachers and was visited by more than 2 200 teachers. Six seminars on the new primary mathematics syllabus were conducted at the centre in 1982. The Mathematics Teaching Centre in Kowloon organised eight seminars, attended by 230 teachers from 200 schools, on the role of heads of mathematics departments in secondary schools.

      The Social Subjects Teaching Centre provides in-service training for teachers of history, economics, economic and public affairs, geography, health education, ethical or religious education, and social studies. In 1982, more than 700 secondary school teachers attended courses at the centre, which has a variety of reference and teaching materials on display. Plans are being made to develop these resources further and to install new reading facilities and audio-visual equipment. A moral education corner was set up at the centre to encourage greater interest in the role of moral education in schools.

Visual Education Centre

The Visual Education Centre makes available a wide range of audio-visual aids for use in schools. Stocks include 16mm 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 continued to be made with Radio Television Hong Kong for the recording of educational programmes on video-cassette tapes for loan to schools.

      Over 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 learning packages were also produced by the centre with the co-operation of other sections in the inspectorate. Since October, the Media Production Services Unit of the centre has opened seven days a week on a trial basis to enable more teachers to make full use of its facilities.

Cultural Crafts Centre

     The Cultural Crafts Centre of the Education Department has facilities for teachers from primary and secondary schools to improve and up-date their teaching skills in arts and design, crafts, and home economics. It organises short courses, seminars and

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demonstrations and promotes the exchange of ideas on teaching these practical subjects. In 1982, the centre was used by more than 2 000 teachers.

       The Art Section gave advice and assistance to over 50 local organisations and schools in arranging exhibitions and competitions. It organised two exhibitions of creative work by local and overseas students during the year, attracting over 18 000 visitors. In addition, the section organised the selection of local entries for students' art exhibitions and competitions in the United Kingdom, Finland, Korea, Japan and India.

       The Home Economics Section conducted 11 in-service courses for teachers in primary and secondary schools and assisted in the preparation of an art and craft syllabus for primary schools. Two sets of synchronised slides on the teaching of needlework and dress- making at secondary level were produced by the section.

Music

Special features of the in-service training programmes for music teachers during 1982 were courses based on the Carl Orff Schulwerk System and the Kodaly Choral Music Method, both conducted by overseas experts. More than 100 teachers attended the Orff course on Creative Music in the Classroom organised in conjunction with the Hong Kong Arts Centre as part of the Dow Summer Arts '82 programme, and about 200 teachers attended a two-month course conducted by the president of the British Kodaly Society.

A pilot scheme offering a two-year part-time special music course for senior secondary students was launched in September to help students with an aptitude in music to pursue the subject to the Hong Kong Certificate of Education Examination level.

       About 55 000 students participated in 289 classes at the 34th Annual Schools Music Festival, which was judged by four overseas and four local adjudicators.

Physical Education

The Physical Education Section has four areas of work: school inspection, training, programmes and services. The section is responsible for improving physical education teaching standards in primary and secondary schools. It also runs in-service courses for physical education teachers, evaluates and reviews syllabuses, and promotes school sports. The first Summer School of Physical Education, with 20 courses for 16 sports, was organised for 753 teachers in 1982.

The School Programme Group organises activities such as swimming, dancing, canoeing, sailing and camping. In association with the Urban Council, it was responsible for a new Summer Sports Scheme in 1982 at intermediate and advanced levels involving 87 training courses in 11 sports. The School Services Group is responsible for the Duke of Edinburgh's Award Scheme in secondary schools, colleges of education, technical institutes and evening schools; 23 gold awards were achieved in 1982. It organised recreational camps, sports training camps and other activities for handicapped children in special schools, and was involved in running the Far East and South Pacific Games for the Disabled in October. The Physical Education Section has continued to assist the Hong Kong Schools Sports Council in organising schools sports competitions at interport and international levels. Eight Asian cities participated in the Inter-City Schools' Invitational Football Tournament organised by the council in January. And, for the first time, events for primary schools were included in interport competitions between Hong Kong and Macau schools. With funds from the government and generous donations from the Royal Hong Kong Jockey Club, the section was again able to organise an extensive summer recreation programme for nearly 300 000 school children.

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Community Youth Club

EDUCATION

The Community Youth Club (CYC) aims to provide community education for its members through activities within the schools, with particular emphasis on training young people to become good citizens.

The club has a membership of more than 65 000. Major activities during the year included the first CYC Annual Parade, the Clean Hong Kong cartoon competition, the Fight Youth Crime project design competition and exhibition, and the Clean Hong Kong creative dance competition. Other activities were jointly undertaken with government departments and other organisations, including the Family Life educational telematch games design competition, the Go-Metric telematch competition, the Anti-drug poster design and Chinese essay competitions, and the Consumer Education price survey. A total of 575 schools participated in the activities.

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, fire prevention, road safety, moral education, conservation of the countryside, and care for the aged and the underprivileged. Exhibitions and quizzes on Know Your District were also organised. Over 200 members achieved Stage II awards of the CYC Merit Award Scheme; 24 members also gained Stage III awards. The scheme requires members to set an example of good citizenship by service to the community. Eight outstanding CYC members were awarded trips to Australia during the summer, made possible by a donation from the Royal Hong Kong Jockey Club.

School Library Service

The school library service continued to expand with the appointment and training of more school librarians in secondary schools. In September the library grant was raised from $10 to $20 per pupil per year for all government and aided secondary schools. A pilot scheme for class libraries in primary schools was introduced in September with experimental class libraries established in Primary 5 and 6 classes in 25 schools.

       Two seminars on Books and Young Readers were organised in April and December for 600 secondary school teachers. In July, a workshop on Library-assisted Teaching and the Learning of Science Subjects was attended by over 80 secondary school science teachers.

Education Television

The Education Television Service (ETV) celebrated its 10th anniversary in September. ETV-produced programmes are regarded as the most useful audio-visual aid currently supplementing classroom teaching, and regular viewing has become a normal part of Hong Kong's school life. ETV's total audience during 1982 was estimated to be 262 000 secondary and 348 000 primary school pupils.

The programmes are produced locally, in colour, by the Education Department and Radio Television Hong Kong, and are transmitted by the commercial television stations. They are based on syllabuses used in primary and secondary schools. Notes for teachers' suggested 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 improvements to ETV since its inception in 1971.

      Primary school ETV programmes cover the four basic subject areas of Chinese, English, mathematics and social studies taught at Primary 3 to 6 levels. Secondary

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      school programmes are produced for Forms 1 to 3 in the same four subjects and in science.

       Since mid-1979, colour television receivers and video-cassette recorders have gradually replaced black and white receivers in government and aided primary schools. During the year, 510 colour receivers and 15 video-cassette recorders were supplied to 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 1982, a total of 150 954 candidates entered for the Hong Kong Certificate of Education Examination; 18 558 entered for the Hong Kong Higher Level Examination; and 14 659 entered for the Hong Kong Advanced Level Examination.

       The authority also assumes 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, the London Chamber of Commerce and Industry examinations, and many others which enable students to acquire academic and professional qualifications.

British Council

The British Council's English Language Teaching Programme was maintained for more than 38 000 students in classes ranging from beginners to university-level English literature. There were special courses for business and commercial English, for public examinations in English and for special needs in both the public and the private sector. The pro- gramme again included refresher courses for English language teachers in primary and secondary schools commissioned by the Education Department. Teachers whose native language is English continued to work for professional qualifications on Royal Society of Arts courses.

      The library grew in size and scope, and borrowing figures continued to rise. The English Language Teaching Section of the library was developed to provide a key resource for use by all teachers of English in Hong Kong. Periodical holdings were also increased. The library acts as a focal point for enquiries about Britain and British education.

       More than 30 short-term visits and bursaries to Britain were arranged and assisted within the educational exchange programme and 11 British Council scholars carried out postgraduate work at institutions in Britain. Some 30 specialists and consultants were brought to Hong Kong from Britain at the request of local institutions.

       On the cultural side, the council continued its close association with the government and the Urban Council with the loan of a Henry Moore sculpture 'Woman' for the City Hall Memorial Garden, and joint sponsorship of performances by the Young Vic, Frank Barrie and the B.B.C. Symphony Orchestra. In fine arts, one of the most prestigious exhibitions of British watercolours to leave Britain was on view at the Hong Kong Museum of Art. The Chung Ying Theatre Company, set up by the British Council in 1979, became independent in April with a government subsidy.

Hong Kong Students in Britain

The Students Division of the Hong Kong Government Office in London is responsible for the welfare of Hong Kong students, including nurses in training, while in Britain.

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EDUCATION

The division continued to work closely with the Education Department and other government departments in Hong Kong. It monitored developments in education in Britain and in order to promote the interests of Hong Kong students maintained close relations with educational institutions, departments of the British Government, local education authorities, the British Council, welfare organisations and, in the case of trainee nurses, the medical authorities. Visits were made to universities, polytechnics and colleges throughout Britain. There was a notable increase in the number of academics and administrators of various institutions who sought advice from the division in recruiting Hong Kong students to work in Britain.

The Hong Kong Government again offered financial assistance in the form of loans to eligible students classified as 'overseas' for the purpose of fees, who were pursuing first degree or Higher National Diploma courses in the United Kingdom. Altogether $18.9 million was paid out in loans to 922 students.

The Hong Kong Students Centre in London, which serves as a focal point for the student community, provides accommodation for up to 90 students.

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 education establishments in Britain and other countries. Altogether 4 276 students went to Britain during the year, 4 752 to Canada for secondary or higher education, 3 264 to the United States and 987 to Australia.

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Health

     SOME 15 major medical projects, providing a variety of services to the public, were completed during the year as part of the vigorous medical and health development programme for the 1980s.

      Yet despite this progress, a heavy strain was placed on existing services to meet the demands created by the increasing population, coupled with limited manpower and resources. The pressure of work was felt on all fronts as attendance figures at the casualty departments of major government hospitals and clinics, as well as hospital admissions, reached unprecedented levels in 1982.

      Within the expansion programme, the highlight of the year was the opening of the Prince of Wales Hospital in November by HRH the Duchess of Kent. Located in Sha Tin, the 1400-bed regional hospital for the eastern New Territories will serve as a teaching hospital for the medical school at the Chinese University of Hong Kong and will provide much needed treatment facilities for the growing new town. The hospital is to become operational in phases, starting in October 1983. Other major projects completed were the Yan Oi Polyclinic in Tuen Mun, which will provide supporting services to the new Tuen Mun Hospital; the Prince Philip Dental Hospital, serving as a teaching hospital for the Dental Faculty of the University of Hong Kong; the Ngau Tau Kok Clinic, providing out-patient services in the densely-populated area; and a school children's dental clinic at the Argyle Street Camp.

       Overall, the Medical and Health Department's development plan for the decade includes the construction of five major government hospitals - meaning the completion of one hospital every two years. In addition to the Prince of Wales Hospital, a 1 600-bed hospital for Tuen Mun new town and three other hospitals, in East Kowloon, Chai Wan and Tai Po, each accommodating 1 400 beds, are under construction or being planned. As well as providing new hospitals, extension blocks are to be built at the three existing government hospitals, Queen Mary Hospital, Queen Elizabeth Hospital and Princess Margaret Hospital. And under the programme, some 20 general clinics and polyclinics are due for completion during the decade.

The customer relations unit set up in Queen Elizabeth Hospital in 1981 has proved to be extremely popular with the patients and staff. In its first year of operation the unit has answered 6 000 enquiries and helped to deal with 200 complaints.

The Forensic Pharmacy Section of the Medical and Health Department has been successful in the control of unregistered drugs and those found to have harmful effects on the public.

In November it was announced that a Health and Welfare Branch will be formed in early 1983, as a result of a reorganisation of the Social Services Branch, to provide the medical and health services with more attention at the highest policy level.

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For the financial year 1982-3, the Medical and Health Department's estimated expendi- ture is $1,370 million. In addition, subventions totalling about $776 million are being made to many non-government medical institutions or organisations.

Health of the Community

Hong Kong people continue to enjoy good general health, largely due to anti-epidemic and disease surveillance measures, developments in preventive and personal health services, and a higher standard of living. This progress is reflected in yet further improvements in the health indices and the decline in the incidence of major communicable diseases.

The leading causes of death today are various forms of cancer, heart disease and cerebrovascular disease. The low infant mortality rate is attributed to the provision of comprehensive family health care facilities as well as improvements in environmental and socio-economic conditions.

      Because of stringent health measures, Hong Kong has been free from quarantinable diseases for many years and 1982 was no exception. During the year, five cases of im- ported cholera and three cases of local cholera were reported. There were no secondary cases, due to prompt treatment and effective control measures. The common childhood communicable diseases, such as diphtheria, measles and poliomyelitis, have been either virtually eradicated from the community or brought under control.

      Following the first outbreak of canine rabies for 25 years in October 1980, the Agriculture and Fisheries Department and the Medical and Health Department took swift action to control the disease. Since the outbreak, which claimed three human lives, 17 dogs and one cat, some 130 000 dogs have been innoculated against rabies and some 100 000 stray or unwanted dogs destroyed. The Medical and Health Department has vaccinated 4 344 persons bitten by animals, with 16 of the cases also being given anti-rabies serum.

      Following the death of three cows from anthrax on a large commercial farm in Pok Fu Lam on Hong Kong Island in March, two cases of the disease were detected among the farm workers in April. The Agriculture and Fisheries Department and the Health Authority carried out stringent preventive control measures: the infected area was segregated and thoroughly cleansed and disinfected; the workers at risk were put under medical surveillance; and precautionary procedures were introduced. This brought the situation under control and no further cases were detected.

      During the year, 80 cases of malaria were reported. All except three were imported, affecting mainly travellers and refugees from nearby Southeast Asian 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.

      With outbreaks of pediculosis infestations still being reported among schools in the urban and rural areas, regional health staff conducted screening and treatment programmes in which more than 8 000 children were treated. Health educational activities were directed towards stressing the importance of maintaining an adequate standard of personal hygiene.

Hospitals

There are three types of hospitals in Hong Kong - government, government-assisted and private - with a total of 22 690 beds representing 4.3 beds per thousand of the population. Pressure on the service was experienced on all fronts, reflected by the increase in attendance at out-patient clinics and casualty departments, and by the number of hospital admissions. A regionalisation scheme of the medical and health services ensures optimum ultilisation of

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      the resources in each district and has improved the bed occupancy rate of some subvented district hospitals.

       In 1982, the total casualty attendance was 960 000, averaging 2 630 attendances per day. More than 656 000 patients were treated in the 13 government and 19 government- assisted hospitals.

Clinics

Hospital services are supported by specialist clinics which provide out-patient specialist and follow-up services, and general clinics which provide out-patient general and preventive health services. Out-patient services offered by the government, subsidised organisations and private agencies have been considerably expanded to cope with the growing population. The government now operates 59 general out-patient clinics, polyclinics and specialist clinics. Evening, Sunday and public holiday sessions are also 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 1982, 357 clinics were registered under the Medical Clinics Ordinance. Of these, 87 clinics were under the control of a registered medical practitioner, as required under the ordinance, and 270 were exempted from this requirement. Registered medical practitioners members of the Estate Doctor Association set up clinics in housing estates to provide a low-cost service for residents to alleviate the pressure at government out-patient clinics which charge only $3 per visit.

      The total attendance figure at government out-patient clinics was 14.4 million in 1982, seven per cent more than the previous year.

Family Health

The Family Health Service operates 41 centres, providing a comprehensive health pro- gramme 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 consultant sessions are conducted for mothers. Immunisation programmes are carried out against tuberculosis, diphtheria, whooping cough, tetanus, poliomyelitis, measles and rubella. During the year, about 90 per cent of newborn babies 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 41 family health centres. Children attending these centres may, if their condition warrants it, be referred to child assessment centres for further examination by various specialists in this field, including paediatricians, clinical psychologists, physio- therapists, 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 con- sultation service for young couples. In 1982, more than 40 000 new clients visited the association's clinics. 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.

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School Health

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 medical 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. More than 200 general medical practitioners have enlisted in the scheme and more than 250 000 school children from 852 schools have been registered. 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, in conjunction with other academic and voluntary bodies, provides a comprehensive psychiatric service for the mentally ill. Sophisticated treatment facilities are available at the two major psychiatric hospitals - Castle Peak Hospital, with 1927 beds, and Kwai Chung Hospital with 984 beds - and at psychiatric units in many regional and district hospitals. The total number of psychiatric beds available during 1982 was 3 436. In line with the universal trend of operating small psychiatric units within general hospitals, an additional 1 960 beds are planned for future medical projects.

Supplementing the hospital facilities are psychiatric day centres, which provide a wide range of out-patient treatment, assessment, counselling and after-care services on a regional basis. The centres also operate day hospital places and provide other social, occupational and recreational therapy services for the mentally handicapped.

      Equal emphasis is placed on the follow-up and after-care of discharged mental patients during their integration back into the community. In April, a psychiatric community nursing service scheme was introduced at Kwai Chung Hospital to help maintain continuity in after-care treatment programmes and provide extended complimentary care to patients discharged from the hospital. Other supporting services include psychiatric community social services, as well as half-way homes, long-stay homes and social clubs organised by the voluntary agencies.

Severely mentally handicapped patients requiring medical treatment are cared for at the Siu Lam Hospital, with 200 beds, and the Caritas medical Centre, with 300 beds. A further 700 beds of this category have been planned for the next decade.

Dental Service

The School Dental Care Service, introduced in 1980, continues to provide regular dental examinations and simple dental treatment for primary school children at two school dental clinics. The response from parents to this aspect of preventive dentistry has been very encouraging with some 75 500 children - 41 per cent of Primary 1 and 2 school children participating during the year, compared to 28.9 per cent during the scheme's first year of operation. To enable the scheme to cover all primary school children, six more clinics are planned.

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      Dental health education programmes, in the form of lectures and exhibitions, were held throughout the year to promote public awareness in combating dental diseases. Fluoridation of the public water supply began in 1961 and the present average fluoride level is 6.3 mg/1.

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Previous page: Awaiting her cue is a junior recruit with the Salvation Army, just one of the many active groups catering for Hong Kong's younger citizens. Above: Dressed in gorgeous traditional finery, children are an integral part of the Tin Hau festivities in Yuen Long.

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Filmed at various outdoor locations throughout Hong Kong, the eight-part Swinging Summer television series proved a hit with young viewers, receiving up to 85 per cent of the ratings, and was fun for the performers, too.

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Leaving studies and the bustling city behind, these teenagers find kite-flying a healthy way

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    A testing Summer Youth Programme event tries the skill and team spirit of members of Junior Police Call. Rock-climbing was one of about 8000 recreational activities arranged for young people by a variety of organisations during the summer months.

GUIDES

  Badges and a beret for a Brownie: about 8 000 girls aged between seven and 11 enjoy à wide range of leisure-time activities arranged by the Girl Guide movement in Hong Kong.

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Training in dentistry is available in Hong Kong at the Prince Philip Dental Hospital. The first intake of students was in September 1980 and about 60 qualified dentists will be ready to serve the public each year by 1985. The first batch of 31 student dental therapists completed an intensive three-year training programme at the Tang Shiu Kin Dental Therapists Training School in February and has been posted to the Argyle Street School Dental Clinic. 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 treat- ment is also provided for the public at a number of district clinics, while the Prince Philip Dental Hospital has been providing a limited out-patient service 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. When a case of imported cholera was confirmed in May involving a tourist en route to Japan, the local health authority immediately notified the Japanese health authority and subsequently more disease-carriers were detected among the rest of the group of 130 tourists on their arrival in Japan.

       The health staff also maintain close surveillance on the food catering services to the international airlines to ensure that food and water supplied by the flight kitchen service is clean and safe.

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

Refugees

The number of refugees arriving in Hong Kong decreased dramatically throughout the year. Yet 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 the refugee camps. Disinfection and health screening, including chest X-ray examinations were carried out for new arrivals.

       Voluntary agencies continued to co-operate in the running of clinics in the open refugee centres for the treatment of minor ailments while serious cases were referred to government hospitals and specialist clinics for examination and 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.

In July, a closed refugee camp was set up at Chi Ma Wan under the Immigration (Amendment) Ordinance 1982, with special medical services provided inside the camp.

Special Services

The Institute of Pathology runs clinical and public health laboratory services for the government and a consultant service 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, poliomyelitis, influenza and rubella are undertaken. The Forensic Pathology Service with its fully-established forensic laboratory works closely with the Royal Hong Kong Police Force on the medical aspect of criminology and other medico-legal work.

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HEALTH

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 radio- therapy. The institute also operates a cancer chemotherapy service and cancer registry. A Radiation Health Unit was established within the department in March 1982. The professional staff of the unit undertake regular inspection visits to medical, commercial and industrial premises to monitor the working conditions of radiation workers. This is to ensure that the radioactive equipment and irradiating apparatus is well maintained and that the operation procedures for the handling of radioactive substances are safe. In addition, the unit runs a radiation film badge monitoring programme for groups of radiation. workers. Radiation licences are issued to the proprietors in accordance with the Radiation Ordinance and Regulations.

The Pharmaceutical Service of the Medical and Health Department meets the require- ments for drugs, dressings, surgical instruments 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.

Following the discovery of high lead content in a brand of Chinese herbal medicine, the monitoring of toxic heavy metals in Chinese medicine and cosmetics was intensified during the year to safeguard public health. As a result, a number of Chinese patent medicines and cosmetic creams were banned.

Community Nursing

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

Jointly operated by eight agencies, including the Medical and Health Department, the service is largely hospital-based, with domiciliary services delivered through a network of 35 sub-centres. To monitor the effectiveness of the service, a central consultative committee has been set up to evaluate progress of the scheme and to ensure uniformity of service. During the year, 11 100 new patients were treated by community nurses and more than 194 000 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. It campaigned ener- getically in a number of causes during the year.

A major project was a campaign organised jointly by the Hong Kong Cardiology Society, the Hong Kong Heart Foundation and the Central Health Education Unit of the Medical and Health Department to foster public understanding on heart disease, ways to prevent it, and the importance of early treatment. Other campaigns included eye care, tuberculosis case-finding, mental health, anti-smoking and care for the elderly, with public awareness encouraged through exhibitions, public lectures, seminars, workshops and radio programmes.

Medical Charges

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. Specialist consultations are available on referral. Charges at these polyclinics are also $3 a visit

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but may be waived in cases of hardship as certified by a medical social worker. For domiciliary services, such as the community nursing service and the psychiatric community nursing service, a visiting fee of $5 per visit is charged which includes drugs, dressings and surgical equipment.

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

       Free medical services are offered at maternal and child health centres, family planning clinics, tuberculosis and chest clinics, floating clinics, casualty departments and through the 'flying doctor' service.

Training

Graduates of the Faculty of Medicine at the University of Hong Kong are awarded 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 examination bodies in the United Kingdom and Australia. During 1982, more than 110 doctors went overseas for post-graduate 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 1981 who are expected to graduate by 1986.

      An Institute of Medical and Health Care at the Hong Kong Polytechnic provides training for para-medical staff including radiographers, physiotherapists, 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 another in the Tuen Mun Hospital in 1987. Other approved nurse-training schools are attached to government-assisted or private hospitals. There are two training schools for psychiatric nursing at the Castle Peak Hospital and the new Kwai Chung Hospital. An enrolled nurse-training school in the Kowloon Hospital has an output of about 120 nurses a year and another such school is being planned.

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 sent 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 the government for use in its hospitals and clinics is carried out at the Government Laboratory. Products

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submitted for registration under the Pharmacy and Poisons Regulations are also closely examined together with samples of pharmaceutical products taken from retail outlets.

      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, was further developed during the year to meet exacting international standards. The laboratory is also responsible for the testing of cigarettes on sale in the local market for tar and nicotine yields in accordance with the provisions under the Smoking (Public Health) Ordinance 1982.

Narcotics

Drug abuse is a long-standing problem in Hong Kong with serious social, economic, legal, medical and psychological implications. The government's expressed policy is to stop the illicit trafficking of narcotic drugs into 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 so as to reduce substantially and eventually to eradicate, drug abuse in the community.

The exact number of addicts in Hong Kong is not known. However, findings from the government's computerised Central Registry of Drug Abuse and other linked indicators. showed that the number of drug addicts in Hong Kong in 1982 was in the region of 40 000. Since September, 1976, the registry has received 165 697 reports on 40 014 individual addicts of whom only 6.5 per cent were females. Of the 40 014 reported addicts, 61 per cent were over 30 years of age at the time of their first report, 33 per cent were in the 20 to 29 age bracket and only six per cent were under 20. Heroin is the principal drug of abuse in Hong Kong and was used by 97 per cent of the addicts reported to the registry in 1982; two per cent took opium and the remaining one per cent were on other drugs. Injection is the most widely-used method of taking heroin - especially when its price is high and supply is scarce - while opium abusers generally smoke the drug.

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

The real cost of the government's anti-narcotics programme is about $300 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 Force, and the Customs and Excise Department. Treatment and rehabilitation are undertaken by the Medical and Health Department, the Correctional Services 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 is offered to addicts to suit their individual and varied needs. At the same time, preventive education and publicity efforts persuade others, especially the young, not to experiment with drugs. On the international front, Hong Kong

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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 six 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 and external - and whether related to government departments or to voluntary agencies. ACAN is served by the Narcotics Division, which is headed by the Commissioner for Narcotics.

       Sustained and co-ordinated efforts in the four major anti-narcotics strategies continued in 1982. However, the price of heroin in the illicit market dropped considerably during the year, compared with the situation in 1981 when a reversal of the positive trends since 1974 occurred, indicating that the supply of heroin had become more plentiful as a result of two bumper opium crops in the 'Golden Triangle' in 1981 and 1982. 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 2 000 and 6728 in 1981 to 2 370 and 7 900 in 1982, and more drugs were seized in 1982 than in the previous year.

In the field of treatment and rehabilitation, 1982 was a busy year. Despite a considerable fall-off in street prices of heroin, large numbers of addicts continued to seek, and remain in, treatment voluntarily.

The Narcotics and Drug Administration Division of the Medical and Health Department operates 23 methadone treatment centres, each providing maintenance and detoxification services to addicts. Methadone maintenance is a long-term treatment approach which is intended to prevent an addict's return to illicit heroin or other narcotic abuse, while detoxification is a short-term form of 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, two new evening methadone clinics were opened in Sha Tin and Yuen Long in January. Following this, in June a new centre was opened in Hung Hom.

      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 500 patients, while the Women Treatment Centre, in Wan Chai on Hong Kong Island, can cater for 30 patients. Linked with these two centres are six regional after-care centres, three units for the intake of patients and three hostels. During 1982, 2 400 patients, including 230 women, were admitted to SARDA's two centres.

Under these two voluntary treatment programmes and the Correctional Services Department's compulsory placement programme, 12 880 addicts and ex-addicts are now receiving some form of treatment, rehabilitation and after-care every day. This represents an increase of 45 per cent compared with the situation seven years ago. Although there was an increase in the number of young people involved in drug addiction or trafficking activities in 1982, only six per cent of the known addicts were under 20 whilst over 60 per cent were over 30. Addicts under 21 in the Correctional Services Department's drug addiction treatment centres decreased from 25 per cent in 1969 to 11 per cent in 1982; at SARDA's Shek Kwu Chau voluntary in-patient treatment centre addicts under 21 also decreased from 16 per cent to five per cent in the same period.

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      In 1982, some significant amendments to the Dangerous Drugs Ordinance were enacted by the Legislative Council to strengthen legal action against illicit manufacture and trafficking of drugs. These amendments included heavy penalties to be imposed on ocean-going vessels repeatedly found to be smuggling excessive quantities of dangerous drugs into Hong Kong; re-definition of the term 'manufacture' (of dangerous drugs) to allow suitable charges to be laid in cases involving equipment and paraphernalia referable only to the diluting or cutting of heroin base; and legal provision for the search of body cavities of suspect drug couriers. Active consideration was being given to sequestrating the assets of convicted major traffickers.

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 or become involved in drug crime. Major preventive education and publicity events in 1982 included district-based campaigns in several areas, concerts, a television variety show, and territory- wide anti-narcotics Chinese essay-writing and poster design competitions for both primary and secondary students. The Youth Against Drugs scheme, a singing competition and mass jogging activities were launched for the second year. There were also training camps and seminars for students, teachers, community leaders and social workers, and a series of exhibitions. An ACAN Youth Volunteer Group was also formed. To support these activities and publicise anti-narcotics messages, television newsclips and films, posters and leaflets were produced.

The Drug Education Liaison Centre - set up in July 1980 under the Preventive Education and Publicity Section of the Narcotics Division organised anti-narcotics training and education for young people, parents, teachers, students, social workers and voluntary organisations. The centre also produced a range of anti-drug publications during the year, as well as films and slides, and handled requests for information on drug abuse from the public.

       During 1982, the Drug Abuse Telephone Enquiry Service received 1259 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- government agencies such as the Colombo Plan Bureau and Interpol - and with individual governments in Southeast Asia, Europe and North America. During 1982, Hong Kong took part in 11 international meetings concerned with anti-drug law enforce- ment, treatment and rehabilitation, and preventive education. Hong Kong also made its eighth annual contribution of $100,000 to the United Nations Fund for Drug Abuse Control in support of its world-wide anti-narcotics efforts. These 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 1982, 113 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. At the same time, experienced officers from the Royal

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Hong Kong Police Force, the Customs and Excise Department and the Government Laboratory frequently went overseas to act as lecturers or consultants on training courses related to anti-drug work.

       As a follow-up to the international meeting on 'The role of education in the social re-integration of former drug users' held in Hong Kong in 1980, Hong Kong has undertaken, on the invitation of the United Nations Educational, Scientific and Cultural Organisation (UNESCO), a pilot project to demonstrate the efficacy of including or reinforcing educational elements in the programmes of rehabilitation and social re- integration of former addicts. The project, organised by SARDA and Caritas and co-ordinated by the Narcotics Division, comprises two parallel schemes with the same objectives but different methodologies 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. The project is expected to conclude in early 1983.

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 behaviour among addicts.

Environmental Hygiene

The work of the Urban Services Department includes street cleaning, the collection and removal of refuse and nightsoil, the management of public toilets and bathhouses, the control of food hygiene and the disposal of the dead.

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A regular workforce of 7 000 - 3 800 in the urban areas and 3 200 in the New Territories is employed in cleansing duties. The cleansing force is equipped with a fleet of 635 vehicles, including specialised refuse-collection vehicles, street-washing vehicles, mechanical sweepers, nightsoil collectors and gully emptiers.

      All streets are swept at least once daily, either mechanically or manually, while busier thoroughfares are swept from four to eight times a day. A daily refuse collection service is provided to all built-up areas in the territory and about 3 600 tonnes of refuse and junk are collected every day. There is also a free nightsoil collection service for the few remaining areas which do not have a water-borne sewage disposal system.

      The Clean Hong Kong campaign, launched by the government and the Urban Council in October 1981, ended in December 1982. Divided into six phases each lasting about two months, the campaign covered street and block cleansing; a clean-up of the countryside, squatter areas and beaches; the removal of marine and agricultural waste; as well as a general beautification programme. Recognising that publicity and education alone would not solve the problem of litter, the emphasis of the campaign was on law enforcement as well as public education and community involvement. During 1982, a total of 56 500 people were fined for litter offences.

Controls

In maintaining and improving standards of hygiene through the enforcement of the Public Health and Urban Services Ordinance, district health inspectors regularly inspect licensed premises, residential and commercial buildings, and construction sites. Special inspections are also carried out to deal with vermin infestations and complaints about unhygienic conditions. The health inspectors also work closely with the staff of the Medical and Health Department in the investigation and control of food poisoning outbreaks and infectious diseases.

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In line with recent anti-smoking measures, all enclosed places of public entertainment, including cinemas, theatres, concert halls and auditoria, are required under new licensing conditions to designate at least 50 per cent of each type of seating as a non-smoking area. People smoking in such areas are liable to prosecution.

Food premises are now required to obtain a fire safety certificate before a licence is issued. This new measure applies to restaurants, food factories, bakeries and factory canteens.

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

       The food section of the Urban Services Department continued its two-pronged activities during the year to ensure that food and food products for sale, whether imported or locally produced, were hygienic and safe for human consumption. This covers law enforcement, with regular monitoring of standards of hygiene and systematic sampling of food products for chemical and microbiological analysis. It also covers research and development through liaison with the World Health Organisation and other international bodies to keep Hong Kong abreast of international developments in food science and toxicological evaluation to benefit and protect local food traders and consumers.

      District and regional pest control staff carried out measures to prevent and control rodents, mosquitoes, flies, cockroaches, fleas and other pests. The measures employed include environmental improvements, public health educational campaigns, the destruction of breeding places, the use of pesticides and law enforcement.

      In 1982, the health education section organised a number of educational campaigns on environmental and food hygiene. In addition, talks, courses and film shows were given to food service personnel, school children, voluntary welfare agencies, building caretakers and Vietnamese refugees. Contests and competitions were held in schools to promote health education and a mobile broadcast was arranged to give basic health education to Filipina maids and new immigrants from China.

Markets

In the urban areas of Hong Kong Island and Kowloon, the Urban Council runs 52 public markets with more than 5 900 stalls. The trade is almost exclusively the retail sale of fresh foodstuffs such as meat, fish, poultry, vegetables and fruit, as well as various types of general merchandise such as haberdashery and household goods. The commodities available in public markets have diversified over the years as increasing numbers of on-street hawkers have been accommodated in new market buildings. A cooked food centre is now a standard facility in modern market complexes.

      Many existing public markets are still in old buildings and it is the policy of the 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 1982, five new markets - at Centre Street, Southorn Playground, Sai Wan Ho and Aberdeen on Hong Kong Island, and Cheung Sha Wan in Kowloon - were completed. The Aberdeen complex, the most modern market complex in Hong Kong, houses 345 stalls and provides recreational, cultural, library, restaurant and office facilities under one roof. The number of new stalls provided during the year came to 1 101.

      In the New Territories, the government runs 33 public markets outside public housing estates with accommodation for more than 2 900 stallholders. Four new markets were completed during the year, giving an additional 1 150 stalls.

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The management and control of hawkers in the urban areas is the responsibility of the Urban Council, while the New Territories Services Department undertakes this work in the New Territories. There are 36 000 licensed hawkers throughout the territory, over 4 500 of whom 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 16 000 in 1982.

The main objectives of the authorities are to reduce on-street hawking by moving hawkers into public markets, and to confine on-street hawkers to licensed fixed pitches in clearly defined areas. Under the control of district Urban Services officers, the General Duties teams have a manpower of over 2 500 who work in close co-operation with the Royal Hong Kong Police Force in containing the problem of illegal hawking and taking necessary enforcement action.

Abattoirs

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, over 3.02 million pigs and 171 000 cattle were slaughtered in these two abattoirs. An early morning cattle slaughtering service was introduced at the Kennedy Town Abattoir in April.

In the New Territories, the two licensed private slaughterhouses at Tai Po and Yuen Long continued to provide slaughtering services while another private slaughterhouse, in Kwai Chung, will come into operation in early 1983. A new government abattoir planned for Sheung Shui will serve the needs of the new towns in the north-eastern New Territories. Animals slaughtered in the abattoirs and 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 the disposal of the dead. The Hung Hom Public Funeral Parlour operated by the Urban Council was temporarily closed in July as adequate funeral facilities are available for public use at the two funeral parlours run by the Tung Wah Group of Hospitals.

It is the policy of both the council and the government to encourage cremation instead of burial. During 1982, 59 per cent of the dead were cremated.

A 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 even distribution of cremation facilities throughout the territory.

New Territories Services Department

The responsibilities and functions of the New Territories Services Department in the New Territories are similar to those of the City Services Department in the urban areas of Hong Kong and Kowloon. They include the maintenance of satisfactory standards of public health, the administration of such services as cemeteries and crematoria, cleansing and pest control, the control of hawkers and the management of public markets and recreational facilities.

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The structure of the department was re-organised in 1980 to improve the co-ordination of local services through decentralisation. Besides a departmental headquarters, there are nine district offices grouped under two regional offices - north and south - each headed by an assistant director. The North Region comprises Tuen Mun, Yuen Long, Tai Po and North districts, while the South Region covers the districts of Tsuen Wan, Kwai Chung, Sha Tin, Sai Kung and Islands.

      During the year, the department's activities were expanded to keep pace with the increasing development and the needs of the growing population of the New Territories. A total of 20 capital projects were completed in 1982 and 466 new projects are planned. These include markets and cooked food centres, pleasure and sports grounds, nurseries, indoor games halls, swimming pools, beach buildings, crematoria and columbaria, public toilets, refuse collection points and abattoirs.

8

Housing and Land

THE

наб

HOUSING remains one of the government's top priorities, with land formation and public housing accounting for a large slice of the annual budget. With virtually all developable land in the urban areas exhausted, communities are mushrooming in the New Territories where new towns are being planned and implemented by the New Territories Development Department with its responsibilities for providing formed land, roads, drainage, sewage, and the whole infrastructure. Self-contained estates in these new towns form the bulk of public housing production by the Housing Authority.

The number of flats produced by the Housing Authority now averages 35 000 a year and plans are well in hand to maintain this level of production throughout this decade. In the 1981-2 financial year, the Housing Authority completed a record 35 745 flats, of which 4 399 were for sale under the Home Ownership Scheme. A further 3 725 rental flats built by the Housing Society boosted public housing production to almost 40 000, while the private sector also set a new record with completion of more than 34 000 flats and houses.

Since the public housing programme was launched in 1954, 450 000 families, or more than 40 per cent of the population, have been accommodated. Early estates were fairly rudimentary, designed as emergency housing for tens of thousands of new arrivals to Hong Kong who had subsequently been made homeless in fires or whose makeshift shacks posed health or other hazards. Through the years, parallel programmes with upgraded facilities were implemented to give overcrowded families in old tenement buildings the opportunity of moving into public housing. But as the population grew through intermittent waves of immigration, and Hong Kong began to prosper as a commercial centre, it became apparent that future housing policy would need to be co-ordinated under a single authority. Thus in 1973 the present Housing Authority was established and given the task of undertaking a 10-year programme aimed at providing homes for all those in need then estimated at 1.5 million. Events such as the mid-1970s oil crisis and recession followed by the negative influence of nearly 400 000 immigrants in 1978-80 made it necessary to re-phase the programme to a more manageable level. Estates built under the new authority are designed as self-contained communities with full shopping, social and schooling facilities. As developable urban land became increasingly scarce, development spread to the once rural New Territories to the north and west of Kowloon, where most new public housing now forms the nucleus of several new towns.

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Squatter fires during the 1981-2 dry season left another 25 000 people homeless bringing the total rehousing commitment for such victims to 50 000 over the past three years. A further 6 000 squatters lost their homes to flooding and landslips during mid-year rainstorms. Since most of these victims were relatively new arrivals, they were eligible only for temporary accommodation. With most existing temporary housing areas already full or committed, many thousands had to be put up in emergency transit centres pending

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completion of new temporary housing being built in the New Territories. Since it will be some years before all squatter concentrations can be cleared, efforts are now being made to make them safer and more habitable. A Squatter Area Improvements division was set up in early 1982 to undertake the planning for and improvements to squatter areas, including providing fire-fighting installations, fire-breaks, basic services such as sanitation, drainage, water and electricity, as well as amenities such as sitting-out areas.

Despite the great strides that have been made, demand for public housing remains high. At the end of 1982, there were still 158 500 families registered on the waiting list and an estimated 125 000 families living in squatter huts. Long-range studies have shown that it will be necessary to expand beyond the original new towns of Tsuen Wan, Sha Tin, Tuen Mun, Tai Po, Fanling/Shek Wu Hui and Yuen Long. To this end, plans are now well advanced for new towns at Junk Bay in the eastern New Territories and at Ma On Shan near Sha Tin, with the first public housing estates due for completion by 1986. Another major development area - earmarked for the late 1980s - is Tin Shui Wai to the northwest of Yuen Long, which is scheduled to support a self-contained community of 130 000 people, about half of whom will live in public housing. Other sites under active consideration are at Tsing Yi, Siu Chai Wan and Fanling South.

      In addition to meeting the needs of the lowest income groups, the Housing Authority has, since 1978, been producing flats for sale to families in the lower-middle income bracket. Prices were kept well below market levels by selling the flats at cost, but in order to keep these inflation-affected prices within the means of the target group, the policy was revised during the year to exclude land value from the selling price of the flats. Similar pricing arrangements apply to the Private Sector Participation Scheme and Middle Income Housing Programme.

      Mechanised construction methods are actively encouraged by the Housing Authority with a view to increasing the capacity and improving standards of the local building. industry. During the year, three major housing projects were selected for this form of labour-saving construction, and it is anticipated that increasing use will be made of such methods. Building costs generally remained stable with tender prices rising very little from the 1981 levels.

      Now that production targets are being consistently met, increasing emphasis is being placed on upgrading standards and quality on both old and new estates. Such measures range from the ongoing redevelopment and conversion of the oldest resettlement estates to improving estate environments through extensive landscaping and provision of greenery. New estates will also benefit from revised standards for provision of recreation facilities, including indoor games centres. Flat designs have also been substantially improved with the introduction of the new Trident rental block, a new slab block for smaller size flats and a standard Home Ownership block which offers a wider range of flats for sale.

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 and through its executive arm, the Housing Department, plans and builds public housing estates for categories of people determined with the approval of the Governor; manages public housing estates through- out the territory - including cottage areas, temporary housing areas and transit centres; clears land for development; prevents and controls squatting; and plans and co-ordinates improvements to squatter areas. In addition, the Housing Authority was invited in 1977 to

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      plan, build and subsequently manage, on behalf of the government, 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 industrial undertakings displaced by development clearances.

The Housing Authority is chaired by the Secretary for Housing and comprises 14 unofficial members (nine of whom are Urban Councillors), and six official members, all of whom are appointed by the Governor. However, with the implementation of district administration and the increasing number of public housing estates in new towns, the Housing Ordinance was amended during the year to remove the limit on the number of unofficial members with a view to allowing the appointment of a more representative membership.

       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 currently set at a production target of 35 000 rental and Home Ownership flats a year - is provided through government funds, on the basis of a four-year expenditure forecast rolled forward annually. The government has emphasised that this rate of production is not a maximum target and when economic circumstances permit expansion can be considered.

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Recurrent expenditure on the Housing Authority's domestic rented properties totalled $888 million during 1981-2; this was spent mostly on the management and maintenance of the estates. Rental income from these domestic properties amounted to only $838 million, resulting in a deficit of $50 million. The non-domestic properties owned by the Housing Authority produced income of $417 million during 1981-2, compared with expenditure of $213 million. Any surplus funds that the Housing Authority generates from the manage- ment of its properties are used to help finance the public rental housing programme.

of

      During 1981-2, the Housing Authority spent $2,302 million on its capital programmes which $1,896 million was financed by loans from the government (mostly on concessionary terms) with the balance being financed from Housing Authority funds. In addition the Housing Authority, acting as the government's agent, spent $1,054 million on flats for sale under the Home Ownership Scheme.

Land Supply and Site Formation

The Special Committee on Land Supply has confirmed that there is sufficient land for the next five years' public housing programme and steps are being taken to ensure a continuation of land supply to the end of the decade.

       While the New Territories Development Department is normally responsible for carrying out site formation and infrastructure for new towns, the Housing Department is now handling a greater proportion of site formation contracts for public housing estates in the urban area. During the year, work started on urban sites at Chuk Yuen, Ap Lei Chau, Ma Chai Hang and Lam Tin which will provide a total platformed area of approximately 49 hectares. This will accommodate 21 300 rental and Home Ownership flats, 10 secondary and six primary schools, together with carparking and commercial facilities. Other site

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formation contracts in progress are at Shun Lee Tsuen and Ngau Tau Kok, which are also in urban areas.

Construction

In forwarding the government's housing programme, the Housing Authority is now firmly geared to achieving the target of about 200 000 flats over the next five years. This pro- gramme comprises 148 600 public rental flats, 34 700 Home Ownership flats, and another 21 600 flats built for sale under arrangements with private developers, called the Private Sector Participation Scheme and Middle Income Housing Programme. During 1982, some 33 building contracts worth a total of $3,376 million were let, an increase of 23 per cent over 1981. At the end of the year, 86 contracts were in progress which, on completion, will provide 96 500 rental flats, 26 600 Home Ownership flats, 38 schools and 21 commercial centres over the next few years. In addition, 12 temporary housing areas and one flatted factory project providing a total of 2 100 lettable units 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 prices well below the market value. Run by the Housing Authority, the scheme has already provided homes for some 28 000 families and a further 57 700 flats are scheduled to be built this decade.

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 private sector housing whose family incomes fall within a specific bracket with a maximum eligibility level (at present $6,500 a month) fixed just 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.

       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 of flats in Phases I to IIIA were based on cost of production including a land premium assessed at full market value. However, as production costs - particularly land - increased rapidly in 1980 and 1981, it became apparent that flats would soon be priced out of the reach of those people for whom the scheme was designed, and some means of reducing the price was necessary. As a result of recommendations approved by the Governor-in-Council in September 1981, a revised basis for determining flat prices was adopted for Phase IIIB onwards which excluded the land value element. The first batch of flats offered under the new pricing policy was sold in February 1982 at prices ranging from $127,500 to $296,400; a further 5 064 flats were offered for sale in June 1982 at prices between $119,700 and $266,200. With this change, the flats produced under the scheme remain within the means of those for whom they are intended.

Since the revised pricing policy involves a substantial initial subsidy to flat purchasers, more stringent flat resale restrictions have been imposed. During the first five-year period, resales are allowed only back to the Housing Authority at the original purchase price and during the second five-year period, back to the authority at a price related to that of Home Ownership flats being offered for sale at that time. After 10 years' occupation, an owner may clear the resale restriction by paying a premium to the government based on the current value of the proportion of the full market value of the flat not initially paid.

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These changes, together with provision for heavier penalties for false declarations and attempts to circumvent the resale restrictions, were embodied in the Housing (Amendment) Ordinance 1982.

      A further three Home Ownership projects have been built by private developers under the Private Sector Participation Scheme. As the name implies, this 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 a premium for the project. The processing of applications and the screening of applicants is carried out by the Housing Department in the same way as for the Home Ownership Scheme. Additional sites have now been reserved under this scheme with a view to raising the production to 5 000 flats per annum from the mid-1980s onwards.

      Run on similar lines, the Middle Income Housing Programme - designed for families whose incomes exceed the limit for the Home Ownership Schemes will have larger flats

and slightly different eligibility criteria. The first project is being developed in Tuen Mun and will produce 2 240 flats for sale in 1983. This programme is an extension to the Private Sector. Participation Scheme but, unlike the main Home Ownership Schemes, there is no distinct quota of flats for public housing tenants.

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 develop the full potential of the remaining usable sites.

       On Hong Kong Island, the newly-completed Hing Man Estate has added a further 1 991 rental flats to the eastern district of Chai Wan, where there are also 305 Home Ownership flats under construction at Wan Tsui. Another 2 300 flats were built at Ap Lei Chau Estate to the south of the island.

       In east Kowloon, a further 2 100 flats were completed at Shun On where 700 flats are still under construction. In the same area, 4 100 Home Ownership and rental flats were completed at Ngau Tau Kok, Lok Wah and Hammer Hill. Building is under way on a further 11 300 flats at Ngau Tau Kok, Kwun Tong Central and Lok Wah.

       At the former Royal Air Force base at Kai Tak another 3 900 flats were completed, while at the former Sham Shui Po Army Camp, the remaining 300 Home Ownership flats are under construction.

       In central Kowloon, a major public housing project is under development at Chuk Yuen. Construction of the first 2 200 flats is in progress with extensive site formation works being undertaken on the remainder of the site. Also in central Kowloon, work proceeded on Chak On Estate to provide 1 900 flats.

The massive redevelopment programme aimed at improving living conditions at Mark I and Mark II resettlement estates is making good progress. During the year, a total of 2 700 flats were completed in the redevelopment projects at Tung Tau, Wang Tau Hom and Kwun Tong. Various building contracts at Shek Kip Mei, Wang Tau Hom, Wan Tsui, Lower Wong Tai Sin, Tai Wo Hau and Tai Hang Tung will provide 7 600 new flats together with two large commercial centres flanking the Mass Transit Railway stations at Wong Tai Sin and Lok Fu. In addition to new works, some old blocks were demolished at Lei Cheng Uk and Tung Tau and piling is underway for new blocks. More demolition work. preparatory to rebuilding is being carried out at Kwun Tong and Lower Wong Tai Sin.

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The New Territories Development Department is engaged in a massive programme of building new towns to meet the needs of the territory's growing population. The scarcity of land in the urban areas has necessitated that this increasing population is housed in the New Territories on land formed from the rugged terrain and by reclaiming land from the sea. Housing, employment and transport facilities, together with medical, educational and recreational amenities are being built to provide reasonably-balanced communities.

      During the year, Tsuen Wan was linked to the urban areas by the Mass Transit Railway system and the Mass Transit Railway works in Tsuen Wan have now been completed. Some 4 100 flats were completed at Shek Wai Kok Estate in Tsuen Wan and at Cheung Hong Estate on Tsing Yi Island, while a further 4 400 flats will also be built at Cheung Hong.

