Hong Kong Yearbook - Annual Report for the Year 1984

HONG KONG 1985

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HONG KONG

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HONG KONG 1985

Editor:

Bill Knight,

Government Information Services

Designer:

Arthur Hacker,

Government Information Services

Photography: David H. P. Au, Eddie T. K. Cheng and

other staff photographers,

Statistical Sources:

Government Information Services,

Photographs of Joint Declaration signing (frontispiece) and initialling of documents in Peking by courtesy of the South China Morning Post

Census and Statistics Department

The Editor acknowledges all contributors and sources.

Copyright reserved

URBAN COUNCIL PUBLIC LIBRARIES

Acc. No. 609959

Class. HK 951.25

Author

HON

HKCT

    Frontispiece: The scene in the Great Hall of the People in Peking on December 19 as the Prime Minister of the United Kingdom of Great Britain and Northern Ireland, Mrs Margaret Thatcher, and the Prime Minister of the People's Republic of China, Mr Zhao Ziyang, signed the Joint Declaration on the future of Hong Kong.

Contents

Chapter

Page

1

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

1

2

THE FURTHER DEVELOPMENT of RepresentATIVE GOVERNMENT IN HONG KONG

42

3

CONSTITUTION AND ADMINISTRATION

52

4

INDUSTRY ANd Trade

71

5

THE ECONOMY

89

6

EMPLOYMENT

106

7

PRIMARY PRODUCTION

114

8

EDUCATION

121

9

HEALTH

142

10

SOCIAL WELFARE

156

11

HOUSING

164

12

34

13

14

LAND, PUBLIC WORKS AND UTILITIES

TRANSPORT

PUBLIC ORDER

174

195

212

15

IMMIGRATION AND TOURISM

229

16

THE ARMED Services and AUXILIARY SERVICES

234

17

COMMUNICATIONS AND THe Media

240

18

RELIGION AND CUSTOM

251

20

21

22

2 2 2 2

19

RECREATION AND THE ARTS

¿derua

256

THE ENVIRONMENT

POPULATION

NATURAL HISTORY

271

284

287

23

HISTORY

291

APPENDICES

301

INDEX

351

Frontispiece

Joint Declaration

Hong Kong in 1984

Illustrations

Between pages

4-5

28-9

Industry

60-1

Jockey Club Centenary

108-9

Health

156-7

New Towns

Disciplined Services

Communications

Arts Festival

Early Hong Kong Photographers

172-3

204-5

236-7

252-3

268-9

END-PAPER MAPS

Front:

Hong Kong, Kowloon and the New Territories

Back:

Reclamation in Hong Kong

Appendices

Appendix

Page

1

UNITS OF MEASUREMENT

304

2

OVERSEAS REPRESENTATION

305

3-4

INDUSTRY AND TRADE

308

5-12

THE ECONOMY

312

13-16

EMPLOYMENT

323

17-19 PRIMARY PRODUCTION

328

20-23

EDUCATION

330

24-27

HEALTH

332

28

HOUSING

334

29-30

Land, Public Works and UTILITIES

335

31-32

TRANSPORT

337

33-36

PUBLIC ORDER

339

37

COMMUNICATIONS AND THe Media

343

38

Recreation and The Arts

344

39

THE ENVIRONMENT

344

40-42

CONSTITUTION AND ADMINISTRATION

345

43

SOCIAL WELFARE

349

When dollars are quoted in this report, they are, unless otherwise stated, Hong Kong dollars. Since October 17, 1983, the Hong Kong dollar has been linked to the US dollar, through a new arrangement in the note-issue mechanism, at a fixed rate of HK$7.80=US$1.

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

1

The Sino-British Joint Declaration on The Future of Hong Kong

D

     On 19 December 1984, the Prime Minister of the United Kingdom of Great Britain and Northern Ireland, Mrs Margaret Thatcher, and the Prime Minister of the People's Republic of China, Mr Zhao Ziyang, acting on behalf of their respective Governments, signed the following Agreement on the future of Hong Kong:

JOINT DECLARATION

OF THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND

AND

THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA

ON THE QUESTION OF HONG KONG

The Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the People's Republic of China have reviewed with satisfaction the friendly relations existing between the two Governments and peoples in recent years and agreed that a proper negotiated settlement of the question of Hong Kong, which is left over from the past, is conducive to the maintenance of the prosperity and stability of Hong Kong and to the further strengthening and development of the relations between the two countries on a new basis. To this end, they have, after talks between the delegations of the two Governments, agreed to declare as follows:

     1. The Government of the People's Republic of China declares that to recover the Hong Kong area (including Hong Kong Island, Kowloon and the New Territories, hereinafter referred to as Hong Kong) is the common aspiration of the entire Chinese people, and that it has decided to resume the exercise of sovereignty over Hong Kong with effect from 1 July 1997.