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As part of the continuing programme to provide community facilities to serve Tsuen Wan's growing population, a secondary and two primary schools, a community hall, a community centre, a government branch office, a transport interchange and a bus terminus were built. Other facilities under construction include a further eight secondary schools, two primary schools, two markets and a library, three multi-storey car-parks, a games hall, a swimming pool and a number of open spaces for local and district use, including Gin Drinker's Bay Park. Some 110 hectares of land were formed during the year with the first phase of the Tsuen Wan Bay reclamation now nearing completion. Other major engineering works started this year include construction of the Tsuen Wan transport complex, construction of a salt water pumping station, reclamation in north Tsing Yi for a public housing estate, and the widening of Tsing Yi Road and Heung Sze Wui Road.

In Tuen Mun the development of the On Ting and Yau Oi public housing estates was finished with the completion of some 7 200 flats, to bring the total number of flats in the estate to 14 200. Just to the west, the sister estates of Wu King and Butterfly are rapidly developing with 2 200 flats completed and another 9 500 under construction. In the northern sector of the new town, 2 100 of the 4 700 flats at Siu Hong Court the biggest Home Ownership project so far - were completed with the remaining flats due for completion over the next two years. Construction of 2 600 flats at Shan King Estate has also begun and piling work has started for another estate. With the latest completions, Tuen Mun's population has reached 182 000, of whom some 140 000 or 77 per cent are in public housing. The town will eventually accommodate some 550 000. Light industry factories have been built 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 technical institute, a divisional police station, community halls, a sports ground, open spaces and markets. Negotiations between the government and a private developer to operate a light rail public transport system within the town and its links with Yuen Long are in progress. To the west of the town, part of a major new power station was commissioned and the construction of a cement factory was completed. The largest new town development taking place is at Sha Tin where the population has grown from 30 000 to 200 000 over the last 10 years. During the next decade the population growth will be even more dramatic and by the mid-1990s, which will see the virtual completion of the town, it is expected that the population will be approaching 850 000. Formation in Sha Tin valley is now close to completion and already 640 hectares of land have been reclaimed from the sea. Engineering works for land formation have commenced at Ma On Shan where, upon completion, a further 420 hectares of land, including 160 hectares of direct reclamation, will have been produced. Other engineering

SHA TIN

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Decade of Development

Providing homes for an expanding popu- lation in carefully designed new towns is one of the greatest challenges Hong Kong has had to face, and Sha Tin is a prime example of town planning at its best. Cur- rently home to some 200 000 people - targetted at 860 000 by 1991 - this rural New Territories valley has developed, within a single decade, into

into a self- contained township with a distinctive identity. Reshaping of the landscape, build- ing on a massive scale, and the influx of thousands of new residents has been allied with strenuous efforts to help the new settlers gain a sense of identity while pre- serving the community life of the villages which made up the Sha Tin Valley. In line with residential, commercial and indus- trial projects, a progressive infrastructure moves swiftly ahead: a sophisticated road system with a town by-pass, and recon- structed stations on the newly electrified Kowloon-Canton Railway linking with the Mass Transit Railway provide im- proved access. To meet the needs of the population, community amenities include a teaching hospital which, by 1983, will tie in with a new medical faculty at the Chinese University of Hong Kong. Sports facilities for the local community and the world-class Jubilee Sports Centre offer the recreational counterbalance. The verdant Sha Tin Valley foothills and surrounding country parks, and the Shing Mun River provide nature's own leisure time ameni- ties, a reminder of the tranquil origins of this newly urbanised area.

Previous page: Bright lights of Sha Tin's modern housing are mirrored in the calm waters of the Shing Mun River, a natural focal point for the town. Left: Sha Tin Racecourse prepares for the next season's onslaught of ponies and punters; work underway on the 160 000-square-metre Jubilee Sports Centre which opened in July; a tranquil spot for study at the Chinese University of Hong Kong.

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Towering apartments of Sha Tin's Home Ownership Scheme, dwarfing lower blocks of the Housing Authority's Wo Che Estate, underline a successful new town population blend and create an impressive backdrop to Sha Kok Estate's imaginative recreation area.

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  Fragrant joss offerings appease the gods, and brightly coloured statues - the 18 Lohans - line the courtyard of the Temple of Ten Thousand Buddhas which in fact houses more than 12 000 of the 30-centimetre high gold and black buddhas.

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Despite the march of new town development, careful zoning or relocation of Sha Tin's 35 traditional villages, accommodating some 20 000 people, has helped preserve rural New Territories architecture such as the village of Tsang Tai Uk.

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Started by visiting Buddhist monks in the 1930s, porcelain painting at Tao Fung Shan Christian Mission to Buddhists is now carried out by craftsmen from Sha Tin town, with the resulting artistic pottery sold to the mountainside mission's visitors.

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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.

With building about 30 per cent complete, Sha Tin is being progressively developed to provide a full range of housing and job opportunities plus social and recreational facilities complete with comprehensive cycle, road and rail transport systems.

During the year, 5 700 flats were completed at Mei Lam, Sha Kok and Sun Tin Wai estates. Building works in progress comprise the second phase of Mei Lam and various phases of Lung Hang, Pok Hang, Sun Chui, Chun Shek and Yue Tin Court, with a total of 23 200 flats under construction. Caisson work has been started for the second and third phases of Pok Hang Estate. Schools, clinics, community halls, district and local open space and commercial complexes are being built concurrently with public and private housing projects. The Jubilee Sports Centre, a major sports training facility funded by the government and the Royal Hong Kong Jockey Club, opened during the year. By early 1983, the 1 450-bed Prince of Wales teaching hospital will be fully commissioned.

In Tai Po, building is well advanced at Kwong Fuk Estate and Wang Fuk Court to provide 8 200 rental and Home Ownership flats. Public housing for 32 000 people is already available in the new town which has a projected population of 244 000. A community centre has been completed and other community facilities under construction include a primary school, two secondary schools, a clinic and two community halls. During the year, sites in the town centre were sold for commercial and residential use, and development of Tai Po Industrial Estate progressed according to plan. The sewage treatment works is being extended in stages to cope with the population growth and industrial development; the construction of two new trunk roads linking Tai Po with Sha Tin and Fanling is underway; and a new station to replace the existing Tai Po Market Station under the modernisation project of the Kowloon-Canton Railway is being constructed.

A new town, to accommodate 223 000 people, is growing at Fanling/Shek Wu Hui. Some 5 300 flats have been completed at the first public housing development - Choi Yuen Estate and Yuk Po Court where schools and commercial facilities are also provided. A further 4 200 flats are under construction at Cheung Wah Estate. The first phase of the sewage treatment works was substantially completed during the year and construction continued on the Fanling by-pass, and new railway stations to replace the existing ones. The population of Yuen Long new town has now reached about 50 000 of its projected 142 000. Formation work started on the second public housing estate to the north of the town for 40 000 people. Engineering work continued to provide land for private residential and industrial use and community facilities. Planning and engineering design commenced for a light rail transit system between Tuen Mun and Yuen Long.

The four townships on the outlying islands have a population of some 34 000 at present and this will increase to 67 000 over the next 10 years. Construction commenced on a rural public housing estate for 2 000 people at Cheung Chau and on a new ferry pier to serve the island of Peng Chau. Land continued to be reclaimed at Mui Wo, Cheung Chau and Peng Chau to provide land for sewage treatment work, village-type housing, open space and community facilities.

Junk Bay new town is fast becoming a reality now that the planning, engineering and sector studies have been completed. The detailed design work for the initial development areas is well in hand and the first construction contracts were let in October. This third generation new town has been designed using the latest planning concepts and is for a

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self-contained community of 328 000 people. To be completed by 1996, the town will occupy an area of 1 380 hectares made up of 867 hectares of urban fringe and 513 hectares of town area, of which 445 hectares are formed from borrow areas and reclamation. The town will be supported by an external transport infrastructure comprising a new road link by tunnel from east Kowloon, the possible extension of the Mass Transit Railway from Kwun Tong, and the upgrading of Po Lam Road.

      Steady progress has been maintained on the redevelopment of Sai Kung town, with the Hong Kong Housing Society progressing with its rural housing scheme. Studies are to be undertaken on the servicing facilities of the various village centres in the district and on town landscape and recreation.

       A 14-month development study of the northwestern New Territories commenced during the year. This study will look into a comprehensive transport and land use strategy for the sub-region and will be completed by April, 1983.

Allocations

The Housing Authority possesses one of the world's largest public housing stocks com- prising 480 000 domestic units in 107 housing estates. Flats are of widely varying sizes, amenities and rent levels. In addition to newly completed flats, applicants can choose from older units vacated by tenants either transferring to other estates, buying a Home Ownership flat or moving into the private sector. During the year, 35 100 flats were allocated to 155 000 people who qualified under one of the following categories: waiting list applicants; development clearance cases; victims of fire and natural disasters; occupants of huts and other structures in a dangerous location; tenants of early housing estates under redevelopment schemes; tenants of early housing estates under external transfer to relieve overcrowding and create primary housing; compassionate cases recommended by the Social Welfare Department or the Medical and Health Department; former tenants of dangerous tenements; residents affected by the re-use of temporary housing areas; and junior civil servants and pensioners. Some 7 200 flats were allocated to families rendered homeless by development clearances, while the majority, 15 400, went to waiting list applicants, of whom 320 were in the special elderly category.

       Units recovered in the Mark I and II estates are re-let as primary housing to meet the shortfall of temporary housing spaces. During the year, 3 200 of these units were allocated to families affected by clearances or natural disasters or families in other rehousing categories, who did not qualify for permanent housing.

      Any family of three people, or any two related or three unrelated elderly people, or a married couple may register on the waiting list. Duplicate applications are cancelled at the time of registration. The waiting list is long: since 1967, 524 900 families have applied, of whom 103 400 have been rehoused and 263 000 found to be ineligible for public housing. Applications are considered in the order of registration and in accordance with the districts. 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 limits for each household size are reviewed regularly and adjusted in line with inflation. Waiting times vary from eight to nine years for central urban locations to two to three years for new estates in outlying new towns. Applicants whose applications are cancelled for reasons of income or living space exceeding the limits may request reinstatement of their applications 12 months after the cancellation and within five years if there are substantiated changes in their family circumstances which render their applications eligible at that time.

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In line with the development of the District Administration Scheme, the Housing Depart- ment has decentralised its senior estate management staff to enable them to maintain closer contact with district boards and local interests in improving the management and living environment of public housing estates. Another service expanded during the year was a tenants' advice centre scheme to help families settle into Tuen Mun new town. Following the popularity of the original centre at Yau Oi Estate - which handled more than 30 000 enquiries in its first year - a further two centres were established at new estates, and similar services may be extended to other new towns. As well as handling housing matters, staff made arrangements for assistance in such fields as schooling, employment and welfare services.

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       Close contact is maintained with tenants through frequent visits by estate staff. In addition, regular meetings are held with more than 800 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 0.001 per cent monthly arrears) but also is an important means of keeping in touch with tenants.

       Considerable inroads have been made into the overcrowding in older estates, although some 20 000 families (or five per cent) are still living in an area providing less than 2.23 square metres per person, compared with 77 000 in 1973. 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 used for further overcrowding relief or made available for 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 16 150 shop, shopstall, bank and restaurant tenancies of various sizes. Shops and shopstalls in new commercial centres are let on tendered rentals, thus giving the smaller operator with limited capital an opportunity to obtain an estate shop. Apart from the 10 000 small shops in the old estates, 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 4 900 factory tenancies in 33 purpose-built blocks, and 4 167 cottages in various districts.

About 220 premises on estates were let at concessionary rentals to various welfare and community bodies. These include primary and secondary schools, kindergartens, welfare clinics, nurseries, 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. Medical clinics and premises let to various government departments - including police posts and offices are generally let at near-commercial rents.

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Maintenance and improvements are major items, particularly in the older estates. During the year, some $69 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 recreation areas and lighting.

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Temporary Housing People made homeless in disasters or by clearances who have not lived in Hong Kong long enough to qualify for permanent public housing are given stopgap accommodation in temporary housing areas run by the Housing Authority. Demand for this type of housing has increased dramatically over the past few years following scores of squatter fires. As a consequence, a crash building programme is underway to provide spaces for a further 34 000 people, bringing the total to 135 000.

Temporary housing blocks are now built as a two-storey wooden framework on a con- crete hardstanding with a pitched asbestos roof. Space is allocated to families according to family size, and the occupants construct their own internal and external walls to a given design. Each unit is provided with its own water and electricity supply, while communal lavatory facilities are located in a separate block. Since some residents may have to spend several years waiting their turn for permanent public housing, facilities such as rest and play areas, shopstalls, mutual aid committee offices and other community services are also provided. In addition, there are round-the-clock security guards and comprehensive management services. The monthly rent is about $7 per square metre.

During the year, a total of 31 500 people, including 108 000 victims of natural disasters, moved into temporary housing. This brought to 117 900 the number of people living in the 47 temporary housing areas managed by the authority.

Transit Centres

The Housing Authority also manages transit centres to provide short-term accommodation for those made homeless by fires or other natural diasters. Because of the extremely large number of people being processed for temporary housing, an industrial building in Tuen Mun was rented and converted to supplement three existing centres, bringing the total capacity of transit centres to 21 500 people.

Squatter Control and Clearance

Despite the rapid expansion of both public and private housing, there remains the problem of squatters who are not eligible for public housing and who are unable or unwilling to pay rents in the private sector. Estimates put the current squatter population at more than half a million. 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.

Squatters who have lived in Hong Kong for more than 10 years and who occupy huts erected before June 1, 1982, are eligible for direct permanent housing if they are made homeless by clearance or natural disaster. Others are eligible only for temporary housing. In addition, a Housing Authority policy announced in October brings boat dwellers into line with land squatters: those who have resided in Hong Kong for 10 years and have occupied their boats since June 1, 1982, are now eligible for permanent public housing if their boats are dangerous or cleared.

The 1981-2 clearance programme freed 420 hectares of land for development and resulted in the rehousing of 43 000 people - 28 000 into permanent housing and the remainder into temporary housing. In addition, 1 200 workshops and other commercial undertakings were awarded ex-gratia allowances on clearance.

       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. However, the large scale of immigration in 1979

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and 1980 led to an upsurge of racketeers attempting to build and sell huts for profit. The speed with which these huts are built and occupied led to a considerable expansion of squatter settlements, particularly outside areas which were planned for development. Patrols have now been expanded, and squatter hut racketeering has been successfully suppressed. During the year, the Crown Lands Ordinance was amended to increase substantially penalties against such racketeers and to place the burden of proof on an offender to show that he was not building with a view to sale. As a result of prosecutions, 130 people were convicted for illegal excavation or building on Crown land and fines of $200,000 were imposed. In the same period, 46 000 illegal structures or extensions were demolished.

Improvements to Squatter Areas

While it is policy to contain any new growth in squatting, the large, new squatter settlements that had been established in 1978-80 had led to the position where safety and environmental conditions in squatter areas, especially on the urban fringes, were highly unsatisfactory. This was highlighted by the fires and landslides during 1981 and 1982. A new division within the Housing Department was therefore established at the beginning of the year. Initially, firebreaks were cleared and hydrants installed through five major squatter concentrations. Smaller squatter areas were used to test the feasibility of installing metered supplies of water and proper drains and sewers to each hut, as well as communal latrines, bath-houses, and refuse collection services. As a result of the success of these pilot schemes, a comprehensive programme is now being implemented which is intended to improve conditions in those areas which will not be cleared for development for some time.

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 District, 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 Secretary for Lands and Works, comprising 10 official and eight unofficial members, and the Land Development Policy Committee, chaired by the Chief Secretary and comprising 10 official members and one unofficial member.

      Town plans, which can be broadly classified into two groups - statutory and depart- mental - are prepared to guide future development and redevelopment. These ensure the provision of the required community facilities and public utility services, and control land use and building volume on individual sites.

      Statutory plans for existing and potential urban areas are prepared under the provisions of the Town Planning Ordinance. The Town Planning Division of the Lands Department is responsible for the preparation and revision of statutory plans under the direction of the Town Planning Board. These statutory plans outline zoning plans - show areas set aside or zoned for residential, commercial, industrial, government, institutional and other purposes. They act as an important link between the government and the public, providing a guide to public and private investment by indicating the future broad pattern of land use,

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including major public works for developing areas. Once a statutory plan is gazetted for public inspection, it has statutory effect. Under the Buildings Ordinance, the Building Authority may refuse to give approval to any plans of building works which would contravene any approved or draft plan prepared under the Town Planning Ordinance.

       To redress the deficiency of community and recreational facilities in existing urban areas, suitable private properties have been zoned for government, institution and community use, as well as open space use, on statutory plans. Where necessary to implement development, properties are resumed by the government under the Crown Lands Resumption Ordinance with provision made for compensation. To avoid piecemeal redevelopment and to encourage comprehensive urban design, suitable areas have also been designated as comprehensive redevelopment areas on statutory plans. Under this designation redevelopment may only proceed in a comprehensive manner according to master layout plans approved by the Town Planning Board.

During the year, the Town Planning Board published seven draft statutory plans including draft outline zoning plans for Quarry Bay, Tsim Sha Tsui, Sha Tin and Tai Po. A total of 11 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 or approved statutory plans. In the New Territories, there are currently seven draft statutory plans covering Tsuen Wan, Kwai Chung, Tsing Yi, Sha Tin, Tai Po, Tuen Mun and the South Lantau coast.

       The Town Planning Ordinance also makes provision for a Schedule of Notes to be attached to each statutory plan. This schedule shows the uses which are permitted in a particular zone and the other uses for which the Town Planning Board's permission must be sought. The provision for applications for planning permission under the ordinance allows great flexibility in land use planning and better control of development to meet changing needs. During the year, the board considered 134 applications, compared with 106 applications the previous year. Should the board refuse to grant permission, the applicant may apply for a review of the decision. In 1982, there were 23 applications for review, compared with 18 in 1981.

Departmental plans, which are used administratively within the government to guide and control development, comprise planning guides, outline development plans and layout plans. They are prepared, where applicable, within the framework of the statutory outline zoning plans prepared by the Town Planning Board. The Urban Area Development Organisation and New Territories Development Department are responsible for the pre- paration and revision of these departmental plans in the main urban area and the New Territories respectively.

       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 guidelines for development. They indicate broad areas reserved for water catchments, country parks, conservation, agriculture, urban development and other major land uses.

Compared with statutory plans, outline development and layout plans are normally drawn to a larger scale, showing road proposals and the disposition of sites in greater detail. These are 'action' plans which enable land to be prepared and released for public and private development. New outline development and layout plans prepared during the year include the Mid-level West Outline Development Plan, Sai Wan Ho Reclamation Layout Plan, Tsuen Wan Planning Area 25 and Reclamation Outline Development Plan and Tai Po Area 30 Layout Plan. In addition, many existing outline development and layout plans

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were revised to take account of changes in population forecasts, government policies, planning standards and other trends. These included plans for Kennedy Town, Sha Tin and Lamma Island.

To provide guidelines for the preparation of town plans and to define current planning standards, a manual entitled the Hong Kong Planning Standards and Guidelines was prepared. Formerly incorporated as part of the Hong Kong Outline Plan, the manual lays down general planning concepts, defines standards and criteria for the provision of government and other community facilities, and provides a framework for the preparation of statutory and departmental plans. The document is constantly kept under review to take account of changes in government policies, population forecasts and other social and economic trends. Sections involving residential densities, social welfare and community facilities, recreation and open space, commerce, cemeteries, and other related facilities, were revised during the year.

After 10 years' vigorous economic growth and development, a development strategy for the whole territory is being formulated to direct future investment and development in the fields of housing, industry, recreation and infrastructure, including inter-urban transport links and services. In line with this development strategy, the government has initiated a number of studies to assess the development potential of each major geographic sub-division of the territory. Major studies included the Northwest and Northeast New Territories, North Lantau and Junk Bay.

The first consultancy report on the Northwest New Territories recommended a base strategy to allow for natural population growth in the region. A follow-up study was commissioned in February to decide on the infrastructure needed, based on projected population distribution, and to investigate ways to maximise the development and potential of the region. The study of the Northeast New Territories was extended to cover development west of Fanling and the transport implications of higher populations at Junk Bay and Sha Tin.

Further studies on North Lantau were completed, redefining the potential areas for development with and without a replacement airport, and proposing population limits and broad concepts for the staging and timing of development. A proposed land-use budget to provide a basis for more detailed planning and development proposals of the region is to be undertaken.

The Junk Bay Development Study, undertaken to facilitate the development of a new town at Junk Bay and to study the implications and development opportunities in the Sai Kung hinterland, was submitted to the government in June.

A study on harbour reclamation and urban growth continued as part of a programme by the government to co-ordinate overall planning, and to meet housing, transport, employ- ment and other needs of the population. It included the possibility of further reclamation, levelling of hills, and the scope for additional urban growth through the redevelopment of existing properties and development of new sites. The study also examined future use of the Hong Kong International Airport site at Kai Tak should the airport be relocated, and possible sites for additional container berths and associated port facilities.

Private Building

With the lowering of bank interest rates, private building construction continued to increase in 1982 and included several large-scale, major development schemes. In terms of usable floor area, building projects for which consent was given to commence works increased by seven per cent over the figure for 1981.

URBAN COUNCIL LIBRARIES Reference Library City Hall

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During 1982, 604 proposals for private building development were submitted for approval to the Buildings Ordinance Office, compared with 1 031 in 1981. Occupation permits issued for completed buildings numbered 585, providing a total usable floor area of 3 154 882 square metres. This represented an approximate decrease of one per cent below the previous year. The total amount expended on private building work, excluding the cost of land, was $10,122 million, an increase of 40 per cent. By mid-1982 the Authorized Persons' Register contained the names of 665 professional persons and the Structural Engineers' Register 312. Of these, 196 were included in both registers.

A recent development in the design of commercial buildings has been a significant increase in the use of curtain-walling as an external envelope, particularly in the urban areas of Central District, Wan Chai and Tsim Sha Tsui. The completion of a new airport hotel in Sa Po Road, Kowloon, was a notable event, comprising 15-storeys of tourist accommodation close to Hong Kong International Airport. In Tsim Sha Tsui, a multi- storey commercial building and car park was planned to provide 980 parking spaces. On Hong Kong Island, a start was made on the construction of the Macau Ferry Terminal development, with a projected handling capacity of 90 000 persons per day on completion in 1986. Other projects in the planning stage included the Academy for Performing Arts on the Wan Chai waterfront and a medical rehabilitation centre at Sandy Bay to accommodate 150 physically handicapped patients.

Increased construction of high-rise tower-blocks containing domestic accommodation was evident in the rural areas of Tai Tam on Hong Kong Island, and Tsing Lung Tau in the New Territories. Medium-sized accommodation was in part catered for by the completion of 432 flats for the Hong Kong Housing Society Western Garden Development and the 5.06-hectare Luk Yeung Sun Chuen development in Tsuen Wan. Luxury accommodation which was approved includes the Red Hill development for 385 houses, a 250-house marina at Sai Kung, and the 6.75-hectare Tai Long Wan leisure community.

      The Mass Transit Railway Corporation continued to generate more large-scale building development related to station concourses. These include domestic complexes and provision for other facilities such as a magistracy, government offices, a stadium, clinic and further welfare facilities.

      The Mid-levels Moratorium which was initially imposed in 1972, was finally lifted in June by virtue of the Buildings (Amendment) Ordinance 1982, which codified a set of comprehensive and stringent geotechnical controls of building development in the Mid- levels scheduled area. Revision of other parts of the Buildings Ordinance and Regulations, notably in respect of construction and oil storage installation, remained under study.

During the year, 107 dangerous buildings were closed, of which 102 were emergency cases. In addition, 539 notices requiring demolition or repair of dangerous buildings, 52 notices requiring remedial works to dangerous slopes, and 94 notices requiring repairs to defective drainage were served. While the number of closures and demolitions of pre-war buildings decreased due to systematic surveillance, the rapid deterioration of early post-war reinforced concrete buildings became a matter of increasing concern. Performance in the overall control of unauthorised building works, however, showed no marked improvement. During the year, 1 696 buildings were inspected for unauthorised building works which resulted in 343 statutory notices being served.

Management of Buildings in Multiple Ownership

During 1982, 189 new owners' corporations were formed under the Multi-storey Buildings (Owners Incorporation) Ordinance. This legislation, passed in 1970, enables owners of a

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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 1982, there were 2092 owners' corporations in existence.

The district offices of the City and New Territories Administration offer assistance and advice to owners and tenants in forming owners' corporations and mutual aid committees. By the end of 1982, the district offices had assisted in forming a total of 4925 such building organisations, of which 3 704 were mutual aid committees. Mutual aid committees have aims similar 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.

A working party, on which relevant government departments were represented, was set up in 1982 to study the effectiveness of existing policies governing the management of private residential buildings. The working party met regularly during the year to examine the problems of management in multi-storey buildings and in working out strategies to tackle them.

Rent Control

Statutory controls on rents in Hong Kong date back to 1921 but since 1973 all such legis- lation has been consolidated under the Landlord and Tenant (Consolidation) Ordinance. An overall re-examination of this legislation was conducted by a Committee of Review in 1980. One of the recommendations of its report, published in May 1981, was that as soon as circumstances permit, rent control should be phased out. This recommendation was endorsed in principle by the government as a long-term objective.

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. Provision, however, has been made for the de-control of pre-war business premises from July 1, 1984.

Increases in rents are permitted periodically, the latest being in May 1982, when the legislation was amended to provide for permitted rents to be 12 times the standard rent in the case of domestic premises and 27 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, their standard rent and their fair market rent.

There is provision in the legislation for the exclusion from control of premises for the purpose of redevelopment, and generally possession is subject to the payment of compensation to the protected tenants. The Tenancy Tribunal, which had hitherto exercised jurisdiction under Part I of the ordinance to make exclusion orders and to deal with disputes in tenancy matters, ceased to exist on June 11, 1982. From this date its judicial powers were transferred to the Lands Tribunal and its technical functions to the Com- missioner of Rating and Valuation. The abolition of the Tenancy Tribunal was a further move towards making the Lands Tribunal the sole forum for adjudicating landlord and

tenant matters.

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Comprehensive legislation affecting post-war domestic premises in the private sector has been continuously in force in one form or another since 1963 (apart from between 1966 and 1970) and is now embodied as Part II of the Landlord and Tenant (Consolidation) Ordinance. The legislation, which provides security of tenure and controls 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, 1982, to tenancies of premises having a rateable value of $60,000 or above.

Landlords and tenants are free to agree the rent on a fresh letting and for an increase in rent in respect of an existing tenancy, 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 current rent and the fair market 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. Increases in rent for sub-tenancies are dealt with in the same way as tenancies. The functions of the Rent Tribunal Panel, previously appointed to determine applications for reviews of rent increase certificates, were taken over by the Commissioner of Rating and Valuation on October 1, 1982, and an appeal against the commissioner's review now lies with the Lands Tribunal.

Provisions governing the repossession of premises and many other judicial functions under Part II of the ordinance, formerly determined by the district courts, were taken over by the Lands Tribunal on October 1, 1982.

Other Measures Affecting Landlords and Tenants

      For domestic tenancies outside these controls, Part IV of the Landlord and Tenant (Consolidation) Ordinance provides a measure of security of tenure for a sitting tenant who wishes to renew his tenancy. Under these provisions, a new tenancy must 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 and terms for the new tenancy but failing agreement the parties can apply to the Lands Tribunal for a determination. This scheme is intended as a permanent framework regulating the relationships of landlords and tenants for nearly all domestic tenancies not otherwise subject to the Part I or II controls.

The Rating and Valuation Department administers many aspects of this legislation and provides a mediatory and advisory service to deal with the practical problems arising from rent controls. In addition, the department operates 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.

Land

Administration

     On April 1, 1982, responsibility for all land matters in Hong Kong was brought under a single authority, the Director of Lands, and a new unified department, the Lands

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Department, was established. This department brings together the former Crown Lands and Survey Office (which previously had responsibility for land matters in Kowloon and on Hong Kong Island), and the lands section of the City and New Territories Administration (which previously had responsibility for land matters in the New Territories). The new department also absorbs the Town Planning Division of the former Public Works Department and the Survey Division of the former Crown Lands and Survey Office. In addition, selected staff of the Registrar General's Department (Land Office) are now located in the Lands Department headquarters and most district land offices to serve in an advisory legal capacity. The unified department is therefore in a position to co-ordinate all aspects of land administration - surveying, planning, land sales and development, and legal matters -- throughout the territory.

In addition to its headquarters, the new department has 12 district lands offices: two on Hong Kong Island, two in Kowloon and eight in the New Territories. As far as possible, the district lands officers are responsible for all aspects of land administration and land sales within their districts in order to expedite the handling of applications and enquiries on all aspects of land and development at the district level. The establishment of district lands offices will also parallel the District Administration Scheme and the setting up of district boards throughout Hong Kong. The district lands officers are members of these boards and are therefore in a position to respond to district needs and the advice of local residents. The existence of a single Land Authority and a unified department will improve the service to the public and to developers; will assist in the co-ordination of land administration policy; and will ensure that Hong Kong's most scarce resource, land, is used in the best possible way.

Policy

All land in Hong Kong is owned by the Crown, which sells or grants leasehold interests. In the early days, Crown leases were for terms of 75, 99 or 999 years. They have now been standardised in the urban areas of Hong Kong and Kowloon to a term of 75 years, usually renewable for a further 75 years at a reassessed Crown rent under the provisions of the Crown Leases Ordinance. Crown leases for land in the New Territories and New Kowloon are normally sold for the residue of a term of 99 years less three days from July 1, 1898.

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 (introducing higher technology and more technological skills into Hong Kong) which could not be appro- priately 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 formulation of overall targets for the production and sale of land is the responsibility of the Special Committee on Land Supply, which is advised by the Lands Department and

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other departments. A Land Disposal Sub-Committee formulates and monitors a land sales programme, while specific sites are identified and collated in the Lands Department.

The year has not seen a particularly buoyant property market and developers have been reluctant to follow in the wake of the high land values experienced in recent years. Nevertheless, sales of industrial land continued, much of it in Kowloon Bay and Sha Tin new town.

      During the year a number of joint venture developments were initiated by the govern- ment. These included sites where a developer will construct residential accommodation, some of which is to be handed back to the government for use as staff quarters while the remainder will be available for the developer to sell on the open market. A number of sites have been developed on a joint venture basis whereby the government has obtained recreational facilities which are subsequently made available for public use.

      Low rent housing is produced by the Hong Kong Housing Authority and the Hong Kong Housing Society on land granted by the government at nil or reduced premium. Both organisations also produce flats for sale, the authority via the Home Ownership Scheme, for which the land is granted at nil premium, and the society through the Urban Improvement Scheme, under which land is either acquired by private negotiation or granted by the government at full market value following resumption. Flats are also produced at below-market prices by private developers under arrangements whereby land is offered for sale on condition that a specified number of flats are produced for sale at predetermined prices to purchasers nominated by the government.

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 per- missible 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 transactions during 1982 included the sale by tender of a large site of 13 400 square metres in Connaught Road, Central District, for development as commercial accommodation with a bus terminus replacing the existing facility on the ground floor and provision being made for the Unified Hong Kong Stock Exchanges. A site in Tai Tam for private residential development will provide the government with staff accommodation and the public with recreational facilities. On the south side of Hong Kong Island there are plans to expand the increasingly popular recreational facilities at Ocean Park within an extended area reached by an extensive system of elevators leading to the headland areas of the park.

In Tuen Mun a site of approximately three hectares was sold in July for the development of a self-contained industrial estate in which provision will be made not only for industrial accommodation but also for parking areas, shops, restaurants, clinics and recreational facilities to serve the daily needs of the future workers on the estate. Landscaping requirements are included within the requirements for the development. This is the first

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time that the government has sold land for use as a comprehensive estate and the success of this pilot scheme will undoubtedly cause consideration to be given to similar developments in other parts of the territory.

The Tai Po town centre redevelopment continued with lots being sold by auction and Letters 'A' and 'B' tender exchange. It is expected that all 12 lots will have been disposed of by early 1983, with development involving a combination of commercial and residential blocks under way.

       The government has entered into an arrangement with Mightycity Company Limited to develop Tin Shui Wai in Yuen Long over the next 12 years and to provide homes for 135 000 people. Comprising in total 488 hectares, 170 hectares will be utilised as a development zone for the community, with the balance to be formed by the developer and handed back to the government for future use. Public housing development will be expected to create accommodation for 67 500 people in the form of rental estates and under the Home Ownership Scheme and there will be provision for schools, clinics, open space and other community services. Tin Shui Wai has been identified in the North West New Territories Development Investigation as an area with good long-term development potential and comprises 25 per cent of all flat land in the New Territories. It is one of Hong Kong's largest remaining sources of land and the government is able to reserve its position for further development in the area by utilising the remaining 318 hectares as and when it becomes necessary.

       To the northeast, the planned development of a new town at Junk Bay has created much interest in the Sai Kung area. A study is underway to examine the general development of the hinterland of the new town and particular attention is being given to recreational facilities to cater for the large number of people anticipated to use this area.

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 urban areas of the New Territories are kept in the Land Office. Records relating to transactions affecting the remainder of the New Territories and a few exceptional New Kowloon lots are kept at district land offices, most of which are at present operated by the Lands Department. The intention is that the Registrar General's Department will assume responsibility for land registration throughout the New Territories under a phased pro- gramme. Under this arrangement, the district land offices at Tsuen Wan and Yuen Long were taken over during the year.

       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 (up to July 1, 1982, when this responsibility was assumed by the Lands Department); and the provision of conveyancing services for the Housing Authority in connection with the sale of flats built under the Home Ownership Scheme and for the Colonial Treasurer Incorporated in connection with regrants, interest- free loans to schools and the purchase of properties for government staff quarters. The Land Office gives legal and other advice to the government on matters relating to land and government land transactions.

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Since June 8, 1981 under the Land Registration Ordinance, all memorials delivered to the Land Office for registration have been microfilmed. Of the 2 096 156 memorials registered before that date, 1 061 398 were microfilmed by the end of 1982. Microfilmed memorials are transferred to satellite storage and are available for search at the Land Office in microfilm form only.

      A comprehensive study on the computerisation of Land Office register cards, with a view to introducing a computerised land registration system, was completed during the year. The results of this are being considered.

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. In the case of charging orders and pending actions, priority runs from the day following the date of actual registration. The ordinance also provides that unregistered instruments, other than bona fide leases at a 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, 165 226 instruments were registered in the Land Office, compared with 189 745 in 1981. More detailed statistics and comparisons with previous years are at Appendix 29. At the end of the year, the card index of property owners contained the names of 424 364 owners, an increase of 16 743 over the previous year. Some own several properties throughout the territory, but most are owners or part-owners of small, individual flats.

Urban Renewal and Environmental Improvement

     During the year the Special Committee on Land Supply appointed a working group to study the possibilities of increasing private sector participation in land production. The group identified sites on Hong Kong Island, in Kowloon and in existing new town develop- ment areas where there would be clear advantages if site formation and development were to be carried out by the private sector, and recommended that these sites should be sold as soon as possible. It was also proposed that consultants should be employed to study the concept of development corporations in the context of urban renewal, rural development and new town development. This consultancy was being set up during the year and it is envisaged that its results should be available by mid-1983.

      Special importance continues to be attached to urban renewal schemes, particularly those implemented by the Hong Kong Housing Society. To assist the Housing Society with its improvement schemes, 10 properties were resumed by the government at Wun Sha Street in Tai Hang, and six properties in Ap Lei Chau Main Street. At Wun Sha Street, the society plans to build a 29-storey apartment block on a podium, with shopping and community facilities on the lower floors. A 21-storey block is proposed for Ap Lei Chau Main Street with facilities similar to the Wun Sha Street development. The roofs of the podiums will be used as gardens and children's playgrounds. Negotiations with former owners on the amount of compensation for their properties are now in progress. All eligible former occupiers are being rehoused and given ex-gratia allowances.

      Environmental improvement, particularly with regard to the provision of open space, was given considerable impetus in 1982 with substantial funds being made available for the acquisition of private property zoned for open space and government, institutional and community use in the town plans for Western District, Wan Chai and Yau Ma Tei. By the

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      end of the year it was estimated that some $100 million had been spent on the acquisition of properties in these areas.

      In June, seven properties in Queen Street, Western District, were acquired by agreement for the sum of $48 million for the development of an Urban Council complex which will eventually comprise a market, sports facilities, an auditorium and open space.

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. The year also saw the introduction of the Roads (Works, Use and Compensation) Ordinance whereby land required for the implementation of road projects is now resumed under this ordinance. Public works affecting existing roads, but not involving the acquisition of private land, are also dealt with under the new Roads Ordinance which replaces the former Streets (Alteration) 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 Territories, the government can acquire private land for a public purpose under the Crown Lands Resumption Ordinance and statutory compensation is paid for the extinguishment of rights conferred by a lease. In respect of agricultural land within the new town development areas in the New Territories, however, acquisition is usually effected by way of offering package compensation, which comprises the payment of cash compensation in respect of at least half of the land resumed and the issue of land exchange entitlements in respect of the remainder. In the case of building land, either cash compensation based on assessed value together with an ex-gratia payment or the issue of land exchange entitlements is offered. These entitlements give the landowners an opportunity to participate in building developments and priority is usually given to holders of older land exchange entitlements. However, this system is currently under review. In respect of private land acquired outside the new town development areas, only cash compensation is offered. The need to acquire land for public purposes continues to grow and, during 1982, more than two million square metres of private land were acquired in the New Territories for the implementation of the various public works projects, largely to make way for new town developments.

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. Where they involve road projects, they are dealt with under the Roads (Works, Use and Compensation) Ordinance.

During 1982, more than $60 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.

Survey

The Survey Division of the Lands Department provides all mapping of Hong Kong, and is responsible for maintaining a network of geodetic control stations, upon which all land and engineering surveys are based, and for the definition and setting out of lot boundaries.

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       During the year, the division's photogrammetric unit supplied large scale mapping for engineering, geotechnical control and development purposes; it also made good progress in plotting for the standard metric 1:1 000 map series. The analytical plotter installed in 1981 enabled the unit to process digital data, taken from photographs, for complex engineering projects. Aerial photography for specific photogrammetric purposes, and for engineering and environmental studies, was supplied by the air survey unit, assisted by the Royal Hong Kong Auxiliary Air Force. The whole of Hong Kong was photographed at high altitude for general record purposes, with low altitude coverage of the urban and active development areas.

The cartographic sections continued the metrication of the 1:1 000 basic mapping series. By year-end, the urbanised areas, including the new towns, and all developed and active rural areas were covered by this series. Cyclic revision of basic mapping sheets and revision of the territory's many mapping series continued. Those reprinted include the Hong Kong Streets and Places, Volumes I and II, and seven 1:20 000 sheets. A further 20 sheets of the 1:5 000 series were completed during the year. Special maps, charts and coloured plans were also produced for government departments and sales of maps, plans and aerial photographs for planning, development, recreation and tourist purposes increased.

       The geodetic sections continued to update and maintain existing minor control stations and to introduce new survey control into developing areas. A major project was the extension of the precise level network to Tsing Yi, Ma Wan Island and Lantau Island by cross-water levelling, which means the whole of Hong Kong, except for a few remote islands, is now covered by one rigid vertical control system.

Cadastral surveys, one of the Survey Division's important functions, involved the definition of boundaries for the alienation of Crown land, the allocation of Crown land to various government departments and the re-establishment of boundaries of old lots for redevelopment purposes. A number of statutory plans defining areas set aside for public purposes were produced. The re-establishment of old lot boundaries and the definition of Mass Transit Railway areas along the Island Line accounted for most of the title work in urban areas. In the New Territories the most active areas were the new towns, while the formation of the Lands Department has meant that additional survey services, formerly provided by the New Territories Administration, are being handled by the Survey Division. The Lands Department Survey Training School continued to provide practical survey training for those students undergoing the certificate course in land surveying at the Hong Kong Polytechnic, and also provided basic cartographic and elementary surveying courses. During the year, over 300 government officers attended various courses at the school. Government scholarships for professional training in land surveying in the United Kingdom were awarded to eight officers.

9

Social Welfare

福祉

新會

      SIGNIFICANT developments in the field of social welfare during the year included plans to increase the number of trained social workers, regrading of the duties of voluntary agency staff, and changes in subvention policies. It was a year, too, for continued consolidation and progress towards the targets set in the 1979 White Paper on Social Welfare into the 1980s.

The shortage of trained social workers continues to have a serious impact on plans to expand services. A working party on social welfare manpower, which had been set up by the Secretary for Social Services completed its deliberations in January and recommended various measures, both short and long term, to alleviate this shortage. Interim measures recommended include a relaxation of present recruitment criteria to enable non-social work graduates to be appointed to the rank of assistant social work officer provided they undertake a course of in-service training leading to a professional qualification. In the long term, the working party emphasised the need to increase the supply of trained social workers and reduce wastage from the profession. Having sought the views of the public and voluntary agencies, the government has accepted the main recommendations of the working party and plans for their implementation are now under discussion.

Early 1982 also saw the conclusion of a major exercise to review the duties of staff working in various service areas in voluntary agencies and to regrade them, where appropriate, in line with principles established in a similar review of the welfare class in the Social Welfare Department.

       Progress continued to be made on another issue affecting the voluntary sector: the introduction of a new subvention system to replace the existing system of discretionary grants. In line with recommendations arising from the report by a working party set up to review the provision of social welfare services and subvention administration, all services have now been classified into two categories. Services in Category I will receive a sub- vention designed to meet the full cost of a specified standard of service, and income raised privately by voluntary agencies will not be taken into account in the calculation of the government subvention. Of the 35 categories of service identified overall, 27 have been classified as Category I and, as a first stage in the introduction of the new system, no account has been taken of income raised by the voluntary agencies in calculation of this year's subvention for these services.

Services classified in Category II, which mainly comprise social and recreational activities and the uniformed groups, will not receive subvention to meet the full cost of the services provided, and agencies will be expected to contribute to the operational cost from their own resources. The department has established working groups to formulate proposals on standard costs for services which can be costed in this way. The aim is to achieve full implementation of the new subvention system by the 1984-5 financial year.

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In another change in subsidy arrangements, steps were taken in 1982 to implement the proposals set down in the 1981 White Paper on Primary Education and Pre-primary Services. With effect from September 1982, a new fee assistance scheme to low-income families who have children attending day nurseries or kindergartens replaced the former system of direct subvention to day nurseries. The scheme, which is operated by the Social Welfare Department, works on a sliding scale principle to ensure that those with the lowest income receive the highest level of government assistance. In addition to satisfying the income eligibility criteria, families applying for assistance with the payment of day nursery fees also have to show a social need, for example that the mother is working full time, to place their children in full day care.

As at December, 1982, a total of 22 151 applications for fee assistance had been received, of which 12 985 were from families with children in day nurseries. An analysis of the applications for fee assistance in day nurseries has shown that about 60 per cent of successful applicants are paying a lower fee than would have been required under the previous subvention system. The government will be carefully monitoring the impact of the scheme, particularly as it affects enrolment levels in day nurseries.

Following much public discussion and a review of existing benefits for former prisoners of war, provision was made, with effect from November, for former prisoners of war to appeal to the Governor.

The Social Welfare Department itself faced considerable challenges during the year in the field of emergency relief, first as a result of a series of fires in squatter areas, mainly in East Kowloon, and then as a result of serious rainstorms in May and August. During the two rainstorms alone, over 7 000 victims made homeless by landslides, flooding or hut collapses - were offered temporary shelter in community centres and estate community centres. Over 47 000 hot meals were provided by the department's emergency kitchens and some 32 000 blankets and relief articles distributed. Grants totalling $15.64 million from the Emergency Relief Fund were made in the period up to December 1982.

Expansion in line with the targets set down in the 1977 White Paper on Rehabilitation and the 1979 White Paper on Social Welfare into the 1980s continued during the year. This included the opening of four community halls, three community centres and three estate community centres; also, the addition of 2 821 places in child care centres, 550 places in hostels and homes for the elderly, and 340 places in sheltered workshops and activity centres for the mentally and physically disabled.

The additional services were reflected in considerable increases in both capital and recurrent expenditure. Total estimated expenditure on social welfare in the 1982-3 financial year is $966.8 million - an increase of $81 million in recurrent expenditure and $189,000 in capital expenditure over 1981-2. Some $300 million in capital and recurrent subventions are estimated for the 1982-3 financial year. The Community Chest also organises and co-ordinates local fund-raising activities for its member agencies, raising $26.76 million in its annual fund-raising campaign in 1981-2, compared with $21.79 million in 1980-1.

Role of the Social Welfare Department

     Responsibility for carrying out government policies on social security and social welfare rests with the Director of Social Welfare, who heads the Social Welfare Department. The department is organised on a regional basis, with 13 district offices divided into four regions - Hong Kong Island, West Kowloon, East Kowloon and the New Territories. District social welfare offices are the main points of contact with the public and voluntary welfare organisations, and are responsible for co-ordinating the provision of all social

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welfare services in their district. The department includes a Development Branch and a Social Security Branch 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, also appointed by the Governor, 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 the department, in the annual review of the Five-Year Plan for Social Welfare Development. In November it was announced that as a result of a reorganisation of responsibilities in the Government Secretariat, the Social Services Branch will be re-formed as the Health and Welfare Branch in early 1983.

Social Security

       Social security schemes administered by the Social Welfare Department are the Public Assistance Scheme, the Special Needs Allowance Scheme, the Criminal and Law Enforce- ment Injuries Compensation Scheme, the Traffic Accident Victims Assistance Scheme and Emergency Relief.

The Public Assistance Scheme, which is means-tested but non-contributory, is designed to provide a basic level of income for individuals and families who are most in need. To be eligible, an applicant must normally satisfy a one-year residence requirement, but the Director of Social Welfare is empowered to waive this in cases of particular hardship. Apart from meeting the residential qualification, able-bodied unemployed applicants aged between 15 and 59 are required to register with the Local Employment Services of the Labour Department to seek employment. Young people aged between 15 and 17 are eligible as dependents of their families unless they are orphans or persons without relatives. The scales of assistance are kept under regular review and increased from time to time in line with the cost of living to maintain their purchasing power. The last revision was made in June, 1982, when the rates were increased by 29 per cent. The existing monthly basic rate is $450 for a single person; $325 for each of the first three eligible members of a family; $280 for each of the succeeding three; and $215 for each eligible member thereafter. In addition to the basic scale allowance, special supplements such as old age supplement, disability supplement and long-term supplement can be given. An old age supplement of $225 per month is given to those aged 60 years and over who are on public assistance but are not in receipt of the special needs allowance. A disability supplement of $225 per month is payable to those public assistance recipients who are medically certified as partially disabled, with a 50 per cent or more loss of earning capacity and who are not receiving old age supplement or special needs allowance. An annual long-term supplement of $1,140 for a family, or $570 for a single person, is given to those who have received public assistance continuously for 12 months to meet additional expenditure on replacement of essential household items. Where applicable, additional grants are given to cover rent, schooling expenses, special diets and other essential requirements.

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      To encourage self-help, recipients who are not expected to find work as a condition of receiving public assistance may retain their marginal earnings up to $255 a month. However, any earnings in excess of $425 a month are taken into account in assessing public assistance entitlements. At the end of 1982, the number of active public assistance cases was 50 276, compared with 46 734 in 1981. Expenditure on public assistance for the 1981-2 financial year totalled $291.29 million.

      The Special Needs Allowance Scheme caters for two groups of needy people in the community. They are the severely disabled and elderly persons aged 70 and over. The scheme provides a non-means-tested and non-contributory allowance on top of public assistance. Any person, regardless of age, who is severely disabled and has resided in Hong Kong continuously for at least one year before claiming the allowance, is eligible for disability allowance. For old age allowance, any person who has attained the age of 70 or over is eligible provided he has resided continuously in Hong Kong for at least five years immediately before claiming the allowance. With effect from June 1982, the rates of disability allowance and old age allowance were raised to $450 and $225 a month, respectively. The number of people drawing disability and old age allowance at the end of the year was 217 392, compared with 202 692 at the end of 1981. Expenditure on payments in the 1981-2 financial year was $436.73 million, an increase of $130.43 million over the previous year.

The Criminal and Law Enforcement Injuries Compensation Scheme provides cash assistance for people injured and for dependents of those killed in crimes of violence or through the action of law enforcement officers in the execution of their duties. The scheme is non-means-tested and non-contributory and is administered by the Criminal Injuries Compensation Board and the Law Enforcement Injuries Compensation Board. Ex-gratia compensation payments are assessed on the basis of either the Emergency Relief Fund Payment Schedule or common law damages, depending on the jurisdiction of criminal cases and law enforcement cases. Total payments in 1982 amounted to $2.4 million, compared with $2.1 million in the previous year.