2. The Government of the United Kingdom declares that it will restore Hong Kong to the People's Republic of China with effect from 1 July 1997.

3. The Government of the People's Republic of China declares that the basic policies of the People's Republic of China regarding Hong Kong are as follows:

(1) Upholding national unity and territorial integrity and taking account of the history of Hong Kong and its realities, the People's Republic of China has decided to establish, in accordance with the provisions of Article 31 of the Constitution of the People's Republic of China, a Hong Kong Special Administrative Region upon resuming the exercise of sovereignty over Hong Kong.

2

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

(2) The Hong Kong Special Administrative Region will be directly under the authority of the Central People's Government of the People's Republic of China. The Hong Kong Special Administrative Region will enjoy a high degree of autonomy, except in foreign and defence affairs which are the responsibilities of the Central People's Government.

(3) The Hong Kong Special Administrative Region will be vested with executive, legislative and independent judicial power, including that of final adjudication. The laws currently in force in Hong Kong will remain basically unchanged.

(4) The Government of the Hong Kong Special Administrative Region will be composed of local inhabitants. The chief executive will be appointed by the Central People's Government on the basis of the results of elections or consultations to be held locally. Principal officials will be nominated by the chief executive of the Hong Kong Special Administrative Region for appointment by the Central People's Government. Chinese and foreign nationals previously working in the public and police services in the government departments of Hong Kong may remain in employment. British and other foreign nationals may also be employed to serve as advisers or hold certain public posts in government departments of the Hong Kong Special Administrative Region.

(5) The current social and economic systems in Hong Kong will remain unchanged, and so will the life-style. Rights and freedoms, including those of the person, of speech, of the press, of assembly, of association, of travel, of movement, of correspondence, of strike, of choice of occupation, of academic research and of religious belief will be ensured by law in the Hong Kong Special Administrative Region. Private property, ownership of enterprises, legitimate right of inheritance and foreign investment will be protected by law.

(6) The Hong Kong Special Administrative Region will retain the status of a free port

and a separate customs territory.

(7) The Hong Kong Special Administrative Region will retain the status of an international financial centre, and its markets for foreign exchange, gold, securities and futures will continue. There will be free flow of capital. The Hong Kong dollar will continue to circulate and remain freely convertible.

(8) The Hong Kong Special Administrative Region will have independent finances. The Central People's Government will not levy taxes on the Hong Kong Special Administrative Region.

(9) The Hong Kong Special Administrative Region may establish mutually beneficial economic relations with the United Kingdom and other countries, whose economic interests in Hong Kong will be given due regard.

(10) Using the name of "Hong Kong, China", the Hong Kong Special Administrative Region may on its own maintain and develop economic and cultural relations and conclude relevant agreements with states, regions and relevant international organisations.

The Government of the Hong Kong Special Administrative Region may on its own. issue travel documents for entry into and exit from Hong Kong.

(11) The maintenance of public order in the Hong Kong Special Administrative Region will be the responsibility of the Government of the Hong Kong Special Administrative Region.

(12) The above-stated basic policies of the People's Republic of China regarding Hong Kong and the elaboration of them in Annex I to this Joint Declaration will be

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

3

  stipulated, in a Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China, by the National People's Congress of the People's Republic of China, and they will remain unchanged for 50 years.

4. The Government of the United Kingdom and the Government of the People's Republic of China declare that, during the transitional period between the date of the entry into force of this Joint Declaration and 30 June 1997, the Government of the United Kingdom will be responsible for the administration of Hong Kong with the object of maintaining and preserving its economic prosperity and social stability; and that the Government of the People's Republic of China will give its cooperation in this connection.