      The Traffic Accident Victims Assistance Scheme provides quick financial assistance to traffic accident victims, or their dependents in the case of death, without regard to the means of the family or to any element of fault in the cause of the accident. However, the accident must have been reported to the police and the application must be made within six months of the date of the accident. Payments are made for personal injury or death only; damage to property is not covered. The scheme does not affect the applicant's right to claim common law damages in the usual way. Those beneficiaries of the scheme who receive damages, or other compensation in respect of the same accident, are required to refund the payments they have received from the scheme or the amount of damages or compensation, whichever is less. The rates and conditions of payment under the scheme are based on the payment schedule of the Emergency Relief Fund. With effect from January 6, 1982, the minimum qualifying requirement of seven days' sick leave in injury cases was reduced to three days. During the year, 7 810 applications were received, of which 6 650 were approved for assistance payments amounting to $32 million.

Emergency relief is provided in the form of immediate material aid, such as hot meals, blankets and other essentials, to victims of natural and other disasters. Grants from the Emergency Relief Fund are paid to the family of those killed, injured or disabled as a result of such disasters. During the year, the emergency relief service was rendered on 276 occasions to 21 566 registered victims.

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To prevent abuse of the various social security schemes, a special investigation team carries out in-depth investigation of cases of suspected fraud or over-payment. During the year, the team completed investigations on 180 cases, some of which were referred to the Attorney General for legal advice and possible prosecution. The team also conducts random checking in 10 per cent of cases where beneficiaries residing in institutions have elected to receive payment through some common agent. A total of 255 cases was checked during the year.

The Social Security Appeal Board, which considers appeals from individuals against decisions by the Social Welfare Department regarding social security benefits, dealt with a total of 84 appeals during the year. Of these, 20 related to Public Assistance cases, 58 to Special Needs Allowance cases, and six to Traffic Accident Victims Assistance cases.

Services for Offenders

      Services for 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 and higher court, a remand home service, residential training for young offenders and after-care.

Probation, which is an alternative penalty 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 the rehabilitation of probationers.

Educational, prevocational, social and recreational training is provided in remand homes and residential institutions to assist juvenile offenders to return to the community as law-abiding citizens. The department has five institutions specialising in this work, each with a slightly different training programme to cater for various ages and sexes.

The Begonia Road Boys' Home and the Ma Tau Wai Girls' Home are combined remand and probation institutions for offenders under the age of 18 and for those in need of statutory care and protection. The Castle Peak Boys' Home is for boys aged under 16 and above 14 on admission, who require a longer period of residence and re-education 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 rejoin society by preparing them while they are still in the schools and giving them support after they leave.

       Following completion of reports by an adviser from the United Kingdom, considerable progress has already been made in implementing the recommendations. These cover not only principles for the care and treatment of young offenders but also detailed suggestions on staffing, training and operational matters. An officer on temporary second- ment from the Education Department has been advising on ways of introducing a cadre of trained teachers into the residential institutions and on improvements to curricula and training programmes. Work also began in late 1982 on the conversion of a former junior English school in Quarry Bay for use as a home for young boys on probation. This home will be ready in 1983 and will greatly relieve overcrowding at the Begonia Road Boys' Home.

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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 in the field of services for young offenders.

Family Welfare Services and Child Care

The main objective of family welfare services is to help individuals cope with or, where possible, avoid personal and family problems, and so preserve and strengthen the family unit. These services are provided on a territory-wide basis through 20 centres operated by the Social Welfare Department and a number of voluntary agencies and, in hospitals, by 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; referrals for schooling, housing, employment, financial assistance, legal advice, medical attention, home help and, where appropriate, placement in institutions for elderly or disabled persons. The number of families and individuals assisted in 1982 was 20 871.

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. To implement proposals in the 1981 White Paper on Primary Education and Pre-primary Services, amendments to the Child Care Centres Ordinance and Regulations were enacted in 1982, including the authorisation of the Director of Social Welfare to approve fees to be charged in registered child care centres.

Child care centres provide care and supervision for children under the age of six in accordance with the standards laid down in legislation. Residential care is also provided, when necessary, to children and young persons. Discussions have continued between the Social Welfare Department and relevant voluntary agencies on the best ways of meeting the needs of children who require residential care. Recommendations have been made on improving standards of care in children's homes and on developing non-institutional types of care, especially foster care and small group homes.

      At the end of 1982 there were 20 370 places in day child care centres, including creches for children under the age of two, and 1 124 places in residential child care centres.

The adoption unit of the department handles both local and overseas adoptions - the latter with the assistance of the International Social Service, Hong Kong branch. At the end of the year there were 567 cases of legal adoption by court order, 77 proposed adoption cases and 205 cases of overseas adoption.

Medical Social Service

Following recommendations by the Standing Commission on Civil Service Salaries and Conditions of Service, the medical social service, formerly administered by the Medical and Health Department, was transferred to the Social Welfare Department with effect from October 1982. From the management point of view, the integration of medical social work within the Social Welfare Department, which is responsible for all other social welfare services, should lead to a more efficient use of manpower resources and the better co-ordination of services generally.

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Following this transfer of departmental responsibilities, the first steps were taken to absorb the work of medical social workers within the regional structure of the Social Welfare Department. Careful study is being made of the best pattern for the organisation of medical social work in the long term, particularly with regard to the work of specialist units such as narcotics and drug administration and mental health services. The number of cases handled by medical social workers in 1982 was 85 650.

Care of the Elderly

Care in the community is the guiding principle for the planning of services for elderly people. The main objective is to preserve and foster the role of the family as the chief supporter of the elderly. A wide range of community support services is provided, mainly by the voluntary sector with the assistance of the government, to enable the elderly to remain in the community. Services include home help, meals service, home visiting, community education, day care and social recreational activities. By the end of 1982, there were 209 home helpers, 62 social centres for the elderly, seven multi-services centres and two day care centres for weaker and more infirm elderly people whose families are unable to look after them during the day.

Provision of adequate housing, by means of a special quota for the elderly in public housing units or arrangements for compassionate rehousing in public housing estates, enables many elderly people to remain in the community without having to seek care in institutions. However, for those who are unable to stay with their families, residential care in the form of hostels for the elderly in public housing estates, purpose-built homes for the aged and care-and-attention homes is provided. Emergency shelter accommodation for old people who are in urgent need of short-term accommodation while awaiting the availability of other long term placement is provided in temporary housing areas and hostels in public housing estates. Special attention is given to organising cultural and recreational programmes or interest group activities to ensure that the residents in the institutions do not feel socially isolated or unwanted. During 1982, 550 additional hostel and home places were provided, bringing the total to 1 352 hostel places, 4 118 home places and 375 care-and-attention home places by the end of the year.

A priority allocation scheme for public housing applicants who have parents or grand- parents living with them will be introduced. This will reduce the time such applicants remain on the waiting list by up to one year. At the same time, to meet the housing needs for the elderly, particularly those in good physical and mental health who can fend for themselves on a day-to-day basis without the need of close supervision in an institutional environment, the government announced plans during the year to purchase flats in private housing developments for four to six elderly people living together in a family environment.

Social Work Among Young People

       In recent years, increasing emphasis has been placed on the importance of personal social work among young people -- particularly those who may be in danger of delinquency. A school social work service provided by staff of the Social Welfare Department and voluntary agencies is now available to all secondary school students and most schools are visited weekly by a social worker. In primary schools, student guidance officers of the Education Department assist pupils with personal or learning problems and these officers are advised and supported as necessary by trained social workers.

A further area in which social workers are active among the young is through out-reaching teams. These teams establish direct contact with young people in places

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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 out-reaching teams operated by eight voluntary agencies in priority areas.

Family life education programmes are aimed at the entire population but place particular emphasis on the needs of young people and the importance of a good parent-child relationship. At present, there are 54 family life field workers subvented by the government to carry out programmes at the district level with the aim of fostering positive attitudes. to social and family responsibilities. Territory-wide campaigns, making extensive use of the media, are co-ordinated at district level by the Social Welfare Department's community and youth officers. The theme of the 1982 publicity campaign, the adolescent and the family, aimed at fostering understanding of adolescents, peer group influence on young people, the roles and responsibilities of young people in the family and society, and on ways of overcoming communication problems between the generations.

The department also administers the Opportunities for Youth Scheme which, through the disbursement of small grants, encourages groups of young people to devise ways of contributing to the life of the community and helping particularly needy groups.

A major review of the Programme Plan on Personal Social Work Among Young People had been carried out during 1981 by a committee convened by the Secretary for Social Services and comprising representatives from appropriate government departments and voluntary agencies. The review recommended improvements to manning ratios in the fields of school social work and family life education, but recognised that these can only be introduced when manpower resources permit. It also recommended a closer integration of the related services and identified a need for a review of the existing co-ordinating machinery and the provision of services at the district level. During 1982, planning began for putting into force these recommendations.

Rehabilitation

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 and assist 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 for boarding care and transport services in special schools. Also, since April 1982, the Technical Education and Industrial Training Department has assumed 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; during early 1983 it will take over the placement of the ex-mentally ill and the mentally handicapped.

The Social Welfare Department provides counselling services, day and residential centres, sheltered workshops, work activity centres and sport, recreational and transport arrangements for the disabled. It operates 18 centres and institutions and subvents 67 centres run by voluntary agencies, serving a total of 9 830 disabled people.

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Considerable shortfalls have been identified in the Rehabilitation Programme Plan in the provision of care for the mentally handicapped and the ex-mentally ill. In order to provide sufficient facilities both for day care and residential services for these groups, the Social Welfare Department, with the assistance of the City and New Territories Administration conducted a search for suitable sites in the New Territories, and the feasibility of these sites is now being explored.

A working party, consisting of representatives from the government, voluntary and commercial sectors has, since June 1981, been conducting a comprehensive review of policy on the provision of sheltered workshops for disabled persons. The working party's proposals are expected shortly and will include recommendations on the objectives and role of sheltered workshops and the type of work opportunities they should provide. In the meantime, three new sheltered workshops were opened in 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. Three centres were opened in 1982 bringing the total to 12, with an overall capacity of 648 places. The shortfall in this area is very large and the 1981 Rehabilitation Programme Plan recommended an annual expansion rate of 300 places from 1982 onwards.

Training

The Training Section of the Social Welfare Department is responsible for looking after the training needs of departmental staff and, as far as possible, the needs of staff working in voluntary agencies. Operating from the Lady Trench Training Centre, the section runs basic training courses in social work for untrained social work staff, refresher and staff development programmes for trained social work staff employed in the department and voluntary agencies, in-service training courses for social security workers, and in-service training courses for child care centre workers. A total of 57 courses, seminars and workshops were organised during the year.

      The section also operates a demonstration nursery for three purposes: to provide day-care for 100 children aged two to six; to serve as a training ground for child-care centre workers undertaking in-service training organised by the section; and to provide a place for observation by people in related fields.

       The department contributed to social work training through the provision of field work placement and supervision for social work students from the University of Hong Kong, the Chinese University of Hong Kong, the Hong Kong Polytechnic, the Hong Kong Baptist College and the Shue Yan College. A total of 194 students was placed in the department and supervised by the section's staff, while 91 students supervised by the training institutions' faculty staff were provided with field work places in the department during the year. Attachment training for two social workers from overseas was also arranged.

        Being responsible for the co-ordination and planning of all welfare facilities, the department must keep up-to-date on new concepts and practices used in other countries. This is made possible by giving experienced officers in specialised areas periods of training or attachment overseas, or by participation in international courses and conferences. In 1982, a total of 11 officers from the department attended six conferences and courses organised by international bodies. The Director of Social Welfare participated as a United Kingdom delegate in the 1982 World Assembly on Ageing held in Vienna in July. To promote social work training, grants and scholarships are available from the Social Work Training Fund, the Hong Kong and Shanghai Banking Corporation, the government and private donations.

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Research and Evaluation

SOCIAL WELFARE

The department's Research and Statistics Section conducts various research studies for planning and monitoring services offered by the department. Of the 19 research projects conducted in 1982, six studies involved household visits or interviews. These were the annual review of street sleepers; a study of the impact of family life education services; an analysis of applications under the Traffic Accident Victims Assistance Scheme (slight injury cases); an investigation into group housing among elderly people living in the private sector; a study of demand for placement of mentally handicapped persons in sheltered workshops, work activities centres or vocational training; and a study of demand by severely physically handicapped persons for care and attention services. Other studies were mainly to provide a statistical basis for the planning, monitoring and evaluation of various services, particularly in the social security field.

The department also includes an Evaluation Section which is responsible for developing, monitoring and reviewing the departmental system for the evaluation of services provided by the subvented agencies to ensure that public funds are used effectively and standards of service overall are satisfactory. In this connection, district staff of the department conduct regular visits to subvented service units or experimental projects financed from the Lotteries Fund. Summaries of reports arising from these visits are presented to the Social Welfare Advisory Committee when subvention applications are considered. In addition, the evaluation section conducts in-depth evaluations of individual welfare services, programmes and organisations. In 1982, seven such studies were conducted.

Community Building

The government has attached increasing importance in recent years to promoting com- munity building which aims 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.

The Community Building Policy Committee was formed in 1977 to draw together and co-ordinate a territory-wide network of services and facilities. At present, the City and New Territories Administration (CNTA) and the Social Welfare Department contribute directly to community building at district level. The CNTA, through its network of district offices and sub-offices spread over the territory, is 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, clansmen's associations, and local arts and sports 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 and to foster a greater awareness of community responsibilities. Purpose-built facilities - community centres, estate community centres and community halls are provided throughout the territory, run either by the department or by voluntary agencies with the assistance of government subvention.

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A recent review of the standard of facilities in community centres has identified a need to improve the basis for planning the provision of these centres to ensure that all sectors of the population are adequately served. It has also recommended significant improvements to the schedule of accommodation and standards of design and fitting-out of the centres. The recommendations have been endorsed by the Community Building Policy Committee and the Social Welfare Advisory Committee, and the new standards of provision will be submitted to the Executive Council for approval.

10

Public Order

THE maintenance of law and order continued to be the bedrock on which the well-being, confidence and continued prosperity of the busy, packed, community of Hong Kong rests. The responsibility falls primarily on the Royal Hong Kong Police Force and, in an associated sphere, the Independent Commission Against Corruption. Behind them stand the Correctional Services Department, the new title given during the year to the Prisons Department so as better to reflect its contemporary role in society. And, concerned also with the safety and welfare of a community in which fires and drug smuggling are all too common, are the Fire Services Department and the Customs and Excise Service. In the widespread flooding, with some loss of life, which followed the abnormally heavy rains during the summer, the Fire Services and the Police Force, backed by the Auxiliary Services, did much by way of immediate help to mitigate the worst effects.

The threat to the territory's future well-being posed in the past by the flood of illegal immigrants from China continued to be kept in check by the vigilance of the security forces operating by land, sea and air and strengthened operationally during the year by an additional Gurkha battalion. But Hong Kong, alone among all the countries in Southeast Asia, was the one destination to which refugees from Vietnam kept on coming in the same numbers as in 1980 and 1981 not least because it was a place where they could find work and live near-normal lives while awaiting resettlement elsewhere. During the year, the resettlement countries were showing increasing reluctance to accept refugees: the numbers arriving in Hong Kong were greater than those leaving and, for the first time since 1979, the resident refugee population in Hong Kong began to grow. In a move to discourage further arrivals, most of whom were now coming for economic reasons rather than to escape persecution, the government gave notice that in future all those arriving in Hong Kong would be confined in camps and debarred from outside employment. By the end of the year there were 8 869 refugees in open camps and 3 747 in closed institutions.

Police Force

In 1982 the Royal Hong Kong Police Force embarked on a major restructuring and reorganisation exercise aimed at providing commanders on the ground with greater autonomy in making decisions on operational and management matters. As part of the exercise, the four police districts of Hong Kong Island, Kowloon, New Territories and Marine were retitled regions, while the majority of divisions within the regions were upgraded to districts, and former sub-divisions renamed divisions. Certain posts were regraded, and additional supporting staff provided, to enable district commanders to deal more effectively with local policing problems.

       The first two phases of the reorganisation programme, which covered all urban areas on Hong Kong Island and in Kowloon and the Frontier District in the New Territories,

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were implemented during the year. The final phase, covering the remaining areas of the New Territories, will be introduced in early 1983.

      In the Marine Region, the command and administration structure was strengthened to cope with a massive 10-year development plan which will see the creation of more than 1 200 posts, the commissioning of 58 new or replacement launches and the building of a new Marine Police Regional Headquarters and four divisional bases. Sectors were redesignated as divisions and a new support group was created in Marine Headquarters to provide the region with its own staff of experts in the field of fleet management including ship husbandry, launch engineering and radar technology.

       Parallel with the reorganisation programme, studies were carried out into other aspects of the force's structure to ensure that they are geared to respond to the changing policing needs of the community. A review of the deployment of Uniform Branch officers was completed and pilot schemes introduced to test some of the recommended changes. The organisation of the Criminal Investigation Department was closely examined and recommendations of the study group began to be implemented. In addition, the size and command span of the regions was examined, taking into consideration such factors as the projected growth of population, shifts of centres of population, crime rates and the increasing demands and responsibilities placed on the force.

      The five-year building programme to construct more than 40 new police buildings, approved in 1981, was revised and updated during the year. New police stations were under construction in Tsim Sha Tsui, Sau Mau Ping and at Hong Kong International Airport. Another 21 new neighbourhood police units and report centres were opened to keep abreast of community policing needs. Planning for the new Police Headquarters complex on the Wan Chai waterfront also entered its final stages and construction is expected to start in mid-1983 for staged completion commencing in 1987.

      In line with force policy to provide adequate housing for all officers, additional sites for quarters for married junior officers were identified and tenders let for the construction of 150 new units. To meet immediate needs, some 1 200 quarters were purchased from the private sector during the year to house married junior officers.

The Force Inspection Wing, created at the beginning of the year, started an inspection cycle of all branches and formations to ensure that force policies and priorities are being implemented, that functions are being performed efficiently, and that formations are adequately staffed, equipped and supported.

      On the management side, the year saw the creation of a Police Force Council, which brings together representatives of the four police staff associations representing officers of the rank of chief superintendent to constable, the government, and the Commissioner of Police for consultation on pay and conditions of service. Internal force matters within the authority of the commissioner continued to be dealt with by two consultative committees representing the interests of junior and senior police officers. The civilian staff consultative machinery within the force was also formalised to further improve existing working relations.

      In the technology field, computerisation of the nominal index of the Criminal Records Bureau proceeded and the whole system is expected to be operational by mid-1983. Planning work also started on a second generation computerised system for the command and control centres, the extension of the beat radio system to developing areas in the New Territories, and computers for the Personnel Branch, Training Wing, and Police Stores.

       While the forward planning was underway, traditional policing problems - traffic, crime, illegal immigration and refugees continued to make heavy demands on resources in

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everyday policing. Fiscal restraints to curb the rising number of private cars introduced by the government in May succeeded in reducing the rate of increase of registered vehicles, but the police continued to be fully committed in dealing with traffic congestion, diversions, enforcement, and investigating traffic accidents. At the end of the year, there were 339 551 registered vehicles, of which 214 849 were private cars.

On the anti-crime front, the year's Fight Crime campaign continued to aim at lowering the incidence of juvenile crime, which had shown a marked rise in 1979 and 1980. With the launching of the Fight Youth Crime campaign in early 1981, spearheaded by the Junior Police Call and supported by all youth clubs and agencies, crimes committed by juveniles took a downward turn and the trend continued throughout 1982. Every effort will be made to sustain this very welcome trend.

Force commitment in stemming the flow of illegal immigrants from China continued at a high level throughout 1982, although the dramatic fall which followed the abolition of the 'reached-base' immigration policy in 1980 was maintained. The number of Vietnamese refugees arriving in Hong Kong remained high despite the implementation of the closed camp policy for all new arrivals in the middle of the year.

In the course of the year, one police officer gave his life while in the course of duty and a further 191 were injured.

Crime

During 1982, 85 641 crimes were reported to the police, compared with 77 953 in 1981. There were 8 548 robberies, showing a 3.4 per cent rise when compared with 8 263 the previous year. Burglaries, on the other hand, continued to increase from 10 583 in 1981 to 11 526 in 1982. The overall detection rate was 45.6 per cent compared with 50.5 per cent the previous year.

A total of 32 015 people was arrested and prosecuted compared with 29 738 in 1981. Adults prosecuted totalled 29 169 and juveniles (under 16 years) numbered 2 846, giving an increase of 12 per cent and a decrease of 22.8 per cent respectively over the previous year.

Triads and Serious Crime

      Triad groups, in the form of loosely organised gangs, continued to exert their influence mainly on street-level crimes and vice. During the year, the Triad Society Division conducted a number of disruptive operations against specific triad groups. Long term operations against public light bus extortion rackets and the exploitation of residents in Temporary Housing Areas continued and resulted in the arrest of 280 persons. The amendment of the Societies Ordinance in 1982 enabled the police to combat triad infiltration and misuse of societies, especially martial arts associations, more effectively. By the end of the year, 924 persons had been arrested and 4 062 triad-related offences preferred against them.

The Special Crimes Division, which concentrates on goldsmith and jewellery shop robberies and crimes involving the use of firearms, had a successful year. During 1982, officers of the division recovered stolen property amounting to $1.2 million and seized 28 firearms and imitation firearms. A total of 22 persons were prosecuted for robberies in cases where firearms were used.

Commercial Crime

      Reports of commercial crime continued to increase with many involving large scale frauds which affected not only individuals but also the reputation of Hong Kong as a major business and financial centre.

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      Throughout the year action was maintained against those involved in the production of forged identity cards which were in continuous demand by illegal immigrants. This resulted in the neutralisation of one syndicate with a number of others still under investigation.

Close co-operation was maintained with law enforcement agencies worldwide in the suppression of counterfeiting currency. Action in this area of crime caused the neutralisation of three syndicates.

      Continued pressure was exerted on those involved in illicit commodity trading. Amend- ments during the year to the Commodities Trading Ordinance, which significantly increased penalties, acted as a deterrent to people contemplating illegal activity in this area.

Narcotics

Another bumper crop of opium in the Golden Triangle in 1982 resulted in an unprecedented upsurge of drug trafficking activity in Southeast Asia. A total of 254 kilograms of heroin base was seized in Hong Kong during the year.

The retail price of No. 3 heroin continued to drop, falling by 29 per cent. Attendances at the methadone treatment clinics for drug addicts, which in March registered the highest attendance rate since their inception, gradually declined in the ensuing nine months. On the brighter side, it is encouraging to find that publicity aimed at preventing the involvement of young people in dangerous drugs has been successful.

      The abuse of psychotropic substances, though not a serious problem, is on the increase. During the year, the record number of seizures of both cannabis and methaqualone indicated a growing popularity of such drugs in Hong Kong.

Interpol

     Hong Kong continued to play an active part in the activities of the International Criminal Police Organisation (ICPO - Interpol) which has its headquarters in St Cloud, near Paris, France.

      The Hong Kong Interpol Bureau operates within the Criminal Investigation Department and works closely with police forces in 135 countries. The bureau has its own small investigation unit and also deals with extradition matters to and from Hong Kong.

Crime Prevention

     In the course of the year the Crime Prevention Bureau increased the number of visits to commercial and private premises to give advice on security measures. In addition, several publicity campaigns were launched to make the public more aware of measures to safeguard their property. The bureau's permanent exhibition of crime prevention equipment continued to be popular, attracting a large number of visitors.

Illegal Immigration

The dramatic fall which followed the abolition of the 'reached-base' immigration policy in October 1980 was maintained in 1982, which saw a total of 8 680 illegal immigrants repatriated against the 1981 total of 7 556. While showing a very significant decrease over the 1980 repatriation figure of 82 125, the figures nevertheless indicate that substantial numbers still wish to come to Hong Kong and it was therefore necessary for the police force and the military services to maintain constant vigilance to counter the problem.

      A disturbing trend which emerged in late 1981 was the smuggling of children from China into Hong Kong to join relatives here. Legislation was introduction to cover a legal

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loophole and this, coupled with increased pressure at known entry points, has contained the problem. Nevertheless, this aspect is still a matter of concern. The trend towards speedboat syndicates ferrying illegal immigrants to Hong Kong has also been contained by effective counter measures, although it is known that this method is still used sporadically. The flow of refugees from Vietnam continued to pose problems, despite the introduction of the closed camp policy in July for all new arrivals. During the year some 7 994 arrived in the territory, compared with the 1981 total of 11 886.

Public Order

     Cultural and political differences between northern and southern Vietnamese refugees housed at the Kai Tak North Camp came to a head in May and resulted in a large-scale disturbance involving some 1 500 inmates. A major police operation was subsequently launched inside the camp and resulted in many refugees responsible for the troubles being arrested. Order was quickly restored.

A disturbance which had occurred in Central District in the early hours of Christmas Day in 1981 had required the deployment of considerable police manpower. Although the incident resulted in several prosecutions for disorderly conduct, assault, and criminal damage, it was spontaneous and unorganised. Following this, when some 50 000 spectators gathered to watch a fireworks display in the harbour on Lunar New Year's Day, policemen were extensively and effectively deployed and no trouble occurred.

      There were no other major incidents affecting public order during the year although a number of minor confrontations, mostly related to the clearance of squatter areas, occurred but were resolved without serious incidents.

Traffic

During 1982, there were 18 384 traffic accidents, resulting in 455 persons killed and 24 291 injured. Traffic accident black spots were examined by Traffic Police in conjunction with the Road Safety Division of the Transport Department and action was taken through engineering, education and enforcement to reduce the accident rate at these locations. The road safety message continued to be spread by road safety officers of the police through publicity campaigns, and in schools through lectures, demonstrations and the organisation of school crossing patrols.

      The School Road Safety Patrol movement, formed in 1963 by the Hong Kong Road Safety Association, played a valuable part in ensuring the safety of children getting to and from school. Patrol members continued to receive training from police officers and the number of schools participating in the scheme rose to 172 with a membership of 7 261.

A revised Road Traffic Ordinance was enacted during the year but will not come into effect for a further 18 months to allow for consequential legislative amendments and adminis- trative changes. The Fixed Penalty System for moving offences was expanded to include owner liability offences. A Driving Offence Points System has also been proposed, designed to deter the persistent offender by introducing mandatory disqualifications for drivers accumulating a certain number of points for scheduled offences within a specified period. The Traffic Management Section of Traffic Headquarters and the Traffic Police opera- tional units were closely involved in the planning and implementation of a number of projects designed to improve traffic flow.

Assistance to the Public

The number of requests by the public for assistance from the police, a reliable barometer of

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police public relations, rose to 621 865, surpassing last year's record total of 544 938. As before, the majority of these requests more than 14.1 per cent - was for help in matters not related to crime. These were mainly for general assistance such as settling domestic disputes, accidents, tenancy matters, nuisance complaints, and requests for information and advice.

The Marine Police continued to fulfill its traditional role of keeping in touch with and helping residents of small islands and remote villages through shore patrols. The population on the main offshore islands increased during the year, with high and middle- grade residential developments and light industrial buildings and recreational facilities being constructed. These developments, together with the increasing numbers of picnickers, campers and pleasure boat owners who flocked to the islands during weekends and holidays, resulted in the Marine Police having to keep a constant presence to help people and vessels in difficulties. Casualty evacuation from the islands and other remote areas remained an important task and the newly acquired logistics vessels were in constant use. Police manpower resources were heavily committed to maintain security at major events during the year, including the Far East and South Pacific (FESPIC) Games for the Disabled held in Sha Tin.

Community Relations

While the force continued to enlist general public support through a broad base of community-related programmes, much of the effort centred on combatting juvenile and youth crime.

Once again, Junior Police Call (JPC) spearheaded the drive, and the number of juveniles prosecuted for crime in 1982 dropped by 910 cases, or 23 per cent, when compared with the previous year. Main features of the campaign were a four-day Fight Youth Crime Seminar Camp for 800 senior JPC members and representatives from eight other youth organisations, and a JPC recruitment drive that attracted 34 500 new members and 3 758 JPC leaders, bringing total membership to 321 500. In addition, the year saw the formation of 200 JPC clubs in secondary schools and 67 in primary schools; the organisation of 11 230 different activities for JPC members and the staging of several major Fight Youth Crime promotions, one of which attracted more than 10 000 young people to the Murray Road car park in Central District. As part of the ever expanding community service programme, a JPC flag day and raffle raised $7.16 million for the FESPIC Games.

Over 2 100 school students passed the initial test of the 1982 young people's Help the Police competition, with the prize for the five winners an all-expenses-paid holiday to Australia. Another 245 members of the public, who actively assisted the police in bringing criminals to justice, received cash awards totalling $274,000 through the Hong Kong General Chamber of Commerce Good Citizen Award Scheme and helped keep citizen arrest figures at a commendable 11 per cent of all arrests.

In July, the number of criminals arrested as a direct result of the weekly Chinese and English Police Report television programmes rose to 1 500, as a result of 36 000 calls to the television 'hotline'. By the end of the year the number of arrests resulting from calls to these programmes stood at 1 653. The third in the drama-documentary series On the Beat co-produced by Radio Television Hong Kong and the police - was shown on both Chinese television channels and attracted audiences in excess of two million.

The Police Public Relations Wing continued to provide a 24-hour information and enquiry service for the media. In 1982 its staff dealt with an average of 6 765 press enquiries and 660 public enquiries every month. In addition, they issued a monthly average of 520

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POLICE

SECURITY

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Protecting the Public

Despite the special problems of a densely packed, largely high-rise environment, Hong Kong is still one of the safest cities in the world. Highly efficient and well-equip- ped to maintain law and order, the Royal Hong Kong Police Force has an author- ised strength of 23 000. There is close liaison with the Armed Services based in Hong Kong where the Royal Navy. British Army and Royal Air Force are all represented. The three services work closely with the police force, particularly in the task of combatting illegal immigration. As from July 1982, all arriving Vietnamese boat refugees have been detained in closed centres under the control of the Correc- tional Services Department. Yet legal and illegal immigration puts a heavy strain on Hong Kong's security forces, which fre- quently work in conjunction with the auxil- iary services manned by volunteers from all walks of life. Both the police and the Customs and Excise Service are responsi ble for the suppression of the traffic in narcotics, with officers deployed in a com- bination of search, patrols, inspection and investigation operations. Since 1974, the territory has had a separate agency, the Independent Commission Against Cor- ruption, to tackle the problem of corrup- tion through detection, prevention and education. Hong Kong is also well served by the Fire Services which play an import- ant role in safeguarding the welfare and safety of the community.

Previous page: The Marine Police small boat unit patrols Hong Kong waters for illegal immigrants and smuggling activi ties. This page: Arriving Vietnamese boat refugees give particulars to the Civil Aid Services; at Chi Ma Wan closed refugee camp, run by the Correctional Services Department, youngsters receive kinder- garten schooling from the Salvation Army; a briefing for 'B' Squadron of the Royal · Hong Kong Regiment (the_Volunteers) before a weekend exercise.

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    Shinning down a rope from a Royal Air Force helicopter is part of the 10-week training course for the 'blue berets' of the Police Tactical Unit in Fanling.

Within six minutes of an alarm being raised, the Fire Services Department aims to be at the scene of a fire, as in the case of this outbreak in July at the densely-packed Diamond Hill squatter area.

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  A police motor-cyclist explains his duties to members of Junior Police Call, a youth organisation with more than 300 000 members aged between nine and 17 which encourages close relations between young people and the police force.

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Meeting Armed Services personnel and their families during her visit in September, British Prime Minister, the Rt Hon Margaret Thatcher, talks to Hong Kong Chinese seaman, Mr Cheung King-sing, who served with the British fleet in the Falklands conflict.

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A highly-trained diving team of the Customs and Excise Service searches Hong Kong waters for a suspected cache of narcotics.

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traffic bulletins and 150 press releases covering all aspects of police work. In-depth feature articles on police matters continued to be prepared for local and overseas use. Press conferences, background briefings, and individual interviews were also arranged for specific topics. The special tourist hotline, set up in 1981 to help tourists with language difficulties, continued to be popular. The hotline is manned round-the-clock by police officers, fluent in English, Chinese and Japanese, and who can enlist the help of other officers with special linguistic capabilities should the need arise.

Recruitment and Personnel

By the end of 1982, the establishment of the force had risen to 23 476, an increase of 962 over the corresponding figure in 1981. In addition, the force had an establishment of 4 964 civilians, representing 17.5 per cent of the overall establishment.

Despite the higher academic requirements for constables, the number of applications to join the force increased to 6 888. Of these, 2 069 including 60 women, were taken on during

the year.

The 185 officers appointed to the inspectorate came from three major sources: 49 local applicants appointed directly, 58 officers promoted from the junior ranks, and 78 recruited from overseas, principally from the United Kingdom.

Training

The Police Training School in 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, and first aid. Overseas inspectors also attend an eight-week course in colloquial Cantonese, while recruit traffic wardens undergo a 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 specialist 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 regions. 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 consecutive days each month. The scheme supplements the constables' practical knowledge, provides opportunities for them to raise problems encountered in their practical work, and also prepares them for promotion examinations which they may take after three years' service. During 1982 about 2 800 constables were receiving training under this scheme.

The Detective Training Wing of the Police Training School continued to hold 12-week standard CID training courses throughout 1982 at its premises at Kai Tak. An average of 25 inspectors, 20 NCOs and 80 to 100 detective constables attended each of the four courses. Four preliminary CID courses of four weeks' duration for Uniform Branch inspectorate officers were also held. Officers from other government departments, in particular the Customs and Excise Department and Immigration Department, also attended the standard course full-time while some other departments sent personnel to attend selected instruction.

The Marine Police Training School moved into new premises in December and an enhanced training programme has been designed to train personnel to handle the more sophisticated vessels being acquired for the fleet. Constables, sergeants and officers receive

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      seamanship, navigation, engineering, and wireless telegraphy training at the school. During the year, officers also received advanced radar training at the Hong Kong Polytechnic, first aid training with the St John Ambulance Association, and ship fire fighting courses with the Fire Services Department.

       At the Police Tactical Unit in Fanling in the New Territories, 1 786 officers from the rank of constable to superintendent underwent training in all aspects of crowd control and internal security tactics. This training takes the form of a three-week initial course for supervising officers followed by a 10-week training course for the full company, consisting of 170 men. At the conclusion of this training period, companies are returned to their parent regions 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. In addition, the unit ran short refresher courses and training days for uniformed personnel of all ranks from the three land regions.

Some 1 235 drivers successfully completed training at the force's comprehensive driving school which provided basic, refresher, specialist and advanced training on a wide variety of vehicles.

       During the year, 405 junior police officers attended full-time English language courses locally at the Police Education and Language Section, and nine local inspectorate officers attended higher education and English language courses at Lancaster University, England. In addition, 19 officers of various ranks attended training courses in professional and technical subjects in the United Kingdom, Canada, USA, Malaysia and West Germany. Another nine officers were taking a diploma course in Japanese at the Hong Kong Poly- technic and six officers were taking a diploma course in business studies at the Hang Seng School of Commerce.

Police Cadet School

      Since its formation in 1973, the establishment of the Police Cadet School has progressively increased from its original 150 to its present 750. During its nine years of operation, 1 772 cadets have graduated from the school. Of this number, 1 588 joined the police force, 34 entered the Fire Services Department, 60 the Customs and Excise Department and 28 the Correctional Services Department.

Organisation and Structure

The phased changes to the organisation and command structure of the force, which started during the year as a result of various in-depth reviews, are being co-ordinated by the Research Branch of the Management Services Wing. The responsibilities of Force Headquarters wings were also adjusted to provide a better balance. One of the major changes was the transfer of the Complaints and Internal Investigations Branch from the Management Services Wing to the Force Inspection Wing, which has since been retitled Inspection Services Wing. The Management Services Wing, in turn, took over responsibilities for the Communications and Transport Branch. The linking of this branch to the Management Services Wing, which is responsible for computer development, ensured greater cohesion in the area since communications and the use of computers are inextricably connected.

Following a comprehensive review of the Criminal Investigation Department, various organisational and procedural changes were effected. Criminal investigation, which formerly constituted a separate department, became a wing of the Operations Department facilitating better direction and co-ordination of all operational matters.

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The Force Inspection Wing commenced operations at the beginning of the year to inspect all branches and formations. Three inspection teams, each commanded by a chief superintendent and staffed by very experienced police and civilian officers, carried out regular inspections to ensure that policies and priorities were being implemented and that formations were adequately staffed and supported. Each inspection took from two to five weeks, with inspection for the whole force taking about 30 months.

The Marine Expansion Wing, formed in late 1980 to oversee and co-ordinate the 10-year expansion programme for the Marine Region, was disbanded in August 1982 having completed its task. During its existence it laid the groundwork for the building of a new Marine Police Regional Headquarters, new divisional bases, the provision of an expanded and modernised fleet, and the creation of a specialist support group for fleet management.

The expansion of the New Territories Police Region continued during the year to cope with the rapid increase in population in the New Territories which is expected to reach two million by 1987.

The strength of the Mass Transit Railway Division was increased to 194 officers of all ranks in May to police the Tsuen Wan Extension Line of the Mass Transit Railway. Forward planning continued during the year to ascertain policing needs for the Hong Kong Island Line.

Buildings and Development

To ensure the timely provision of resources to meet force commitments, the Planning and Development Branch is responsible for the collection, collation and co-ordination of all forward planning activity.

The five-year timetable, approved in 1981, for the construction of more than 40 new police buildings was revised and up-dated during the year. The building programme includes district and divisional stations, most of which will be constructed in association with the development of new towns, as well as marine, recreational and specialist facilities. Much progress has also been achieved in the programme to modernise older police stations and a further 12 of these will be renovated and improved over the next 12 months. Extensive building works are on-going at the Police Training School and similar plans to improve and expand the Police Tactical Unit Camp in the New Territories are to be implemented.

       Progress continued during the year on the provision of quarters for married junior police officers. Additional sites for future construction have been identified and tenders already let for the construction of 500 new units. To meet immediate requirements 1 200 quarters were purchased for allocation to married junior personnel. Work on two recreational facilities, one in Kowloon and one on Hong Kong Island for police officers, civilian staff and their families, will start early next year.

       The Communications and Transport Branch, which is responsible for the management of the force vehicle fleet and the provision, maintenance and development of the communi- cations network, undertook several major projects during the year. Among these were the provision of a radio system for the extended Mass Transit Railway and the ordering of equipment for a maritime radio system to be used jointly by the police and the Royal Navy. Replacements, additions and alteration work to existing communications systems continued; of particular significance were plans to extend the beat radio system to cover the fast developing areas in the New Territories. A firm of consulting engineers was engaged to assist in these projects.

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The large motor transport fleet was further expanded and modernised as vehicles became due for replacement. At the end of the year, the force had a fleet of 1 666 vehicles, comprising 1 093 four-wheeled vehicles and 573 motor cycles.

In the field of police research, several studies were completed, including an examination of future policing of the electrified Kowloon-Canton Railway and a suggested use of young people as police aides. A good level of co-operation has been established with the Home Office Scientific and Research Branch in the United Kingdom, and the force is able to benefit from the many studies carried out by this organisation.

Complaints Against Police Office

Members of the public can register complaints against police procedures or misconduct by members of the police force through the Complaints Against Police Office (CAPO), which monitors all investigations into complaints against the police, and investigates all complaints of serious misconduct and alleged criminal offences by police officers, except those involving corruption which are dealt with by the Independent Commission Against Corruption. The number of complainants, who now make their complaints direct to the police, and in particular to the CAPO office, reflects the greater degree of trust that members of the public have in the investigation process. Plans are in hand to open a branch office in Tsuen Wan during 1983 to supplement the existing offices on Hong Kong Island and in Kowloon.

The UMELCO Police Group, set up in 1977, continued to review the handling by police of complaints made against individual members of the force and force procedures. The group, which comprises members of the Executive and Legislative Councils, together with the Attorney General, meets on a monthly basis with senior police officers to consider and discuss completed investigations.

In 1982, 3 495 complaints were received, an increase of 19 per cent over 1981. A total of 55 officers were disciplined and 40 criminally prosecuted as a result of enquiries conducted by CAPO during the year.

Auxiliary Police

The Royal Hong Kong Auxiliary Police Force consists of volunteers from all walks of life and has an establishment of 5 435. Its present strength is 5 275. The role of the auxiliary force is to provide support to the regular force in the performance of its day to day duties and in times of emergency. In 1982, a daily average of 990 auxiliaries reported for duty. Recruitment to the force continued satisfactorily with a total of 634 recruits being taken on during the year.

As in past years, the general efficiency of the force was maintained by scheduled in- service training at the Auxiliary Police Headquarters on Hong Kong Island, at the various auxiliary unit bases and at the Kwai Chung Training Centre.

Customs and Excise Service

After more than 70 years as a branch of the now defederalised Trade Industry and Customs Department, the Customs and Excise Service became an independent department on August 1, 1982. The new department, known as the Customs and Excise Department, embodies both the Customs and Excise Service and the former Trade Controls Branch of the Customs and Controls Department.

       The Customs and Excise Service is a disciplined force and has an establishment of 2619 officers of all ranks. The service has a field structure comprising three regions

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which cover Hong Kong Island, Kowloon and the New Territories, and three specialist/ support branches the Customs and Excise Headquarters, the Customs Investigation Bureau and the Customs Technical Bureau. 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.

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 $937.03 million in revenue was collected on dutiable commodities in the 1981-2 financial year, compared with $917.38 million in 1980-1.

Anti-narcotics Operations

The service is responsible for the prevention and suppression of illicit trafficking in narcotics and other dangerous drugs under the Dangerous Drugs Ordinance. Apart from intercepting illegal imports, action is also taken against drug manufacturing, trafficking and abuse in 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 399 kilograms of dangerous drugs including 21 kilograms of heroin, 200 kilograms of heroin base, one kilogram of morphine and 120 kilograms of opium. A total of 1 098 persons was 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, illicit copying of motion pictures and television programmes remains a major concern of the Copyright Protection Division. During 1982, the Copyright Protection Division undertook 63 copyright investigations resulting in 60 persons being charged and seizures of 2 289 pirated video tapes and 28 video recorders. An offshoot of the division's activities in video recording has been the seizure of large quantities of pornographic tapes which led to 40 persons being charged with offences under the Objectionable Publications Ordinance.

Independent Commission Against Corruption

The Independent Commission Against Corruption (ICAC) continued to be active through- out 1982 in three major areas: investigation into complaints of corruption, corruption prevention and community relations.

       A significant development in the year was a drop of 126 in the number of complaints of corruption in the public sector, representing a decrease of eight per cent. However, this

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     decline was offset by an increase in complaints alleging corruption in the private sector which totalled 831, representing a rise of 19 per cent. This marked a continuing upward trend since 1981.

      The ICAC is headed by a commissioner who is responsible directly to the Governor. Its establishment is 1 171 with 704 posts in the Operations Department, 65 in the Corruption Prevention Department and 287 in the Community Relations Department. These three functional departments are supported by an Administration Branch, with an establishment of 115. At the end of 1982, 1 087 posts were filled.

The commission is guided by an Advisory Committee on Corruption, which includes unofficial members of the Executive and Legislative Councils, leading citizens and senior government officials. In the same way, each of the three departments of the commission has an advisory committee monitoring its work with members drawn from the community including public service. Any complaint made about the ICAC, particularly in its law enforcement function, is referred to a Complaints Committee made up of six unofficial members of the Executive and Legislative Councils and the Attorney General. During the year, 14 complaints were received and advice was given by the committee.

Operations

Investigations and prosecutions by the Operations Department continued at a high level in 1982. The department received a total of 2 349 corruption complaints which compares closely with the 2 344 received in 1981. Of these, 675 were made by members of the public in person, 930 by telephone and 519 by letter to the commission's 24-hour report centre in the Operations Department or to one of the 10 ICAC local offices, and 225 reports were referred by other government departments. About 60 per cent of the people who made complaints were prepared to identify themselves, whereas in 1974 - the first year of the commission's work - only about 35 per cent gave their personal particulars. The high proportion during 1982 is a good measure of increasing public confidence in the commission.

      The Operations Department is responsible for investigating reports of alleged or suspected offences under the Prevention of Bribery Ordinance, the ICAC Ordinance and the Corrupt and Illegal Practices Ordinance. During the year, 403 people were taken to court for corruption and related offences of which 316 prosecutions were completed with 239 convictions a conviction rate of 76 per cent on completed cases. At the end of the year, 94 cases were pending trial and 533 investigations were underway.

      On the advice of the Operations Review Committee, reports concerning 241 serving or former government officers were referred to the Civil Service Branch and their heads of departments for consideration of disciplinary or administrative action.

Corruption Prevention

The Corruption Prevention Department is responsible for advising on and securing the revision of practices and procedures conducive to corrupt practice within government departments and public bodies. It also responds to requests from the private sector for advice.

      A significant development during the year was the establishment of a procedure whereby complaints made by members of the public, which did not warrant investigation by the Operations Department, were referred to the government departments concerned for internal investigation and report. Where such complaints indicated weaknesses in or deviations from established policies or procedures, appropriate studies were undertaken.

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A number of these referrals identified serious procedural weaknesses and, in some cases, resulted in disciplinary action.

In 1982, 94 assignment studies were completed, bringing the total since 1974 to 721. The department's primary task remained studies of specific areas of clients' activities, embracing policy, law, working procedures and management. However, the process of reviewing and monitoring previous studies continued to grow in importance; 23 studies were re-examined in this way. Recommendations seek to remove or limit corruption opportunities basically by eliminating procedural delays, strengthening procedural weaknesses and increasing the risk of detection. All recommendations are discussed with the client, to ensure that they are both practicable and compatible with the efficient discharge of the clients' responsibilities, before endorsement by the Advisory Committee.

       Apart from regular assignment studies, the department, through its external training group, continued to explain the principles of supervisory accountability to managers and supervisors in the public sector. In the second half of the year, the main theme was the delegation of authority and its implications in terms of corruption opportunities. The 266 seminars held were attended by over 3 969 participants.

       During the year, the Police Corruption Prevention Group continued to function effectively, underscoring the value of a joint approach to common problems. The pro- duction of an agreed schedule of studies made it possible for the department to examine procedures in parallel with major reviews being undertaken by the police themselves. Further studies into areas covered by these reviews are expected during 1983.

Community Relations

The responsibility for maintaining public awareness of the evils of corruption and enlisting support for the ICAC's efforts falls on the Community Relations Department. Action is taken through a programme of media activities and direct contact with various sectors of the community.

       During the year, the department reached a record 362 000 people through liaison activities. organised by its 10 local offices; it was also able to direct greater resources towards contact with the commercial and industrial sectors. Views were exchanged with business executives on the relevant aspects of the law and the need for higher ethical business standards, and many seminars and discussions were organised.

        As in the past, an important focus of the department's work was on young people. As a continuation of the well-received project entitled Towards A Fuller Life the previous year, a series of activities including variety shows, orienteering programmes, exhibitions, seminars and competitions was organised. It is hoped that through participation in these activities, young people will learn to appreciate that the best things in life extend beyond material gains.

        Efforts among educational institutes and the teaching profession continued, with a variety of projects for schools. A programme to promote social awareness and civic responsibility, entitled Serve Your Community, attracted the participation of 46 groups which designed, planned and implemented their own service projects. Towards the end of the year, a set of teaching cards was being prepared on topics related to social morality among secondary school students. At the same time, a pilot classroom programme on the same theme was launched in 10 secondary schools.

       The department, following its earlier successes, launched a three-year advertising campaign through various media to foster greater public support for the fight against corruption. A series of seven-minute television programmes was also produced to promote

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honesty among young people and to reinforce the message associated with the Towards A Fuller Life programme. To monitor public response to the commission and perception of its work, a mass survey was carried out in October. This was the third study of its kind since the commission was established in 1974.

Government Laboratory

The Government Laboratory provides a comprehensive forensic science service to law enforcement authorities, including the Royal Hong Kong Police Force, the Customs and Excise Department and the Independent Commission Against Corruption. During the year, the laboratory continued to be heavily involved in the scientific investigation of a wide variety of crimes. A specialist unit 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 investigations feature prominently in this work. Other units are involved in the examination of narcotics, scheduled poisons, and organs and body fluids in cases where the cause of death is unknown. Research commenced during the year into the identification of gunshot residues.

The Customs and Excise Department relies traditionally on the Government Laboratory to provide analytical and advisory services in revenue protection. Tobacco products, liquors, denatured spirits, and treated diesel oils are regularly examined while a close watch is maintained for adulterated products, particularly for liquors such as brandy. The staff of the laboratory was involved in work on the metrication of the Dutiable Commodities Ordinance during 1982, including projects on behalf of commercial organisations.

In addition, the laboratory carries out extensive urinalysis in support of the methadone maintenance and detoxification programmes.

Fight Crime Committee

      The Fight Crime Committee is chaired by the Secretary for City and New Territories Administration and attended by senior government and unofficial members. During the year, the committee spearheaded the efforts of the government and the community in helping the police to combat crimes, and promoted community awareness and involvement in crime prevention measures. District Fight Crime committees form a network and are the main organising agencies for Fight Crime activities, providing frequent contact between the police and the public. While the police representatives keep the district committees well briefed on local crime situations, the committee members' perspective on local conditions and problems in turn assists the police.