5. The Government of the United Kingdom and the Government of the People's Republic of China declare that, in order to ensure a smooth transfer of government in 1997, and with a view to the effective implementation of this Joint Declaration, a Sino-British Joint Liaison Group will be set up when this Joint Declaration enters into force; and that it will be established and will function in accordance with the provisions of Annex II to this Joint Declaration.

6. The Government of the United Kingdom and the Government of the People's Republic of China declare that land leases in Hong Kong and other related matters will be dealt with in accordance with the provisions of Annex III to this Joint Declaration.

7. The Government of the United Kingdom and the Government of the People's Republic of China agree to implement the preceding declarations and the Annexes to this Joint Declaration.

      8. This Joint Declaration is subject to ratification and shall enter into force on the date of the exchange of instruments of ratification, which shall take place in Beijing before 30 June 1985. This Joint Declaration and its Annexes shall be equally binding.

      Done in duplicate at Beijing on 19 December 1984 in the English and Chinese languages, both texts being equally authentic.

For the

Government of the United Kingdom

of Great Britain and Northern Ireland

Margaret Thatcher

For the

Government of the People's Republic of China

Zhao Ziyang

ANNEX I

ELABORATION BY THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA

OF ITS BASIC POLICIES REGARDING HONG KONG

The Government of the People's Republic of China elaborates the basic policies of the People's Republic of China regarding Hong Kong as set out in paragraph 3 of the Joint Declaration of the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the People's Republic of China on the Question of Hong Kong as follows:

4

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

I

     The Constitution of the People's Republic of China stipulates in Article 31 that "the state may establish special administrative regions when necessary. The systems to be instituted in special administrative regions shall be prescribed by laws enacted by the National People's Congress in the light of the specific conditions." In accordance with this Article, the People's Republic of China shall, upon the resumption of the exercise of sovereignty over Hong Kong on 1 July 1997, establish the Hong Kong Special Administrative Region of the People's Republic of China. The National People's Congress of the People's Republic of China shall enact and promulgate a Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China (hereinafter referred to as the Basic Law) in accordance with the Constitution of the People's Republic of China, stipulating that after the establishment of the Hong Kong Special Administrative Region the socialist system and socialist policies shall not be practised in the Hong Kong Special Administrative Region and that Hong Kong's previous capitalist system and life-style shall remain. unchanged for 50 years.

     The Hong Kong Special Administrative Region shall be directly under the authority of the Central People's Government of the People's Republic of China and shall enjoy a high degree of autonomy. Except for foreign and defence affairs which are the responsibilities of the Central People's Government, the Hong Kong Special Administrative Region shall be vested with executive, legislative and independent judicial power, including that of final adjudication. The Central People's Government shall authorise the Hong Kong Special Administrative Region to conduct on its own those external affairs specified in Section XI of this Annex.

     The government and legislature of the Hong Kong Special Administrative Region shall be composed of local inhabitants. The chief executive of the Hong Kong Special Administrative Region shall be selected by election or through consultations held locally and be appointed by the Central People's Government. Principal officials (equivalent to Secretaries) shall be nominated by the chief executive of the Hong Kong Special Administrative Region and appointed by the Central People's Government. The legislature of the Hong Kong Special Administrative Region shall be constituted by elections. The executive authorities shall abide by the law and shall be accountable to the legislature.

     In addition to Chinese, English may also be used in organs of government and in the courts in the Hong Kong Special Administrative Region.

Apart from displaying the national flag and national emblem of the People's Republic of China, the Hong Kong Special Administrative Region may use a regional flag and emblem of its own.

II

After the establishment of the Hong Kong Special Administrative Region, the laws pre- viously in force in Hong Kong (i.e. the common law, rules of equity, ordinances, subordinate legislation and customary law) shall be maintained, save for any that contravene the Basic Law and subject to any amendment by the Hong Kong Special Administrative Region legislature. The legislative power of the Hong Kong Special Administrative Region shall be vested in the legislature of the Hong Kong Special Administrative Region. The legislature may on its own authority enact laws in accordance with the provisions of the Basic Law and legal procedures, and report them to the Standing Committee of the National People's Congress for the record. Laws enacted by the legislature which are in accordance with the Basic Law and legal procedures shall be regarded as valid.

THE JOINT DECLARATION

The Prime Minister, Mrs Margaret Thatcher, addressed a joint session of the Executive and Legislative Councils in Hong Kong on December 20 after signing the Joint Declaration in Peking.

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THE EXECUTIVE

COUNCIL

The Council as at September 1984

Standing

The Hon. Chen Shou-lum CBE, JP

Seated

The Hon.

D. Akers-Jones

CMG, JP

The Hon. Lydia Dunn CBE, JP

The Hon.

M. G. R. Sandberg

CBE, JP

The Hon. The Hon. the Financial Secretary R. H. Lobo": Sir John Bremridge

CBE, JP

The Hon. the Attorney General ̧ ̧

M. D. Thomas ::

QC

The Hon.

The Hon. the Commander British Forces Major General D. Boorman

CB

Sir Sze-yuen Chung

* CBE, JP

KBE, JP

His Excellency the Governor Sir Edward Youde GCMG, MBE

The Hon.

Li Fook-wo

CBE, JP

The Hon.

D. C. Bray CMG, CVO, JP

The Hon. the Chief Secretary Sir Philip Haddon-Cave

KBE, CMG, JP

The Hon. Lo Tak-shing

CBE, JP

The Hon. Oswald Cheung CBE, QC, JP

The Hon.

Lee Quo-wei CBE, JP

The Hon. Maria Tam OBE, JP

R. I. W. Upton (Clerk of Councils)

(Senior Unofficial Member

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اده رها شده در سایت

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The texts of the documents that make up the agreement on Hong Kong's future were initialled in Peking on September 26 by the leader of the British delegation at the negotiations, Sir Richard Evans, and the leader of the Chinese delegation, Mr Zhou Nan.

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

5

       The laws of the Hong Kong Special Administrative Region shall be the Basic Law, and the laws previously in force in Hong Kong and laws enacted by the Hong Kong Special Administrative Region legislature as above.

III

After the establishment of the Hong Kong Special Administrative Region, the judicial system previously practised in Hong Kong shall be maintained except for those changes consequent upon the vesting in the courts of the Hong Kong Special Administrative Region of the power of final adjudication.

Judicial power in the Hong Kong Special Administrative Region shall be vested in the courts of the Hong Kong Special Administrative Region. The courts shall exercise judicial power independently and free from any interference. Members of the judiciary shall be immune from legal action in respect of their judicial functions. The courts shall decide cases in accordance with the laws of the Hong Kong Special Administrative Region and may refer to precedents in other common law jurisdictions.

Judges of the Hong Kong Special Administrative Region courts shall be appointed by the chief executive of the Hong Kong Special Administrative Region acting in accordance with the recommendation of an independent commission composed of local judges, persons from the legal profession and other eminent persons. Judges shall be chosen by reference to their judicial qualities and may be recruited from other common law jurisdictions. A judge may only be removed for inability to discharge the functions of his office, or for misbehaviour, by the chief executive of the Hong Kong Special Administrative Region acting in accordance with the recommendation of a tribunal appointed by the chief judge of the court of final appeal, consisting of not fewer than three local judges. Additionally, the appointment or removal of principal judges (i.e. those of the highest rank) shall be made by the chief executive with the endorsement of the Hong Kong Special Administrative Region legislature and reported to the Standing Committee of the National People's Congress for the record. The system of appointment and removal of judicial officers other than judges shall be maintained.

The power of final judgment of the Hong Kong Special Administrative Region shall be vested in the court of final appeal in the Hong Kong Special Administrative Region, which may as required invite judges from other common law jurisdictions to sit on the court of final appeal.

A prosecuting authority of the Hong Kong Special Administrative Region shall control criminal prosecutions free from any interference.

On the basis of the system previously operating in Hong Kong, the Hong Kong Special Administrative Region Government shall on its own make provision for local lawyers and lawyers from outside the Hong Kong Special Administrative Region to work and practise in the Hong Kong Special Administrative Region.

The Central People's Government shall assist or authorise the Hong Kong Special Administrative Region Government to make appropriate arrangements for reciprocal juridical assistance with foreign states.

IV

After the establishment of the Hong Kong Special Administrative Region, public servants previously serving in Hong Kong in all government departments, including the police department, and members of the judiciary may all remain in employment and continue their service with pay, allowances, benefits and conditions of service no less

6

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

favourable than before. The Hong Kong Special Administrative Region Government shall pay to such persons who retire or complete their contracts, as well as to those who have retired before 1 July 1997, or to their dependants, all pensions, gratuities, allowances and benefits due to them on terms no less favourable than before, and irrespective of their nationality or place of residence.