Correctional Services Department

In February 1982, the Prisons Department was renamed the Correctional Services De- partment in order to reflect more accurately the role of the department and its many different functions.

       The Commissioner of Correctional Services (formerly the Commissioner of Prisons) is responsible for the overall administration of 19 institutions, a half-way house and the Staff Training Institute, with an establishment of 4 888 uniformed staff and 464 non-uniformed staff. During 1982, the average daily penal population was 7 328, compared with 6912 in 1981 and 6 499 in 1980. In addition, detention facilities were provided in 13 of the institutions for Vietnamese refugees and illegal immigrants, whose numbers detained by the department had risen to 3 513 by the end of the year.

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      The advance of development programmes, increasing commitments arising from the refugee influx, and severe weather, all had a major impact on the work of the department in 1982.

      Among development projects, construction of Tung Tau Correctional Institution was completed and this minimum security prison, with accommodation for 240 inmates, commenced operations in November, 1982. Construction of the new maximum security prison at Shek Pik on Lantau Island, and a new half-way house and pre-release centre in Kowloon, progressed satisfactorily, as did projects to expand facilities on Hei Ling Chau and to extend the Staff Training Institute. Most of these developments will be completed in 1983.

      The department seconded 85 uniformed staff to manage Vietnamese refugee detention and departure, operated by the Security Branch. In July, closed centres for refugees were introduced under the control and management of the department. Nearly 300 staff were recruited and trained to supervise refugees in these centres.

      In May, the Tai Lam Centre for Women suffered extensive damage during a rainstorm. A torrent of water from a nearby hillside demolished part of the outer wall and the inner fence and a section of the laundry, severely affecting the programmes at the centre. In August another rainstorm caused further damage. The kerbstone workshop in the adjacent Tai Lam Correctional Institution was also flooded and minor landslides occurred on the hillside behind the institution.

Adult Male Offenders

The department operates nine prisons and a psychiatric centre for male adults, with a total certified accommodation of 5 425. The number of adult male prisoners increased during the year to an average daily population of 4 856, an increase of 7.1 per cent over 1981.

       Lai Chi Kok Reception Centre houses adult males on remand, detainees under the Immigration Ordinance, newly-convicted prisoners pending classification and allocation to other institutions, and appellants. However, certain appellants are detained in Victoria Prison, Siu Lam Psychiatric Centre and Stanley Prison, and some remands are detained in Siu Lam Psychiatric Centre to relieve the pressure on accommodation at Lai Chi Kok. Male debtors are accommodated in the Tai Lam Correctional Institution.

Stanley Prison, which is the largest maximum security institution with capacity for 1 605, accommodated an average of 1 468 prisoners a day. When the maximum security prison under construction on Lantau Island at Shek Pik (with accommodation for 480) is completed in August 1983 it will provide badly-needed additional facilities for the confinement of the increasing number of prisoners sentenced to life and other long terms. Two medium security prisons are operated by the department: Ma Po Ping on Lantau Island and Victoria Prison in Central District. In addition to its function of accommodating adult male prisoners and appellants, Victoria Prison is used to detain illegal immigrants. The department operates five minimum security prisons for adult male offenders. They are Ma Hang Prison, Pik Uk Prison, Tai Lam Correctional Institution, Tong Fuk Centre and Tung Tau Correctional Institution. The certified accommodation of Pik Uk Prison was increased from 450 to 500 in September 1982 to provide additional accommodation. for the increasing number of prisoners requiring minimum security conditions. Prisoners at Pik Uk largely constitute the workforce for the institution's laundry. Elsewhere, prisoners generally work on outside projects, such as afforestation, road building and local community development.

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Geriatric prisoners - that is those who are certified as being clinically old, and normally others over 60 years of age are accommodated in Ma Hang Prison and Ma Po Ping Prison. They are employed mainly on light duties, such as envelope-making, light gardening tasks, basket-weaving and tailoring.

Siu Lam Psychiatric Centre is the only maximum security prison providing psychiatric treatment for the criminally insane and convicted male prisoners of a dangerous and violent nature. It also has facilities to undertake psychiatric assessments ordered by the courts. The centre has certified accommodation for 120, but has suffered from overcrowding for a long time and now has an average daily population of 147. Planning work has started on expansion of the centre.

Young Male Offenders

     The department operates three correctional programmes excluding drug addiction treatment for young offenders. These are prison, training centre and detention centre programmes. Five institutions are administered, with accommodation for 1 193. The average daily population during 1982 was 1 197, compared with 1 144 in 1981.

Young male prisoners, under 21 years, who require a high degree of security are accommodated in Pik Uk Correctional Institution. This purpose-built maximum security institution has separate reception centre and training centre facilities and a prison for young offenders. Young offenders and young adults, under 25 years, convicted by the courts but remanded for reports on their suitability for admission to the detention training centre, are detained in this institution.

       The correctional training of young male offenders has been a useful alternative to imprisonment since enactment of the Training Centres Ordinance in 1953. The training programme places emphasis on self-discipline and achievement. Release must be earned and is dependent upon progress assessed by a board of review. A three-year after-care supervision period follows release from an institution.

Lai King Training Centre houses young convicted persons remanded for pre-sentence reports regarding their suitability for admission to a training centre. Young prisoners under the age of 21 remanded for trial on minor offences, and training centre inmates aged 14 to 17, are also accommodated in this centre.

Cape Collinson Correctional Institution provides accommodation for training centre inmates aged between 18 and 21 and of a lower security rating. It also accommodates some illegal immigrants in a separate section.

Sha Tsui Detention Centre is a medium security centre with separate sections for 150 young offenders and for 70 young adults. Strenuous training and strict discipline is designed to induce respect for law and order, awareness of neglected capabilities, creation of self-faith and ability to live in harmony with others.

Nei Kwu Chau Correctional Institution, formerly a detention centre for young male offenders in the 14-to-16 age group, started accepting young prisoners in June 1982, allowing Tong Fuk Centre on Lantau Island to revert to its previous role as a minimum security prison for adult male offenders.

Female Offenders

The department operates two institutions for females. Tai Lam Centre for Women operates as a prison for adult women and also houses a drug addiction treatment centre. The majority of prisoners in this centre are employed in laundry work; the drug addiction treatment centre inmates are employed mainly in tailoring, gardening or

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domestic chores. A variety of sports and recreational activities, library and hobby groups

re available.

      Tai Tam Gap Correctional Institution accommodates young female offenders under the age of 21. It has separate sections for training centre inmates, young prisoners and persons on remand. In addition, the institution accommodates young female illegal immigrants and young unattached female Vietnamese refugees. Training centre inmates and young female prisoners attend educational and vocational training classes. The centre has a girls' marching display team and a pipe band which have received wide acclaim for their high standards of performance.

Drug Addiction Treatment

Convicted drug dependents are placed in the compulsory programme run by the department, providing the courts with an alternative to imprisonment for drug dependents who have been convicted of minor offences. The Hei Ling Chau Drug Addiction Treatment Centre (incorporating a young inmates centre) is for male drug dependents, while a section in the Tai Lam Centre for Women is for females. The treatment programme requires an inmate to stay at a centre for a period from four months to one year, followed by one year's compulsory supervision after release. During treatment, emphasis is placed on discipline and open-air physical activity - essential to the success of the different forms of therapy - supported by a comprehensive after-care service.

The Hei Ling Chau Drug Addiction Treatment Centre separately accommodates single adult and young male Vietnamese refugees and, until September 1982, young illegal immigrants aged from 14 to 20 who arrived alone in Hong Kong.

After-care Service

After-care supervision is vital in helping inmates released from training centres, detention centres and drug addiction treatment centres, as well as certain young prisoners, re-integrate into the community. The after-care officer's objective is to build up a good relationship with the inmate and his family. After discharge, the officer visits the supervisee's home and place of work to maintain personal contact, offer advice and counselling and ensure that the conditions of the supervision order are followed. If a supervisee fails to comply with any conditions of a supervision order, he may be recalled.

The supervision period is three years for training centre inmates and one year for inmates released from detention centres, drug addiction treatment centres and prisons. The encour- aging success rates of the correctional and drug addiction treatment programmes could not have been achieved without after-care supervision. Success rates for centres are defined as the percentage of inmates who complete the statutory supervision period without reconviction or taking drugs again. Up to the end of 1982, the training centre success rate was 65.88 per cent and the drug addiction treatment centre success rate was 67.27 per cent. The success rate for detention centres was 94.28 per cent and that for young prisoners was 78.41 per cent.

Correctional Services Industries

The momentum of the department's industrial programme increased during 1982 with the introduction of new industries for the manufacture of pre-cast concrete products and machine-made envelopes. The latter industry will eventually supply the government's entire requirements for envelopes, currently 50 million per year. The Pik Uk laundry continued to provide a service to government hospitals. Additional stalls were built at the Hei Ling Chau pig farm to increase capacity to 700 animals.

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The department exported industrial products for the first time in 1982; 315 pairs of sandals were produced for the police service in Tonga, and 100 fibreglass cell beds were supplied to the Macau Prison Service. The total commercial value of goods and services was estimated to be $57 million, an increase of 21.3 per cent compared with the

previous year.

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. The 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 Correctional Services 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. They also inspect closed centres holding Vietnamese refugees, paying special attention to standards of accommodation, diet, medical facilities and complaints from detainees. In 1982, 388 visits were made to the various institutions, including closed centres.

Medical Services in Penal Institutions and Closed Centres

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 and the Psychiatric Observation Unit of Lai Chi Kok Reception Centre daily to provide treatment, to prepare psychiatric reports for the courts and to examine prisoners referred for assessment from other institutions. During 1982, a total of 1 956 prisoners and inmates voluntarily donated blood to the Hong Kong Red Cross.

Medical services are also available in closed centres for Vietnamese refugees. A clinic staffed by fully qualified medical personnel is provided in each centre.

Staff Training

Newly-appointed officers and assistant officers undergo training for one year. The first six months' basic training includes two months covering basic operational knowledge and skills, and essential background information about the service and the government; two months attachment to an institution with exposure to actual working conditions; and two months intermediate training. Staff are then posted to institutions for a further four months to undertake a greater degree of responsibility, and the final two months' training deals with more advanced aspects of correctional knowledge and techniques.

Throughout the course, trainees are taught the rules and legal provisions relating to the management of penal institutions, as well as operational routines and technical skills such as foot drill, self-defence, use of weapons and first aid. Lectures in social science subjects

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are intended to give a better understanding of human behaviour and crime. Courses for officers are set at post-graduate level with emphasis on leadership training.

Staff posted to specialised institutions such as detention, training and addiction treat- ment centres undergo a further one-month course. Refresher courses are held regularly, with development courses on special subjects ranging from security to management also conducted. Selected staff are trained by the Medical and Health Department as registered or enrolled nurses, or as registered mental nurses.

Discharged Prisoners' Aid Society

      Over the past 25 years, the Discharged Prisoners' Aid Society has successfully developed and consolidated its services for discharged prisoners. Of particular significance is the society's involvement in the acceptance of ex-prisoners by the community, a factor crucial to the successful rehabilitation of former offenders. The society has now taken steps to extend its services to innovative areas, including assistance to ex-prisoners with a history of mental illness.

Closed Centres for Vietnamese Refugees

The continuing high rate of refugee arrivals and more restrictive criteria adopted by resettlement countries prompted the government to introduce a 'closed centre' policy designed to discourage people from leaving Vietnam for Hong Kong. As from July 2, 1982, all arriving Vietnamese refugees have been detained in closed centres under the control and management of the department. The general concept of a closed centre involves refugees being detained under confinement and being subjected to regulation and control. No outside employment is allowed and other contact with the outside world is curtailed. At the same time, care is taken to keep families together in what is a very basic, but humane, living environment. There are nine such centres. The largest, located at Chi Ma Wan on Lantau Island, has accommodation for up to 3 500 refugees in family groups. Single people are dispersed among several smaller centres.

       By the end of the year, nearly 300 staff had been recruited and trained specifically for the care and supervision of refugees in closed centres run by the Correctional Services Department, whose numbers had risen to 3 258 by year-end. Medical facilities are provided by the Medical and Health Department, and educational and recreational activities for detainees at Chi Ma Wan are organised with the assistance of the Salvation Army which operates a full-time welfare programme in the camp. The United Nations High Com- missioner for Refugees meets part of the cost of food, medical supplies, utilities and certain other relief items.

Fire Services

The Fire Services Department responded to and dealt with 297 493 emergencies in 1982, of which 12 766 were fire calls, 8 502 special service calls and 276 225 ambulance calls. Fires caused 41 deaths, and left a further 610 people injured. Of the injured, 39 were firemen. A total of 1 172 people were rescued and hundreds of others were led to safety by firemen.

False alarm calls numbered 549 of which the great majority were raised 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

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all areas within minimum set times and according to the category of risk, four new fire stations were commissioned during the year. These were Mai Po Fire Station in the New Territories, Wong Tai Sin Divisional Fire Station, Chai Wan Sub-Divisional Fire Station and Discovery Bay Fire Station on Lantau Island. There are now 44 fire stations, 13 ambulance depots and five fireboat stations in the territory. Others have been included in the various categories of the Public Works Programme and in private developers' projects for construction over the next few years.

At the end of the year, more than 1 750 staff quarters were occupied or available for occupation. Planning is underway for more than 2 000 additional married quarters for firemen and ambulancemen on five selected sites.

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 were launched during the year to increase the community's awareness of fire safety. These resulted in requests for more fire prevention lectures, exhibitions and demonstrations from kaifong associations, rural committees, schools and community groups. The Fire Protection Bureau played an important role in educating the public on fire prevention. The increasing number of complaints (6 891) received from members of 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 140 879 inspections of all types of premises and, where fire hazards were found, abatement notices were issued. In 1982, there were 2028 prosecutions for non-compliance with abatement notices resulting in fines amounting to $1.04 million.

       All new building plans are vetted by the department, which specifies the requirements for built-in fire protection and advises on other related matters. More than 8 272 new building plans were processed during the year. The department is also responsible for carrying out research into matters associated with fire safety.

As from August 1, 1982, it became a requirement for a Fire Services Certificate to be obtained prior to the issue of a food business premises licence; a fee of $50 is charged for each certificate.

Legislation

The Fire Services (Amendment) Bill 1982 was introduced and enacted during the year. The bill has increased substantially the fines for offences relating to unabated fire hazards such as storage of goods in common areas and emergency exits, especially in industrial buildings. The fine for non-compliance with a Fire Hazard Abatement Notice was raised from $2,000 to $25,000 and the daily fine of $40 increased to $2,500. For non-compliance with a Fire Hazard Order issued by a Magistrate's Court the fine was increased from $4,000 to $50,000 and the daily fine from $1,000 to $5,000. It is hoped the increased fines and penalties will help to ensure that the lives and property of those involved in industry, in particular, are safeguarded.

       The bill also raised from $500 to $5,000 the fine for owners of buildings failing to provide or maintain the means of escape as required under the Fire Services Ordinance. Fines relating to any person who resists or obstructs any Fire Services personnel executing his duty were also increased from $1,000 to $2,000.

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The Fire Services Department operates the government ambulance service with a strength of 1 449 in all ranks of uniformed staff, and 107 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 276 225 calls, involving 371 203 people, were handled - representing an average of 757 calls every 24 hours. This was an increase of 8.96 per cent in the number of calls compared with the total for 1981.

Appliances and Workshops

To enable fire fighting and rescue operations to be conducted in the most efficient manner, the Fire Services Department is equipped with nearly 700 operational fire appliances, ambulances and vehicles fitted with modern fire-fighting and rescue equipment.

In 1982, 180 new or replacement appliances and units of various kinds were brought into service. Among the major appliances commissioned were 10 16-metre hydraulic platforms, two 37-metre turntable ladders, two reserve heavy pumps, four major pumps, 64 ambulances and a mobile casualty treatment centre.

To maintain its fleet of fire appliances and rescue equipment, the department operates three workshops located on Hong Kong Island, in Kowloon and the New Territories.

Training

      All recruits except senior firemen and firewomen (control) 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. The first group of firewomen controllers to be recruited in the department's 114-year history graduated on January 23, 1982. The training of senior firemen and firewomen (control) is conducted at the Fire Services Communication Centre in Kowloon by instructors from the training school. During the year, at total of 560 successfully completed standard training: 57 station officers including two officers from Brunei, three ambulance officers, 26 senior firemen and firewomen (control), 257 firemen and 217 ambulancemen.

The school also conducted fire protection courses for senior station officers and station officers; ambulance refresher courses for ambulance other ranks personnel; and basic fire fighting, ship fire fighting and breathing apparatus courses for government departments and private organisations in Hong Kong and for the Macau Fire Brigade. Some 1 459 people attended these courses during the year. The Driving Training School in Wan Chai conducted driving training courses for 582 service members.

Establishment and Recruitment

The uniformed establishment of the Fire Services Department at the end of 1982 totalled 5 604. In addition, the number of civilian staff employed by the department increased by 40 to 558.

       The services of 16 officers and 165 men were lost through death, retirement, resignation or dismissal during 1982. A number of recruitment exercises were held resulting in the appointment of 96 officers and 496 firemen and ambulancemen.

In view of various recruitment difficulties experienced and a large number of current vacancies to be filled, a new system for recruitment was introduced. A continuous year-round recruitment campaign was launched. The campaign attracted a total of 1 915 applications for officer posts, 7 571 for firemen posts. Standards required for both grades are high and on average only about 10 per cent of all applicants are accepted for appointment.

11

Immigration and Tourism

事入

旅務境

遊和

As a result of the abolition in October 1980 of the 'reached-base' policy - which allowed illegal immigrants from China who reached the urban areas to remain - coupled with legislation making the carrying of a legal form of identity compulsory for everyone over 15 years of age, illegal immigration from China during 1982 was again kept at a substantially reduced level, although showing some increase in the figure achieved in 1981.

In efforts to halt the inflow altogether, further preparations were made for the issue, commencing in 1983, of computerised identity cards. This $400 million scheme will act as a counter-measure against identity card forging syndicates which have flourished since the abolition of the reached-base policy. The new cards will be more difficult to forge and a quick check of suspect cards will be possible. 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.

Despite the introduction of legislation in December 1981 to stem the illegal flow of children from China to Hong Kong, children were still being smuggled into Hong Kong during the year. The law providing for the removal of unlawful entrants now applies equally to children, and illegal immigrants giving birth in Hong Kong are normally returned to China.

At the same time, defences against illegal immigration were being maintained through security forces based at the border and in Hong Kong waters.

Immigration

World-wide recession had remarkably little effect on the number of travellers passing in and out of Hong Kong, although overall increases were marginal compared with previous years. Passenger traffic totalled some 25 million, an increase of five per cent compared with 23.8 million in 1981.

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. Immigration policies are framed to limit permanent population growth, while immigration procedures for tourists and businessmen are streamlined to the maximum extent possible. Of the department's staff of 3 914, some 2 062 are members of the Immigration Service.

Immigration Control

All immigration control points were extremely busy during the year. The bulk of the China traffic (8.2 million) was carried by rail via Lo Wu, which remained under the heaviest

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pressure. Facilities for travellers there were greatly improved during the year with a new, temporary terminal building coming into use in November. The 36 immigration desks (compared with 19 in the old building) are capable of clearing some 2 000 passengers an hour in each direction. This is the first step towards providing a permanent modern terminal in keeping with Lo Wu's status as the busiest gateway to China.

Commencing in September, businessmen with substantial investments in the neighbouring Shenzhen economic zone were permitted direct access to the zone by private car. Initially, 100 permits have been issued. Further expansion of private car traffic is dependent on improved road links. Meanwhile, commercial vehicle movements continued to increase to an average of 1 500 daily, compared with 1 200 in 1981.

Illegal immigration from China, despite showing some increase over the 1981 figure, remained at a reasonably low level as measured by the number of arrests. On average, 23 illegal immigrants a day were arrested on entry, compared with 21 in 1981. A further six illegal immigrants, who had evaded arrest on entry, were arrested each day, compared with five each day in 1981. This dramatic reduction from the September 1980 figures of 450 arrests a day on entry is attributed to the change of policy in October 1980 - by which illegal immigrants can no longer become legal residents - and to constant vigilance by the security forces, rather than to any reduction in the number of potential immigrants. The effectiveness of the policy was underlined by a steady trickle of illegal immigrants, who had failed to establish themselves here and were without means of identification, surrendering themselves for repatriation.

Personal Documentation

-

The demand for travel documents during 1982 levelled off at just over one million, similar to the 1981 figure. The re-entry permit for travel to China and Macau accounted for some 67 per cent of all issues.

The number of identity cards replaced by reason of loss, defacement or amendment. decreased from 381 000 in 1981 to 360 000 in 1982, mainly because fewer changes of registered particulars were recorded. The total number of identity cards in circulation at December 31, 1982, was 5 081 227, an increase of 115 041 during the year.

During the year, some 962 forged or counterfeit identity cards were detected by law enforcement agencies, usually resulting in prosecution of the offender and a jail sentence. of up to 12 months, occasionally longer, followed by repatriation to the place of origin. Against this background, planning continued for a new, more secure identity card and the replacement of all existing cards over a four-year period commencing in 1983. Much of the computer equipment was installed and fitting-out work of the eight replacement centres commenced. The replacement procedures are designed to prevent holders of counterfeit or forged cards from obtaining a new card, yet to inconvenience the general public as little as possible.

Vietnamese Refugees

      International concern at the continuing plight of the Vietnamese boat people during the year was overshadowed by events in other parts of the world. For Hong Kong, however, the problem of the Vietnamese refugees persists, with diminishing prospects of resettlement overseas.

At the beginning of the year there were nearly 13 000 Vietnamese refugees still in Hong Kong. During the first quarter, resettlement overseas continued to outstrip new arrivals, albeit at the much reduced ratio of four to one when compared with the previous two years.

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This trend continued until the end of April 1982 when the refugee population stood at 9 841, the lowest figure recorded since the full impact of the exodus from Vietnam struck Hong Kong in early 1979. Since then, the pendulum has swung against Hong Kong and by the year's end the refugee population had returned to almost the same total as at the beginning of the year.

By the summer, and following the seasonal pattern of earlier years, the Vietnamese boat people were continuing to arrive in the same numbers as in the previous two years, drawn by Hong Kong's consistently humane record towards refugees and by the lure of resettlement and economic improvement elsewhere. The government took steps to lighten this unsought burden by bringing its arrangements for accommodating refugees into line with those elsewhere in Southeast Asia. This involved the introduction of what has become known as the 'closed centre' policy whereby all those who arrived after July 1, 1982, were detained in nine remote centres. This policy, implemented by amendment of the Immigration Ordinance, followed the philosophy of 'humane deterrence' adopted elsewhere. In a closed centre the refugees are detained under strict confinement and are subject to regulation and control; no employment outside the centre is allowed, and there is little contact with the public.

      It became clear by the end of July that the closed centre policy had been brought into effect none too soon, when the highest arrival rate since 1979 was recorded during this traditionally peak month, accounting for 48 per cent of all regional arrivals compared with 23 per cent and 31 per cent in July 1980 and July 1981 respectively. By year-end it was still too early to assess the effectiveness of the new policy to deter those Vietnamese who persist in making for Hong Kong. However, the fact was emerging that the overwhelming majority come to Hong Kong to better themselves economically rather than to escape racial or political persecution. It is hoped that 1983 will show some results from the efforts being made to get the message of the realities of the closed centre policy back to those people contemplating migration from Vietnam.

       By the end of 1982, 3 485 refugees had arrived since the introduction of the closed centre policy; of these, only 117 had been resettled overseas. The brunt of dealing with the daily needs of the growing refugee population in closed centres falls on officers of the Correctional Services Department and the Medical and Health Department. The United Nations High Commissioner for Refugees meets part of the costs of maintaining the closed centres.

       Those who arrived before July 2, 1982, remain in open centres under the auspices of the United Nations High Commissioner for Refugees while they await resettlement overseas. By the end of the year, 5 979 were accommodated in the Kai Tak Transit Centre, and 2 890 were in the Jubilee Transit Centre; these two centres are managed by the Hong Kong Red Cross and Caritas-Hong Kong respectively. The resettlement prospects for these refugees are dwindling as resettlement countries announce the end of their formal resettlement quotas or the tightening of the immigration criteria under which those quotas are operated: 59 per cent of them have already spent more than two years in Hong Kong.

       The short-lived disorders at the Kai Tak Transit Centre at the beginning of May 1982 provided a sharp reminder of the problems of accommodating refugees. The realities and frustrations of decreasing resettlement opportunities, traditional northern and southern differences, the high percentage of youths of a potentially exuberant nature, the frustrations created by lack of privacy and permanence - these contributed to the disorders initiated by a relatively small number of the residents at the centre.

       The only countries which continue to provide on-going resettlement quotas for Vietnamese boat people in Hong Kong are the United States of America, Canada, Australia

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and France. Besides these, individual countries accept refugees only for family reunion purposes, or because they have been rescued at sea by a ship bearing that country's flag.

British Nationality Act 1981

      Although the British Nationality Act 1981 received the Royal Assent on October 30, 1981, its main provisions do not take effect until January 1, 1983. A small unit was established within the Immigration Department to plan the implementation of this complex piece of legislation. Consequential amendments to the Immigration Ordinance (Cap 115) were enacted by the end of 1982, principally to amend the definition of 'Hong Kong belonger', In essence, from January 1, 1983, only a British Dependent Territories citizen with a qualifying connection with Hong Kong (as defined in the British Nationality Act 1981) has an absolute right to live in Hong Kong, but all persons who were Hong Kong belongers prior to January 1, 1983, remain regardless of citizenship.

      It is estimated that as a consequence of the British Nationality Act 1981, about 10 per cent of children born in Hong Kong will not acquire citizenship by birth here. Those principally affected will be children born to illegal immigrants, to Vietnamese refugees and to visitors or temporary residents not settled in Hong Kong. Arrangements have been made to record a child's citizenship at the time that the birth is registered. This will be helpful to the child in later years when application is made for a passport.

      Discussions on the nomenclature in British passports to be issued in Hong Kong after commencement date continued throughout the year. During her visit in September, the British Prime Minister, the Rt Hon Margaret Thatcher, took an interest in this issue, which had aroused much local comment, and as a result it was decided that the status of a Hong Kong British national should be described in his passport as BRITISH/BRITISH DEPENDENT TERRITORIES CITIZEN/HONG KONG.

Tourism

Hong Kong received 2 609 100 visitors during the year (an increase of three per cent over 1981), and they spent an estimated $8.9 billion on goods and services while in the territory. This was a value increase of 10 per cent over the previous year.

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 also contribute through membership dues and 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. Analysis of the information requested and a continuous visitor survey programme provide valuable insights into visitors' needs and interests.

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      The HKTA has its own representative offices in London, Paris, Rome, Frankfurt, New York, Chicago, San Francisco, Sydney, Auckland, Tokyo, Osaka and Singapore; details are given at 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 poten- tially high-yield market segments, or with special interests, who will stay longer and spend more on a greater variety of goods and services. In addition, the HKTA seeks to develop additional 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 East Tsim Sha Tsui area. During 1982, the average occupancy rate of Hong Kong hotels was 82 per cent. It is projected that four new hotels will be opened by the end of 1983, providing 18 085 extra rooms. To maintain occupancy rates and to develop business in the off-peak months, the association pursues 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 and Tour Development departments is to preserve and improve visitor attractions and facilities and to encourage the develop- ment 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 efforts of the two departments have been concentrated on encouraging investment and development in hotels, holiday resorts, restaurants and other visitor facilities, and on the promotion of festivals, special interest tours and culture.

      An experimental tour to the more scenic and peaceful side of the New Territories covering Route TWSK, Shek Kong, Luk Keng and Plover Cove was introduced, diverting the usual tourist traffic from the congested roads through the new towns and industrial developments. Local tour operators are more active than before in creating and promoting new tours, using imaginative and diversified routes and a variety of transport. Itineraries include Sai Kung, Tolo Harbour, Stanley, Tai Tam and Lantau Island.

       On the training side, the HKTA organised two courses for tour co-ordinators, for the first time using Cantonese and Mandarin as the medium of instruction.

       The Fifth International Dragon Boat Races, held off the East Tsim Sha Tsui waterfront, attracted six overseas teams and a record number of 80 local teams. The event was broadcast live by a local television station and received extensive media coverage both locally and overseas. It also raised $530,000 for the Community Chest.

       During 1982, other product development activities included the annual lantern carnivals in Victoria Park, Morse Park and Central District; the Bun Festival on Cheung Chau Island; and weekly cultural shows presented free of charge at two venues.

IMMIGRATION AND TOURISM

Marketing Hong Kong

161

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 1982 there were over 340 international conferences.

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.

Specific marketing projects during the year included moves to diversify established travel patterns from the peak season months to the lower occupancy periods, with low-season promotions conducted in the Philippines and Australia. In Japan, the concept of better quality tours continued to be encouraged with specific retail agents in 10 cities acting as official representatives for HKTA to promote Hong Kong.

On the research side, a regional quantitative research project was conducted in Malaysia, the Philippines, Singapore and Thailand to assess the potential of the travel business from these countries to Hong Kong. Qualitative and quantitative research projects were launched in Japan to measure communication effectiveness. Other projects included a survey on tourism industry employees to identify the problem areas regarding discourtesy. During the year, major promotional campaigns were mounted in the United States, Japan, the United Kingdom, West Germany, France, the Philippines, Singapore, Australia, New Zealand and Korea 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 performances by craftsmen, chefs and entertainers. Many travel industry executives visited Hong Kong in 1982 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 extensive consumer and travel trade advertising campaigns mounted world-wide. More than 5.5 million printed items were produced in 12 languages in 1982 for distribution in Hong Kong and overseas. They included a wide range of information leaflets, guidebooks, specialist travel trade publications and display material.

Efforts continued in Hong Kong to improve the service, courtesy and facilities that visitors are offered. A 30-second commercial was produced and broadcast on local tele- vision stations for promotion of courtesy and service in Hong Kong. Plans were made for a renewed courtesy campaign.

A compulsory gold marking scheme was introduced in January 1982 and the association's gemmological consultants carried out regular inspections of member shops.

As in previous years, events such as the International Dragon Boat Races, the Hong Kong Arts Festival, the Hong Kong International Film Festival, the Mid-Autumn Festival and the Festival of Asian Arts attracted wide international publicity and HKTA arrangements for the media greatly increased the scope and effectiveness of the publicity generated. About 960 media visitors were the guests of the HKTA during the year.

12

田程!

雪味

業工

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 1982-3, approved provision of funds for capital works was $6,700 million, some 19 per cent of the government's total expenditure. Of this sum, $1,360 million was to be spent on roads, $685 million on water supplies, and $65 million on public housing constructed by the public works group of departments in addition to that built by the Housing Authority.

As a result of a major restructuring of the government's machinery for dealing with land development, land administration and transport, the Public Works Department was formally abolished on April 1, 1982. The restructuring involved the creation of a Lands and Works Branch, a new Lands Department and the upgrading of the Building Development, Engineering Development, New Territories Development and Water Supplies departments into fully autonomous departments. On August 1, 1982, a sixth department was created when the Electrical and Mechanical Office of the Engineering Development Department was upgraded to an autonomous department and is now known as the Electrical and Mechanical Services Department.

       The Lands and Works Branch, which is headed by a secretary, has the policy responsi- bility for all lands and works functions. In addition to its policy responsibility, the branch is also responsible for monitoring the performance of the six independent departments and the Urban Area Development Organisation.

The Urban Area Development Organisation, established to co-ordinate and monitor works both public and private in the urban area, and to relate them to the needs of the District Administration Scheme, advanced towards this goal by taking over the urban district planning functions from the Lands Department. It continued with the co-ordination of clearance programmes for the urban area to ensure their implementation is in proper sequence and on schedules compatible with housing and financial resources.

The Lands and Works Branch operates through three divisions, covering lands, works and administration. The Lands Division is responsible for the formulation of policies relating to the planning, supply and use of land to meet the needs of the government and the private sector and for the preparation of a territorial development strategy. The Works Division is responsible for the comprehensive planning and co-ordination of the physical development of the territory, planning and provision and efficient use of resources, both financial and manpower, and monitoring their use in capital works and maintenance programmes. The Administration Division is responsible for branch administration and the provision of certain services common to the 'works' departments.

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The building boom experienced in preceding years tailed off considerably during 1982; labour costs increased to a lesser extent than the previous year and basic material costs stabilised. During the 12 months to mid-June 1982, the cost of labour increased by 12 per cent compared with 15 per cent and 16 per cent for the corresponding periods of 1979-80 and 1980-1 respectively. Basic material costs increased by 7.5 per cent which was the same increase as recorded for the corresponding period of 1980-1 and compares with an increase of 20 per cent in 1979-80. Tender prices, however, decreased by six per cent compared with increases of 24 per cent and 11 per cent for the corresponding periods of 1979-80 and 1980-1 respectively. This decrease, while material and labour costs continued to rise, reflects a general slackening off in the building industry and has made tendering much more competitive - as emphasised by the increased number of tenders submitted during the year. Capital expenditure on government building projects through the agency of the Building Development Department in the financial year 1981-2 rose by 65 per cent over the previous financial year.

One of the most notable projects partially completed by the Building Development Department during the year was the Prince of Wales Hospital in Sha Tin opened by HRH the Duchess of Kent in November. This 1 400-bed hospital will also comprise the Chinese University of Hong Kong Medical School and a nurses training school, a polyclinic and staff quarters. Other major medical projects in progress include a 1 600-bed hospital in Tuen Mun, an additional 660 beds at Queen Mary Hospital on Hong Kong Island, and the major Yung Fung Shee polyclinic in Kwun Tong.

       The end of 1982 also saw the emergence from scaffolding of the distinctive Hong Kong Coliseum which has been taking shape for several years on a site overlooking the harbour at the Kowloon-Canton Railway terminus at Hung Hom. When open in early 1983, the indoor stadium will seat 12 500 people who will be able to watch a variety of sporting events and other entertainment in the arena and on four large, suspended replay screens.

The year has also been notable for the number of judiciary projects underway. Magis- tracies in Wan Chai, Kwun Tong, Sha Tin and Fanling were at various stages of construction, and the superstructure of the new Supreme Court in Central District was substantially complete. A short distance away in Statue Square the old Supreme Court building, built in 1912, was renovated and prepared for temporary re-occupation. The building had been vacated and shored up when it was feared that deep excavations for the adjacent Mass Transit Railway station would affect its structure. However, no permanent damage was sustained and the future use of the building is now under discussion.

       Two other buildings of historic importance were also undergoing works of a different nature. Murray House, which had stood on a Central District site since 1843, was carefully demolished, the materials being stored temporarily until a new home is found for the building in the former Victoria Barracks. Also at the barracks, contracts were being prepared to renovate Flagstaff House, formerly the home of the Commander British Forces in Hong Kong, and to convert it into a museum of Chinese ceramics, scheduled to open in 1984.

There was expansion in the programme of military works with site formation for a major new regimental barracks on Clear Water Bay peninsula and planning for further development in HMS Tamar, the headquarters of British Forces in Hong Kong. In accordance with the new policy on refugees, a closed camp was constructed on the Chi Ma Wan peninsula on Lantau Island and work commenced on another camp on the nearby island of Hei Ling Chau.

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Major community projects under way at the end of the year included cultural complexes at Sha Tin and Tuen Mun new towns, each comprising a theatre, concert hall, gallery and library. Piling was also nearing completion for the Tsim Sha Tsui Cultural Centre, which will provide the territory's main cultural venue. To ensure that the auditoria are built to the highest international standards, specialist consultants have been appointed for acoustics, stage lighting and equipment design. Numerous other community buildings progressed through the year, including schools, police, fire and ambulance stations, and recreational facilities such as games halls, swimming pools and active sports centres.

       There was also a noticeable increase in the construction of government offices, with work commencing at sites in Queensway, Central and Wan Chai. Several other regional offices were also being planned, or were on site, a surge which can be partly ascribed to the rise of commercial office rents in preceding years. Fitting out works also increased considerably and amounted to approximately 62 000 square metres throughout the year, brought about by the completion of the new government buildings, as well as purchased and leased accommodation; maintenance responsibilities expanded correspondingly. Under the land- slip prevention programme for the 1982-3 financial year, an increase in expenditure of 600 per cent over the previous year was committed to monitoring and stabilising slopes around government premises.

Moves to achieve greater energy conservation in government buildings continued in 1982. Studies on Queen Elizabeth Hospital and government offices in Kowloon resulted in the implementation of appropriate conservation measures. A specialist energy consultant was commissioned to investigate opportunities for conservation at Hong Kong International Airport, and a similar appointment was being considered for the study of abbatoirs.

      The government is also keeping abreast of the latest developments in solar technology, and contracts were awarded during the year for the supply of hot water systems for Hei Ling Chau Drug Addiction Treatment Centre and Shek Pik Maximum Security Prison, which are due for completion in 1984.

Geotechnical Control

In late 1982, the Geotechnical Control Branch (formerly in the Building Development Department) was amalgamated with the Geotechnical Control Office in the Engineering Development Department. This will improve the overall efficiency of the enlarged Geo- technical Control Office and allow regionalisation of its control elements.

      Studies implemented in 1981 into the factors controlling the stability of man-made slopes continued during 1982, and a special project to examine the field behaviour of soil suction in slopes commenced in September. A major revision of the Geological Survey of Hong Kong was also started in September, in conjunction with the Institute of Geological Sciences in London.

Five major geotechnical area studies relating to land usage were completed during the year by the Engineering Geology and Aerial Photograph Interpretation Unit, bringing the number of studies completed to date to nine. The unit also undertook 350 appraisals of sites for projects proposed by the town planners and engineering offices. In addition, they added 400 site investigation reports into the geotechnical data bank and responded to numerous requests for supply of data bank information for government projects.

The routine activities of the Geotechnical Control Office continued, with the checking of over 300 government engineering projects and the provision of geotechnical advice on about 100 town planning proposals and engineering projects. During the exceptionally

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heavy rains in May and August, staff attended or inspected more than 600 landslide incidents, giving advice on emergency precautions, remedial works and evacuations. The office continued its involvement in the landslide preventive works programme.

       The materials testing laboratories continued to be heavily used, and new equipment was installed to provide a wider range of material testing facilities. In addition, the first regional laboratory was established to provide a centralised testing facility for the works around Tai Po and Fanling, thereby reducing the need for the many, small site laboratories.

Land Development

On Hong Kong Island, reclamation by public dumping continued at Quarry Bay, where about 12 hectares were formed for future road and general urban development. Reclama- tion at Western District continued with about six hectares being formed for future cargo handling areas, roads and industrial sites. At Aberdeen, 1.5 hectares of land were formed for a future road system. Reclamation at Sai Wan Ho, Aldrich Bay and Lei Yue Mun Bay in conjunction with the Mass Transit Railway Island Line commenced, and 6.1 hectares of land were formed.

       In Kowloon, four hectares of land were formed by public dumping as part of the reclamation at Cheung Sha Wan to provide sites for government and industrial use.

       In the New Territories, reclamation for the third and final stage of the Tai Po Industrial Estate continued and a further 11 hectares of land were formed for industrial use. Further planning studies were conducted to investigate the feasibility of urban development in the northern part of Lantau Island.

Quarrying

The territory continued to be served by two government quarries and seven contract quarries. Two rock crushing sites were also in operation. The combined output from all sources amounted to 14 million tonnes of aggregate, compared with 15 million tonnes in 1981. Building sand imported from China reached a total of 1.8 million tonnes in 1982, compared with 1.9 million tonnes in 1981.

Port Works

On Hong Kong Island, construction of 1080 metres of seawall at Quarry Bay was completed. At the east side of Aldrich Bay, work on the construction of 210 metres of seawall started, and a further length of 170 metres at the western end of Aldrich Bay was completed. At Sai Wan Ho and Lei Yue Mun Bay, construction of seawall of 1 450 metres and 600 metres respectively, commenced. Also at Sai Wan Ho, construction of two ferry piers started. Construction of 900 metres of seawall with pumphouses in Western District was completed, and work on the construction of 510 metres of seawall at Aberdeen continued. New contracts were let to provide 630 metres of seawall at Ap Lei Chau East and an 80-metre extension to the existing passenger ferry pier at North Point.

      In Kowloon, construction of 400 metres of seawall for Cheung Sha Wan Reclamation was completed. New contracts were let for the construction of piers along the new seafront as a reprovisioning of the existing landing facilities at Cheung Sha Wan. A new contract was also let for reclamation works at Stonecutters Island consisting of the construction of 1 230 metres of seawall for the future development of a sewage treatment plant and 170 metres of breakwater to form a typhoon shelter.

       In the New Territories, construction of the breakwaters for the new Cheung Chau typhoon shelter and a pier at Tso Wo Hang were completed. Work on the construction of

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a pier for the cattle quarantine depot at Tsing Yi, and two public piers at Sai Kung town and Joss House Bay are in progress.

Drainage, Sewage Works and Anti-pollution Projects

Flood protection to urban and rural areas is afforded by stormwater drainage culverts and nullahs. Stormwater drains at Western Reclamation were completed during the year while similar works at Cheung Sha Wan and Chai Wan commenced.

       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. To provide for the efficient treatment and disposal of sewage, progress was made on the construction of a screening plant in Central District and on treatment plants at Yuen Long and Tai Po, while the year saw the completion of pumping stations at Hung Hom and Tsuen Wan, treatment plants at Tai O, and the first stages of works at Sha Tin and Tuen Mun and for a submarine outfall off the airport runway. Construction commenced on a pumping station in Mong Kok and a submarine outfall at Kwun Tong. Progress was maintained on the detailed design of the first stage of treatment works for northwest Kowloon.

Throughout the year, extensive monitoring of Hong Kong waters continued to determine the state and trend of the quality of territorial waters and to evaluate the effective- ness of existing sewage treatment and disposal facilities in meeting formulated water quality objectives. Recommendations for the implementation of improvement works were submitted. A data report summarising the long term monitoring results up to early 1982 was completed. A preliminary survey on factory discharges was carried out in Tai Po and Sha Tin areas for the implementation of the Water Pollution Control Ordinance over the Tolo Harbour and Channel control zone.

A programme of solid waste management was maintained with about 1.6 million tonnes of solid waste being treated and disposed of in four controlled tipping sites at Ma Yau Tong, Siu Lang Shui, Shuen Wan and Junk Bay. A comprehensive study of disposal requirements for toxic, hazardous and difficult wastes was completed by consultants, and the formulation of plans for future control and management of the disposal of such wastes proceeded.

To assist waste management planners, consultants were engaged to develop computerised forecasts of future demands for waste disposal facilities and to evaluate alternative waste disposal strategies and methods. Several locations were identified as potential sites for future large capacity waste disposal facilities to deal with growing waste disposal needs, and plans were prepared for comprehensive environmental, operational and economic assessment of the sites.

Water Supplies

Hong Kong was still under water restrictions as it entered 1982, although subsequent heavy rainfall - after the previous two years of below-average rainfall - and further increases in the supply from China, improved the water storage situation significantly and allowed full supply to be restored later in the year.

      Water restrictions had been imposed in October 1981. On January 1, 1982, a 10-hours- a-day supply was being maintained which was eased on May 5 with the introduction of a 16-hours-a-day supply. The easing of restrictions and their ultimate lifting on June 1 was

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      made possible by the heavy rainfall in April and May which resulted in a substantial rise in the quantity of water in storage. Full supplies were maintained to industry and other essential users during water restrictions, and after restrictions were lifted a full supply was maintained for the remainder of the year.

The Lok On Pai desalting plant, which had been reactivated during water restrictions as an additional resource to supplement supplies, produced some 182 000 cubic metres per day during its period of operation. With the improvement in the total water storage quantity, the desalter ceased operations on May 16 and reverted to a 'standby resource'.

Further increases in supplies of water from China were agreed during the year. An agreement was reached with the Chinese authorities for additional supplies by increasing the 182 million cubic metres already agreed to 220 million cubic metres for 1982-3 and providing a further increase of 35 million cubic metres for each of the years 1983-4, 1984-5 and 1985-6.

At the beginning of 1982, there were 260 million cubic metres of water in storage, compared with 308 million cubic metres at the start of 1981. Rainfall for the year was 3 248 millimetres compared with the average of 2 225 millimetres. A total of 239 million cubic metres of water was piped from China during the year.

On January 1, 1982, the combined storage in Hong Kong's largest reservoirs, High Island and Plover Cove, was 208 million cubic metres. The salinity of the water at High Island remained at about 15 milligrams per litre, while at Plover Cove the salinity varied from 149 milligrams per litre at the beginning of the year to 78 milligrams per litre at the end of the year.

       A peak consumption of 1.70 million cubic metres per day was experienced as compared with the 1981 peak of 1.62 million cubic metres per day. The average daily consumption throughout the year was 1.42 million cubic metres, an increase of 2.2 per cent over the 1981 average of 1.39 million cubic metres. During the period of water restrictions it was estimated that the daily consumption was reduced by nearly 20 per cent as a direct result of the restrictions. A total of 519 million cubic metres of potable water was consumed, compared with 507 million cubic metres in 1981. In addition, 87 million cubic metres of salt water for flushing was supplied, 4.5 per cent more than in 1981.

       Planning studies were completed on the improvement of potable water supplies to Chai Wan, Shau Kei Wan, Quarry Bay, Kowloon East, Tsuen Wan, Tuen Mun, South Lantau, Peng Chau and Tap Mun; on the improvement of salt water supplies to Aberdeen, Central District, Ho Man Tin and Kowloon South; on the interim supply to Junk Bay and Ma On Shan; and on the new treatment works at Sai Kung and Au Tau. Other studies in hand included those for the improvement of water supplies to the Mass Transit Railway depot development in Chai Wan and to Stanley, Repulse Bay, Jardine's Lookout, Central Mid-levels, Ma Chai Hang and Chuk Yuen Estates and Tsing Yi Island; for permanent water supplies to Junk Bay and Ma On Shan; and for a new treatment works at Ma On Shan.

       During the year, construction of the reception and distribution systems for future increases in the water supply from China continued, with some of the pipelines completed and put into service. Design of further treatment plants and ancillary facilities at Yau Kom Tau was also taken up. Design and construction work progressed satisfactorily on the new supply systems for Sha Tin, Tuen Mun, Tsuen Wan and Yuen Long new towns together with the systems for Yuen Long Industrial Estate. On Hong Kong Island, work continued on improvement of water supply to Pok Fu Lam, Wong Chuk Hang, North Point, Quarry Bay, Shau Kei Wan and Chai Wan. In the New Territories, work proceeded to improve

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supplies to San Tin, Pat Heung, Sheung Shui, Sai Kung and Cheung Chau. The project for Lamma Island water supply was in progress, and works for the provision of water supply to the Hong Kong Electric power station on the island were completed. In addition, construction work on the new tunnel and pipeline system as a further development of the East River Scheme progressed well and should be completed early in 1983. The laying of the new cross-harbour main from Kowloon to Hong Kong also commenced.

In the computerised water billing and information system, data were added to include details of water deposits. Consideration was being given to the type of additional management information which the system would produce.

Electricity

Hong Kong Island and the neighbouring islands of Ap Lei Chau and Lamma are supplied with electricity by the Hongkong Electric Company Limited, while Kowloon and the New Territories - including Lantau and a number of outlying islands - receive supplies from the China Light and Power Company Limited. The island of Cheung Chau is served by the Cheung Chau Electric Company Limited. The three companies are investor-owned and do not operate under franchise. However, the government does exercise a measure of control over the tariff charges and profit of the two main undertakings.

      Generation of electricity is carried out by China Light and Power Company 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 China Light.

       PEPCO owns the power stations at Tsing Yi 'A' (762 MW), Tsing Yi 'B' (800 MW) and Hok Un 'C' (240 MW). KESCO owns 504 MW of gas turbine capacity and is constructing the Castle Peak 'A' power station. The first dual coal/oil-fired 350 MW unit at Castle Peak 'A' was commissioned during 1982; the remaining three 350 MW units at this station will be commissioned between 1983 and 1985. Operation of the plants owned by PEPCO and KESCO is in the hands of China Light, which also has its own stations - Hok Un 'A' and 'B' (total 350 MW). The combined capacity of China Light, PEPCO and KESCO at the end of 1982 was 3 006 MW.

       The British Prime Minister, the Rt Hon Margaret Thatcher, officiated at the opening ceremony of Castle Peak 'A' station and its associated 400 kV transmission system on September 28, 1982.

       Castle Peak 'B' station, adjacent to the 'A' station, will have four 660 MW coal-fired units, scheduled to be commissioned between 1986 and 1990. 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 China Light, the same arrangement as adopted for PEPCO and KESCO. The Castle Peak 'A' and 'B' stations, with an ultimate capacity of over 4 000 MW, will be the largest power station complex in Southeast Asia. The use of coal as the primary fuel for both stations is expected to reduce operating costs and will be a direct benefit to consumers. Transmission is carried out at 400 kV, 132 kV and 66 kV, while distribution is effected mainly at 33 kV, 11 kV and 346 volts. The supply is 50 hertz alternating current, normally at 200 volts single-phase or 346 volts three-phase. For bulk consumers, supply is available at 33 kV and 11 kV.

      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

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     voltage substations. Construction and energisation at 400 kV of the Castle Peak to Tsz Wan Shan line was completed in February; construction of the Sha Tin to Tai Po section has also been completed. The two 400 kV cable circuits from Tsz Wan Shan to Tai Wan were commissioned in March. Each has a rating of 700 MVA and they are thermally independent of each other.

     The company's transmission system is interconnected with that of the Hongkong Electric Company Limited. The interconnection results in cost savings to consumers due to economic energy transfers between the two systems and a reduction in spinning reserve requirements.

      It is also interconnected with that of Guangdong Power Company of China and about one million units of electricity are exported to Guangdong Province each day. The interconnection results in better utilisation of the company's generation plant during off-peak demand periods and provides the facility to feed power from Guangdong to the company's system when necessary.

The Hongkong Electric Company's Ap Lei Chau Power Station, which started commercial operation in 1968, has an installed capacity of 1 060 MW, consisting of two 60 MW and seven 125 MW oil fired generating units together with two gas turbines rated at a total capacity of 65 MW.

      In 1978 the company was granted a site on Lamma Island for a new dual fired (coal or oil) power station. The first 250 MW unit was brought on to commercial load in July 1982, followed by the second 250 MW unit in December 1982; the installation of a further 250 MW unit will see the completion of Phase I of the Lamma Power Station. Phase II of the Lamma Power Station will consist of two 350 MW coal fired units, ensuring that the company will continue to meet rising electricity demand - a demand that has grown over the last decade from 342 MW in 1972 to 960 MW in 1982, an increase of 181 per cent.

The company's transmission system operates at 275 kV, 132 kV and 66 kV, whereas distribution is effected mainly at 11 kV and 346 volts. With the exception of a small proportion of 132 kV overhead transmission lines, the entire transmission and distribution system is underground. The electricity supply is 50 Hz, 200 volts (single phase) and 346 volts (three phase). For larger consumers, supplies at high voltage are also available. Hongkong Electric Company's transmission system is interconnected with that of China Light and Power Company by means of cross-harbour links. The first phase of the develop- ment, which was commissioned in April 1981, has a capacity of 160 MVA. Currently, the cross-harbour link has a capacity of 480 MVA. The interconnection, when completed, will have a total capacity of 720 MVA.

The installed capacity of the Cheung Chau Electric Company is 8 MW. Electricity statistics are at 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 1982. 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. 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.

Gas

The Hong Kong and China Gas Company Limited is an investor-owned company which does not operate under any form of government franchise or scheme of control. During 1982,

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the company transferred its corporate registration from England to Hong Kong. There was no change in its corporate status.

The company supplies Towngas to Hong Kong Island, Kowloon and many towns in the New Territories. Supply is available throughout the urban areas including Aberdeen, Ap Lei Chau, Repulse Bay and Stanley on Hong Kong Island, together with 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. Hong Kong Island is supplied by four submarine gas mains across the harbour. Tsing Yi is supplied by one gas main along the Tsing Yi Bridge. The New Territories north of Kowloon are supplied by a pipeline through the second Lion Rock Tunnel. Work is in progress for an additional pipeline through the old Beacon Hill Railway Tunnel which will be completed towards end of 1983. The company is planning to complete a 50-kilometre transmission pipeline by 1985-6, eventually to link up all major towns in the New Territories. To meet peak demand, there are five gasholders with a total capacity of 113 282 cubic metres and negotiations are in progress for the purchase of a site in Sha Tin for an additional, large capacity gasholder.

      The gas is produced in 10 cyclic naphtha reforming plants, with a total installed capacity of 2 293 748 cubic metres per day. Two more units of naphtha plants are under considera- tion for construction commencing towards the end of 1983 which, when commissioned, will add 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 approxi- mately 0.56. Gas is sold on the basis of a megajoule. Towngas sales in 1982 amounted to 4.86 million gigajoules compared with 4.03 million gigajoules in 1981. Consumption and distribution statistics are at Appendix 34.

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Transport

     RAPID and dense urban development, the growth of new towns and sustained economic activity continued to impose a heavy burden on Hong Kong's internal transport system in 1982. With a daily average of 8.2 million passenger trips on public transport and some 340 000 vehicles of all descriptions and sizes using the roads of Hong Kong, the smooth and efficient movement of people and goods is of great importance.

     The main objective is to maintain and improve the mobility of both people and goods through an integrated, multi-modal transport system. This involves a programme to improve the road network; expansion of all forms of public transport, especially off-road modes; and measures to bring about more economic use of the road space available. The task of achieving this falls mainly on the Transport Branch and Lands and Works Branch and, at the operational level, the Highways Office of the Engineering Development Department, the Transport Department and the Traffic Branch of the Royal Hong Kong Police Force.

Administration

The Transport Branch, which was set up as a separate policy branch in the Government Secretariat in September 1981 and is headed by the Secretary for Transport, is respon- sible for overall policy formulation and the direction and co-ordination of all transport matters. In discharging this responsibility, the Secretary for Transport is assisted on all major transport policy issues by the Transport Advisory Committee (TAC), which advises the Governor-in-Council on transport policies. The TAC, chaired by an unofficial, has 11 unofficial and seven official members. Internally, the Secretary for Transport is advised by the Transport Policy Co-ordinating Committee (TPCC), of which he is chairman.

      The Transport Department is responsible for carrying out policy and for regulation of Hong Kong's internal transport system. The Commissioner for Transport, who heads the Transport Department, is the statutory authority under the Road Traffic Ordinance and under other legislation dealing with public transport operations. As such, he is responsible for road traffic management and the regulation of internal road and waterborne public transport. On these matters, he is advised by the Standing Conference on Road Use and the Standing Committee on Waterborne Transport. He is also the licensing authority for drivers and vehicles, as well as the authority for the management of all government road tunnels, car parks and metered parking spaces.

      A Transport Tribunal, chaired by an unofficial and set up under the Road Traffic Ordinance, provides members of the public with an avenue for the review of certain decisions made by the Commissioner for Transport, for instance with regard to hire car permits and the suspension of vehicle licences.

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The Highways Office of the Engineering Development Department is responsible for the design and building of all highways and roads, and their repair and maintenance. The Royal Hong Kong Police Force enforces traffic legislation and prosecutes offenders.

General Review

The year saw a determined effort on the part of the government to streamline and strengthen further its management, co-ordination and policy-making machinery in the transport field.

       The Transport Branch was strengthened by the establishment of a Transport Planning Unit, providing the means to develop a comprehensive, balanced and long-term integrated transport strategy. This unit also co-ordinates and monitors the growing number of transport planning studies being undertaken, including the Land Use Transportation. Optimisation Study (LUTO) begun early in the year. LUTO seeks to identify the most cost-effective development strategy in terms of the transport infrastructure and the development potential of all regions of the territory for new town developments.

       The Transport Department underwent a major re-organisation during 1982. To provide an integrated and more effective management, the Traffic and Transport Branch of the Highways Office became part of the Transport Department in April. Having all aspects of transport management and traffic engineering under one department enables greater co-ordination and a more efficient response to transport problems. The department was also re-organised on a regional basis to take account of the need for liaison with the new District Administration Scheme and the need to respond more quickly and effectively to local transport problems.

Legislation

Improvements, too, were made to several major regulatory ordinances. A new Ferry Services Ordinance brought into effect in June provides the Commissioner for Transport with the necessary powers to monitor and regulate the services of the Hong Kong and Yaumati Ferry Company Limited and the Star Ferry Company Limited to ensure that efficient, high standards of service are maintained. It also enables the commissioner to licence a number of minor services, including local craft (kaitos) which provide services to outlying villages in the New Territories.

        A new Road Traffic Ordinance was enacted on December 22, 1982. This ordinance replaces legislation originally enacted in 1957 which had become unwieldy and fragmented because of the many amendments made to it over the years. The 13 existing sets of regulations are being streamlined into seven, and the new ordinance will provide an up-to-date, simpler and better-structured piece of legislation for the administration of Hong Kong's roads and traffic when it becomes operational in 1984.

Legislation is also in the planning stage for a driving offence points system.

Improvements to the Road Network

Several major road improvement projects were completed during the year. At the end of 1982 there were 1 227 kilometres of road in the territory: 358 on Hong Kong Island, 354 in Kowloon and 515 in the New Territories. In Hong Kong, traffic density is 277 per kilometre, one of the highest in the world. Accordingly, the planning and design of new roads and improvements to the existing road network are a continuous commitment. During 1982, $790 million was spent on major highway projects and $130 million on improvements and maintenance of the existing roads.

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Speeding into a New Era

A new era in Hong Kong's transport ser- vices began in 1982 with extensive railway development encouraging more people to make their homes in the New Territories. Travelling time to the urban area was reduced considerably in May with the start of the electrified service on the Kowloon- Canton Railway (KCR) between Hung Hom and Sha Tin. The entire 34-kilometre route to Lo Wu will be electrified in the summer of 1983, ending the 70 years of coal, then diesel, passenger train history. In addition, the Mass Transit Railway (MTR), Hong Kong's biggest single eng- ineering undertaking, advanced further with the opening of its second line, from Central District to the growing industrial new town of Tsuen Wan. With over a million people already using the MTR daily, work continued on the Island Line, due for completion in 1985. In a link up between the two railways, an interchange was built to join the KCR and MTR at Kowloon Tong. On the roads, buses, trams, minibuses and taxis help serve Hong Kong's public transport needs. However with continued growth in private car ownership, vehicle density is among the highest in the world, and so steps were taken during the year to discourage the use of private cars. The tramway provides an ever-popular, and still the cheapest, way of travelling along the urban north shore of Hong Kong Island. Meanwhile, with much of the territory surrounded by sea, waterborne services are a vital means of commuter and leisure-time transport.

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Four king-size automatic bus-washers at the Kowloon Motor Bus depot at Cha Kwo Ling can provide a quick and efficient clean-up for as many as 500 buses throughout the night.

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Traffic congestion on the crowded roads of the Kowloon Peninsula can be quickly detected and eased thanks to a computerised traffic control system, a scheme which will be extended to Hong Kong Island in mid-1983.

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On Hong Kong Island, detailed planning and design on the Island Eastern Corridor, joining Chai Wan through Shau Kei Wan, North Point, Causeway Bay and Wan Chai to Central District is well advanced. Work on the first phase of this project has begun and is expected to be completed by 1985-6. Other projects under planning and design include the section of Route 1 from the Aberdeen Wholesale Fish Market to the Aberdeen Tunnel, the improvement to May Road including grade separation at the junction of Magazine Gap Road, and improved facilities for Gloucester Road, Connaught Road Central and Connaught Road West, Route 7 from Kennedy Town to Aberdeen, and Route 81 from the Aberdeen Tunnel to Stanley.

Works completed on the island include the Aberdeen Tunnel, which was partially opened to traffic in March 1982 (and will be fully open at the beginning of 1983); the interim widening of Island Road between Wong Chuk Hang and Deep Water Bay, now open to traffic; the permanent public cargo area on the Western Reclamation; the widening of Tin Lok Lane; and the slip exit road towards North Point from the Cross Harbour Tunnel. Work on the Tai Hang Road flyover and the widening of the section of Pok Fu Lam Road from Pokfield Road to Hong Kong University was progressing well. Construction also commenced on the grade-separated interchange in Queensway to join Central District with the developments on the former Victoria Barracks site, the Gloucester Road flyover, the Pak Fuk Road extension, and the grade-separated junction of Tai Hang Road and Blue Pool Road.

In Kowloon, access to Kwun Tong was greatly improved by the partial opening of the Airport Tunnel in June (fully opened by the year-end) and several new roads in the Kowloon Bay development area, including a grade-separated interchange at Wai Yip Street. The construction of a major section of the West Kowloon Corridor at Tai Kok Tsui was also completed and partially opened during the year, facilitating traffic flow between Yau Ma Tei and Lai Chi Kok. Construction of the last section of Lung Cheung Road near Hammer Hill, and the northern elevated road from Ngau Tau Kok to Kowloon Bay, was making good progress; work commenced on the southern elevated road late in the year. A start was also made on the construction of a grade-separated interchange along Waterloo Road at its junction with Cornwall Street and Junction Road. Planning and design work continued for improvements to Gascoigne Road and Chatham Road and for an elevated vehicular link between the eastern and western portions of Kowloon Tong.

In the New Territories, work on the New Territories trunk road and the New Territories circular road improvement progressed satisfactorily, while the Wo Hop Shek interchange was completed and opened to traffic in the second half of the year. Designs were completed for the various stages of the New Territories trunk road from north Tai Po to Lam Kam Road and from Lam Kam Road to Wo Hop Shek. Also completed was the improvement to Tsing Yi Bridge; the construction of a dual, two-lane carriageway between Anderson Road and Hiram's Highway on Clear Water Bay Road; and the improvement to Tai Po Road between the Chinese University of Hong Kong and Tai Po Mei. Construction of the Clear Water Bay Road improvement from Hiram's Highway to Hang Hau Road, the widening of Kwai Tsing Road, and a grade-separated interchange at Pillar Island has started. In addition, preliminary planning on the improvement of Hiram's Highway to form a dual, two-lane carriageway between Clear Water Bay Road and Ho Chung, together with a vehicular flyover at the junction of Hiram's Highway and Clear Water Bay Road, was under way.

       Road works related to the Kowloon-Canton Railway (KCR) modernisation programme were progressing well. The KCR level crossing at Island House has been replaced by a

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flyover. Six footbridges across the KCR track between Hong Lok Yuen and Wo Hop Shek were completed and the level crossing at Wo Hop Shek was replaced by a flyover as part of the Wo Hop Shek interchange project.

       In the western New Territories, the diversion of Shing Mun Road together with a footbridge at its junction with Kwok Shui Road was completed. The major project, the second carriageway on Tuen Mun Road between Sham Tseng and Tuen Mun, was nearing completion. The grade-separated interchange at Chai Wan Kok linking Tuen Mun Road and Castle Peak Road and the dual, three-lane carriageway from Yuen Long to Au Tau Road junction were also nearing completion and will be opened to traffic in early 1983. Consultants continued to prepare detailed design for the section of the New Territories circular road from Au Tau to Sheung Shui.

Planning for the Future

A series of transport studies was carried out to assess existing and future travel demands, notably covering the northwest and northeast New Territories, Junk Bay, Lantau Island and Ma On Shan. These studies, undertaken by several international consultancies and monitored by the government, are designed to select the best development options for balanced new townships well provided with industrial, commercial, social, educational and transport facilities.

      The Planning Division and the Traffic and Transport Survey Division of the Transport Department carry out traffic studies and are also responsible for providing economic and statistical surveys.

The study to design an integrated public transport system in western Kowloon and New Kowloon to fit in with the Mass Transit Railway (MTR) Tsuen Wan Extension was completed in May 1982. With the construction of the MTR Island Line, a similar study is currently being carried out for the Island Corridor on Hong Kong Island.

New Town Development

      For more than a decade, the government has been going ahead with its policy of developing new towns in the New Territories. To ensure that an efficient and integrated public transport network is provided in each of the new towns, consultants are commissioned to carry out long-term comprehensive transport strategy studies. In line with the transport policy of more economical use of roads and the underlying philosophy of giving priority to the development of rail and ferry modes that are independent of the road system, several of the new town transport plans are based on rail strategies.

Tsuen Wan, the first of the new towns, is now almost fully developed. Its accessibility has been greatly improved since the Tsuen Wan Extension of the MTR became operational in May 1982. Negotiations and design work for a Light Rail Transit (LRT) system in Tuen Mun with a possible link to Yuen Long are continuing.

During the year, considerable planning effort continued to be focused on studies of the development potential of two possible additional new towns, at Junk Bay and on North Lantau (in connection with a possible relocation of the airport to Chek Lap Kok). Transport has been an important element of the overall development studies, and in each case the consultants have suggested a rail system in addition to bus services to support the development of these areas.

       Although much emphasis is placed on rail developments serving the new towns, bus services will always have an important role to play throughout the territory in comple- menting rail systems by the provision of feeder bus services and by catering for demand outside the railway corridors.

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      Ferry services will also continue to play a significant role in the development of Tsuen Wan and Tuen Mun, and the proposed new town at Junk Bay. A new permanent ferry pier and associated interchange facilities on the Tsuen Wan Bay reclamation is planned for completion in 1984.

Improvement and Expansion of Public Transport

The intensity, productivity and diversity of Hong Kong's public transport services is probably unparalleled anywhere else in the world. Daily, about 75 to 80 per cent of the population of more than 5.2 million use them. The comprehensive range of services includes the MTR, which runs through the densest parts of the urban area, and the suburban KCR railway, operating between Kowloon and the eastern New Territories. A relatively slow but high capacity tram service also operates along the main urban corridor of Hong Kong Island. About 3.4 million passengers a day travel on a wide network of more than 300 bus routes serving all parts of Kowloon, the New Territories and the islands of Hong Kong and Lantau. In addition, Hong Kong has the world's largest ferry operation providing vehicular and passenger services across Victoria Harbour and links to the outlying islands. On a smaller scale, there are nearly 4 000 14-seater public light buses which operate without fixed routes and with freedom to adjust their fares, and a fleet of 12 759 taxis, 1 389 of them operating solely in the New Territories. Perhaps of more interest to tourists than to Hong Kong's commuters, is an aerial ropeway operating in Ocean Park and the Peak Tramway, a funicular cable tramway ascending one of the world's steepest gradients to Victoria Peak.

Railways

Railway Extension and Electrification

The year saw major steps in improving the movement of people by rail. Arrangements to change the status of the Kowloon-Canton Railway (KCR) from a government department to a public corporation were finalised and the new Kowloon-Canton Railway Corporation will come into being in 1983. This will enable the KCR to pursue its modernisation programme more effectively and to operate on a commercial basis. The first phase of this modernisation programme was completed in May when electric train services between Kowloon and Sha Tin, with a new interchange with the Mass Transit Railway at Kowloon Tong, were commissioned.

On May 10, four days after KCR's Stage I electrification, and six months ahead of schedule, the Mass Transit Railway's Tsuen Wan Extension line - a further 10.5 kilometres of track was also opened. These events have greatly improved the mobility of people between the three towns of Sha Tin, Tsuen Wan and Kwai Chung, and the central urban areas of Kowloon and Hong Kong Island.

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Mass Transit Railway

With the opening of the Tsuen Wan Extension and its 10 stations, the Mass Transit Railway (MTR), a wholly government-owned corporation, now operates a total system comprising 26.1 kilometres of track serving 25 stations. Excluding finance costs, the corporation has so far spent a total of $10,000 million on railway construction.

Two distinct lines now operate: Tsuen Wan to Central and Kwun Tong to Waterloo, with interchange facilities operating at Prince Edward and Argyle stations. By year-end, an eight-car train service was running from Tsuen Wan to Central, with six-car trains on the Kwun Tong to Waterloo line. The total fleet numbers 52 trains.

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The average weekday passenger volume was 1.2 million at the end of the year, an increase of about 500 000 on the number carried at the end of 1981. A record figure of 1.32 million passengers was carried on Saturday, August 28. A two and a half-minute morning peak and a four-minute off-peak weekday frequency operated throughout the year, with the morning peak frequency being improved to two minutes to meet demands in December. The arrival of trains at their destinations within two minutes of the scheduled time was maintained at 98 per cent during the year.

Single adult fares, which were increased by 30 cents in May, range from $1.50 to $3.50. New discounted selling prices were introduced for stored-value tickets, which also provide a last-ride bonus and an off-peak fare reduction. Half price child/student single journey tickets and child/student stored-value tickets continued to be offered.

Work on the MTR's third underground line, the Island Line, was well under way during the year with the remaining civil electrical and mechanical contracts let in September. The line, along the island's northern shore, will link Chai Wan with Western Market and will serve 14 stations. The estimated cost of the line is approximately $10,000 million. The anticipated completion date of the major part of the line between Chai Wan and Admiralty - is mid-1985, with the remainder - from Admiralty to Western Market - to be completed in 1986. Close liaison is maintained between the corporation and govern- ment departments to handle problems and complaints caused by the construction work. Compensation payments made on the first two lines of the system totalled approximately $71 million, while for the Island Line the figure at the end of 1982 was $1.2 million.

The Island Line will be financed in a similar manner to the first two lines, by a mixture of export credits covering construction and equipment contracts placed with overseas companies - with the balance funded by local and international banks - and by property development profits, the amount of commercial borrowings being determined by the contri- bution received from property development profits. Fourteen major property development sites have been earmarked, with the first of the developments, Fairmont House, a 28-storey commercial/office building completed during 1982. The largest site is at Cornhill, opposite Tai Koo Shing, where both private and government housing will be constructed to accom- modate 40 000 people. In connection with the first two MTR lines, a joint venture property development situated above Argyle Station in Nathan Road was completed during the year. Work continued on three other developments at Kwai Fong, Kwai Hing, and above the depot at Tsuen Wan.

By the end of 1982, the MTR rail network was served by 29 feeder bus services terminating at stations. To encourage motorists to make use of the system, multi-storey car parks are being provided at several MTR stations including Kwai Fong, Tsuen Wan, Kowloon Tong and Choi Hung.

Kowloon-Canton Railway

The Kowloon-Canton Railway (KCR) is currently operating electric trains between Hung Hom and Sha Tin, diesel trains on the outer service to Lo Wu, and diesel freight trains.

      Patronage, which was 44 000 daily before the start of the electrified services, has increased steadily since May to 77 000 daily over the whole railway. The number of passengers is expected to increase to some 150 000 daily when electrification is completed on the whole 34-kilometre route to Lo Wu in 1983. The railway continued to be extremely busy at holiday periods and carried 743 378 passengers to and from China over the Lunar New Year. In addition, it transported 1.80 million tonnes of freight and 2.16 million head of livestock during 1982.

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       Since electrification, journey times from Hung Hom to Sha Tin have been reduced from 20 to 12 minutes. Initially, the electric trains are running at 10-minute intervals. Two three-car Electric Multiple Unit train sets are coupled to operate in peak hours, while a single three-car set runs at off-peak times.

        Construction work associated with the $3,500 million modernisation and electrifica- tion programme made good progress during the year. Projects include double tracking; tunnelling; constructing new bridges and new stations; the installation of a sophisticated signalling system, which is controlled from a centre at the Kowloon terminus; and the installation of overhead line equipment and a modern telecommunications network.

Three new stations - Mong Kok, Kowloon Tong and Sha Tin - were opened to cope with the electrified service. To facilitate passenger flow, automatic ticket vending machines and automatic barriers were installed at all stations.

       Electrification of the diesel section of the outer service of the railway will be introduced in two stages during 1983: the section from Sha Tin to Tai Po Market in the spring, and the remaining section up to Lo Wu in the summer.

Two express through' trains between Kowloon and Guangzhou continued to be popular, and during the year a total of one million passengers used this service.

Buses

Bus services in Hong Kong are operated by three private companies under franchises granted by the government on a route basis.

The largest, the Kowloon Motor Bus Company (1933) Limited (KMB), operates 192 routes in Kowloon and the New Territories, and 15 cross-harbour routes jointly with China Motor Bus Company Limited. During the year, 159 double-deck buses were added to the fleet which at year-end totalled 2 369 buses comprising 2 080 double-deckers, 187 single-deck buses and 102 coaches. In May 1982, a major re-organisation of KMB services took place with the opening of the Tsuen Wan Extension of the MTR and the electrification of KCR to Sha Tin. The increase in rail capacity significantly improved services to the public, and bus passenger demand along the MTR corridors generally fell by 16 per cent. The easing of pressure on these services has brought benefits in terms of less overcrowding and reduced waiting times.

Bus fares for KMB have remained unchanged since the last revision in April 1981. Fares on urban routes range from 50 cents to $1 whereas fares on the rural routes range from 60 cents to $2.50. All cross-harbour routes with the exception of the airport coach services, recreational routes to Sha Tin Racecourse and a route linking Sha Tin Market with Wa Fu Estate, have a flat fare of $2 with a section fare of $1 after crossing the tunnel. Higher fares are charged on the express coach services. During the year, a total of 940 million passengers was carried by KMB and 140 million kilometres were operated increases of one per cent and six per cent respectively over the previous year.

The China Motor Bus Company Limited (CMB) operates 92 daily bus routes on Hong Kong Island and 15 cross-harbour routes. In 1982, its fleet of 1 047 double-deckers carried 310 million passengers and travelled 45 million kilometres. During the year, bus services were re-organised following the opening of the Aberdeen Tunnel and the opening of the Tsuen Wan Extension of the MTR with a view to strengthening the feeder bus services to MTR stations on Hong Kong Island. Fares are charged according to route distance and they range from 60 cents for urban routes to $4 for the longest cross-harbour route.

Bus operations continued to be affected by traffic congestion. To maintain mobility for the majority of commuters who use public transport, the government has approved a

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number of traffic management schemes, including bus-only lanes, with the objective of reducing bus journey times.

A review of the operations of the two bus companies, initiated after the fare increases in April 1981, was completed in June 1982. The review, which was carried out by the government with public participation, examined the cost effectiveness of the companies' operations including bus depot and maintenance requirements, route development and economy measures, and the profit control schemes.

       On Lantau Island, the New Lantao Bus Company (1973) Limited (NLB) operates a fleet of 61 buses over six franchised routes which, during 1982, carried an average of 7 500 passengers each weekday. Recreational demand increased this figure to an average of 17000 on Sundays and public holidays. To cope with the peak demand, the company increased its double-deck fleet from six to eight in 1982. Weekday fares range from 50 cents to $4 with a higher fare, ranging from $1 to $6, on Sundays and public holidays.

Franchised bus services are supplemented by a fleet of 2 115 non-franchised public buses which are operated for hire on a contract basis, as well as private buses operated by private housing or factories. A new type of residential coach service was introduced during the year by public omnibuses operating under licences granted by the Transport Department. These services operate from residential areas which do not have adequate access to public transport and thus provide a supplementary service to franchised bus operations. They are generally restricted to peak-hours with limited stopping points. During the year, 15 such licences were granted.

Minibuses

The size of the public light bus (PLB) fleet has been fixed at 4 350 since May 1976. In 1982, these 14-seater minibuses carried an estimated 1.5 million passengers a day. PLBs are authorised under the Road Traffic Ordinance to carry passengers at separate fares. There is no control on fares charged and there are no fixed routes. The service is popular with passengers who are prepared to pay higher fares for a quicker, more direct or more comfortable service with the added advantage of being able to stop anywhere along the route. PLBs, however, contribute to congestion as they tend to concentrate on the main bus and tram corridors, delaying the high capacity carriers by their frequent stops.

Expansion of the 'maxicab' scheme continued in 1982, with PLBs converting to fixed routes and fares under the control of the Transport Department to serve areas of particular need. By the end of 1982, 88 'maxicab' routes utilising 580 PLBs were in operation. throughout the territory, carrying about 190 000 passengers daily.

      The opening of the MTR Tsuen Wan Extension produced a considerable drop in passenger demand on PLB routes which parallel the MTR. These have now been generally rationalised.

      A fleet of 1 318 private light buses is also maintained by schools, private developments and commercial enterprises for their own needs.

Trams

The history of the tram service in Hong Kong dates back to 1904. Since then, Hong Kong Tramways Limited has been operating a tram service on five overlapping routes over 30 kilometres of track along the densely populated north shore of Hong Kong Island. During 1982, the fleet of 163 double-deck tramcars and 20 single-deck trailers carried a daily average of 390 000 passengers. In May, the 20 trailers were withdrawn from service due to old age. The total number of passengers using the tram service fell

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by 10 per cent during the year, from a daily average of 434 419 in 1981, to an average of 390 000.

The Peak Tramways Company Limited has been operating a cable-hauled funicular railway service up Victoria Peak between the lower levels of Hong Kong Island and Victoria Gap, 397 metres above sea level, since 1888. The service stops at five intermediate stations on the 1.4-kilometre line, and in places negotiates a gradient of one-in-two. It is popular with tourists, and at the same time provides a direct route to Central District for residents of the Peak. The flat fare was doubled during the year from $2 to $4 for adults and from $1 to $2 for children. In 1982, the service carried 4 800 passengers a day which represented a decrease of 16 per cent compared with 1981.

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 1982, it carried an average of 3 000 passengers a day.

Ferries

Ferry services in Hong Kong are for the most part provided by two principal companies - the Hong Kong 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), 14 outlying district services, two excursion services, and three coastal ferry services along the northern shore of Hong Kong Island. The company has a fleet of 99 vessels, some of which are air-conditioned, comprising double and triple-deck ferries, water buses and high-speed hovercraft. During the year the company carried 116 million passengers and 3.6 million vehicles. The Star Ferry 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. During the year, the company carried 38 million passengers on its two routes. The opening of the Tsuen Wan Extension of the Mass Transit Railway affected several HYF routes within MTR catchment areas resulting in a drop in passengers, ranging from nine per cent to 76 per cent, on these routes. In general, passenger traffic on HYF's cross-harbour services dropped by 11 per cent compared to 1981. Star Ferry services also showed a decrease of eight per cent in traffic as compared with 1981.

       With continued road congestion, especially along the northern shore of Hong Kong Island and the approach roads to the Cross Harbour Tunnel, coastal ferries and cross- harbour vehicular ferry services have become increasingly popular. A new coastal ferry link was provided in June between Central District and North Point, in addition to the two existing services between Central and Tai Koo Shing and Central and Chai Wan. There has been a two per cent growth in vehicular ferry traffic since 1981. The capacity of existing vehicular ferry routes has increased, and new vehicular ferry services are planned between Sai Wan Ho and Kwun Tong and from the western side of Hong Kong Island to Kowloon. This does not prevent HYF from continuing to develop a wide range of services to outlying districts and new towns to cater for commuter traffic and recreational demands.

        Fares on most services run by HYF were increased on August 1, 1982. Cross-harbour fares are now $1 for shorter routes, while longer-distance services charge up to $3 on weekdays. Surcharges are made for the air-conditioned deluxe class, high-speed hoverferry services and recreational services operated during holidays.

       Apart from the two major ferry companies, a number of minor ferry services are run by small operators to isolated stations. Supplementary services known as 'kaitos' are

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also available, mostly in the New Territories, to cater to local demand. During the year, the Transport Department began the issue of licences for the operation of 'kaitos' under the new Ferry Services Ordinance. In Victoria Harbour, fleets of motor boats known as 'walla-wallas' are available for hire at public piers.

Taxis

As an adjunct to public transport, Hong Kong is served by two types of taxis: the Hong Kong and Kowloon taxis which may operate anywhere in the territory (and primarily serve the urban areas) and the New Territories taxis which operate only in permitted areas in the New Territories. At the end of 1982, a total of 11 370 Hong Kong and Kowloon taxis were registered. New licences continued to be issued by tender at a rate of 100 per month. The number of New Territories taxis was 1 389 at the end of 1982. Their rate of issue was 50 licences per month.

       Taxis fares were revised on October 31, 1982. For Hong Kong and Kowloon taxis fares are now $4.50 for the first two kilometres and 90 cents for each subsequent 0.4 kilometre; for New Territories taxis the first two kilometres are $3 with 30 cents for each subsequent 0.4 kilometre. The double charge has been abolished for the Lion Rock Tunnel and Aberdeen Tunnel toll, but is still applicable for the Cross Harbour Tunnel.

More Economic Use of the Roads

Transport Management

With a wide and comprehensive range of public transport services in Hong Kong, a priority task is the promotion of the effective use of all varieties of transport. The Commissioner for Transport exercises control over schedules of services, monitors performance standards, undertakes duties relating to the provision of transport-related needs - such as bus terminals, ferry piers and land for depots - and frequently meets with operators to co-ordinate and further improve services.

       With a continued rise in the total number of registered vehicles, the volume of traffic using the roads has continued to increase. In order to alleviate traffic congestion, various traffic management measures have been introduced with emphasis on public transport priority and pedestrian safety. On Hong Kong Island, the most notable of these measures was a gyratory scheme which involved giving priority to the public along King's Road, shifting the tram tracks to provide for a greater road capacity for west-bound traffic, and re-routing traffic along the length of King's Road to ensure a smoother flow. The aim of the scheme is to ease the very serious traffic congestion between North Point and Central District until the major highway, joining Shau Kei Wan and North Point with Central District (the Eastern Island Corridor), and the MTR Island Line are completed in 1985-6. Other schemes on Hong Kong Island included bus-only lanes along Pok Fu Lam Road and a traffic management scheme in Happy Valley which went into operation with the opening of the Aberdeen Tunnel. On the mainland, similar schemes have been introduced in Choi Hung Road, Hung Hom, To Kwa Wan, Castle Peak Road and Un Chau Street in Kowloon, and Kwai Chung Road in the New Territories.

Good progress was maintained on the installation of traffic lights at road intersections and pedestrian crossings and 190 sets were in operation by the end of the year.

Area Traffic Control

Work on the expansion of the computerised traffic control system within the territory is well under way. The first system installed in west Kowloon has been operational since 1977

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and is progressively being expanded to cover east Kowloon. Some 70 junctions in east Kowloon were brought under computer control in 1982, bringing the total number of junctions computerised to 190. Computerised traffic control will be introduced on Hong Kong Island in 1983, initially to cover 80 junctions.

Road Tunnels

Hong Kong is now served by four major road tunnels. With the exception of the Cross Harbour Tunnel, these are managed by the Transport Department.

      The partially-opened Aberdeen Tunnel carried an average of 24 000 vehicles daily at the end of 1982 at an interim flat toll of $2. The non-toll Airport Tunnel was used by 26 000 vehicles each day.

      The oldest tunnel, through the Lion Rock, provides an essential road link between urban Kowloon, the expanding new town of Sha Tin and the northeast New Territories. It was opened in 1967 as a single-tube tunnel but was modernised and expanded to a two-tube operation in 1978. The average daily traffic figure now exceeds 56 000 vehicles.

       The twin-tube Cross Harbour Tunnel links the Kowloon Peninsula and Hong Kong Island and is operated by the Cross Harbour Tunnel Company Limited. Since opening in August 1972, average daily traffic figures have progressively risen and now exceed 110 000 vehicles. The tunnel ranks among the world's busiest. The government is considering proposals for a second fixed vehicular road crossing which, subject to technical studies now proceeding, is likely to be a bridge from Lei Yue Mun.

Parking

The Transport Department operates nine multi-storey car parks which provide 5243 parking spaces. In addition, five open-air car parks - two of which cater wholly for lorries - provide a further 876 spaces. The Civil Aviation Department also operates a multi-storey car park and an open-air car park at Hong Kong International Airport. Hourly charges at government multi-storey car parks vary between $1 and $4, depending on time and location of the park. Open-air parking facilities are cheaper with rates ranging between 50 cents and $3 per hour. Approximately 50 per cent of spaces available in government multi-storey car parks may be rented on a monthly basis with monthly charges varying between $200 and $800, again depending on location.

Additional parking facilities are provided by the private sector through 55 multi-storey car parks with a total of 12 589 spaces. Commercial rates are generally higher, ranging from $2.50 to $7 per hour, often with a minimum charge of $10.

       On-street parking spaces are provided where traffic conditions permit and parking meters are installed to achieve their economic use. There are 9 655 metered on-street parking spaces throughout the territory and these generally operate from 8.00 a.m. to midnight, from Monday to Saturday. Where parking demand is high, however, the meter operation is being extended to include Sundays and public holidays. On-street parking is controlled by traffic wardens and the Traffic Branch of the Royal Hong Kong Police Force who together apply a fixed penalty system for parking offences. The current fine of $70 is to be doubled in 1983.

Plans to assign the management of government car parks to private operators and to permit development of future car park sites by the private sector were announced by the government in August. Under this new proposal, 7 900 additional spaces will be added to the 17 832 existing off-street spaces in multi-storey car parks within the next four to five years.

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Registration and licensing procedures for motor vehicles were further computerised when stage six of the Vehicle and Driver Licensing Integrated Data System (VALID) came into operation in March. The system provides instant computer processing of applications, printing of registration and licensing documents and traffic permits, checking of records, and random allocation of vehicle registration marks.

In March, legislative amendments exempting disabled people from paying fees for driving tests, and for provisional licences and full licences for drivers of private cars under 1 500 cc were introduced.

In August, a 13 000-square-metre site in Wong Chuk Hang adjacent to the Ocean Park in Aberdeen was temporarily allocated to the Transport Department as an off-street driver training centre. The school can cope with 40 learner-drivers hourly. A comprehensive revue of on and off-street driving instruction standards is in hand. The demand for driving licences remained high. During the year, the number of licences held by Hong Kong residents totalled 736 369 compared with 676 014 the previous year.

Vehicle Examination

Despite the acute shortage of vehicle examiners and availability of only one multi-lane vehicle examination centre at Kowloon Bay and two small centres at To Kwa Wan and Soo Kun Po, the Transport Department has maintained its statutory examination commitments. All urban and New Territories taxis, hire cars, public light buses, private and public omnibuses, goods vehicles manufactured prior to 1972, and all dangerous goods vehicles are inspected on an annual basis. Collectively, a total of 69 000 vehicles were examined during the year compared with 70 000 in 1981. All franchised buses were examined at the bus companies' premises for both roadworthiness and fitness programmes. Vehicles involved in accidents were examined at the police vehicle detention pounds at Ho Man Tin in Kowloon, Moreton Terrace on Hong Kong Island and Kwai Shing Circuit in the New Territories. Vehicles and other equipment within the Hong Kong International Airport perimeter were inspected on site. In addition, pre-registration inspections were conducted on all goods vehicles and the first of each new model of private car and motor-cycle.

       In February, the inspection of older private cars was introduced. Cars manufactured before 1971 must now pass an examination before re-licensing. The age level will pro- gressively be reduced.

Plans are being pursued for the construction of two fully-automated computerised vehicle inspection centres at Tsuen Wan and Yuen Long in the New Territories.

       Better vehicle standards will improve road safety and reduce road congestion. They help to reduce the number of accidents caused through mechanical failure, to prevent breakdowns which could cause traffic congestion, and to minimise pollution caused through poorly-maintained engines.

Road Safety

Investigation to identify the causes of traffic accidents continued to be carried out by the Transport Department's Road Safety Division. Particular attention was given to accidents involving pedestrians. Accident black spots investigated during the year numbered 131 and 65 remedial measures were recommended. There were, nevertheless, 19 000 traffic accidents involving injury in 1982 - 8 000 serious and 450 fatal.

With traffic accidents continuing to take a heavy toll of human life, and property, the promotion of road safety is of great importance. In collaboration with other government

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     departments, the Road Safety Division began drafting a new highway code as well as producing more effective traffic-education teaching kits for schools, and formulating and implementing road safety campaigns to educate members of the public on the importance of road safety.

Tackling Congestion on the Roads

Private Car Restraint Measures

The 1975 White Paper on Transport predicted that with a continuing increase in the number of vehicles and the limitations of the road system, it would become necessary, as part of an attempt to relieve overall road congestion, to restrain the rate of growth of the total vehicle fleet. A major development in 1982 was the introduction in May of measures to restrain the rate of growth of private cars and motorcycles. These measures included doubling the rate of first registration tax, increasing broadly threefold the annual private vehicle licence fees, and substantially raising the duty on petrol. Disabled drivers are exempted from all measures other than the petrol increases. As a result of these restraints, the number of new private cars registered between May and December 1982 dropped by 66 per cent compared with the same period in 1981. It is hoped that these measures will keep the growth rate of private cars down from the level of 11 per cent in 1981 to the new policy target of no more than five per cent per annum - although they may need reinforcing later. The number of private cars registered at the end of 1982 was 214 849 compared with 211 556 at the end of 1981. For motorcycles the figures were 27 434 and 27 443 respectively. A reduced rate of growth in total fleet numbers resulted. At the end of the year, the total number of registered vehicles was 339 551, a slight increase of 9 242 vehicles, or three per cent, over the previous year. Detailed statistics are at Appendix 36.

Goods Vehicles

      Goods vehicle numbers continued to increase, from 64 214 in December 1981 to 67 606 at the end of 1982. The economic and transport operations of the industry are to be the subject of a detailed study to ensure, among other things, optimum and effective road use.

Shipping

Hong Kong is one of the major ports of the world in terms of the tonnage of shipping using its facilities, the volume of cargo handled and the passenger throughput, 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 5 200 hectares, and varies in width from 1.6 to 9.6 kilometres.

The administration of the port is a responsibility of the Director of Marine. He is advised on this by the Port Committee and the Port Executive Committee through which the closest liaison with shipping and commercial interests is maintained to ensure that facilities and services are developed to meet the changing needs of Hong Kong and of the ships using the port. The Container Port Executive Committee has recently been established to advise the Director of Marine on matters relating to the container port at Kwai Chung and its future development.

The port of Hong Kong, which ranks amongst the top three container ports in the world, handled 1.69 million TEU's (20-foot equivalent units) in 1982. The Kwai Chung Container Port has six berths with more than 2 300 metres of quay backed by about 85 hectares of cargo

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handling area which includes container yards and container freight stations, all of which are operated by private companies or consortia. Up to six 'third generation' container ships can berth simultaneously at the container port. A mobile floating roll-on-roll-off ramp is provided by a container terminal operator at Kwai Chung who, in addition, has a 12-storey multi-purpose godown in operation. This godown has a usable floor area of 52 400 square metres and the first two floors serve as a container freight station. Nearby, at Tsuen Wan, there is a 16-storey godown, with a usable floor area of 52 600 square metres, equipped with container lifts serving all floors. Further expansion of the Kwai Chung Container Port through the reclamation of more land is under active discussion.

      In 1982, some 11 100 ocean-going vessels called at Hong Kong and loaded and dis- charged more than 33 million tonnes of cargo. This included 26 million tonnes of general goods, 41 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 about 2 070 at the end of 1982, some 47 per cent of which were 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 passage through Hong Kong waters and berthing and unberthing time. These are probably the fastest turn-round times for ships in the Far East.

Öther wharves and terminals provided and operated by private enterprise are capable of accommodating vessels up to 305 metres in length, with draughts up to 14.6 metres. Cargo handling facilities in the public sector include public cargo working areas at Wan Chai, Yau Ma Tei, Tsuen Wan, Kwun Tong, Western District and Rambler Channel. These areas. are administered by the Marine Department. Government policy calls for the provision of public cargo working areas throughout Hong Kong to keep internal cargo movement swift and efficient.

      There is considerable tourist and other sea passenger traffic between Hong Kong and Macau. In 1982, 8.2 million passengers were carried by jetfoils, hydrofoils, jetcats and conventional ferries plying this route.

      At the site of the old Hong Kong-Macau Ferry Terminal, construction has started on the new permanent terminal which the developer is expected to hand over to the government before mid-1985. The new terminal is designed to handle up to 15 million passengers annually and to be able to accommodate 10 high-speed ferries and three conventional ferries.

       A second terminal on Kowloon Peninsula has long been considered desirable. Con- sequently, the Sham Shui Po Ferry Pier was modified during the year, with a Kowloon to Macau service commencing operation from the pier in December.

At present all passenger traffic by sea to China is channelled through Tai Kok Tsui Pier. In 1982, 144 000 passengers were carried on the hoverferry service between Hong Kong and Guangzhou. Further facilities are planned on the site of the Kowloon Public Pier Number 54 at Tsim Sha Tsui to cope with the increasing traffic to China. It is anticipated that this terminal will be able to accept larger ocean-going passenger vessels, together with smaller high-speed vessels, all of which will be able to berth alongside.

      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

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     57 special typhoon buoys which are located so that ships can remain secured to them during tropical storms. This obviates unnecessary ship movements and helps to maintain efficiency and reduce operational costs. Dangerous goods anchorages are available if required, and safe anchorages are available for deep-draught vessels.

      For ships calling at Hong Kong, quarantine and immigration facilities are available on a 24-hour basis at the Western Quarantine Anchorage, and from 6.30 a.m. to 6.00 p.m. at the Eastern Quarantine Anchorage. Ships are normally cleared inward on arrival. Port clearance of larger passenger vessels is processed on their way to the allocated berths. Vessels may on application obtain advance immigration clearance and health pratique by radio.

As a major centre for ship owners and management activities, Hong Kong is a significant port of British registry. In 1982, the total Hong Kong-registered fleet approached four million gross tonnes. The Marine Safety Division of the Marine Department is responsible for the survey and certification of these vessels and provides a plan approval service. Surveyors of the division travelled world-wide to undertake statutory surveys on vessels intended for the British registry in Hong Kong and are available to survey any British or foreign ships for the issue of safety certificates under the International Convention for the Safety of Life at Sea (SOLAS) 1974, and other international safety conventions. Examinations for certificates of competency as deck and marine engineer officer are held regularly. These certificates are recognised by the United Kingdom Department of Trade and receive Commonwealth validity. The division also promotes safe-working practices in shipbuilding, ship-repairing, shipbreaking and shipboard 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. Compulsory pilotage is being considered by the government for introduction in future. The Director of Marine is the Pilotage Authority in Hong Kong. All licensed pilots in Hong Kong are members of the Hong Kong Pilots' Association, which organises the provision of pilotage services in Hong Kong as a commercial venture, the fees for which are governed by statute.

       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 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 connected by telephone, radio-telephone and teleprinter circuits. The Marine Department operates a continuous VHF radio-telephone port opera- tions service based on international maritime frequencies which gives comprehensive marine communications throughout the harbour and its approaches. Marine Department teleprinter/telex facilities are linked directly to users on a world-wide basis. There is also a continuously monitored disaster network which links the Marine Department's Search and Rescue Co-ordination Centre with aircraft of the Royal Hong Kong Auxiliary Air Force and military helicopters, marine police and fire services launches and other similar facilities. In the event of a vessel 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.

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      A joint study with the Canadian Government commenced in June to analyse traffic flow patterns in the waters of Hong Kong and to define a vessel traffic management system. This will help to maintain the excellent safety record of the port and facilitate the efficient flow of shipping through the waters of Hong Kong by providing the vessels with advance information of other vessel movement, concentration of fishing vessels, ferry movements and other navigational hazards.

      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 vessels 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 approxi- mately 18 222 seamen on board 1 200 vessels of all flags. The Hong Kong Merchant Navy Training Board was reconstituted in 1982 as an advisory board to the Vocational Training Council. The board continues to assess the needs of local seamen, in particular the need for a seamen's training school in Hong Kong, having regard for the International Conference on Training and Certification of Seafarers, 1978, under the auspices of the International Maritime Organisation (IMO). The Mariners' Clubs in Kowloon and Kwai Chung continue to provide recreation and welfare facilities to a high standard for visiting seamen of all nationalities.

Civil Aviation

There was a healthy increase in both passenger and cargo traffic at Hong Kong International Airport in 1982 despite the depressed state of the aviation industry in many other parts of the world.

      A total of 8.6 million passengers passed through the airport, an increase of 5.2 per cent. over the preceding year. The passenger growth rate was somewhat lower in comparison with the last few years, but in absolute numbers the increase of over 400 000 passengers was significant in view of the world-wide economic recession.

      The carriage of air cargo during the year totalled 306 000 tonnes, an increase of about five per cent over 1981. The value of goods amounted to $61,000 million which was 8.9 per cent above the preceding year. Compared with Hong Kong's total trade in terms of value, imports by air accounted for about 21 per cent, exports for 26 per cent and re-exports for about 24 per cent. The United States remained the major market for Hong Kong's exports and re-exports by air and accounted for nearly 45 and 18 per cent of such products

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respectively. Japan took over the lead from the United States for the provision of imports and accounted for about 21 per cent of that total.

At the end of the year, 32 airlines were operating over 1000 scheduled passenger and cargo flights each week between Hong Kong and the United Kingdom, Europe, China the United States, Canada, South Africa, India, the Middle East, Australia, the South Pacific region and Asian countries. Five other airlines operated about 20 non-scheduled services to and from Hong Kong a week.

       International aircraft movements totalled 54 635, representing a decrease of 1.4 per cent compared with the preceding year's total of 55 393. Nearly 80 per cent of the aircraft calling at Hong Kong International Airport were wide-bodied types, indicating a continuing trend by airlines towards the larger aircraft to meet increased traffic needs.

During the year, the Chinese flag carrier, the Civil Aviation Administration of China, started to operate to Hong Kong from an eighth city in China with the launching of charter flights from Xian. Royal Nepal Airlines introduced a new twice-weekly scheduled service between Hong Kong and Katmandu, stopping over in Dacca. A weekly joint service was also operated by Cathay Pacific Airways, Air Nuigini and Air New Zealand between Hong Kong and Auckland, calling at Port Moresby.

Hong Kong International Airport has continually been upgraded and expanded since the first major development, a new runway, was completed in 1958. Significant airport works completed during the year included the resurfacing and grooving of the runway, the installation of new runway centreline lights and the commissioning of a new aero- mobile centre.

Following the completion of the four-stage development programme for the passenger terminal building in late 1981, the planning of a new fifth stage of development is under way. The plan integrates enhanced facilities within the framework of existing facilities wherever possible and includes a new departures check-in building immediately east of the existing terminal building. This will increase the capacity of the passenger terminal building from 12 million to about 18 million passengers a year, and so meet the expected demand for processing facilities towards the end of the decade.

       The replacement airport studies at Chek Lap Kok off northern Lantau progressed as planned and the project continued to receive detailed consideration within the government.

14

潘巾舖

霸孔

Communications and The Media

As visitors to Hong Kong can readily observe, the processes of communications and public information play a more important role here than in almost any other territory in the world. 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 financial centre as well. For all these roles sophisticated international communications have been developed.

      Satellite and the latest telecommunications equipment is geared to the community's international needs. And as well as serving Hong Kong's own commercial interests, these facilities have attracted news media representatives from many parts of the world. Indeed, no other place of similar size can rival the range and intensity of media activity. News agencies, newspapers with international readerships and overseas television companies and corporations 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, which have a high readership. 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, the China Daily and the Asian edition of the International Herald Tribune.

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Hong Kong is the Southeast Asian base for many newspapers, magazines, news agencies and the electronic media. Among the international news agencies with offices in Hong Kong are Associated Press, Reuters, United Press International and Agence France Presse. Several organisations represent and cater for people working in the news media in Hong Kong. The Foreign Correspondents' Club, which moved to new premises during the year, offers its members social facilities and a range of professional activities, including news conferences, briefings and films. The Hong Kong Journalists' Association (HKJA) seeks to raise professional standards by recommending better training, pay and conditions in journalism, and advises its members in the event of disputes with employers. The Hong Kong Press Club provides an opportunity for journalists to meet socially. The Newspaper Society of Hong Kong represents Chinese and English newspapers. It is empowered to act in matters affecting the interests of its members.

It is generally recognised that the standard of training for journalists in Hong Kong should be improved. The report on the First Manpower Survey of the Mass Media, published at the end of 1982, revealed a lack of in-house practical training in the media. The Journalism Training Board, now under the Vocational Training Council, recommended that future training plans can best deal with Hong Kong's specific problems by adopting a two-pronged programme. First, the programme would enable journalists without post- secondary qualifications to upgrade their skills and knowledge to certificate level. Second, such courses could be used by journalists with a post-secondary qualification either to add specific journalistic skills to that qualification, or to supplement an existing journalism. post-secondary qualification with specialist knowledge. During the year, the Journalism Training Board arranged for the Hong Kong Polytechnic to sponsor a four-week English Oral Communication Skills Course for Chinese journalists. And the Communications Department of the Baptist College conducted a News Translation Workshop.

       In December, Radio Television Hong Kong (RTHK), at the request of the board, started a series of eight attachment courses, each lasting three weeks, for young working journalists from the print media. The course was designed as a simple introduction to the work of RTHK in both radio and television. The Director of Broadcasting may offer this course as an annual event.

Newspapers and other publications both locally-produced and imported are prosecuted whenever it is felt that obscene or excessively violent material has been published for sale in Hong Kong; 80 prosecutions were successfully completed during 1982.

Sound Broadcasting

There are 10 radio channels in Hong Kong. Five are operated by Radio Television Hong Kong (RTHK), three by the Hong Kong Commercial Broadcasting Company, more popularly known as Commercial Radio (CR), and two by the British Forces Broadcasting 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 encourages 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 a total of 700 hours per week and has a 24-hour service in both Chinese and English. An independent survey conducted in July 1982 showed that the total number of radio listeners was 72 per cent of the population aged nine and above.

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The station has restructured its five radio channels with emphasis on the individual identity of each channel. Radio 1 of the Chinese channel has strengthened its news and current affairs output with the provision of news bulletins and summaries on a half-hourly basis between 6 a.m. and 11 p.m. It has also expanded the production of programmes designed to encourage audience participation as well as community involvement, for instance promoting public awareness of the work of the district boards and the Clean Hong Kong campaign. Education programmes which incorporate language teaching, Chinese literature, history, overseas studies guidance, medical health guidance and sex education are also major features of this channel.

Radio 2 has been streamlined and remodelled as a channel mainly for young people, with popular music as the salient feature and a lively approach to community service. The disc jockeys have gained audience support through their participation in various government publicity campaigns and in entertainment programmes such as the Urban Council's Summer Fun Festival.

       Radio 3 continues to be a channel broadcasting news and current affairs, talk shows and popular music for the English-speaking population.

Radio 4 has been restructured to develop into a channel for fine music and arts. While it is mainly for the English-speaking population, it also introduces several music programmes bilingually.

       Radio 5, a bilingual channel, relays the BBC World Service from 5 p.m. to 2.30 a.m. daily; outside these hours it provides an additional FM service of programmes such as classical music, education programmes and drama. There has been an increase of programmes in Putonghua.

       With the introduction of stereo drama, RTHK has become the first station in Southeast Asia to use such advanced technology in drama production.

       Advanced technology will lead to broadcasting services using a wider spectrum of the VHF/FM band. Approval in principle has been 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; the best ways to carry forward the scheme are being studied.

For Commercial Radio, one of the highlights of the year was the start of 24-hour broadcasting on the two Chinese channels. FM coverage was extended later in the year to cover more of the New Territories. A large scale audience survey was commissioned and the findings, as a result of the improved coverage, showed a marked increase in radio listening. The Commissioner for Television and Entertainment Licensing is responsible for ensuring that the terms and conditions contained in the licence issued to Commercial Radio are complied with by the company, and during the year the station continued to maintain a highly satisfactory service.

      There was an increase in the station's public service programmes, with the production of live shows to promote publicity campaigns including the Fight Against Crime, the Anti-narcotics drive and the Clean Hong Kong campaign. Money was raised for the Community Chest and other charitable organisations. To meet the growing interest in sport there were special reports on the World Cup, tennis at Wimbledon, the Asian Games, the International Rugby Sevens and the Macau Grand Prix. In addition, there was coverage of local events including racing, soccer, tennis, golf and go-karting.

      The music scene continued to thrive. The major event was a full day of musical outside broadcasts ranging through five different music shows in Kowloon and Hong Kong in five locations. The station's presenters and producers acted as judges for the recording industry's Gold Record Award; and a Cantonese opera by the Chor Fung Ming Opera

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Company, was broadcast as the climax of the station's annual three nights of charity shows entitled Songs to Remember.

During 1982, the British Forces Broadcasting Service (BFBS) ceased to be operated directly by the Ministry of Defence and became part of the Services Sound and Vision Corporation, a worldwide organisation providing entertainment, information and training films, video, radio and television for the British forces, under contract to the ministry. However, the function of the two BFBS radio services in Hong Kong remains unchanged: to provide programmes suited to the special needs of the Gurkha and British forces serving in Hong Kong. The station operates FM transmitters at Castle Peak and Brick Hill and an MF transmitter near Ngau Tam Mei in the New Territories.

      Nepali programmes, broadcast for more than 76 hours a week, cater for the particular interests of the Brigade of Gurkhas and provide a link with the homeland through music and features which reflect life in Nepal, daily Nepal and world news, regular news reviews, quiz shows and phone-in programmes. Most of the Nepali output is produced by the station's own staff, largely Gurkha soldiers, although a few programmes are received from Radio Nepal and other Nepalese government agencies and from the BBC's Nepali service. Major events are covered at Gurkha camps around the territory, encouraging audience participation.

Involvement in programmes is apparent, too, in the English-language service of BFBS, which operates for about 100 hours a week. Presentation is by freelance broadcasters or service volunteers, plus some 30 hours of programmes provided by the BBC transcription service and a London production centre.

      Highlights of the year's English-language programmes included a visit of a BFBS London team to present two Hong Kong editions as live outside broadcasts from forces locations. Locally-presented outside broadcasts covered events at 660 Squadron Army Air Corps, a Royal Navy open day, and religious services for Battle of Britain and Remembrance Sundays. The station provides pop music and shares the BBC radio network's news service. Its coverage of forces matters, the Falklands conflict in particular, provided the services with the information they required through extended news broadcasts.

Television

Television viewing continues to be Hong Kong's principal leisure activity with more than 93 per cent of households owning one or more television sets. Two franchised commercial wireless broadcasting stations, Television Broadcasts Limited (TVB) and Asia Television Limited (ATV) - known as Rediffusion Television Limited (RTV) until September 1982 - together transmit an average 508 hours of programming each week. The UHF 625-line PAL colour system is standard and virtually all transmissions are in colour. Both TVB and ATV maintain large well-equipped studios and office complexes using the latest production and transmission techniques.

The television stations are licensed to operate under the provisions of the Television Ordinance which is administered by the Television Authority. This statutory office is vested in the Commissioner for Television and Entertainment Licensing who is responsible for the regulation of the stations' licences and the issue and enforcement of the programme, advertising and technical standards required of the licensees. He is advised in these responsibilities by the Television Advisory Board. One of the main roles of his department, the Television and Entertainment Licensing Authority (TELA) is to monitor regularly the performance of the television stations in carrying out the terms and conditions under which they operate.

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On the programme side, modern day and kung-fu mini-drama series are still popular, especially those with themes which have an accent on comedy, but long drama serials have made a comeback after many years' absence. The year also witnessed a surge of games shows. Slotted mainly into the peak hours, these have generally been very well received. Sports programmes, too, received more attention; the World Cup Soccer series, live from Spain, was a major event for several weeks. Both stations feature comprehensive news bulletins daily on their Chinese and English channels. Responding to community service needs, both stations introduced sub-titles on selected news bulletins for the benefit of deaf viewers. Locally-produced public affairs programmes are also broadcast on each channel. During the year, the Television Authority commissioned a public survey on attitudes to television viewing. Results of the survey showed that most people regard television as exercising a beneficial influence on society even to the extent of strengthening family ties. Although programme and advertising standards are considered to be generally satisfactory, more than half the viewers polled advocated a little more control on violence, triad language and advertisements for cigarettes, liquor, pharmaceutical products and Chinese medicines. The survey also revealed that although the content and amount of children's programmes are considered satisfactory, it is common practice for parents to allow children in the five-to-14 age group to watch television until at least 10 p.m.

To complement the annual surveys, the Television Authority set up television home viewing groups in 18 districts to help the Television Advisory Board keep in touch with public attitudes towards programme and advertising standards. These groups, comprising about 20 members from each district, are selected from varying income and age brackets with the assistance of the government's district offices. Group members are required to complete daily questionnaires over specified periods reflecting their views on programme and advertising standards.

       The publicly-financed Radio Television Hong Kong (RTHK), which uses the transmission services of the two commercial stations, produced over 10 hours of public affairs programmes each week, including the highly acclaimed dramas On the Beat and Places and Faces, while Commonsense and Police Call, in their sixth and seventh years respectively, were still among the top 20 fixtures.

Policy guidelines for RTHK require its programmes to provide a communicating channel between the government and the public, which promotes civil responsibility and identity, serves minority interests, and educates and informs. This is achieved while offering entertainment which upholds high programme standards. Material produced falls basically into five areas of interest: current affairs, drama, information and servicing, variety and games shows, and programmes for children and young people.

Due to the popularity of RTHK's service and the increasing demand for programmes, the organisation aims to achieve an eventual weekly output of 12 hours of public affairs television programmes. An extension to its premises in Broadcast Drive, Kowloon is planned to provide further facilities.

       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 Education Television Service (ETV), which 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 animation, drama and documentary techniques.

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Government Information Services

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The Government Information Services (GIS) serves as the government's link with the media and, through it, with the people of Hong Kong. The department has two divisions: the Press and Public Relations Division, which distributes information to the public through the media and at the same time reflects to the government public opinion expressed in the media; and the Publicity Division, which embraces the creative, publishing, promotional and overseas public relations activities of the department.

The press sub-division runs a 24-hour news service through its teleprinter and facsimile networks which are directly linked with leading newspapers, news agencies, and radio and television stations. The facsimile system enables GIS to transmit both photographs and written messages to the media. Many thousands of enquiries from the media on a wide. range of subjects were handled by the sub-division in 1982.

During the passage of a typhoon, a severe tropical storm or any other emergency, the newsroom becomes a communications centre providing 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 summarises news and public affairs programmes produced by television and radio stations.

       Information and public relations units in 24 government departments and secretariat branches play a major role in maintaining the flow of information to the media and improving relations with the public. Staff in a number of departmental units were augmented during the year to strengthen links with the media and public.

       The Publicity Division's role is wide-ranging and covers most aspects of information work. Photography, film-making, the staging of exhibitions, publishing and the design of books, leaflets and posters all come under the 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 14 per cent to more than $14.5 million in 1982, compared with $12.7 million in 1981.

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       The division handles the government's major publicity campaigns such as Clean Hong Kong campaign, the Anti-narcotics drive, Industrial Safety, the Fight Against Crime, Road Safety, Fire Prevention, Safety In The Home and the District Administration Scheme. About 30 minor campaigns are also carried out and many promotional events are staged within district communities by means of live shows, a mobile street theatre and film shows.

The division helps visiting correspondents, television and film crews, and works closely with news agencies and overseas journalists based in Hong Kong. GIS officers arranged programmes, handled enquiries and gave briefings to 521 visiting journalists, film teams and broadcasters. Production of radio and television tapes, which have prompted growing interest among overseas broadcasters, particularly in the United States, has been expanded. To keep people overseas up-to-date on local events, the 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.

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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 'Hong Kong Gala Evenings' in Manchester, Edinburgh and Birmingham. These events included a reception and a stage presentation, the latter consisting of a 10-screen audio visual show, highlighting the economic and cultural links between Hong Kong and the United Kingdom, and a performance by a company of dancers and by a solo musician provided by the Recreation and Culture Department. The 600 guests at each reception included Members of Parliament and local government officials, businessmen and industrialists. In each city, the Hong Kong Commissioner in London addressed a seminar on industrial investment in Hong Kong, met the local Chinese community, and hosted a dinner for senior media representatives.

Information Policy

The Secretary for Home Affairs has overall policy responsibility for the government's relations with the media. 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 (TELA). 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.

Film Industry

By the end of 1982, the number of cinemas in Hong Kong, Kowloon and the New Territories stood at 89. Although a number of large cinemas closed down during the year a new trend of mini-cinemas started with the opening of a three-in-one mini-cinema complex. After television, cinema-going is the next most popular leisure activity in Hong Kong. The annual cinema attendance totalled 66 million for the year compared to 65 million in 1981. A survey on attitudes to cinema viewing commissioned by TELA early in the year showed that 95 per cent of the population was in favour of continued censorship of cinema films. The majority also wanted the introduction of a film classification system which would legally bar the admittance of under-age patrons to 'adults only' films. The authority started a consultative process with district boards during the year with the aim of introducing a statutory classification system during 1983.

      The number of locally-produced films was 129 in comparison with 130 for 1981. Although imported films continued to be popular, the greatest box office successes remained locally-produced Cantonese films. Examples were Dragon Lord which grossed $18 million and It Takes Two which grossed $16.7 million at the box office during the year.

      Comedy and action continued to be popular movie themes with few social dramas reaching the screens. Kung fu and swordplay films continued to attract some sections of the community although these films tended to be a little more violent than during the previous year. A few locally-produced suspense films also proved to be popular at the box office.

      All films intended for public exhibition in Hong Kong must be submitted to the Panel of Film Censors, which forms part of the TELA. Censorship standards are drawn from ascertained community views, through surveys and media reports, and from an advisory panel comprising about 125 members of the public who assist the Panel of Film Censors in reflecting community views. During the year, 655 films were submitted for

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censorship (including films intended for cine clubs and cultural organisations). Of the total submitted, 440 were approved without excisions, 204 were approved after excisions and 11 were banned.

Printing and Publishing

The international status of Hong Kong's printing industry has grown steadily in recent years, and expansion of the industry and its exports continued during 1982. There are now over 2 800 printing companies employing more than 30 000 people, and over 200 publishing houses with a staff of more than 6 000.

The territory's electronics industry is contributing to the plant and equipment of not only the more sophisticated printing companies, but also to the publishers who are becoming increasingly involved in data and word processing systems for both their editorial production and stock control. The sales and marketing of data and word processors is now handled by more than 100 companies in Hong Kong, which offer over 180 systems, a considerable increase from previous years.

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.

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 facilitate rapid counting of 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 books. These 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 requirements, with about 200 000 tonnes being imported annually - some 100 000 tonnes of which are exported as finished publications.

Postal Services

A major event of the year was the issue by the Post Office of a new set of 16 definitive postage stamps to replace an existing series which had been in use for almost 10 years since June, 1973. The design of the new stamps features the head of the Queen, taken from a photograph of a bas-relief by Arnold Machin, with an artistic representation of the Royal Lion and a Chinese Dragon on either side to symbolise the British and Chinese aspects of Hong Kong.

       There were also three special stamp issues in 1982. Four stamps were issued in January based on the theme 'Port of Hong Kong Past and Present' and depicted three port scenes of by-gone years and the present-day. In May, four stamps were issued with 'Hong Kong Fauna' as the theme illustrating four of the animals, namely Five-banded Civet, Pangolin, Chinese Porcupine and Barking Deer, which inhabit the countryside of Hong Kong. The third special issue was released in October with four stamps to commemorate the 1982 Far East and South Pacific Games for the Disabled held in Hong Kong from October 31 to November 7.

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      Hong Kong has a reliable and efficient postal service. Two mail deliveries are generally provided each weekday in the urban and industrial areas and one delivery elsewhere in the territory. Despite the continuous increase in the volume of letters handled, the Post Office can still achieve its target of delivering most local letter mail within 24 hours of posting.

The scheme to provide door-to-door delivery service to villages in the New Territories with official house numbers was completed during 1982, and mail delivery in general was extended to meet the demand arising from Hong Kong's continued housing and commercial development. In order to cope with this expansion in service and the greater number of staff involved, two delivery sections moved to larger premises. In April the delivery office of the Tsuen Wan Post Office moved to Kwai Chung, and in May the new Kwun Tong delivery office commenced operation in Ngau Tau Kok. In addition, seven post offices and one new mobile post office were opened during the year, bringing the total number of post offices to 90.

During 1982, a total of 511 million letters and parcels - a daily average of 1.4 million - was handled, representing an increase of 11.5 per cent over 1981.

      Air letter and air parcel traffic have shown two opposite trends. The total number of air letters posted increased by 7.5 million, whereas there was a drop in the number of air parcels despatched. An average of 27 tonnes of mail was handled at the airport each day including three tonnes of mail in transit through Hong Kong.

      The Speedpost service, introduced in 1973, has proved to be popular and now extends to 20 postal administrations - Australia, Bahrain, Belgium, Brazil, Canada, China, France, the Federal Republic of Germany, Japan, Kuwait, Macau, Malaysia, the Netherlands, South Africa, South Korea, Singapore, Switzerland, Taiwan, the United Kingdom and the United States. During the year 384 000 items were handled, representing an increase of 25 per cent over the preceding year. A new cheaper initial weight step of 250 grams was introduced in August.

      Local letter and printed paper postage rates were revised on July 1 to take account of increased handling costs. The basic letter rate was increased from 20 cents to 30 cents, the first increase in this rate for over seven years.

Telecommunications Services

As a leading financial, commercial and industrial centre in Asia, Hong Kong depends on efficient and reliable telecommunications both within the territory and internationally. Telecommunications services are provided by two local companies, Hong Kong Telephone Company Limited and Cable and Wireless (Hong Kong) Limited.

The Postmaster General is the Telecommunications Authority 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 and operation of public telecommunications services and the technical aspects of radio and television broadcasting.

      The Post Office manages the radio frequency spectrum to ensure that it is utilised efficiently, and grants licences, under the Telecommunication Ordinance, for all forms of radio communication within Hong Kong. It maintains surveillance of the radio frequency bands to detect illegal transmissions and interference emanating from sources within and around the territory. It also conducts inspections of ships' radio stations to ensure compliance with the International Convention for the Safety of Life at Sea.

In addition, the Post Office provides advisory and planning services for the communica- tions requirements of government departments, and co-ordinates and regulates the use

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      of all radio communications sites. Radio networks planned during 1982 included the Civil Aid Services network for its Kowloon command, a territory-wide network for the Customs and Excise Service, a microwave telemetry network on Lantau Island for the Water Supplies Department, and PABX systems for several government departments.

The Hong Kong Telephone Company Limited, operating under a statutory franchise from the government, provides telephone and other telecommunications facilities in Hong Kong. With close to two million telephones connected to the network, Hong Kong has a density of nearly 37 telephones for every 100 people. Service can normally be provided on demand anywhere in the territory. The network is fully automatic, with 64 exchanges using equipment ranging from electro-mechanical switching to advanced electronic technology. The company offers a wide range of services and equipment to subscribers including a local and international telephone conference service, a direct-dial radio-paging service, a computerised directory enquiry service, computerised business switching systems, telephone attachments, and data transmission equipment for use on leased circuits or the public switched telephone network. A public Viewdata service, based on was the Prestel system, was introduced in July.

Hong Kong's international telephone service is provided jointly by the Hong Kong Telephone Company Limited and Cable and Wireless (Hong Kong) Limited. A world-wide operator-connected service is available, and International Direct Dialling calls can be made to more than 100 countries. There has been a significant increase in international telephone calls from Hong Kong during the last 10 years, from 6.7 million calls in 1972 to 12.7 million in 1982.

Cable and Wireless (Hong Kong) Limited, which is owned jointly by Cable and Wireless PLC and the Hong Kong Government, provides the other international telecommunication services as well as local telegram and telex services. These include public telegram, telex, leased telegraph and telephone circuits for private communications networks, public switched data, and facsimile and international television transmission. International facilities are provided through submarine cables, microwave, tropospheric scatter, and satellite radio system.

During the year, a second international switching centre was brought into service in Kowloon. The centre is equipped with a new telex exchange to serve Kowloon and New Territories subscribers. During 1983 it will be equipped with international telephone switching equipment to cater for growth, and to safeguard communications in the event of a serious failure of the existing centre in New Mercury House on Hong Kong Island.

15

The Armed Services

and Auxiliary Services

和三

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. During the year, the permanent garrison comprised five Royal Navy patrol craft, a naval tug, a Royal Marines raiding squadron, one United Kingdom and four Gurkha infantry battalions, a Gurkha engineer regiment, a Gurkha signals regiment, a Gurkha transport regiment, one Army helicopter squadron equipped with 10 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 towards the cost of keeping it here, are determined by a Defence Costs Agreement between the Hong Kong and United Kingdom governments. The previous agreement came into effect on April 1, 1976, and was scheduled to run for seven years. However, the increase in the local population, together with its re-distribution within Hong Kong, were such that the resident garrison was considered too small to meet the potential internal security threat in the 1980s. A new agreement was therefore negotiated, to run for seven years from April 1, 1981, allowing for the present sized garrison. Additionally, reinforcements are available when appropriate and necessary.

      Since the ending of the 'touch-base' policy in October 1980, the flow of illegal immigrants has been much reduced, although it continues to be necessary for all three services to concentrate a very significant part of their effort on the task of preventing illegal immigration by land and sea.

Royal Navy

The Royal Navy, based in HMS Tamar, has continued to maintain patrols of Hong Kong waters. The Royal Navy force of five patrol craft and the Third Raiding Squadron Royal Marines have also acted in close support with the Royal Hong Kong Police Force in deterring and apprehending illegal immigrants from China, intercepting refugees from Vietnam and conducting operations against smugglers and others who illegally infringe the territorial waters. The main effort has been at night, spearheaded by the fast boats of the Royal Marines raiding squadron in co-operation with units of the other services.

      The Captain-in-Charge Hong Kong has responsibilities for the operational control of the Hong Kong Sea Defence Area which extends to 80 kilometres and, with the Director of Marine and the Director of Civil Aviation, for search and rescue operations in the South China Sea. The Naval Base at HMS Tamar maintains a submarine rescue facility and

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a recompression chamber for use in diving emergencies. This chamber has been used to save the lives of several civilian divers who have experienced difficulties on surfacing. A small clearance diving team has assisted the Royal Hong Kong Police Force in the recovery of drugs and smuggled goods and is trained in the techniques of searching for and neutralising underwater explosives. The naval staff in Hong Kong administers the Royal Navy berths in Singapore and gives training advice to the First Flotilla of the Royal Brunei Malay Regiment.

Under the direction of the Captain-in-Charge, a team is trained to co-ordinate a scheme. of control for the protection of commercial shipping using the port of Hong Kong in times of tension or war. Personnel include officers of the reserve forces of the Royal Navy, the Royal Australian Navy, the Canadian Armed Forces and the United States Navy who are resident in Hong Kong and therefore ready at very short notice to activate the organisation. The team enjoys a very close liaison with the Marine Department and the shipping companies in Hong Kong.

The strength of the naval establishment, including reinforcements, is about 650 and is supported by some 60 locally-employed civilians. The patrol craft are manned partly by Chinese ratings and partly by United Kingdom-based ratings. In all, about 330 Chinese personnel are employed ashore and afloat in the seamen, engineering, supply and medical branches. A further 500 locally-recruited merchant seamen and storehousemen serve worldwide on board the ships of the Royal Fleet Auxiliary and, during 1982, many of these seamen served alongside merchant seamen of the United Kingdom and men of the Royal Navy in the operations in the South Atlantic and the Falkland Islands; other Hong Kong men manned the laundries of the Royal Navy ships in the Task Force.

The Royal Navy has always played an active part in the life of the territory and during the year personnel have provided sea training for the Sea Cadet Corps and the Hong Kong Sea School, and given assistance to the Home of Loving Faithfulness and the Cheshire Home at Cheung Hom Kok. In October, the naval base was opened for all to visit HMS Tamar, and to meet the people who work on the ships and ashore.

       In 1982, due to operations in the South Atlantic, no United Kingdom-based ships. visited Hong Kong. However, ships from the United States, Australia, New Zealand, Brunei and Malaysia have visited the territory, and the ships of the Hong Kong squadron have in turn called at ports in Japan, South Korea, Singapore, Malaysia and the Philippines during their ocean training exercises.

The Army

The army represents the bulk of the forces in Hong Kong and overall command is vested in the Commander British Forces. Command of operational units is delegated to the Gurkha Field Force, while logistic units, grouped as support troops, come under the command of the Deputy Commander British Forces.

       During 1982, the 2nd Battalion 2nd King Edward's Own Gurkha Rifles (The Sirmoor Rifles) replaced the 6th Queen Elizabeth's Own Gurkha Rifles. Resident throughout the year were the 1st Battalion Scots Guards, the 1st Battalion 2nd King Edward's Own Gurkha Rifles (The Sirmoor Rifles) and the 10th Princess Mary's Own Gurkha Rifles. The Gurkha Reinforcement Battalion, which was raised as a result of the 1981 Defence Costs Agreement, was renamed the 2nd Battalion 7th Duke of Edinburgh's Gurkha Rifles and became operational in Hong Kong from April 1, 1982.

Support is provided by a number of units permanently based in Hong Kong which include the Queen's Gurkha Engineers, the Queen's Gurkha Signals, the Gurkha Transport

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     Regiment, the 660 Squadron Army Air Corps, the Composite Ordinance Depot, 50 Command Workshops Royal Electrical and Mechanical Engineers, and the British Military Hospital. Hong Kong citizens also play an important role through their support of the Royal Hong Kong Regiment (The Volunteers), a locally-enlisted regiment of part-time soldiers, and the Hong Kong Military Service Corps which is also locally- enlisted but forms part of the British Army. This latter corps is staffed by full-time regular soldiers and numbers 1 268 Chinese officers and men who serve throughout Hong Kong as guards, military policemen, interpreters, dog-handlers, drivers, cooks, clerks, seamen and storemen. The Hong Kong Military Service Corps provides a valuable contribution to the garrison and its soldiers have played an important role in operations against illegal immigrants.

      The primary role of the army is to support the Royal Hong Kong Police Force in maintaining internal security; it is also responsible for preserving the integrity of the border. In recent years the major task has been to help with the control of illegal immigration, with individual battalions spending an average of three months each year on border duties. Despite the significant reduction in the numbers of illegal immigrants attempting to gain entry to Hong Kong, a high level of border vigilance has been maintained throughout the year. 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.

      Space and training resources are limited in Hong Kong and overseas exercises are essential in maintaining the standards of Hong Kong-based units; such exercises also provide a welcome opportunity to train in different environments. The year saw exercises taking place in Australia, New Zealand, Fiji, Papua New Guinea, Brunei and Malaysia. In addition, Hong Kong conducted a command and control exercise, Exercise Radwell, which involved the government and the police as well as the British Forces.

Individual training is a necessary and important element within the overall training programme, and Hong Kong-based units once again demonstrated their prowess in competition with the rest of the British Army at the 1982 Bisley Meeting in England. The competition was won by the 6th Queen Elizabeth's Own Gurkha Rifles, with the first three places taken by Gurkha units serving in Hong Kong.

During the year, Hong Kong units were visited by a number of distinguished personalities and organisations from the United Kingdom. These included Their Royal Highnesses the Duke and Duchess of Kent who visited the Scots Guards, the Women's Royal Army Corps and the Army Catering Corps; the British Prime Minister, the Rt Hon Margaret Thatcher, who visited HMS Tamar and the Scots Guards; the Archbishop of Canterbury, Dr Robert Runcie, who visited his former regiment the Scots Guards; and the Parliamentary Select Committee on Defence.

Royal Air Force

The headquarters of the Royal Air Force Hong Kong is in the New Territories at Royal Air Force Station Sek Kong. The eight RAF Wessex helicopters of the No. 28 (Army Co-operation) Squadron operate from Sek Kong airfield and are supported by engineering and administrative squadrons. Included in the supporting element is an air traffic control unit which also provides an advisory control service outside Hong Kong International Airport airspace. Movement of military personnel and cargo by air from Hong Kong International Airport is controlled by the RAF Airport Unit based at Kai Tak, while the RAF Provost and Security Services Unit is located at Blackdown Barracks, San Po Kong. Additionally, RAF personnel serve on the staff of Headquarters British Forces.

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The Wessex helicopters of No. 28 Squadron are employed in direct support of the army and can carry 14 troops or 1 400 kilograms of freight anywhere within Hong Kong. The helicopter is the only practicable way of moving troops, rations and equipment to outlying areas and its quick reaction time and flexibility of use have been significant factors in the success of the security forces' operations.

Although illegal immigration has been substantially reduced across the land border, significant numbers still attempt to enter Hong Kong by speedboat. These clandestine operations, which are normally carried out at night, are countered by combined operations involving surface vessels and Wessex helicopters. The Wessex uses its 65 million candle- power Nitesun to illuminate the area and disorientate the speedboat driver to enable capture by surface vessels. The flying is demanding and involves a considerable amount of time on standby at night. Additionally, throughout the year, there has been an increasing emphasis on training for internal security operations. Combined exercises involving the Royal Air Force, the Army, the Royal Navy, the Royal Hong Kong Police Force and the Royal Hong Kong Regiment (The Volunteers) have helped to improve the proficiency of all concerned in internal security operations.

During the year, one helicopter was available for search and rescue duties throughout the normal working day and, on a monthly rotational basis with the Royal Hong Kong Auxiliary Air Force, one helicopter was on permanent standby for territory-wide aero- medical evacuation. During May, No. 28 Squadron carried its 1000th casualty since formally assuming this standby commitment in 1972. During the dry season, the helicopters provided assistance in fighting fires in areas inaccessible to normal fire appliances. Flying with a bucket holding 1 000 kilograms of water suspended underneath, the helicopter is able to deliver a dousing to hillside fires.

In addition to the varied operational tasks performed by No. 28 Squadron, the Wessex has assisted in several construction projects within Hong Kong. The most notable of these included the airlifting of all the construction material needed to build two new hill-top radio stations on Lantau Island and in the New Territories.

Royal Hong Kong Regiment (The Volunteers)

The Royal Hong Kong Regiment (The Volunteers) is a light reconnaissance regiment made up of part-time volunteers with a small permanent staff of regular army officers and non-commissioned officers on loan from the British Army. Its role, though primarily one of internal security, also includes reconnaissance, anti-illegal immigrant operations and assistance to other government departments in the event of natural disasters. It is administered by the Hong Kong Government, but if called out it is commanded by the Commander British Forces.

The regiment was expanded in 1982 and there are now some 860 volunteers from all walks of life and of many nationalities. They serve in four reconnaissance squadrons, a home guard squadron, which includes a regimental band, and a headquarters squadron. There is also a junior leaders' squadron of 135 boys between 14 and 17 years of age who are trained in youth activities and leadership. It is planned to increase the number of junior leaders to 300 in 1983 and base their future training on the Duke of Edinburgh's Award Scheme. The enthusiastic response to recruiting campaigns has enabled the regiment to be selective and to maintain high standards of physical fitness. Volunteers are required to undergo regular training in the evenings and at weekends and to attend two one-week camps each year. In recent years one of these camps has been deployed on the border to relieve a regular battalion of its anti-illegal immigration duties. In 1982, eight volunteers

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attended Territorial Army courses at the Royal Military Academy, Sandhurst, and the School of Infantry, Warminster, while another 11 were attached to the Queen's Own Yeomanry for an exercise in West Germany.

      The regiment was re-equipped in 1982 with a new Clansman communication system which, being fully compatible with the equipment used by the regular army in Hong Kong, enhances the regiment's capability in its reconnaissance role.

Royal Hong Kong Auxiliary Air Force

The Royal Hong Kong Auxiliary Air Force provides a wide 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 83 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, enables the Auxiliary Air Force to operate seven days a week and round-the-clock during an emergency.

Helicopter crews on night standby duty, shared on a monthly rotational basis with the Royal Air Force, responded to over 200 requests for emergency medical evacuations. During the unusually dry weather in the early part of the year, helicopters assisted with fire fighting in the rural and afforested areas, transporting men and equipment and dropping over 1 000 tonnes of water on inaccessible areas. As part of the Clean Hong Kong campaign, regular morning helicopter patrols flew over the harbour to enable the Marine Department to identify particularly polluted areas. Helicopters also assisted in the completion of a number of civil engineering projects, as well as being used to transport official visitors to

remote areas.

      The Cessna Titan and Britten-Norman Islander maintained off-shore patrols in support of anti-illegal immigration activities and gave continued assistance to the Lands Department for aerial survey, photography and map-making purposes, as well as maintaining long- range off-shore search and rescue patrols. The two Bulldogs were used for regular meteorological evaluation flights for the Royal Observatory, and for training the squadron's volunteer students and the Civil Aviation Department's student air traffic controllers.

Civil Aid Services

The principal role of the Civil Aid Services, a uniformed and disciplined volunteer force with over 3 000 men and women, is to support the regular emergency services in times of natural and man-made disasters and other emergencies. To carry out this role, its members are trained to handle emergencies including typhoons, landslips, building collapses, sea and land search and rescue, mountain rescue, forest fires, flooding, marine oil-pollution, refugee feeding and camp management, crowd control, life saving and rabies control.

During 1982, which marked the services' 30th year of operation, the adult service was re-organised into two wings covering operations, and administration and development. This centralises the regional heavy rescue resources into one unit which can be fully operational and ready for deployment at short notice. Most members serve in the Operations Wing which consists of three regional commands and a centrally-controlled Task Force. The rapidly-mobilised Task Force has three separate units covering mountain rescue, emergency, and liaison.

      The service was heavily committed during the year in delivering food to Vietnamese refugees on arrival, in the management of refugee camps, and in the rescue of victims from

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mudslips resulting from heavy monsoon rains in May and June. In the dry months, many members were engaged in forestry conservation work and fire prevention at weekends and during holidays. The Civil Aid Services also undertook community duties and volunteers helped to organise the Lunar New Year harbour firework display, the International Dragon Boat Races, the seven Community Chest fund-raising walks and the Far East and South Pacific Games for the Disabled.

corps

There is also a Cadet Corps of 2 500 boys aged from 12 to 18 years. The aim of the is to provide training in a disciplined environment, to encourage civic responsibility and awareness, and to help prepare them for adulthood. These objectives are attained through a combination of training and operational duties including apprenticeship training in mechanical and electrical engineering, fibre-glassing, participation in a wide range of outdoor activities and sports, crowd control, life saving, and patrolling country parks. Training is progressive; as the cadet gains more experience he is permitted to undertake more advanced courses. Cadets are enthusiastic members of the Duke of Edinburgh's Award Scheme and during the year they obtained 95 bronze, 30 silver and two gold awards. At the age of 18, cadets leave the corps or may join the adult service, other auxiliary services or a regular emergency service.

The 20-hectare Civil Aid Services campsite at Tsing Lung Tau incorporates the old village of Yuen Tun, which was completely rebuilt in 1981. The village continued to be developed in 1982 and old furniture and farming equipment was collected from long- abandoned villages in the New Territories for preservation and display. The village now stands as a fine example of a typical New Territories village of 200 years ago.

Auxiliary Medical Service

The Auxiliary Medical Service, established in 1950 as a volunteer medical service, now has a membership of nearly 6 000 including about 1000 doctors, nurses and para-medical personnel. The remainder are laymen, trained as ambulance drivers or first aid dressers, or in basic medical skills to assist in an emergency.

The service's role is to augment the medical and health services and the ambulance service of the Fire Services Department when necessary. In an emergency, members may be mobilised to work in hospitals and clinics, to man medical posts, to set up field hospitals and to provide first aid at disasters. They will also evacuate casualties and disaster victims, staff emergency ambulances and carry out mass inoculations. The service performs a variety of regular duties in providing medical and nursing services in Vietnamese refugee camps, administering methadone treatment clinics, manning ambulances for the fire services on Sundays and public holidays, reinforcing the Urban Services Department's lifeguard service at beaches and swimming pools during the summer months, and providing first aid training to government officers, particularly those in the disciplined services.

The Auxiliary Medical Service Canoe Training Centre at Tsam Chuk Wan in Sai Kung, which was opened in 1981, has enabled members to learn canoeing and canoe rescue techniques. Training courses have been very successful and are also attended by the Urban Services Department's lifeguards.

        During the year, the Auxiliary Medical Service extended its services to Tsing Yi and Tuen Mun, thereby establishing sub-units in the majority of the territory's most densely populated districts.

16

Mes

EXXO

Religion and Custom

DESPITE a fast-paced commercial lifestyle, a wide range of spiritual beliefs and religious. customs are interwoven with the fabric of daily existence in Hong Kong. Of the 17 days statutory holidays in the territory, 11 involve religious worship.

The majority of believers are followers of Buddhism and Taoism and although five of the statutory holidays are renowned Chinese festivals, they continue their worshipping throughout the year, especially during the numerous other festivals and on the first and 15th days of the lunar month.

While many devotees profess Buddhism and Taoism, a diversity of religious life co-exists harmoniously, with the world's major religions represented by active communities. During Hong Kong's early history a large number of Christian churches, as well as mosques, Hindu and Sikh temples, and a synagogue, were established where believers can profess their own faith.

Buddhism and Taoism

Hong Kong possesses more than 350 Buddhist and Taoist temples, some being centuries old and containing priceless antiques, while others are of far more recent construction yet built according to traditional design. Under the Chinese Temples Ordinance all temples have to be registered. The Chinese Temples Committee is responsible for their preservation and restoration and, through the ordinance, has helped ensure the survival of even small neighbourhood temples amid intense redevelopment programmes in many areas. Most of Hong Kong's temples and monasteries are open to the public.

Although each temple is generally dedicated to one or two deities, it is usual to find the images of a number of gods or goddesses inside. Furthermore, there is a tendency for Buddhist deities to be located in Taoist temples, and vice versa, since Buddhism and Taoism, although basically two different faiths, are often regarded by devotees as similar in that they both involve the practise of sacred rites of traditional origin.

      Almost every household has its ancestral shrine and countless shops have a God Shelf, supporting images of one or more of the hundreds of divinities. With religious observances being carried out at home, many people reserve temple-going for festivals and special occasions for example, when observing the traditional rites associated with birth, marriage and death - and at the time of a new or full moon.

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      Since Hong Kong people have always been dependent on 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 in Joss House Bay near Fat Tong Mun. Many of the Tin Hau temples, which were originally built near the sea, are now some distance inland as a result of reclamation.

i

RELIGION

نهایی

J

Freedom of Worship

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Amid the commercial complexities of Hong Kong, religion remains an integral part of everyday life. Its people follow a multi-faceted range of spiritual beliefs and religious customs from exuberant participation in colourful, noisy festivals to serene moments of worship of a pure- ly private nature. All faiths co-exist in characteristic harmony. It may be that re- ligious tolerance has evolved as a natural extension of Hong Kong's free enterprise philosophy with devotees giving, and ex- pecting, freedom to observe the tenets of their religion whether it is in temple, church or chapel, mosque, or synagogue. Along- side the inestimable numbers of Buddhists and Taoists who frequently practise a mixture of both faiths, the world's major religions are also well represented by strong if often small communities. Some half a million people follow almost every denomination of the Christian faith, with about 30 000 followers of Islam, 8000 Hindus, 3 000 Sikhs, and some 500 mem- bers of the Jewish community. Remark- ably, this blend of beliefs even extends to the practical accommodation of icons sacred to several independent religions within a single temple. It is not uncommon to find Taoist and Buddhist deities sharing the same altar, or to encounter a Christian who is stopping by a Buddhist temple to pay respects to an ancestor.

Manado

L

Previous page: Taoist worshippers seek fair weather and good fishing at the yearly festival of the sea goddess Tin Hau, Queen of Heaven, at Joss House Bay Temple. Left: Roman Catholics join the procession for Our Lady of Fatima as it snakes its way from St Teresa's Church, Kowloon; a Chinese Methodist Church, completed in 1936, now lies at a busy road junc- tion in Wan Chai; Hong Kong's Israeli rabbi blesses the wine at the Ohel Leah Synagogue.

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The religious life of much of Hong Kong's Anglican community revolves around St John's Cathedral, one of the oldest buildings in Central District, which provides an imposing setting for a Sunday morning baptism.

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Shaved heads and black robes contrast with the opulence of Miu Fat Buddhist Monastery in Tuen Mun at the ordination ceremony of Buddhist monks and nuns.

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鮮魚

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A week-long monastic programme for over 200 believers - and a life-time of devotion for others - follows the ceremony at the New Territories monastery.

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  Visitors to Ching Chung Koon Temple in Tuen Mun seek advice from Taoist fortune tellers on choosing propitious days for important events as dictated by the Chinese calendar.

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    Elaborately adorned, this young Indian couple sits on a flower-decked dais preparing to take wedding vows according to traditional rites at the Hindu Temple in Happy Valley.

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  Above: A member of the Muslim community reads the Koran prior to afternoon prayer at the Masjid Ammas Islamic Mosque. Below: Kneading the dough for chapattis at the langar' or community lunch following Sunday service at the Sikh Temple in Wan Chai.

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Other leading deities include Kwun Yum, the Buddhist Goddess of Mercy; Kwan Tai, the God of War and the source of righteousness; Pak Tai, Lord of the North and local patron of Cheung Chau Island; Hung Shing, God of the South Seas and a weather prophet, and Wong Tai Sin, after whom an area of New Kowloon is named. The temple in honour of Wong Tai Sin, around which a public housing estate has been constructed, is built in traditional Chinese architectural style and is extremely popular with worshippers. Dedicated to the Gods of Literary Attainment and Martial Valour, the Man Mo Temple in Hollywood Road, Western District, run by the Tung Wah Group of Hospitals charitable organisation, is equally popular and well-known.

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. In addition, money collected from donation boxes located in many temples is used for this purpose.

       Religious studies are conducted at monasteries, nunneries and hermitages. Being easily accessible, the monasteries at Sha Tin and Tsuen Wan are particularly popular with residents of urban areas, but the best-known monasteries are situated in the more remote parts of the New Territories. One of the most renowned is the Buddhist Po Lin Monastery on Lantau Island, which attracts large numbers of visitors 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), which have been established to cater for the spiritual needs of city dwellers, are used for expounding the sutras and for. gatherings held by various Buddhist and Taoist organisations.

       In the New Territories, traditional clan organisations have been preserved and continue to play an important part in the lives of the villagers. Many villages have an ancestral hall, the centre of religious and secular activities, where ancestral tablets of the clan are kept and venerated. Animism exists in the form of shrines or simply joss sticks placed at the foot of certain rocks and trees within which spirits are believed to dwell. This practice is especially common among Hakka and Chiu Chow villagers.

       There are five major festivals in the Chinese calendar, all of which are statutory public holidays. First and foremost is the Lunar New Year, when gifts and visits are exchanged between friends and relatives, and children receive 'lucky' money. The Ching Ming Festival in the springtime provides an opportunity to visit ancestral graves. The Dragon Boat Festival is celebrated on the fifth day of the fifth moon in early summer 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, fruit and wine are exchanged, and adults and children go into the parks and countryside at night carrying colourful lanterns. The Chung Yeung Festival is on the ninth day of the ninth moon, and is celebrated by large crowds climbing 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 this day.

Christian Community

The Christian community - Roman Catholic and Protestant is estimated to number about half a million people, comprising more than 50 Christian denominations and independent groups in Hong Kong.

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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 323 Catholic schools, with about 300 000 pupils. Catholic social and health services include 14 social centres, six hospitals, 13 hostels (with 1 376 residents), 17 clinics, five homes for the aged, two homes for the blind, and many self-help clubs and associations. Roman Catholics in Hong Kong number about 265 000. They are served by 344 priests (134 Chinese and 210 of other nationalities); 79 Brothers (34 Chinese and 45 of other nationalities); and 778 Sisters (449 Chinese and 329 of other nationalities) belonging to 22 different religious congregations. There are 56 parishes and 45 mass centres. Services are normally in Chinese, with a few Churches providing services in English.

Since the early 1960s, there has been greater involvement of the laity in all areas of church activities. The Hong Kong Central Council of Catholic Laity is the central organisation for Catholic laity who engage in the work of evangelisation. A parallel organisation, the Hong Kong Catholic Youth Council, is the diocesan federation for Catholic youth organisations. A few years ago, the diocese set up a Commission for Non-Christian Religions and an Ecumenical Commission as a means of involving people of goodwill in supporting worthwhile causes. In addition, to develop improved ways of communicating its message, the church established the Hong Kong Catholic Social Communications Office. This took over the responsibility for public relations and information involving church and socio- religious activities from the Catholic Centre. The centre continues to publish two Catholic newspapers, Kung Kao Po and The Sunday Examiner and provides various religious publications in both Chinese and English.

Caritas, the official social welfare arm of the church in Hong Kong, is engaged in many community welfare projects: social services for the elderly, including centres and home care; family services and community centres; and medical and educational services. Many voluntary groups are also engaged in medical, welfare and educational services.

      The Catholic Church was officially established in Hong Kong in April 1841 as a mission prefecture. The first Prefect, Monsignor Theodore Joset, built a matshed church at what is now the intersection of Wellington and Pottinger streets in Central District. A seminary for training Chinese priests was established and, at about the same time, religious missionaries came to Hong Kong to enter into educational, medical, social and pastoral works.

      In 1874, the Catholic Church in Hong Kong became a Vicariate Apostolic, and was entrusted to the Pontifical Institute of the Foreign Missions of Milan, with Monsignor T. Raimondi as the first Vicar Apostolic.

      In 1946, the Catholic Diocese of Hong Kong was established, with the Rt Rev Henry Valtorta the first Bishop of Hong Kong. In 1969, Bishop Francis Chen-peng Hsu became the first Chinese Bishop of the Hong Kong Catholic Diocese. The present Bishop of Hong Kong, John B. Chen-chung Wu, was ordained in July, 1975.

Protestant Community

The Protestant Community in Hong Kong, made up of over 200 000 members, meets in some 650 congregations representing the major traditions such as Anglican, Church of

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Christ in China, Lutheran, Methodist, Baptist, Adventist, Alliance, Salvation Army and Pentecostal, as well as a number of smaller independent groups.

In addition to offering spiritual counselling and operating religious and social welfare organisations, including the Hong Kong Christian Service, special centres and programmes, Protestant groups are active in other fields. In the areas of education and health services, Protestants run 200 kindergartens, 175 primary schools, 120 secondary schools, three post-secondary colleges, three schools for the deaf, several for training the mentally handicapped, and 15 Theological Seminaries and Bible Institutes. They operate five major hospitals, many clinics, and other health services.

Co-operative work is facilitated by two ecumenical organisations, the Chinese Christian Churches Union and the Hong Kong Christian Council. The former brings together over 200 congregations for its membership and carries out its work through departments of evangelism, Christian education, charities, cemeteries and information. The latter bases its membership on major denominations and ecumenical service bodies such as the Young Women's Christian Association, the Young Men's Christian Association, The Bible Society In Hong Kong, The Ecumenical Study Centre and the Chinese Christian Literature Council. 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 in Hong Kong. It implements its programmes through the Division of Mission, the Hong Kong Christian Service, the Communications Centre, the Christian Industrial Committee, and related service agencies including the United Christian Medical Service, Alice Ho Miu Ling Nethersole Hospital and the Tao Fung Shan Ecumenical Centre.

The ninth and present bishop for the Anglican Diocese of Hong Kong and Macau is the Rt Rev Peter K. K. Kwong. Bishop Kwong, who was enthroned at St John's Cathedral in 1981, is the first Chinese bishop of the diocese.

A major event during the year was the official visit to Hong Kong of Dr Robert Runcie, the Archbishop of Canterbury, as guest of Bishop Kwong. During his five-day stay in January, Dr Runcie met the Governor and diocesan leaders, visited churches and religious organisations and held evensong at St John's Cathedral. On January 8, Dr Runcie left Hong Kong for China to hold private talks with Bishop K. H. Ting, Chairman of the Chinese Christian Council, and other church leaders.

Further efforts were made during the year to strengthen ties between the churches in Hong Kong and China, building on the visit to China the previous year by an 18-member delegation organised by the Hong Kong Christian Council at the invitation of the China Christian Council and the Protestant Three-self Movement. Young Christians visited their counterparts in Guangdong; Hong Kong church leaders made fraternal visits to church leaders in China; and Hong Kong churches, through the Hong Kong Christian Council, sent a representative to China with their views on a clause dealing with religious activities in the proposed new draft of the Chinese constitution.

In the area of social concern, a joint statement was issued in 1982 by Protestant Christians advocating a social security scheme; a body was formed to monitor public policy; a mass media group was set up to deal with the quality of television programmes; and a seminar was held on the implications for the Church in the future of Hong Kong.

In providing worldwide emergency aid, $500,000 was collected by the churches for distribution to the people of Bangladesh through a campaign entitled Five Loaves and Two Fish conducted by the Hong Kong Christian Council; and funds were raised to aid flood victims during the heavy spring rains in Sichuan, China.

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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 1982, they gathered for prayers at the Shelley Street Mosque and at the Masjid Ammar 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 by mid-1983.

      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 Masjid Ammar and Osman Ramju Sadick Islamic Centre 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 community, including financial aid for the needy, hospitalisation and assisted education, is conducted through various Muslim organisations in Hong Kong.

Hindu Community

     The religious and social activities of the 10 000 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 Hindus 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

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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

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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, work began in 1982 on enlarging the temple prayer hall.

Jewish Community

Hong Kong's Jewish community - comprising families from various parts of the world worships on Friday evenings, Saturday mornings and Jewish holidays at the Synagogue 'Ohel Leah' in Robinson Road, Hong Kong Island. Built in 1901 on land given by Sir Jacob Sassoon and his family, the site includes a rabbi's residence as well as a recreation club for the 500 people in the congregation.

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In recent years, the people of Hong Kong have been able to take part in a richer and more diverse range of recreational activities in their leisure time than ever before. The reduction in working hours and improved standards of living have encouraged the weekend exodus to the beaches and the countryside; practically every sporting activity has its share of followers - with better opportunities for participation; and interest in the arts continues to grow. Active encouragement in these pursuits is given by the government, the Urban Council and many public and private organisations, and 1982 saw some major developments in the provision of facilities.

The Jubilee Sports Centre was opened in October after three years' construction and at a cost of over $150 million. A joint venture between the government and the Royal Hong Kong Jockey Club, the centre will play a vital role in sports development in Hong Kong. Another joint project between the two bodies was announced in April with the plan to build an Academy for Performing Arts. The academy will provide Hong Kong with a tertiary training institute of international standard with a role in the performing arts parallel to that of the Jubilee Sports Centre in sports.

      Construction progressed on the Hong Kong Coliseum (previously called the Hung Hom Indoor Stadium) which will be one of the finest indoor stadia in Asia, and on the Tsim Sha Tsui Cultural Centre. To provide more indoor amenities, particularly in areas where space is limited, the Urban Council continued its programme of developing local multi-purpose indoor games halls and district cultural centres.

      While the Urban Council concentrates on the provision and management of facilities and the presentation of culture and entertainment programmes, the new but rapidly expanding Recreation and Culture Department organises community activities and training. Separate divisions within the department cover recreation and sport, the performing arts, and the Music Office.

In celebration of the Lunar New Year Festival, a spectacular fireworks display was held on January 25, 1982, in Victoria Harbour. Sponsored by Jardine Matheson and Company Limited and organised by the Hong Kong Tourist Association, it was one of the largest displays by international standards. Set against music and the harbour scene, the display provided considerable enjoyment to the public and overseas visitors to Hong Kong. In future, fireworks displays in the harbour will be a regular event at Lunar New Year.

The Countryside

Countryside recreation is now an accepted part of the way of life for many people in Hong Kong. Every morning, city dwellers walk to nearby woodland for physical exercise; every weekend and on public holidays people of all ages flock to the countryside for hiking, cycling, picnicking, barbecuing and camping. Evening outings are becoming popular and

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      kite flying is a new activity. In 1982, about 8.5 million people visited the country parks. Although the parks are used more in the drier and cooler months from October to April, which accounted for 70 per cent of the total visitors, there are signs that more people are visiting the countryside in the summer.

The country parks system, which consists of 21 parks covering 40 per cent of Hong Kong's total land area, is now well established with a wide range of facilities to cater for the needs of visitors. Management and protection services are also provided for this valuable recreational resource. The Director of Agriculture and Fisheries is the Country Parks Authority and is responsible for their management. There are specially designed visitor centres at Aberdeen and Plover Cove Country Parks, another is being built at Pak Tak Chung in Sai Kung Country Park, and more centres are planned for other country parks. The main function of the centres is to provide information to enable visitors to derive greater enjoyment from the countryside.

A full Park Ranger Scheme was established in 1982 to cover the entire country parks system. The rangers and wardens advise and guide visitors in the use and care of countryside recreational facilities, protect the plants and wildlife, and carry out the countryside educational programme.

Recreation and Sport Service

In its eight years of existence, the Recreation and Sport Service of the Recreation and Culture Department has played an increasingly important part in providing leisure activities for all walks of life. Through the concerted efforts of its headquarters and 19 district offices, the service continued to aim at encouraging people - particularly those who lack the means, or even the motivation - to make full use of their leisure hours.

During 1982, 574 150 people took part in 7 145 projects covering a wide range of activities offered by the service, ranging from swimming classes for babies to excursions for the elderly. This represented a 3.5 per cent increase over the previous year in the number of projects organised, made possible through funds provided by the Urban Council, the district boards and commercial firms. Joint projects with the Urban Council and district boards numbered 267 and 985 respectively, and 288 activities were funded by commercial sponsors. The service also gave technical assistance to 191 organisations throughout Hong Kong enabling some 528 projects to take place for the benefit of 84 051 participants.

        The service's district offices worked closely with the district boards, the Urban Council and government departments to develop district identity, particularly through recreation and league matches. The sports section continued to keep in close contact with the territory's sports bodies, exploring new areas in sports development and in training instructors and officials to support expanding activities.

        One of the sporting highlights of 1982 was the Far East and South Pacific Games for the Disabled, hosted this year by Hong Kong. The games, held at the Jubilee Sports Centre in October, were opened by His Royal Highness the Duke of Kent and some 800 handicapped athletes and officials participated representing 20 countries and territories. Another important event was the visit by the president and vice-president of the Inter- national Olympic Committee to the Amateur Sports Federation and Olympic Committee of Hong Kong (ASF and OC).

Close co-operation continued between the ASF and OC, the sports governing bodies, the Recreation and Culture Department's Sports Administration Section, the Urban Services Sports Promotion Section and the private sector. On the advice of the Council for Recreation and Sport, $4.8 million from government funds was allocated to sports

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associations during the year. In particular, this will enable competitors and officials to gain more international sports experience overseas. A total of 170 applications for funds were received; the largest sum paid out was $1.65 million enabling Hong Kong to participate in the Commonwealth Games and the Asian Games.

In view of increased participation in international and regional sports competitions, the ASF and OC, supported by the government, has initiated a scheme to provide major sports bodies with administrative assistance. By the end of the year, 22 sports bodies had permanent or part-time staff, and the ASF and OC and various associations were installed in offices at the Queen Elizabeth Stadium.

Of the new facilities started in 1982, the laying of the foundation stone of the Tso Kung Tam Outdoor Recreation Centre by the Governor in March marked the beginning of work on the government's first purpose-built outdoor recreation centre. In February, the Recreation and Culture Department launched its second water sports centre with the opening of the Chong Hing Water Sport Centre in Sai Kung. Made possible by the close co-operation of a number of government departments, sporting bodies and the private sector, this centre will augment the Recreation and Sport Service's residential camping programmes provided at the Sai Kung Outdoor Recreation Centre, the Lady MacLehose Holiday Village and the Tai Mei Tuk Water Sports Centre. Together, these three attracted a total of 23 373 visitors during the year, with 84 262 staying overnight. Good use continued to be made of sports centres at the Hung Hom Car Park, the City Lions Club and Tai Hing, attracting 32 212 participants in various programmes throughout the year. Three additional sports centres were established, two in Tsuen Wan and one on Hong Kong Island at Canal Road. These new centres maximise the use of available space to provide extra recreational facilities. Further schemes along these lines and joint ventures are being planned to provide additional facilities at a reasonable cost.

The year saw the implementation of new recreational planning standards, on the advice of a working group of representatives from the government and sports bodies, covering the standards of facilities and a new strategy for developers and architects.

In the field of dance, the Hong Kong Jing Ying Dance Troupe, managed by the Recreation and Sport Service, provided exciting opportunities for talented young amateur performers to participate in overseas tours. During 1982, the troupe performed on 24 occasions, which included a tour in the United Kingdom.

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, indoor games halls, beaches 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 district boards, other government departments and community associations.

      Among the many Urban Council projects completed in 1982 were the seven-hectare Shek Kip Mei Park - the first waterfall park to be built in Kowloon - providing a green-belt and recreational area for the 469 000 residents of Sham Shui Po, and the 1 200-metre Tsim Sha Tsui Promenade - providing a pleasant walkway and recreational ground for the fast-developing commercial district of East Tsim Sha Tsui.

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To provide more indoor facilities, particularly in built-up areas where space is limited, Urban Council new or reprovisioned market buildings will in future be multi-storey, with one or two floors constructed especially for recreational and cultural use. In 1982, one such multi-purpose complex was opened in Aberdeen and another 20 were being planned. In addition to standard facilities, most of the new complexes will have an area of about 2 500 square metres to house district cultural centres for the performing and visual arts, consisting of an auditorium, a lecture and recital hall, exhibition space and ancillary facilities. Five of these cultural centres are being planned for new complexes at Sai Wan Ho, Central and Western, Yau Ma Tei, Ngau Chi Wan and Kwun Tong, with the first scheduled for completion by mid-1985. Another 11 indoor games halls will 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 and government departments in implementing its annual sports and recreation programme. With a pro- vision of $5.1 million in 1982, the council organised and sponsored over 12 300 sports and recreational events in which about 1.1 million people participated.

The council also organised 988 free outdoor entertainment programmes throughout the urban areas. Events included variety shows, Cantonese and Peking opera, puppet and film shows, ballet, youth dances, carnivals, folk singing and folk dances. About 1.2 million people were entertained at these events which were presented in parks, playgrounds, gardens, and recreational and community halls.

An intensive 46-day 1982 Summer Fun Festival was launched during the summer holidays. More than 58 290 young people and children took part in various outdoor events such as launch picnics, swimming parties, family harbour cruises, carnivals, camping activities, youth dances, film shows and children's parties.

In celebration of the annual Dragon Boat Festival, the Urban Council and the Hong Kong Tourist Association organised the 1982 International Dragon Boat Races, attended by five overseas teams. For the Chinese Mid-Autumn Festival, the council organised lantern carnivals at Victoria Park on Hong Kong Island and at Morse Park in Kowloon which attracted more than 333 500 people. Other large-scale programmes, such as the Christmas Special, New Year Fiesta, Lunar New Year Programme, April Fiesta and May Fair, were organised to mark festive seasons and special occasions throughout the year. In the New Territories, the Cultural Services Department organised some 231 entertainment events which were attended by 183 890 people.

Beaches and Swimming Pools

Swimming is Hong Kong's most popular summer recreation. There are 41 gazetted beaches in the territory comprising 12 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 complexes in the urban areas, while the New Territories Services Department manages three in the New Territories.

Hong Kong's first heated teaching pool, built at the Morrison Hill Swimming Pool Complex, was opened in June. At a cost of $5.2 million, the pool is designed to facilitate physically handicapped people. Piling work on a modern swimming pool complex in Lai Chi Kok also started during the year.

       During the swimming season, an estimated 22 million people visited the beaches and 4.8 million used the swimming pools. Twenty-three new swimming pool complexes are planned - one on Hong Kong Island, eight in Kowloon, and 14 in the New Territories.

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More than 1000 guests and young people attended the opening ceremony of the 1982 Summer Youth Programme at the Queen Elizabeth Stadium which marked the beginning of several thousand activities organised during the summer months with school children in mind.

As in the past 13 years, overall planning of this annual series of events for youth was undertaken by the Central Co-ordinating Committee for Youth Recreation, consisting of representatives from government and private organisations. Popular activities in the programme included the Third Hong Kong Youth Music Camp, over 90 forestry work camps, sports activities and training courses, and filming the television series entitled Swinging Summer.

At a cost of some $12 million, the programme was financed by a $5.5 million donation from the Royal Hong Kong Jockey Club - its main supporter since its inception in 1969 - government and Urban Council funds, private donations and participants fees. From the Royal Hong Kong Jockey Club's contribution, $1.5 million went towards permanent recreational facilities, such as archery ranges, mini-soccer pitches and basketball courts.

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. The Hong Kong association was able to forge closer links with the international federation following the visit of its president to Hong Kong in 1982. Membership increased by 24 per cent to some 20 000 during the year and the hostels continued to be used by young people aged from 17 to 24 years.

      The association reopened its hostel at Chek Keng in the New Territories during the year with the help of a donation from the Bradbury Trust, providing improved facilities and additional accommodation in a new dormitory block. Another hostel is being built 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 take advantage of the low cost facilities now available to them in 66 countries when they enjoy their holidays overseas.

Outward Bound

The Outward Bound School has extended courses on the brigantine Ji Fung to include school holiday voyages for children. The standard Outward Bound courses aboard the ship for students, senior executives, young businessmen and children were well attended. The ship has now sailed 18 500 miles in local waters, to the Philippines and up the China coast, since being launched in 1980. The Ji Fung took part in the South China Sea Race with a mixed crew aged from 14 to 60 years and finished first over the line in her class.

      At the school on Sai Kung peninsula, a wider range of programmes has been introduced including country park ranger training and field courses for school children, as well as junior management courses in decision making, leadership and team work. Courses for the disabled are still popular.

      A special grant from the Royal Hong Kong Jockey Club has enabled the school to expand its programmes, administration space and lecture facilities. In addition, the school is hoping for further financial assistance in the near future to bring fees for courses within the range of more people in Hong Kong.

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One of the largest oceanaria in the world, Ocean Park has attracted more than 10 million visitors since it opened in 1977. Developed by the Royal Hong Kong Jockey Club on land granted free by the government, the park spanns a high rocky peninsula between Aberdeen and Deep Water Bay on Hong Kong Island, with 88-hectare headland and lowland sites linked by cable car.

On the headland, the Ocean Theatre, with a 4000-seat auditorium, features daily performances by trained dolphins, sealions and a killer whale, while a simulated coastline of rocks and waves allows visitors to watch and feed seals, sealions and penguins. A reef, with viewing galleries at four levels, recreates the shallows and depths of a tropical atoll and is the world's biggest aquarium, displaying some 300 species of marine life ranging from sharks to tiny coral fish. The lowland site features landscaped gardens, lakes, a zoo, a children's play area and a garden theatre.

In July, Ocean Park announced details of a major redevelopment programme. Funded by the Royal Hong Kong Jockey Club, the $240-million project features a second entrance from Tai Shue Wan Bay using a spectacular series of escalators, an important water recreational area in the lowland site, a craft village, shops, restaurants, a roller coaster and a children's adventure world. The development will provide an improved leisure and recreational facility, as well as diversifying the attractions of the park and establishing its long-term liability. Most of the new attractions will be completed by late 1983.

Queen Elizabeth Stadium

The Queen Elizabeth Stadium, the first multi-purpose indoor sports and entertainment complex in Hong Kong, has become a major venue for important international sporting events as well as musical, cultural and entertainment programmes since its opening in 1980. During the year, the stadium was the venue for many international sporting events and concerts.

Under the management of the Urban Council, the stadium integrates sports adminis- tration, training, and competition, and houses the Amateur Sports Federation and Olympic Committee of Hong Kong and 23 governing sports bodies. This close contact facilitates the co-ordination and promotion of sports activities in Hong Kong.

Its indoor facilities, including a multi-purpose hall, gymnasia, a table tennis area, squash courts and ancillary committee rooms, are available for training or for hire. The stadium's main feature is a 3 500-seat air-conditioned arena, providing a facility of international standard for a variety of sports.

Jubilee Sports Centre

A major achievement in sports development in Hong Kong during the year was the completion of the Jubilee Sports Centre in Sha Tin. A joint venture between the government and the Royal Hong Kong Jockey Club, the 160-hectare centre was opened after three years' construction and at a cost of just over $150 million. Some $56.9 million was provided by the government's Special Coin Suspense Account first established in connection with the visit of Her Majesty the Queen in 1975. The centre was opened by His Royal Highness the Duke of Kent in October coinciding with the staging of the Far East and South Pacific Games for the Disabled.

The centre, one of the most modern complexes of its kind in the region, provides first-class training facilities and coaching in a wide range of sports. Innovative facilities include Hong Kong's first covered track for all-weather sprint and hurdle training, the first

URBAN COUNCIL LIBRARIES Reference Library City Hall

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cycle velodrome and an ozone-treated swimming pool. Additionally, outdoors there are three grass soccer pitches, an eight-lane Olympic track, a tennis range, a jogging trail, an artificial-turf training area, a hockey pitch, an area for baseball and softball, and courts for basketball, volley ball and mini-tennis. Indoors there are squash courts, a gymnasium, a dance studio, a weight and strength training room, and halls for a variety of sports. The centre provides residential accommodation for about 100 persons.

City Hall

Opened in 1962, the City Hall occupies about 11 000 square metres of land in Central District and consists of two separate blocks connected by a memorial garden. The low block houses a 1 488-seat concert hall, a 468-seat theatre, an exhibition hall and a Chinese restaurant. The high block contains an exhibition gallery, a 116-seat recital hall, committee rooms, the Hong Kong Museum of Art, and public libraries operated by the Urban Council. Administered by the Urban Council, the City Hall's facilities are available for hire by the public as well as being used by the council for various functions and performances. With increasing public interest in cultural activities, the City Hall continues to be the centre of cultural life in Hong Kong. During the year, about 582 150 people attended 1026 performances held in the concert hall, the theatre and the recital hall; 152 exhibitions were held at the exhibition hall and exhibition gallery.

In 1982, a year-long fiesta of cultural events was launched to celebrate the 20th anniversary of the City Hall. The Urban Council organised performances by some 75 overseas artistes and groups, some appearing with the assistance of various cultural organisations such as the United States International Communication Agency, the British Council, the Goethe Institute, the Alliance Francaise, and various consulates including the Japanese Consulate General and the Austrian Consulate General.

      The Urban Council also takes an active interest in promoting local artistic talent. Resulting from its popularity in past years, the Fifth Chinese Opera Fortnight was held in August with an increase in performances from nine in 1981 to 13 in 1982. During the year, 85 vocal and instrumental recitals, eight opera performances and 30 Chinese and Western dance performances by local artistes were presented.

In addition to the regular weekly series of French and German films, the Urban Council and local and international cultural organisations jointly presented a variety of film festivals. The council also organised a number of cultural exhibitions in the year, including the 37th Hong Kong International Salon of Photography, and a photographic exhibition organised jointly with the Commission for India.

Tsim Sha Tsui Cultural Centre

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 building a cultural complex that will become the centre of Hong Kong's cultural life. Piling work continued during 1982 and the whole project is scheduled for completion in 1986.

       Facilities will include a crescent-shaped auditoria block housing a 2 280-seat concert hall for presenting unamplified music, a 1930-seat lyric theatre for opera and ballet and stage shows and a 400-seat studio theatre for drama. A nine-storey tower block will accommodate the offices of the Cultural Services Department, the Urban Council computerised ticketing centre and an arts library. A restaurant block will house Chinese and Western restaurants, conference and lecture rooms.

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Hong Kong Coliseum

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The Hong Kong Coliseum, one of Asia's largest and most sophisticated indoor stadia, is scheduled for opening by the spring of 1983. This $140 million project, to be managed by the Urban Council, is being built on the podium of the Kowloon-Canton Railway terminus at Hung Hom.

The multi-purpose 12 500-seat coliseum will become the national sports stadium of Hong Kong and will provide the territory with the most up-to-date facilities to cater for international sports events and performances, such as circuses, ice-skating, variety shows, parades and concerts, as well as trade exhibitions and conventions. A television system above the arena will project colour telecasts of events taking place.

Ko Shan Theatre

The Urban Council's Ko Shan Theatre, situated at an old quarry site, is the first open-air theatre to be built in Hong Kong. Scheduled to open in early-1983, the theatre will become the venue for a wide range of performances such as Chinese opera, orchestral concerts, and pop and variety shows. The 3 000 seats of which 1 000 will be under cover are arranged in a fan shape around the stage, and the theatre is being equipped with the latest lighting and sound systems.

Town Halls

Opened in 1980, the Tsuen Wan Town Hall was the first multi-purpose cultural complex to be built in the New Territories. The main feature of the hall is a 1 424-seat multi-purpose auditorium, suitable for concerts and theatrical performances. Other facilities include an exhibition gallery, a cultural activities hall, lecture and conference rooms, a music and book shop, and a coffee lounge. Built on a 5 900-square-metre site in the centre of the new town, the hall is managed by the Cultural Services Department.

       The North District Town Hall, located on 2 750-square-metre site south of Shek Wu Hui, Sheung Shui, is part of the North District Community Centre. It was officially opened by the Governor in March 1982 and is managed by the Cultural Services Department. The hall's facilities include a 900-seat auditorium and a dance studio.

       The Lut Sau Hall in Yuen Long was gazetted as a civic centre in August 1981 and has since been managed by the Cultural Services Department. The hall has a multi-purpose auditorium with 880 movable seats suitable for both concert and theatrical presentations, and a rehearsal room equipped for dance training, rehearsals and meetings.

Hong Kong Arts Centre

The three auditoria at the Hong Kong Arts Centre were used for more than 2 000 sessions and its art galleries hosted over a hundred exhibitions during the year. The two rehearsal rooms, art and crafts studios, music practice rooms and other areas were used for more than 7 000 separate sessions. Since its opening in October 1977, the Arts Centre has become well established as a major arts venue in Hong Kong, enjoying great public support and participation.

       The main event of the year was the Dow Summer Arts '82, a major arts project lasting four weeks and including a wide variety of courses, lectures, workshops and special performances. Over 7 000 young people attended this summer project, being held for the second consecutive year.

Another major highlight was the Childrens' Festival, especially for the six-to-16 year olds. The festival offered three weeks of musicals, magic shows, Peking opera and

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music education programmes especially designed for the young. About 20 000 children participated in this event.

Council for the Performing Arts

The Council for the Performing Arts was appointed by the Governor in February to advise the government on the development of the performing arts in Hong Kong. The council comprises 11 unofficial and six official members and is chaired by an unofficial.

       In addition to the main council, six sub-committees cover music, dance, drama and technical services, business sponsorship, festivals and district activities, and finance vetting. Each sub-committee is chaired by a member of the main council and includes specialists in the particular fields. The sub-committees examine and advise the council on policy and financial support in their respective areas of the performing arts.

      The Recreation and Culture Department provided administrative and financial aid to a number of organisations involved with the performing arts during 1982, including the Hong Kong Arts Festival Society, the Hong Kong Philharmonic Society, the Hong Kong Conservatory of Music, the Hong Kong Academy of Ballet, the Hong Kong Academy for Performing Arts and the Chung Ying Theatre Company. It co-ordinated international events and overseas tours, such as the International Music Council's Symposium held in Hong Kong, and supported music and dance activities through the Royal Hong Kong Jockey Club Music Fund.

Hong Kong Academy for Performing Arts

The creation of the Hong Kong Academy for Performing Arts was announced in April to encourage and help develop high professional standards in music, dance and drama among young people in Hong Kong and to cater to the increasing need for rehearsal and training facilities.

The Royal Hong Kong Jockey Club will build the academy on a water-front site in Wan Chai as a project to mark its 150th anniversary in 1984 and will donate $300 million towards the cost. As well as providing the site, the government will contribute $70 million towards the project and will pay annual running costs.

The academy will house four major schools for training at tertiary level in music, dance, drama and technical services for both Western and Chinese arts forms. A prevocational school for gifted children in music and dance, and part-time and evening classes for a wider public, are also envisaged. At full development the academy will cater to an estimated 600 full-time students.

       Facilities will include two major theatres with a combined seating capacity of 1 600 for dance, drama and music; a 200-seat studio theatre for experimental drama; classrooms, practice-rooms and studios for teaching; a rehearsal hall, fully-equipped as a recording studio; and a small television studio. A provisional council has been formed with its own secretariat to oversee the development of the curriculum and the recruitment of teaching staff from Hong Kong and overseas in time for the 1985 academic year.

Hong Kong Philharmonic Orchestra

Throughout 1982, the Hong Kong Philharmonic Orchestra demonstrated its emergence as one of Asia's leading symphony orchestras. Weekend evening subscription concerts at City Hall continued to attract near-capacity audiences and regular concerts were given at the Academy Community Hall, the Tsuen Wan Town Hall and the Queen Elizabeth Stadium. For the first time, the orchestra gave a series of concerts in Sha Tin and

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Yuen Long. It accompanied the Bach Choir from London and artistes from the New York Metropolitan Opera for concerts presented by the Urban Council, and participated in an opera production. In addition, many distinguished guest artistes played with the orchestra during the year.

The orchestra made its first commercial digital recording in January, and sales during the year exceeded 10 000 copies. In the summer, a contract was signed with a recording company to make six recordings a year over the next two years for world-wide distribution.

Hong Kong Chinese Orchestra

Formed by the Urban Council in 1977, the Hong Kong Chinese Orchestra has contributed extensively to the popularity of Chinese music. It has also achieved significant success in combining Western orchestral works with Chinese music and traditional Chinese musical instruments. It expanded its full-time membership from 62 to 67 in 1982 and plans to replace all part-time musicians with full-time players.

       During the year, the orchestra gave 55 concerts which were attended by 67 660 people; it represented Hong Kong at the Commonwealth Arts Festival in Brisbane, Australia, in September; and several overseas soloists and guest conductors performed with the orchestra.

Hong Kong Repertory Theatre

During the year, the Hong Kong Repertory Theatre, which became a professional company with the Urban Council's sponsorship in 1977, gained increasing popularity in its Cantonese productions. Full-house attendances were recorded for the theatre's performances at the City Hall which attracted a total of 40 983 people to the nine productions staged. The theatre employs 16 full-time actors, a number of freelance artistes and production staff.

Chung Ying Theatre Company

The Chung Ying Theatre Company is a professional, full-time company comprising Hong Kong actors and technical staff joined during the season by actors and production staff from the United Kingdom. The company's main activities involve public performances and an extensive schools' programme performed at venues ranging from the City Hall, the Arts Centre and Tsuen Wan Town Hall to schools and public areas.

Several plays in English and Cantonese were presented during the year including a Greek classic and an adaptation of a modern German play. The company made two schools' tours with productions in English and Cantonese and, in December, performed medieval mystery plays in a number of churches in Kowloon and Hong Kong.

Hong Kong Dance Company

Formed by the Urban Council in 1981 to promote the art of traditional Chinese dance and to present newly choreographed work on Chinese historical themes, the Hong Kong Dance Company presented its first production - a full-length dance drama - in January. During the year, a performance by the company was featured as the opening programme of the seventh Festival of Asian Arts and the company represented Hong Kong at the Commonwealth Arts Festival in Brisbane. A total of 36 performances was given during the year, attended by 34 392 people.

Hong Kong Academy of Ballet

      Consisting of Hong Kong's first professional ballet company and vocational ballet school, the Hong Kong Academy of Ballet is now in its fourth year of operation. Although the

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     academy receives a government subvention, it depends on private donations to continue its expansion programme. By September, the number of students enrolled in full-time ballet training was 27. The four-year curriculum provides training in classical ballet and other dance forms and in the history of dance. Scholarships are given by the Royal Hong Kong Jockey Club Music Fund and, since 1982, the Zonta Club; school graduates are auditioned for the company.

During the year, the company's professional dancers gave performances in schools, at various arts festivals, and at the City Hall.

Music Office

During 1982, more than 2 500 students were receiving weekly instrumental training under the auspices of the Recreation and Culture Department's 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 1982, the scope of its activities was further expanded, so that on average about 530 classes were conducted each week at the office's seven Music Centres, various schools and community centres.

Aural and theory training supplemented instrumental instruction, special training was provided for 32 talented young musicians, and master classes and seminars were conducted by visiting musicians. The office continued to consolidate and expand the training of youth orchestras, bands and choirs, and it now operates two youth symphony orchestras, six youth Chinese orchestras, five youth symphonic bands, seven choirs, a children's marching band and a trainees' string orchestra. Members attended weekly rehearsals and gave public performances during the year.

      'Music for the Millions' concerts given by the Music Office instructors' orchestras, youth orchestras, bands and ensembles were held at various schools, playgrounds and community halls to introduce music to new audiences. During the year, 324 concerts were held for a combined audience of over 210 000 people.

The office continued to organise international exchange programmes and young musicians participated in music camps and festivals in the United Kingdom and Australia. The Third Hong Kong Youth Music Camp was held in the summer at St Stephen's College, Stanley. Over 300 young musicians including 20 overseas delegates participated, and 10 renowned overseas musicians joined the camp's faculty staff. The Fifth Hong Kong Youth Symphonic Band Festival was held in November.

Hong Kong Conservatory of Music

The Hong Kong Conservatory of Music provides professional training in Chinese and Western music. It offers a four-year diploma course for instrumental performers and teachers which includes instrumental training, the history and theory of music, and musicianship. Located at the Arts Centre, the conservatory has been providing full-time training since October 1978. There are presently 46 students enrolled in the conservatory and its first students graduated in July 1982.

Royal Hong Kong Jockey Club Music Fund

In December 1979, the Royal Hong Kong Jockey Club donated $10 million to establish a non-statutory trust fund to promote and develop music, dance and other related activities. The music fund is administered by a board of trustees chaired by the Commissioner for Recreation and Culture and comprising eight members. Up to the end of 1982, grants and

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Hong Kong's woodlands, forests and scenic hillsides provide a striking contra to its dynamic urban lifestyle. This im posing landscape makes up a surprising 40 per cent of the territory's land area. Much of it falls within country park which, with a yearly 8.5 million visitors, have assumed an important role in provi ing a restful retreat for town ́dwellers. But even nature needs a helping hand and an extensive forestry programme under- taken by the Agriculture and Fisheries Department is continually improving the countryside and conserving it for the benefit of Hong Kong's expanding popula- tion. Random planting methods are ing the appearance of natural woodland to the 125 square kilometres of forest plantation. In 1982 alone, 432 000 trees - mainly of broadleaf species - were planted within the country parks. It is hard now to imagine the ravaged scene of just 30 years ago when the countryside was stripped of forest for timber and fuel during and im- mediately following World War II. Only the most precipitous wooded ravines and sacred groves survived. A replanting policy was implemented in 1953 and continued until the 1970s when another forestry development programme began. And today urban landscaping is adding pockets of greenery to the towns. The Urban Council runs eight nurseries to supply plants for its parks, landscape develop- ment and gardens in built-up areas; and over five million trees are being planted between 1982-3 in conjunction with the mei fa, or beautification, phase of the Clean Hong Kong campaign.

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Previous page: Afforestation helps prevent soil erosion and provides a picturesque backdrop for the Shing Mun Reservoir. Left: Tree planting in Sha Tin by govern *ment officials and community leaders: the Urban Council's 15th Annual Flower Show; visitors of all ages enjoy the forest nature trails.

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scholarships totalling $4.28 million had been paid from the fund. Forty-one scholarships have so far enabled young Hong Kong people to study music and dance at home or abroad. About 500 grants have been given for a variety of related purposes including the purchase of musical instruments and the staging of special events.

Festival of Asian Arts

The Urban Council's Festival of Asian Arts has become a major cultural event in Asia. The Seventh Festival of Asian Arts, held for 17 days in October, presented a total of 153 performances by artistes from Sri Lanka, Korea, Pakistan, Japan, China, Indonesia, Malaysia, the Philippines, Australia, New Zealand, Thailand, India and Bhutan, as well as by local groups.

Although most performances were indoor programmes staged at the City Hall and the Queen Elizabeth Stadium, 70 others were performed at various outdoor venues. Exhibitions on sculpture from Thailand and Japanese contemporary pottery were held as part of the festival. Altogether, the festival attracted over 250 000 people.

Hong Kong Arts Festival

During the month-long 1982 Arts Festival, Hong Kong audiences enjoyed a variety of performances by international and local artistes. The festival opened and closed with performances by the Hong Kong Philharmonic Orchestra under the baton of conductor Maxim Shostakovich. More orchestral music was provided by the Cleveland Orchestra and the Zurich Tonhalle Orchestra. Chamber music and recitals included performances by baritone Benjamin Luxon; the Gabrieli String Quartet; and two young Brazilian guitarists, Sergio and Odair Assad. At the other end of the musical spectrum, British jazz entertainer George Melly gave four performances with John Chilton's Feetwarmers.

Equally varied were the festival's theatrical performances by the Cambridge Theatre Company, the Moving Picture Mime Show, the Compagnie Philippe Genty (Puppet Theatre), Judi Dench and Michael Williams, and the Hong Kong Repertory Theatre. Hong Kong's own music and arts groups made their usual contribution to the festival with a Radio Television Hong Kong opera production, an Opera Rara play and music by Hong Kong composers. Local ballet added to dance performances by Joffrey II from the USA and the Dance Troupe of the Shanghai Opera House.

For the first time, a Children's Festival was included in the programme, offering a wide range of activities aimed at audience participation.

New Territories' Arts Festivals

The Fourth Tsuen Wan Arts Festival, organised by the Cultural Services Department, the Tsuen Wan District Board, the Tsuen Wan Culture and Recreation Co-ordinating Associa- tion, and the Music Office, was held early in the year. Sixteen outdoor shows and 39 indoor programmes were staged, including a variety of performances by local and overseas artistes. The Second Yuen Long Arts Festival was held in February. Some 30 000 people attended the 24 events given by overseas and local performers at the Lut Sau Hall, Yuen Long Town Hall and other venues. The festival was jointly presented by the Yuen Long District Board, the Yuen Long District Arts Committee and the Cultural Services Department.

The Sha Tin Arts Fortnight held from late December 1981 to early January 1982 was the district's first arts festival. It was jointly presented by the Cultural Services Department, the Sha Tin District Board, the Sha Tin Arts Association and the Music Office. Some 30 000 people attended over 40 concerts, exhibitions, and dance and opera

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performances held in the Sir Run Run Shaw Hall, the Caritas Social Centre and other local community centres.

International Children's Choir Festival

Over 19 800 people attended the 18 concerts held during the first International Children's Choir Festival in Hong Kong, organised by the Urban Council in association with the Tsuen Wan Town Hall and the Hong Kong Children's Choir. Nine overseas groups from Australia, Finland, Iceland, Japan, the Philippines, Puerto Rico and the United States, together with the Hong Kong Children's Choir, took part in the week-long festival in July. The festival was designed to bring together children from different nations, races and religions to promote international friendship and understanding, as well as to encourage cultural exchange through music.

International Film Festival

The Hong Kong International Film Festival organised annually by the Urban Council is established as a major cultural event in Hong Kong. Accredited by the International Federation of Film Producers' Association in Paris, this non-competitive event is winning a high reputation among film festivals world-wide. Attendance has grown steadily and more than 65 000 people saw the 181 films from 28 countries screened during the 16-day sixth festival held in April. Apart from presenting the three selected groups of international, Asian, and Hong Kong contemporary films, the programme featured films of Buster Keaton and Cantonese retrospective films. An exhibition of film stills and posters was held, and six seminars were conducted by overseas and local film directors and critics.

Libraries

The Urban Council operates 16 public libraries, two mobile libraries, three record libraries and a video-cassette library. In the New Territories, the Cultural Services Department operates 11 public libraries including one mobile library.

Under the Urban Council's libraries' expansion programme, four small libraries were opened in Happy Valley, Kowloon Bay, Shun Lee Estate and Quarry Bay; approval was given for a new central library for Kowloon, to be completed by 1984; and a district library at the Aberdeen Complex is due for completion during 1983. In the New Territories, the Cultural Services Department opened a library on Lamma Island. An audio-cassette lending scheme was introduced in August at the City Hall, and at Yau Ma Tei and Kwai Chung public libraries.

During the year, 338 488 new books were acquired by the two library systems, bringing the total stock to 1.72 million volumes. Non-book material included 3 460 newspapers and periodicals, 3 923 reels of microfilm, 1 422 video-cassettes, 1 858 sets of slides and 41 369 records and cassette tapes. Some 113 000 people joined the libraries as new members, bringing the total membership to 1.14 million. More than 6.2 million books were issued for home reading and a further 10.2 million were read in the libraries. Some 1.03 million people participated in extension activities and programmes organised to promote the use of libraries such as book exhibitions, talks, club sessions, video-cassette viewing, hi-fi concerts and live performances. A highlight of library activity for children was the second Creative Writing Competition in Chinese.

Hong Kong Museum of Art

Housed in the high block of City Hall, the Hong Kong Museum of Art presented

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14 temporary exhibitions in 1982. These featured traditional and contemporary art, including paintings by leading overseas Chinese artists, drawings and watercolours of the last two centuries from Britain, bronze and stone sculpture from Thailand, contemporary pottery from Japan, and calligraphy from Guangdong.

During the year, 278 315 people visited the exhibitions an average of 913 a day. The museum also organised regular film shows, guided tours for school groups and lectures on selected art subjects by local and overseas experts. Small travelling exhibitions were held at various Urban Council public libraries. Several significant items were acquired by the museum.

The museum will move to permanent premises in the Tsim Sha Tsui Cultural Centre by the mid-1980s. When completed, the new Museum of Art will occupy a total floor area of some 11 000 square metres. During the year, the Urban Council announced $3.6 million is to be spent on works of art for the museum, as part of a programme to encourage the visual arts in Hong Kong.

Hong Kong Museum of History

During 1982, the Hong Kong Museum of History moved into temporary accommodation in Kowloon Park. Two old barrack buildings were renovated and redesigned to provide two exhibition galleries, a 100-seat lecture hall, society rooms, offices, workshops and storage areas. When completed, the permanent Museum of History in Chatham Road East will have a total floor area of 22 665 square metres.

Since opening in 1975, the museum has mounted more than 30 thematic exhibitions in addition to permanent displays on the history of Hong Kong and Hong Kong's traditional fishing industry. Topics chosen for special exhibitions in 1982 included historic buildings and transport. Some 147 000 people visited the museum's exhibitions during the year. The Central Archaeological Repository grew steadily, with additional finds from licensed excavations, and other categories of collections continued to expand. The museum maintained close links with a number of local societies; arranged jointly-sponsored lectures on anthropological, archaeological and other related topics; and collaboration with the Antiquities and Monuments Office continued.

Space Museum

Opened in October 1980, the Hong Kong Space Museum - the first stage of the Tsim Sha Tsui Cultural Centre - 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, lectures, astronomy classes and telescopic observations. The museum has an advanced motion-picture projection system for its sky shows. in the 316-seat space theatre. In 1982, three full-length sky shows were produced and two films were shown from a programme of Omnimax film shows introduced during the year.

On display in the 1 000-square-metre main exhibition hall are more than 30 sets of exhibits. The Hall of Solar Sciences, a feature of the museum's facilities, marked the beginning of substantial solar observation in Hong Kong. A major attraction is a high-precision solar telescope, offering 'live' information about the sun, accompanied by 14 groups of exhibits and a series of micro-computers. In the 198-seat lecture hall, talks on astronomy and space science for students and the public, as well as other cultural activities, were held during the year, with the sophisticated Zeiss planetarium projector used as a teaching aid.

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Museum of Science and Technology The Hong Kong Museum of Science and Technology project, initiated by the Urban Council, will have a total floor area of 20 000 square metres at Chatham Road East. While the new museum reached a further stage of planning in 1982, the Urban Council continued to finance the construction of a temporary museum as Phase I of the project. The temporary museum, to be completed in 1984, will later form part of the museum proper. Science exhibitions and lectures were already being organised in other venues on a regular basis. The first visitor-participatory science exhibition held in Hong Kong attracted 100 000 visitors over a three-week period at City Hall and Tsuen Wan Town Hall; 15 popular science lectures on topics of current interest were also held, with an average of 200 people attending each lecture.

Antiquities and Monuments Office

The Antiquities and Monuments Office of the Cultural Services Department had an active year recording, restoring and preserving a wide range of items of historical and archaeological interest. Two notable events were the completion of the first phase of the restoration of Sheung Yiu Village in Sai Kung Country Park, made possible by a generous donation from the Tung Wah Group of Hospitals, and the opening of an old ruined Chinese fort on Tung Lung Island to the public in April. Work on the protection of ancient rock carvings and inscriptions progressed, with a view to public display in the near future. Students from the School of Architecture at the University of Hong Kong were employed during the summer vacation to continue the survey of Chinese rural architecture and to record local history in the New Territories. The survey this year focused on Lamma Island.

     The Antiquities and Monuments Ordinance was amended in 1982 to permit the government to provide immediate protection for proposed monuments on a temporary basis while the merits of the case are being considered by the relevant authorities. Under the amendment, it is an offence to damage, destroy or make any alteration to a proposed monument without the permission of the Director of Urban Services who may, with the approval of the Governor, declare any place, building, site or structure to be a monument by reason of its historical, archaeological or paleontological significance. There are now 19 declared monuments, including steps and gas lamps in Duddell Street, Central; seven rock carvings and inscriptions; forts; ancient villages; and the District Office North building in Tai Po. The year also saw the start of a territory-wide archaeological survey by two overseas consultants to assess Hong Kong's archaeological resources and to establish priorities in the research of sites.

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The Environment

THE Overall strategy for environmental protection continued to be developed during the year with recognition given to Hong Kong's special needs and problems. The programme rests on three vital areas of legislation, consultation and the organisation of resources.

      Dealing with matters of geophysics and meteorology, such as weather forecasting and the provision of tropical cyclone warnings, the Royal Observatory provides a comprehensive service to the public and to international shipping and aviation. Major projects during the year included the installation of a new weather radar, the improvement of the landslip warning system, and continued research for the proposed new airport site at Chek Lap Kok.

Legislation

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 and specifies 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 of toxic, hazardous and difficult wastes, of agricultural wastes and on the preparation of a statutory Waste Disposal Plan which will set out the government's long-term programme 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. The first water control zone, covering Tolo Harbour and Tolo Channel, was declared in February 1982 and water quality objectives have been determined for the zone. The ordinance will soon be fully effective in this area. Considerable research and monitoring is being carried out prior to the extension of these controls to ensure that licence conditions will achieve the environmental quality objectives for each area. In doing so, a flexible approach is being adopted instead of imposing blanket controls.

The Air Pollution Control Bill, which is currently being considered by the Legislative Council, is intended to deal with pollutants emitted from stationary sources. Basically, it incorporates the controls on grit and smoke now contained in the Clean Air Ordinance,

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but proposes an extension in 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 makes provision for air quality objectives to be defined in which maximum desirable concentrations of air pollutants, such as sulphur oxides and particulate matter, may be identified; it further proposes that major new developments which fall into a special category, termed 'specified processes', should be licensed. The bill is also intended to enable subsequent regulations to be introduced specifying maximum emission limits, fuel composition and other standards or codes of practice.

Progress has been made in the preparation of a comprehensive Noise Control Bill. This will consolidate existing controls on noise, as well as introducing new provisions, and will cover such areas as construction, industrial and neighbourhood noise. It is anticipated that the bill will be ready for presentation to the Legislative Council by late 1983 or early 1984. Drafting of the Environmental Impact Assessment Bill is progressing at a slower pace since valuable experience is being accumulated from the present non-statutory arrangements 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.

Consultation

The principal consultative forum on environmental matters is the Environmental Protection Advisory Committee (EPCOM) which advises the 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 requirement that industry remains viable and competitive.

      EPCOM, with an unofficial member as chairman, comprises 17 members, including prominent citizens, representatives of three major industrial organisations, the Chinese Manufacturers' Association, the Federation of Hong Kong Industries, and the Hong Kong General Chamber of Commerce, and a representative 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 discussed a variety of subjects during the year, including the Air Pollution Control Bill, water pollution in Tolo Harbour and at Kai Tak Nullah, compressor noise, smoke from motor vehicles, water quality objectives and water control zones, waste management, lead in the environment and the noise implications of the Mass Transit Railway Island Line.

      A provision for consultation on environmental protection regulations and related matters is incorporated in 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 by night and on public holidays. Protecting the Environment

     The task of formulating environmental protection policy is the responsibility of the Home Affairs Branch of the Government Secretariat. However, because of its bearing on the health of the community, it was decided at the end of the year that this responsibility

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should be transferred from the Secretary for Home Affairs to the newly-titled Secretary for Health and Welfare.

       In early 1981, the Environmental Protection Unit, comprising a small nucleus of specialists within the Government Secretariat, was transformed into the free-standing Environmental Protection Agency (EPA). Its aim 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, assessing and advising on the environmental impact of major new developments, and providing assistance with environmental planning aspects of government projects.

Control units have been 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 constitute 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, with the visual impact of the stations 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 to determine the capacity of the Junk Bay environment to absorb or disperse polluting emissions and 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, which provide for the control of smoke and grit emitted from stationary sources. The Labour Department is making the necessary preparations to administer the Air Pollution Control Bill which, when enacted, will replace the Clean Air Ordinance.

       During the year, staff of the division inspected 5 460 premises and gave advice to industry on matters concerning statutory requirements, design and installation of air pollution control equipment, and measures to prevent contravention of the clean air legislation. It processed 326 sets of plans and specifications submitted for approval under the Clean Air (Furnaces, Ovens and Chimneys) (Installation and Alteration) Regulations. Air pollution complaints received and investigated numbered 1 285, the majority of which were satisfactorily resolved through advice to the management without the need to resort to enforcement action.

Some 124 prosecutions were initiated under the Clean Air Ordinance and its subsidiary regulations, seven for failure to abate smoke nuisances, 57 for emitting excessive dark smoke, and 60 for unauthorised installation of furnaces, ovens or chimneys, resulting in 121 convictions and fines ranging from $200 to $3,000.

       In 1982, 15 cases of suspected air pollution incidents affecting school children were reported at various locations. Following the recurrence of such incidents around June each year, the government has set up a committee to devise response procedures, and to monitor

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and co-ordinate investigations involving mainly the Labour Department, the Fire Services Department, the Education Department, the Government Laboratory and the EPA. Out of the total number of cases reported, possible causes for nine were found. However, there was no uniformity in the type of incidents giving rise to the reports. Some were due to the release of a stink bomb inside a class-room, or odour emission from sludge cleaning or petrol filling outside a school, or from improperly disposed zoological specimens. In the other cases, sources could not be found even after thorough investigation.

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 50 μg/m3, 76 μg/m3, 23 μg/m3 and 52 μg/m3 and the corresponding smoke density readings were 19 μg/m3, 36 μg/m3, 42 μg/m3 and 58 μg/m3. The highest daily reading of sulphur dioxide registered was 420 ug/m3, which was below the maximum guideline of 1 310 μg/m3 recommended by the former Advisory Committee on Air Pollution.

An environmental survey, Project Simla, was conducted under the supervision of the Air Pollution Control Division and carried out by students from the Chemistry Department of the University of Hong Kong during the summer vacation. This year's programme included an investigation of nuisance dustfall levels in the vicinity of construction sites, quarries, and landfill areas, and a survey to study sulphur dioxide concentration in the plumes of existing industrial discharges.

     Envisaged under the Air Pollution Control Bill is a scheme for air quality management and planning that represents a new concept for Hong Kong. In terms of this scheme, it is proposed that Hong Kong should be divided into air control zones to be declared by the Governor-in-Council, with the air quality objectives for each zone being set by the Secretary for Home Affairs, following consultation in both cases with EPCOM. It is further proposed that major new polluting processes, i.e. those scheduled in the bill as 'specified processes', should be subject to licensing and required to use the best practicable means to prevent the discharge of noxious or offensive emissions. Existing specified processes, it is intended, should be required to be registered but will otherwise generally be exempt from the licensing requirement.

      During the year, the EPA took measurements of sulphur dioxide and coefficient of haze at six sites throughout Hong Kong to provide data on air quality in urban areas and Junk Bay. Measurements are supplemented by on-site acquisition of meteorological data at a number of locations, together with air chemistry measurements of oxides of nitrogen and ozone at an urban site.

In addition to these measurements, the EPA continued its survey of kerbside levels of traffic-related air pollutants, including carbon monoxide, coefficient of haze, total suspended particulate matter, lead and benzo(a)pyrene.

Water Pollution

The effects of strong coastal currents in Hong Kong 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 northwest 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 Engineering Development Department to develop a new approach to maintain and improve conditions. The new

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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 Engineering Development and the Director of Agriculture and Fisheries - to implement appropriate measures over discharges which will maintain the water quality.

As Hong Kong is also 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 at the various terminals. Since the unit's establishment, many pollution offenders have been successfully prosecuted. The maximum penalty, on conviction, 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 7 485 tonnes of floating refuse were collected from the harbour, including domestic refuse from ocean- going vessels in port. The urban scavenging services are now completely mechanised, with eight mechanised refuse collection vessels operating principally in Victoria and Aberdeen harbours. A manual scavenging unit commenced operation at Cheung Chau Island in June, and it is hoped to begin a similar service at Tuen Mun in April 1983.

In an attempt to keep typhoon shelters cleaner, boat to boat domestic refuse collection services had been started on an experimental basis at Tuen Mun, Yau Ma Tei, Causeway Bay, Aldrich Bay and Aberdeen in late December 1981. The experiment was judged a success and from May 1982 the service was continued on a permanent basis. On average, 35 tonnes of bagged refuse were collected each week from the five shelters.

Waste Disposal

The enactment of the Waste Disposal Ordinance in 1980 provided the Directors of Engineering Development, Agriculture and Fisheries, and Urban Services with statutory powers over waste collection and disposal.

       Of the 2.4 million tonnes of solid waste generated in the territory during the year, about 65 per cent was disposed of at controlled tips. It is expected that greater quantities of waste will be disposed of by this method in the future and, in order to make the best use of land formed in this manner, a full land use environmental and operational study is being carried out on the sites.

      Incineration handled some 809 500 tonnes of waste disposal over the year and potential new sites in the western New Territories are being subjected to full economic, environmental

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and operational evaluations. The composting plant at Chai Wan processed about 116 500 tonnes of waste which was disposed of primarily at controlled tips.

Studies have commenced into the transfer and transportation of waste which will need to be taken to more remote sites as controlled tips in the urban area are completed and the processing plants become obsolete. A survey of the quantity and composition of toxic, hazardous and difficult wastes has been carried out and an outline design of an industrial waste treatment plant produced. Medical and animal carcase wastes have also been examined and recommendations made to increase the efficiency of the use of existing incineration facilities and to construct new specialist incinerators.

Consideration is being given to the introduction of a service for the collection of agricultural wastes in Lam Tsuen and Kau Lung Hang where disposal of pig and poultry wastes was causing serious water pollution in the streams and in Tolo Harbour. In addition, separate trial schemes at Hung Shui Kiu and Ta Kwu Ling continued. During the year, some 3 085 tonnes of agricultural waste were collected for disposal. A range of options for final disposal of agricultural waste was prepared.

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 Engineering Development 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.

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 359 complaints was received and investigated, and these led to the issue of 131 abatement notices and two prosecutions.

Government Laboratory

During the year, the Environmental Science Section of the Government Laboratory provided support services for programmes of the Environmental Protection Agency and other organisations. The laboratory also carried out chemical services involving testing and consulting work for many government departments and for the private sector. These included dangerous goods and pesticide residues analyses, determinations of traces of noxious metals in paints and other materials, and scientific work for the Consumer Council.

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

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     streams, and open hillsides. Some 20 freshwater reservoirs of various sizes nestle among the hills, giving additional charm to the scenery.

      About 75 per cent of Hong Kong's land area consists of hills and the vegetation on them includes grass, scrub, and some 125 square kilometres of woodland - much of it the result of afforestation programmes. The woodlands not only make the countryside more beautiful but are important in the management of water catchments.

The Agriculture and Fisheries Department is the principal government agency responsible for conserving the territory's countryside. The Country Parks Ordinance, which came into effect in early 1976, provides for the designation, control and management of the most important areas of countryside as country parks, and enables them to be developed for recreational purposes. It also gives particular protection to vegetation and wildlife. There are now 21 country parks throughout Hong Kong, covering about, 40 per cent of the land area.

      Within these country parks, recreational amenities include picnic and barbecue places, waymarked walks, shelters, toilets, and information and educational services. Road access is also being improved to enable park staff to deal more effectively with fires and litter - the most serious problems created by visitors.

The department also has the responsibility for protecting the flora and fauna throughout the whole of Hong Kong. The Forests and Countryside Ordinance provides for the general protection and management of vegetation, and special protection is given to certain plants including native camelias, magnolias, orchids, azaleas and the Chinese New Year Flower. The Wild Animals Protection Ordinance prohibits hunting of wild animals and restricts the entry of unauthorised members of the public into two important wildlife habitats, the Mai Po Marshes and the Yim Tso Ha Egretry.

Overall enforcement of the ordinances is carried out by park rangers, park wardens and nature wardens. These officers also provide information at visitor centres and at ranger posts and escort groups on guided visits.

      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

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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 throughout the territory.

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. During November and December there are pleasant breezes, plenty of sunshine and comfortable temperatures, and many regard these as the best months in the year. During January and February there is rather more cloud and occasional cold fronts followed by dry northerly winds which can at times be too cold for comfort. It is not uncommon for temperatures to drop below 10 ̊C in urban areas. The lowest temperature recorded at the Royal Observatory is 0°C, although sub-zero temperatures and ice occur at times on high ground and in the New Territories.

     March and April can also be very pleasant except for occasional spells of high humidity. Fog and drizzle can be particularly troublesome on high ground exposed to the southeast, and air traffic and ferry services are sometimes disrupted by the reduced visibility. May and June are hot and humid with frequent showers and thunderstorms, particularly during the mornings. Afternoon temperatures often exceed 32°C and nights are humid with temperatures generally around 26°C. There is usually a fine spell in early July which may last for one or two weeks.

     Tropical cyclones occur in the Pacific and the South China Sea throughout the year. September is the month during which Hong Kong is most likely to be affected, although gales can occur any time between May and November. When a tropical cyclone is about 700-1 000 kilometres southeast of Hong Kong the weather is usually fine and exceptionally hot, but isolated 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 may last for a few days and consequent landslips sometimes cause more damage than the winds.

     The mean annual rainfall ranges from around 1 200 millimetres at Waglan Island to more than 3 000 millimetres in the vicinity of Tai Mo Shan. About 80 per cent of the rain falls between May and September. The wettest month is June when rain occurs

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about two days out of three and the average monthly rainfall at the Royal Observatory is 431.8 millimetres. 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. Climatological information on Hong Kong's weather is given at Appendix 39.

      Severe weather phenomena that can affect Hong Kong include tropical cyclones, strong winter monsoon winds, and thunderstorms with associated squalls that are most frequent from April to September. Water-spouts, hailstorms and snow occur infrequently and tornadoes are rare.

The Year's Weather

1982 was the wettest year on record. Rainfall at the Royal Observatory amounted to 3 247.5 mm, which is 46 per cent above the normal figure of 2 224.7 mm. A significant portion of the year's rainfall was due to the heavy rain spells experienced in late May and mid-August.

There were 28 tropical cyclones over the western North Pacific and the China Seas, and they caused heavy losses to life and property in several Asian countries. However, none of them caused persistent gales in Hong Kong and there was very little damage, although warning signals were displayed for five of the tropical cyclones.

January was warmer and drier than usual. The temperature never fell below 11.5°C and the mean temperature of 16.9°C was 1.3°C above normal. Fire danger warnings were issued on 22 days but about 9 000 people were made homeless in a series of disastrous fires in squatter areas.

February was cloudy and humid. Fog developed in the evening of February 19 and persisted for several days, causing the diversion of aircraft from Hong Kong and the disruption of ferry and hovercraft services. A fishing junk sank after colliding with a container ship in fog south of Po Toi Island on February 23. On February 24, a cold front arrived in Hong Kong and cleared the fog. A fishing junk sank in rough seas in Tathong Channel on February 25 while the strong monsoon signal was hoisted. The mean temperature for the month, 15.9°C, was normal and the minimum temperature recorded at the Royal Observatory was 10.2°C.

March was warmer, cloudier and more humid than usual. Fog was reported at Hong Kong International Airport every morning from March 5 to 7, resulting in the diversion of seven aircraft from Hong Kong. Ferry services were also affected.

      April was the seventh wettest April on record. Thunderstorms and heavy showers during the last nine days brought the month's rainfall to a total of 310.0 mm, which was more than double the normal amount.

      May was the fourth wettest May on record. Rainfall totalling 653.9 mm was recorded at the Royal Observatory during rainstorms which lasted from May 28 to 31. This amount of rainfall over a four-day period was the second highest record for May. As a result, round-the-clock water supply was resumed in Hong Kong after eight months of water restrictions. Flooding was most serious in the northwestern part of the New Territories and landslips were reported in many parts of Hong Kong. Some 25 people were killed. In addition, four were missing, 100 were injured and more than 8 000 made homeless. About 700 000 head of poultry and 10 000 pigs were drowned; 1000 hectares of crops and 400 hectares of fish ponds were inundated in the New Territories.

On June 2, a tornado occurred near Yuen Long. It was the first tornado reported in Hong Kong since records began in 1884. Two people were killed and five others were injured. The total rainfall for the month was 205.9 mm, which was slightly less than half

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the normal figure. Towards the end of the month, tropical cyclone warning signals were displayed for the first time in the year during the approach of Tropical Storm Tess. Tess formed over the South China Sea on June 27, recurved near Hainan on June 29, and dissipated near Dongsha on July 2.

In July, tropical cyclone warning signals were hoisted on two occasions during the approach of Severe Tropical Storm Winona and Typhoon Andy. Winona formed over the western North Pacific to the east of the Philippines on July 12, crossed Luzon and the northern part of the South China Sea before reaching Leizhou Peninsula on July 17. Andy formed near Guam on July 22, crossed southern Taiwan and landed in southeast China on July 30. There were no reports of damage in Hong Kong. The maximum temperature of 34.8°C recorded on July 29 was the highest of the year.

The total rainfall of 872.0 mm in August and the daily rainfall amount of 334.2 mm on August 16 were both new records for the month. Most of the rain fell from August 15 to 19, causing flooding and numerous landslips in many parts of Hong Kong. Five people were killed and 1 460 made homeless during the deluge. Flooding in Tsuen Wan caused serious disruption to road and ferry services while in the northwestern part of the New Territories about 450 hectares of crops and 310 hectares of fish ponds were inundated. Two aircraft encountered severe turbulence near Hong Kong during the prolonged rainstorm. Two passengers were killed and a number of others injured. Five aircraft were diverted from Hong Kong due to adverse weather. On August 18, a waterspout landed at Tsing Yi Island, causing some minor damage to a shipyard.

      September was wetter than normal. The total rainfall for the month, 466.8 mm, was 46 per cent above normal. The strong monsoon signal warning strong easterly winds was displayed for a record duration of 74 hours from 3.45 a.m. on September 5 to 5.45 a.m. on September 8. Tropical cyclone warning signals were hoisted during the approach of Typhoon Irving. The typhoon came within 400 nautical miles of Hong Kong on September 11 and eventually landed in Guangxi on September 15 after crossing the Leizhou Peninsula. Although winds in Hong Kong were generally strong off-shore on September 13, there were no reports of damage.

       October was also wetter than normal. The accumulated rainfall amount for the first 10 months of the year, 3 151.7 mm, was already higher than the previous record annual rainfall amount of 3 100.4 mm established in 1973. Typhoon Nancy came within 400 nautical miles of Hong Kong on October 15 after crossing northern Luzon. It eventually landed in Vietnam on October 19. Typhoon Nancy was the last tropical cyclone for which tropical cyclone warning signals were displayed during the year in Hong Kong.

      November was the fourth consecutive month in which the monthly rainfall exceeded the normal figure. The month's total rainfall of 95.8 mm was 176 per cent above normal. The month was also more humid than normal with an average relative humidity of 77 per cent, which was the third highest record for November. Four cold surges affected Hong Kong during the month. Temperatures at the Royal Observatory dropped appreciably on November 30 to 12.9°C, the lowest during the month.

      Dominated by the continental anticyclone over China, the weather during December was drier and cooler than normal. There was only a trace of rainfall and the month was the third driest December on record. A major surge of the winter monsoon arrived in Hong Kong on Christmas Day, bringing the temperatures at the Royal Observatory down to 8.9°C on December 27, which was the lowest temperature of the year. During this cold spell, the lowest temperatures at Tate's Cairn and Tai Mo Shan were respectively 2.4°C and 0.0°C and hoar frost was reported in the northern part of the New Territories.

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The Royal Observatory was established in 1883 mainly to provide scientific information for the safe navigation of ships. The headquarters of the department has remained in the same building for 99 years, with the construction of a new nine-storey office block beside the original headquarters completed in 1982.

      The most important function of the department is the provision of weather information and tropical cyclone warnings for the public, 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, strong monsoon and frost are issued whenever necessary. Forecasts are also issued for shipping at sea, fishermen in coastal waters and yachtsmen.

Services for aviation are provided by the Airport Meteorological Office. About 80 aircraft each day are supplied with meteorological prognostic charts and landing forecasts. Special warnings are issued for adverse weather. A micro-processor-based system provides a continuous display of wind shear occurring 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 metres per second or more). Warnings are issued every three hours for ships at sea, shipping companies and airlines. Objective forecasts of tropical cyclone movements are made by computer and exchanged with neighbouring meteorological centres. Whenever tropical cyclones threaten Hong Kong itself, warnings and advice on precautions are issued at frequent intervals and widely disseminated. In order to provide these services the Central Forecasting Office receives about 20 000 weather reports each day from land stations, islands, ships and aircraft. Code messages are analysed by computer and exchanged automatically with neighbouring countries. A comprehensive data bank of historical weather records has been accumulated on magnetic tapes and is used to answer climatological enquiries from organisations such as engineering consultants, universities, utilities, and insurance and legal firms, both in Hong Kong and overseas.

During the year, a system for warning squatters of the danger of landslips caused by prolonged heavy rainfall was reviewed and improved.

Instruments and Observations

High resolution satellite pictures from the Japanese Geostationary Meteorological Satellite (GMS) continued to be received in Hong Kong. The pictures are recorded on magnetic tape in digital form and any area can be enlarged and enhanced by micro-processors. Special enhancements are used to estimate the maximum winds in a tropical cyclone.

Work was in progress to replace the weather radar at Tate's Cairn. The improved radar will provide estimates of rainfall rates over a wide area and also archive the data for research purposes. The old radar is being maintained as a back up.

The observatory operates an upper-air sounding system. Instead of being tracked by radar, as in conventional systems, the 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. A new tethered radiosonde system was introduced in 1982 to obtain meteorological data at various heights above the ground.

Regular meteorological observations are made at the Royal Observatory, Kai Tak, Cheung Chau and Chek Lap Kok. Additional reports are provided by the Marine Department at Waglan Island and Green Island and by the Royal Navy at Tai O. The observatory operates more than 100 raingauges sited throughout the territory. There are

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also 23 anemometers installed in different locations, of which 15 are operated by the Royal Observatory and eight by other organisations. Winds recorded at the Star Ferry Pier, Kowloon, representing conditions in the harbour, and winds recorded at Waglan Island, representative of conditions off-shore, are telemetered to the observatory. A spherics recorder is used to register thunderstorm activity within a range of about 100 kilometres.

      Tide readings from gauges located at Tai Po Kau, North Point and Lok On Pai are telemetered to the observatory. These provide valuable data for warning floods during the approach of tropical cyclones. A 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 Doppler acoustic radars are in operation near Chek Lap Kok to investigate wind shear and turbulence in connection with the planning and design for the proposed new airport. These instruments transmit pulses of sound and record the echoes caused by temperature and wind irregularities in the atmosphere.

      A network of 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. Long-period seismographs in a cellar beneath the observatory lawn record tremors from all over the world. Strong motion accelerographs are installed at three locations. While on average only two or three earthquakes are felt by local residents each year, several hundred are detected by the Royal Observatory seismometer network. In 1982, more than 100 earthquakes were detected within 320 kilometres of Hong Kong.

      Geomagnetic observations were made during the year at Tate's Cairn in co-operation with the University of Hong Kong. Measurements of Beta and Gamma radio-activity are made at King's Park Meteorological Station and the observatory co-operates with the UK Atomic Energy Research Establishment and the International Atomic Energy Agency in the measurement of radio-active substances in airborne dust and rain.

      The observatory operates a caesium beam atomic clock which provides time signals accurate to a few micro-seconds. A six-pip signal is broadcast on 95 MHz every quarter hour.

Research

The Royal Observatory participates in international co-operative programmes to improve the standard of meteorological services. In 1982, during the First Typhoon Operational Experiment organised under the auspices of an international Typhoon Committee, special observations were made in Hong Kong and sent to other countries in Southeast Asia. A senior forecaster was seconded to the International Experiment Centre set up in Tokyo to carry out operational studies during actual typhoon situations.

Considerable effort is devoted by the Royal Observatory to meet the demand for meteorological analyses required by industry and engineering projects. A design rainstorm profile for Hong Kong was published in 1982. During the year, a procedure to determine design wind and wave conditions in off-shore waters was developed and applied to specific locations. A micro-meteorological study was also carried out in Junk Bay to investigate local meteorological conditions which might affect new developments.

19

Population

THE total population at the end of 1982 was 5 287 800, comprising 2 752 300 males and 2 535 500 females. This represents an increase of 27 per cent on the 1972 population estimate of 4 165 500.

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 flows. During the years 1978-80 in particular, there was a large inflow of immigrants from China - both legal and illegal and an influx of boat refugees from Vietnam. The average annual growth rate increased from 1.8 per cent over the period 1972-7 to 3.9 per cent over the period 1978-80. The average annual growth rate for the years 1981-2 was 1.6 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.

Meanwhile, the rate of natural increase dropped steadily over the period from 14 to 12 per thousand. This was the result of the birth rate declining from 20 per thousand in 1972 to 17 per thousand in 1982, and the death rate remaining stable at about five per thousand. Hong Kong, with a land area of only 1 064 square kilometres, is one of the most densely populated places in the world. The overall density per square kilometre at the end of 1982 was 4923. But this figure conceals wide variations in density between different areas. According to the 1981 Census, 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 situation will, of course, change with the continuation of major development programmes in the New Territories, designed 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 age distribution of the population of Hong Kong has changed considerably during the 10-year period. In 1972, 34.8 per cent of the population was under 15; in 1982 the figure was 24.3 per cent. The proportion of those aged 65 and above has risen from 4.8 per cent to 6.9 per cent. As a result of these changes, the proportion of the population of working age (those aged 15 to 64) has increased from 60.4 per cent to 68.8 per cent, indicating that there is a greater potentially productive population available.

      The sex ratio of the population has also changed. In 1982, the ratio was 1 085 males to every 1 000 females, compared with 1 037 in 1972. The increase in the proportion of males over females during the 10-year period can largely be explained by the substantial inflow of immigrants, who were predominantly young and male.

Today, people in Hong Kong live longer. The expectation of life at birth for males. increased from 68.1 years in 1972 to 71.9 years in 1982, and for females, from 75.6 years to 77.6 years.

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     The 1981 Census showed that 57.2 per cent of the population was 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 Guangzhou, Hong Kong, Macau and adjacent places form 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.

      At the end of 1982, the estimated number of non-Hong Kong Commonwealth citizens residing either permanently or temporarily in Hong Kong was 67 800. These comprised: British 21 900 (excluding members of the Armed Forces); Indian 14 400; Malaysian 9 100; Australian 7 900; Singaporean 4 500; Canadian 5 000; and other Commonwealth countries 5 000. The estimate for non-Commonwealth permanent and temporary residents was 81 900. Of these, the largest groups were: Filipino 20 000; American 12 400; Pakistani 7 400; Japanese 7 100; Thai 9 000; Portuguese 7 400; Indonesian 3 700; German 2 100; Korean 2 100; French 1 500 and Dutch 1 200.

Marriages

All marriages in Hong Kong are governed by the Marriage Ordinance and the Marriage Reform Ordinance. Under the Marriage Ordinance, at least 15 days' notice of an intended marriage must be given to the Registrar of Marriages. The Registrar has discretionary powers to reduce the period of notice in special circumstances or to grant a special licence dispensing with notice altogether. But this is done only in the most exceptional circumstances. Marriages may take place either at any of the 178 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, 51 388 marriages were performed in the registries and 2 605 at licensed places of worship. All records are maintained at the principal marriage registry at the City Hall.

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, the principal marriage registries 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 three months to about 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, 54 customary and 20 modern marriages were post-registered.

Births and Deaths

     The registration of births and deaths is compulsory, and facilities for registration are provided throughout Hong Kong. The General Register Office in Central District keeps all records of births and deaths, and there are 18 registries in the 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. An additional registry was opened in 1982. At this registry joint services are

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provided for the registration of deaths, the issue of cremation permits and the booking of cremation facilities.

The statutory period during which a birth should be registered is 42 days from the date of birth. During the year, 86 036 live births and 25 460 deaths were registered, compared with 87 104 and 24 978 respectively in 1981. The figures, when adjusted for under-registration, gave a natural increase in population for 1982 of approximately 61 350.

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, 915 births were post-registered.

The Immigration Department is responsible for the registration of births, deaths and marriages in Hong Kong.

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Natural History

DESPITE its small area and one of the highest population densities in the world, Hong Kong manages to accommodate a rich and surprisingly diverse flora and fauna. 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 this land, 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.

Wildlife

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 diminishing, they continue to provide a very important habitat for many birds. Sightings in wooded areas include an assortment of Phylloscopus Warblers, and a rare Eagle Owl was found nesting on Lamma Island early in the year.

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

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Protection Ordinance and special culling exercises have been organised by the Royal Hong Kong Police Force 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. 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). 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.

       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 giant Red-spotted Longhorn beetle which feeds on Mountain Tallow and Wood-oil trees. Many other species of longhorn beetles infest living or weakened trees including citrus and pine. Most of these and many other insects are listed in the new Check List of Agricultural Insects of Hong Kong 1981 (Agriculture and Fisheries Department Bulletin No. 2, Hong Kong Government Printer).

       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 (Pearl) River and predominately brackish, and an eastern sector, subject to the influences of the open sea. Various locations provide natural

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propagation and nursery grounds for many species of fish, crustacea and molluscs, and provide seasonal feeding for large transient predators, such as the Little Tuna, Dolphinfish, Sailfish and sharks.

More than 20 species of shark have been recorded in Hong Kong waters, mainly in the eastern and southeastern 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.

During February and March 1982, three species of marine mammals were recorded in Hong Kong waters: a young Lesser Rorqual whale was found stranded on a beach east of Tai Po; a black finless porpoise was washed-up at Shek O; and a rough-toothed dolphin was found dead on Sharp Island. Dead specimens of the same species of whale and porpoise were also recorded during these months in 1978.

Flora

The Hong Kong Herbarium, which contains about 34 000 plant specimens, is more than 100 years old. This government institution, administered by the Agriculture and Fisheries Department, is responsible for collecting, classifying and maintaining authori- tative 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, housed in the New World Centre Office Building in Tsim Sha Tsui, 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 in- creasingly bare of trees as a result of cutting, burning and exposure to the elements. On most, the only cover was coarse grass or scrub. Now many slopes, particularly those in the water catchment areas, have been planted with trees of both local and exotic species. These woodlands, and other areas of countryside, are protected and are being developed for the growing numbers of people who spend increasing amounts of their leisure time in the countryside.

Remnants of the original forest cover - either scrub forest or well-developed woodlands - are still to be found in steep ravines. These have survived the destructive influences of man and fire through their precipitous topography and moist winter microclimate. It is in such places that many of the more interesting plants grow. Small areas of well-grown 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.

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       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.

Zoological and Botanical Gardens

The Hong Kong Zoological and Botanical Gardens, managed by the Urban Council, were 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. In two 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, Clouded Leopards, Acouchis, Crested Porcupines, Common Squirrel Monkeys, Tree Squirrels, Siamangs, Golden Agoutis, Celebes Black Apes, Red-cheeked Crested Gibbons, Common Marmosets, Red Mantle Saddleback Marmosets, and Mouse Deer. Some of these animals have bred in the gardens. A new enclosure for Siamangs, Lemurs and Marmosets was completed in 1982 on the former palm lawn.

       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 has led to 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 with pools and a waterfall was completed during the year.

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THE dynamic drive of its people and their determination to survive a continual barrage of problems - mainly caused by external influences has enabled Hong Kong to make rapid economic and social progress and become a leading international manufacturing, trading and financial centre despite an almost complete absence of natural resources.

Yet, the optimism prevailing during the past years as Hong Kong's prosperity and economy expanded was somewhat tempered in 1982. The continued poor economic performance of the developed countries which constitute Hong Kong's principal markets coincided with entry into the 15-year period prior to the expiry of the British-Sino lease of North Kowloon and the New Territories in 1997. The importance of the issue caused some caution and concern in financial and business circles, as well as in everyday life, with Hong Kong's people wanting a firm indication as to the status of the territory after 1997.

During a five-day official visit to China in September, British Prime Minister, the Rt Hon Margaret Thatcher, held discussions with Chinese Prime Minister, Mr Zhao Ziyang, achieving formal agreement for Britain to enter into diplomatic talks with China 'with the common aim of maintaining the stability and prosperity of Hong Kong'. This was followed by a three-day stay in Hong Kong by Mrs Thatcher, the first visit by a British Prime Minister to the territory while in office.

The meeting between the two prime ministers and continuing concern over the uncertain future of Hong Kong had immediate repercussions locally. The start of preliminary discussions between London and Peking was announced by the Governor, Sir Edward Youde, in October.

      Throughout the 141 years since its founding as a British settlement, Hong Kong has had to face challenges. Massive influxes of immigrants from China (both legal and illegal) over the years and, more recently, boat refugees from Vietnam, have placed increased social pressures on the population, with an impact which reached into all corners of life. And as a commercial centre, Hong Kong has continually been confronted with international monetary fluctuations and trade restrictions. Always, the territory has adapted to survive these difficulties with characteristic resilience and forbearing.

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. The population of about 3 650 was scattered over 20 villages and hamlets and 2 000 fishermen lived on board their boats in the harbour. Mountainous and deficient in fertile land and water, it possessed only one natural asset, a 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 was soon to become the hub of burgeoning entrepôt trade with China.

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      Hong Kong's history has been one of material and social improvement; the expansion of the city and towns by cutting into rock and reclaiming the land from the sea, and the building of homes, schools, hospitals and other forms of public facilities to meet the demands of the growing population.

It is Hong Kong's people who, by their industry and business acumen, have developed the infrastructure and services which have 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).

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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 landowner 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

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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 viewpoints 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.

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      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

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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 embodied 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

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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 at first. It attracted unruly elements, while fever and typhoons threatened life and property. Crime was rife. The Chinese influx was unexpected because it was not anticipated they would choose to live under a foreign flag. The 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 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. In 1972, the long-standing arrangement that two electoral bodies the Hong Kong General Chamber of Commerce and the Unofficial Justices of the Peace were each allowed to nominate a member to the Legislative Council, was discontinued.

     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

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in a grant scheme in 1873. The College of Medicine for the Chinese, founded in 1887, developed into the University of Hong Kong in 1911 and offered arts, engineering and medical faculties.

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       After the Chinese Revolution of 1911, which overthrew the Manchu Dynasty, there was a long period of unrest in China and large numbers of refugees found shelter in the colony. The agitation continued after Chinese participation in World War I brought in its wake 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

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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. Since then it has continued to rise and now totals more than 5.2 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 42 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 electronic products, watches and clocks, plastic goods and other light industries.

Associated with events in China, 1966 saw mounting tension in Hong Kong which during 1967 developed into a series of civil disturbances affecting all aspects of life and temporarily paralysing the economy. But, by year-end, the disturbances were contained and the community continued its tradition of peaceful progress.

In development of the post-war years, Hong Kong has 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 1982 an average of 15 500 people a day entered China from or through Hong Kong, its natural gateway. The territory's flag carrier Cathay Pacific and the Civil Aviation Administration of China operate increasing numbers of scheduled and chartered flights between Hong Kong and cities in China; the Kowloon-Canton Railway runs jointly with the Guangzhou Railway Administration express 'through' trains between Kowloon and Guangzhou; since 1981 a direct bus service a British and Chinese joint venture - has served 10 destinations in Guangdong; and there are daily hoverferry services, as well as ferry services, to Guangzhou. The development of Hong Kong's economic base has enabled the government to increase spending on social services over the years - from $1,357 million in 1972-3 to an estimated $10,813 million in 1982-3.

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. Throughout 1982, public housing flats were being constructed at an average rate of one every 7.5 minutes each 12-hour working day, every day of the year - and it is planned to continue providing about 35 000 flats a year under present conditions.

Expenditure on education facilities and improvements for Hong Kong's young and vibrant population has always been one of the major considerations in budget preparations and there are now junior secondary school places for every student up to the age of 15 years. In the field of social welfare, such major advances have been made by both the government and voluntary agencies in the past decade that expenditure has increased by more than fifteen-fold, from $81.4 million in the 1972-3 financial year to an estimated $1,266.8 million during 1982-3.

     The medical and health services are also undergoing vigorous development programmes which, by the end of the decade, will provide five more hospitals and 20 additional clinics

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and polyclinics. A second medical school was opened during 1982 as a faculty of the Chinese University of Hong Kong.

      During the post-war years, a comprehensive system of protection for wages, rest days, statutory holidays, paid annual leave, maternity leave, sick pay and severance payments has been built up, and the benefits provided have steadily improved. The minimum age for employment in both the industrial and non-industrial sectors is 15 years.

      To keep pace with this development and a policy of decentralisation, the government is committed to improving the infrastructure and an estimated $6,700 million, about 19 per cent of expenditure, is being spent on public works projects during 1982-3. New roads, tunnels and flyovers have completely transformed road travel throughout the territory in the post-war era and modern, multi-lane highways are opening up many new areas.

      The major transport events of 1982 were the completion of the underground Mass Transit Railway system to the growing industrial town of Tsuen Wan and the opening of the Kowloon-Canton Railway's electrified inner suburban service between Kowloon and Sha Tin. Construction of an MTR Island line is underway and this is scheduled to be mostly completed by mid-1985.

A successful era in the governing of Hong Kong was concluded in 1982 with the retirement of Sir Murray MacLehose, Hong Kong's longest serving Governor and Commander-in-Chief, after a term of office of nearly 11 years. Created a life baron on January 1, 1982, Sir Murray MacLehose now known as Lord MacLehose of Beoch - Edward, who assumed office in May, is the

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was succeeded by Sir Edward Youde. Sir territory's 26th Governor.

Public Records Office

A major source of information for research into the history of Hong Kong since the establishment of British administration is the Public Records Office, set up in 1972 as the central repository for the permanent archives of the Hong Kong Government.

      The main repository, with more than 5 500 metres of shelving for historical data, is in Central District, while a sub-office in Aberdeen has space for more than 3 700 linear metres of records. During the year, premises in Wong Chuk Hang were located for an additional repository with a storage capacity for 4 500 linear metres of intermediate records.

Several additions were made to the photograph and map collections during the year. The office also acquired an early lithograph depicting the north side of Hong Kong Island. Public access to the library, which includes the newspaper, map and photograph collec- tions, is unrestricted, but formal approval is required for access to the official archives.

22

Constitution and Administration

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HONG KONG is administered by the Hong Kong Government, and its administration has developed from the basic pattern applied in all British-governed territories overseas. The head of the Hong Kong Government is the Governor.

Role of the Governor

The Governor is the representative of the Queen in Hong Kong. He has ultimate direction of the administration of Hong Kong and is also the titular Commander-in-Chief. As head of the government he presides at meetings of both the Executive Council and the Legislative Council. The Executive Council, which is the principal policy making organ of the govern- ment, offers advice to the Governor on which he makes directions. The Bills which are passed by the Legislative Council must receive the Governor's assent before becoming law. The Governor is in close touch with the administration of the territory, and exerts a major influence over the direction of affairs.

      Sir Edward Youde became the Governor of Hong Kong in May 1982, on the retirement of Lord MacLehose of Beoch, formerly Sir Murray MacLehose.

      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 establish the basic framework of the administration of Hong Kong, and, together with the Royal Instructions passed under the Royal Sign Manual and Signet which lay down procedures that must be followed, form the constitution of Hong Kong.

      The Letters Patent specifically create the office of Governor and Commander-in-Chief of Hong Kong, and require him to observe its laws and the instructions given to him by the Queen or the Secretary of State. They also deal with the constitution of the Executive and Legislative Councils, and the Governor's powers in respect of legislation, disposal of land, the appointment of judges and public officers, pardons, and the tenure of office of Supreme Court and District Court judges.

The Royal Instructions deal with the appointment of members of the Executive and Legislative Councils, the nature of proceedings in the Executive Council, the Governor's responsibility to consult the Executive Council and his right to act in opposition to it. They also deal with the membership of the Legislative Council, the nature of proceedings there, the format of the legislation passed by the council, and the nature of legislation which may not be passed. The Standing Orders of the Legislative Council, made under the authority of Royal Instruction XXIII, provide how Bills are to be passed.

Central Government

Executive Council

The Executive Council consists of five ex-officio members - the Chief Secretary, the Commander British Forces, the Financial Secretary, the Attorney General and the

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Secretary for Home Affairs together with other members who are appointed by the Governor on the instructions of the Secretary of State. Since 1978 there have been 10 appointed members, nine unofficial and one official.

Appointed members hold office for fixed periods. Should they leave Hong Kong during their term of office, alternate members are appointed to take their place for the duration of the appointed members' absence.

      The council meets once a week throughout the year. It meets in camera, and its proceedings remain confidential, but many of its decisions are made public. The function of the council is to advise the Governor, who is required by the Royal Instructions to consult it on all important matters of policy, other than those which are too urgent to allow the council to be consulted (in which case the Governor must explain to the council as soon as possible what action he has taken). The Executive Council's advice on matters of policy involving the expenditure of public funds is subject to the approval of the necessary funds by the Finance Committee of the Legislative Council. The council also considers all principal legislation before it is introduced into the Legislative Council, and it is responsible for making subsidiary legislation (regulations) under a number of ordinances.

      Under the Royal Instructions it is the prerogative of the Governor to decide what matters should be put before the council. Should a member request the discussion of a specific matter and the Governor refuses his permission, then a record of both the request and the refusal must be entered in the minutes of the council, should the member so desire. Constitutionally, the council advises the Governor who then makes a decision. If he decides to act against the advice of the majority of members, the Governor is required to report his reasons to the Secretary of State.

      The Governor-in-Council - the Governor acting after consulting the Executive Council - also considers appeals, petitions and objections under those ordinances which confer a statutory right of appeal.

Legislative Council

The Legislative Council is constituted by virtue of the Letters Patent, and its primary function is the enactment of legislation, including legislation for the appropriation of public funds. A Bill passed by the Legislative Council does not become law until the Governor gives his assent to it; after the Governor's assent, a Bill becomes an ordinance without being subject to external approval, although the Queen has reserve powers to disallow an ordinance. The power of disallowance has not been used for very many years.

The Legislative Council currently has a maximum membership of 54, comprising 27 official members, including the Governor, who is the President, 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 23 official and 27 unofficial members.

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All members, except the Governor and other ex-officio members, are appointed by the Governor with the approval of the Secretary of State. Official members normally remain appointed for as long as they hold office under the Crown in Hong Kong, while unofficial members can be appointed for up to four years and may be re-appointed for further periods of not more than four years each.

      The Legislative Council meets in public once every two weeks throughout the year, except for a recess of about two months in August and September, in the Council Chamber attached to the Central Government Offices. Proceedings are bilingual; members may

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address the council in English or Chinese, and facilities for simultaneous interpretation to cover the proceedings are provided.

Legislation is enacted in the form of Bills, which go through three readings and a committee stage. A question is put at each stage and is decided by the majority of votes. If a clear majority either for or against any motion is not apparent from a voice vote, the President may order the council or the committee to proceed to a division, when votes will then be taken from members individually and recorded by the Clerk to the Council. Official members are expected to vote with the government on all issues, except those where a 'free vote' is expressly permitted. Private Bills, not representing government measures and intended to benefit particular persons, associations or corporate bodies, are introduced from time to time and enacted in the same way. All Bills, after passing through the Legislative Council, receive the assent of the Governor and are then gazetted as ordinances.

     Apart from the enactment of legislation, the business of the council includes two major debates in each legislative session: a wide-ranging debate on government policy which follows the Governor's address at the opening of the new session of the council in October each year; and the budget debate on financial and economic affairs, which takes place in February and March during the second reading of the Appropriation Bill.

Questions may also be addressed by unofficial members to the government relating to public issues for which the government is responsible, either seeking information on such issues or asking for official action on them. Oral questions and answers are dealt with in the Legislative Council, and supplementary questions for the purpose of elucidating an answer already given may also be asked.

Other business of the council includes motions on subsidiary legislation, statements and policy papers (Green Papers and White Papers) for debate. A complete record of all papers laid before the council together with a verbatim record of proceedings (Hansard) is kept in respect of each legislative session.

Finance Committee

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. Its proceedings are conducted in closed session 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 to consider requests which entail changes to the provisions agreed by the Legislative Council in the estimates each year, or to note the financial implications of a new policy. The Finance Committee has two sub-committees, the Establishment Sub-Committee and the Public Works Sub-Committee.

      The Public Works Sub-Committee consists of the Financial Secretary (Chairman), the Secretary for Lands and Works and 16 unofficial members of the Legislative Council. It 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 Establishment Sub-Committee consists of 13 unofficial members of the Legislative Council, one of whom is the chairman, the Secretary for the Civil Service and the Deputy Financial Secretary. It examines staffing proposals for directorate posts and for the creation of new ranks or changes in salary scales in detail, and makes recommendations on them to the Finance Committee. It also examines reports on the establishments of departments.

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Public Accounts Committee

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The Public Accounts Committee, established by resolution of the Legislative Council on May 10, 1978, is a standing committee of the Legislative Council consisting of a chairman and six members, all of whom are unofficial members of the council. Its main function is to examine and report on the findings in the Director of Audit's report on the audit of the government's annual statements of account prepared by the Director of Accounting Services, and on any matter relating to the performance of his duties and the exercise of his powers' under the Audit Ordinance. The prime concerns of the committee are to see that public expenditure has not been incurred for purposes other than those for which the money was granted; that full value has been obtained for the sums expended; and that the administration has not been faulty or negligent in its conduct of financial affairs.

      The committee's report, which includes details of the evidence given to it by controlling officers of different heads of expenditure and other witnesses, is laid on the table of the Legislative Council together with the Director of Audit's report in January each year. Both reports then become public documents, and are sent to the Secretary of State. The government's response to the report of the committee is contained in a government minute which describes the measures taken to give effect to the committee's recommendations or, in relevant cases, the reasons why acceptance of those recommendations is not considered appropriate. This minute is also laid on the table of the Legislative Council, within three months following the laying of the Public Accounts Committee's report each year.

UMELCO

By taking part in the process of government, Unofficial Members of the Executive and Legislative Councils (UMELCO) play a significant role in the administration of Hong Kong. They advise on the formulation of government policies, participate in the enact- ment of legislation, consider complaints by members of the public against government departments and monitor the effectiveness of public administration. Unofficial members are selected by the Governor from a wide spectrum of society and they hold more than 300 seats, outside the two councils, on various committees and boards dealing with public and community affairs.

       There is a UMELCO Office, funded by the government, to provide research and adminis- trative assistance to unofficial members. The UMELCO Office is also an established channel for the redress of grievances, and it handles all public complaints, appeals and representations addressed to unofficial members alleging official maladministration. Under the UMELCO redress system, members have the right of access to government records and senior officials and to challenge the established practices and policies of government departments. When necessary they bring important issues to the attention of either of the two councils.

Unofficial members spend much time studying all Bills and any course of government action which is important or controversial, or about which representations are received from public bodies or from members of the public. The UMELCO Police Group, which consists of seven unofficial members and the Attorney General, monitors the handling of complaints against the police. Similarly the ICAC Complaints Committee, comprising six unofficial members and the Attorney General, monitors the handling of complaints against the Independent Commission Against Corruption. Various UMELCO panels meet regularly with senior government officials. Issues and policies of importance are discussed at these meetings and may be debated and publicly questioned at meetings of the Legislative Council.

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Unofficial members keep themselves apprised of developments on the ground by making regular visits to government departments and to urban and New Territories districts. These visits usually conclude with informal wide ranging discussions with government officials and representatives of the local communities. A full record of the work of UMELCO is contained in its annual report.

Urban Council and District Administration

Urban Council

     The Urban Council is a statutory body comprising 24 members, 12 of whom are elected from a territory-wide limited franchise and 12 appointed by the Governor. The council's jurisdiction is restricted to the urban area.

The council, which derives its authority from the Urban Council Ordinance, is charged with a number of mandatory functions and also has a number of permissive roles. Amongst its mandatory functions are responsibilities for environmental sanitation such as cleaning the streets, the control of hygiene in restaurants and food shops, and the operation of markets and abattoirs. Other functions involve recreation and cultural activities, including the building and control of swimming pools, tennis courts, stadia, parks and playgrounds, the management of the City Hall, public libraries, museums and bathing beaches. The council also acts as the Liquor Licensing Board in the urban area, and is responsible for the issue of Public Entertainment Licences. It is also charged with the control and licensing of the several tens of thousands of urban street traders.

      The executive arm of the council is the Urban Services Department, whose director is its principal executive officer. The department is responsible for carrying out the council's policies and decisions. The council is financially autonomous. It receives approximately 75 per cent of its revenue from an eight per cent rate, the balance of its finances being derived from entrance fees, licence fees, and similar fees. Its revenue for the 1982-3 financial year is expected to be in the region of $1,200 million. The full council meets in public normally once a month; it conducts its day-to-day business through 12 select committees and 15 sub-committees.

      Although its powers and responsibilities will remain unchanged, 1982 brought a change in the structure of the council. In April 1983 the number of elected councillors will be increased to 15, to be elected from a very wide franchise and to be returned from constituencies based on urban district board boundaries. The number of members appointed by the Governor will likewise be increased to 15. In future, the chairman will need to be elected by the council from among its membership; the present legislation does not lay down this requirement, although even under the present rules members have always elected one of their own number as chairman.

All councillors are currently appointed to the various urban district boards, but as from April 1983 elected members will automatically have seats on the urban district board in whose area their constituency lies. The council will similarly allocate appointed members to district boards, two to a large board and one to a small one. All councillors have individual or collective ward offices in which they deal with complaints and give assistance to the public on a wide variety of matters, even outside the work of the council.

District Administration

1982 saw the implementation of the main proposals of the White Paper on District Administration through the establishment of district management committees and district

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boards in each of the 18 administrative districts throughout the territory. The objective behind establishing district boards is to provide a better forum for public consultation and participation at the district level. The district boards consist of government officials, appointed unofficial members, elected members from the constituencies, urban councillors or rural committee chairmen. They have a mainly advisory role, with a substantial influence over district affairs. In monitoring the government's performance and achievements at the district level, the district boards discuss a very wide range of matters affecting the well-being of everyone. All district boards have been allocated public funds for local recreational and cultural activities and for minor environmental works.

The district management committees, consisting of government officials, provide a forum for inter-departmental consultation to produce more effective government at the district level. The committees are in effect responsible for servicing their respective district boards. By March 1982, district boards and district management committees were established in all the urban districts. District boards in the New Territories became statutory bodies, in accordance with the provisions of the District Boards Ordinance, with effect from April 1, 1982, while the urban district boards became statutory bodies with effect from October 1, 1982. The normal tenure of office of the members of these statutory district boards is three years, although set at two and a half years for the urban boards for the 1982-5 term.

Elections

     Election to the district boards is on a constituency basis, and through a broad franchise: all residents aged 21 years or above with more than seven years' residence in Hong Kong are eligible to register to vote.

Elections to the district boards in the New Territories were held on March 4, 1982. Of the 190 000 New Territories' residents who registered as electors, representing roughly 30 per cent of the eligible New Territories' electorate, nearly 100 000 people turned out to vote on polling day, representing over 50 per cent of the registered electorate. A total of 56 unofficial members were elected to the New Territories boards. Two were unopposed, but 172 candidates contested the other 54 seats.

Elections to the urban district boards were held on September 23, 1982. Roughly two million people in the urban area were eligible to be electors and about 700 000 people, representing 35 per cent of the eligible electorate, registered as electors. On election day, some 245 000 people cast their votes, representing over 35 per cent of the registered electorate. A total of 76 members were elected to the urban boards in the September elections.

Links with the Urban Council and the Heung Yee Kuk

District boards in both Hong Kong and Kowloon and the New Territories have been linked with existing representative organisations, the Urban Council and the Heung Yee Kuk (a statutory body which represents the indigenous population of the New Territories and advises the government on New Territories matters). Urban district boards provide seats for elected and appointed Urban Councillors while New Territories district boards have seats reserved for rural committee chairmen.

Electoral System for the Urban Council and District Boards

The franchise is very simple: practically all residents aged 21 years or above who have been in Hong Kong for seven or more years are eligible to apply for registration as electors. Such applications are made on an entirely voluntary basis and there is a fixed timetable annually

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for the registration of new electors. The number of electors registered at the end of 1982 was 903 577 representing about one-third of an estimated total potential electorate of about 2 700 000. Of these electors, 706 833 are resident in the urban areas and they are entitled to vote at the Urban Council elections and at the district board elections in the urban areas; the remaining 196 744 electors are resident in the New Territories and they are entitled to vote only at the district board elections in the New Territories.

An elector is entitled to vote only in the constituency in which he has been registered. For the Urban Council elections, there are 15 constituencies. For the district board elections, there are 76 constituencies in the urban areas and 46 constituencies in the New Territories. Except for 10 district board constituencies in the New Territories which are double-member constituencies, all other district board constituencies and Urban Council constituencies are single-member constituencies.

The rules for candidature are also very simple: any elector who has been in Hong Kong for 10 or more years can be nominated as a candidate for election to the Urban Council or a district board in any constituency if his nomination is supported by 10 electors in that constituency.

The Executive

Role of the Chief Secretary

The Chief Secretary is the principal adviser to the Governor on matters of policy. He is the chief executive of the Hong Kong Government, and with the Financial Secretary and the Attorney General he is one of the three officers of the Executive with the right of direct access to the Governor.

     The Chief Secretary has a very small personal staff. He exercises direction primarily as head of the Government Secretariat, the central organisation comprising the secretaries of the policy branches and their staffs. Since 1902, when the office of Lieutenant-Governor lapsed, the Chief Secretary (or his predecessor, the Colonial Secretary) has deputised for the Governor during his absence. He is the leading official member of the Legislative Council, and the Chairman of the Finance Committee.

     A new post of Secretary (General Duties) was created in November 1982 in the office of the Chief Secretary to support and assist the Governor and the Chief Secretary in dealing with additional work arising from the talks on the future of Hong Kong.

Role of the Financial Secretary

The Financial Secretary is responsible for the fiscal and economic policies of the Hong Kong Government, and is an ex-officio member of both the Executive and Legislative Councils. He is, in addition, a member of the Finance Committee of the Legislative Council, and Chairman of the Public Works Sub-Committee of the Finance Committee. As the government officer with primary responsibility for Hong Kong's fiscal and economic policies, the Financial Secretary oversees the operations of the Finance, Monetary Affairs, Trade and Industry and Economic Services Branches of the government.

     The Financial Secretary is responsible under the Public Finance Ordinance for laying before the legislature each year the government's Estimates of Revenue and Expenditure. In his capacity as an official member of the Legislative Council, he makes a speech each year outlining the government's budgetary proposals, and moving the adoption of the Appropriation Bill which gives legal effect to the annual expenditure proposals contained in the Budget. He is also personally responsible under a number of ordinances for carrying

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out various executive duties such as setting levels of certain charges and remuneration and overseeing the accounts of certain trust funds and statutory bodies.

Role of the Director of Audit

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 retirement from office.

Structure of the Executive

      The Executive of the Hong Kong Government is organised in branches and departments. The branches collectively form the Government Secretariat. There are currently 11 policy branches, two resource branches and a branch with specialised functions of administration. Except for Councils and Administration Branch, which has a director, all branches are headed by secretaries.

      The policy branches whose secretaries report direct to the Chief Secretary are Home Affairs, City and New Territories Administration, Security, Housing, Education, Lands and Works, Social Services and Transport. In early 1983, the Education and Manpower Branch and the Health and Welfare Branch will be formed as a result of a reorganisation of schedules, principally those of the Education Branch and the Social Services Branch. The Civil Service Branch, a resource branch, and the Councils and Administration Branch also come under the aegis of the Chief Secretary. The policy branches whose secretaries report direct to the Financial Secretary are Economic Services, Monetary Affairs, and Trade and Industry (formed on August 1, 1982). Finance Branch, a resource branch, is also responsible to the Financial Secretary. The head of the Finance Branch is the Deputy Financial Secretary who, despite his title, is of the same rank and status as other secretaries.

With certain exceptions - such as the Audit Department and the Independent Com- mission Against Corruption, whose independence is safeguarded by their director and commissioner respectively reporting direct to the Governor, the Judiciary, which is the responsibility of the Chief Justice, and the Legal Department, which is the responsibility of the Attorney General - the heads of government departments are responsible to the branch secretaries for the direction of their departments and the efficient implemen