      The Hong Kong Special Administrative Region Government may employ British and other foreign nationals previously serving in the public service in Hong Kong, and may recruit British and other foreign nationals holding permanent identity cards of the Hong Kong Special Administrative Region to serve as public servants at all levels, except as heads of major government departments (corresponding to branches or departments at Secretary level) including the police department, and as deputy heads of some of those departments. The Hong Kong Special Administrative Region Government may also employ British and other foreign nationals as advisers to government departments and, when there is a need, may recruit qualified candidates from outside the Hong Kong Special Administrative Region to professional and technical posts in government departments. The above shall be employed only in their individual capacities and, like other public servants, shall be responsible to the Hong Kong Special Administrative Region Government.

The appointment and promotion of public servants shall be on the basis of qualifications, experience and ability. Hong Kong's previous system of recruitment, employment, assess- ment, discipline, training and management for the public service (including special bodies for appointment, pay and conditions of service) shall, save for any provisions providing privileged treatment for foreign nationals, be maintained.

V

The Hong Kong Special Administrative Region shall deal on its own with financial matters, including disposing of its financial resources and drawing up its budgets and its final accounts. The Hong Kong Special Administrative Region shall report its budgets and final accounts to the Central People's Government for the record.

The Central People's Government shall not levy taxes on the Hong Kong Special Administrative Region. The Hong Kong Special Administrative Region shall use its financial revenues exclusively for its own purposes and they shall not be handed over to the Central People's Government. The systems by which taxation and public expen- diture must be approved by the legislature, and by which there is accountability to the legislature for all public expenditure, and the system for auditing public accounts shall be maintained.

VI

The Hong Kong Special Administrative Region shall maintain the capitalist economic and trade systems previously practised in Hong Kong. The Hong Kong Special Admini- strative Region Government shall decide its economic and trade policies on its own. Rights concerning the ownership of property, including those relating to acquisition, use, disposal, inheritance and compensation for lawful deprivation (corresponding to the real value of the property concerned, freely convertible and paid without undue delay) shall continue to be protected by law.

The Hong Kong Special Administrative Region shall retain the status of a free port and continue a free trade policy, including the free movement of goods and capital. The Hong Kong Special Administrative Region may on its own maintain and develop economic and trade relations with all states and regions.

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

7

The Hong Kong Special Administrative Region shall be a separate customs territory. It may participate in relevant international organisations and international trade agreements (including preferential trade arrangements), such as the General Agreement on Tariffs and Trade and arrangements regarding international trade in textiles. Export quotas, tariff preferences and other similar arrangements obtained by the Hong Kong Special Administrative Region shall be enjoyed exclusively by the Hong Kong Special Admin- istrative Region. The Hong Kong Special Administrative Region shall have authority to issue its own certificates of origin for products manufactured locally, in accordance with prevailing rules of origin.

The Hong Kong Special Administrative Region may, as necessary, establish official and semi-official economic and trade missions in foreign countries, reporting the establishment of such missions to the Central People's Government for the record.

VII

The Hong Kong Special Administrative Region shall retain the status of an international financial centre. The monetary and financial systems previously practised in Hong Kong, including the systems of regulation and supervision of deposit taking institutions and financial markets, shall be maintained.

The Hong Kong Special Administrative Region Government may decide its monetary and financial policies on its own. It shall safeguard the free operation of financial business and the free flow of capital within, into and out of the Hong Kong Special Administrative Region. No exchange control policy shall be applied in the Hong Kong Special Admin- istrative Region. Markets for foreign exchange, gold, securities and futures shall continue. The Hong Kong dollar, as the local legal tender, shall continue to circulate and remain freely convertible. The authority to issue Hong Kong currency shall be vested in the Hong Kong Special Administrative Region Government. The Hong Kong Special Administrative Region Government may authorise designated banks to issue or continue to issue Hong Kong currency under statutory authority, after satisfying itself that any issue of currency will be soundly based and that the arrangements for such issue are consistent with the object of maintaining the stability of the currency. Hong Kong currency bearing references inappropriate to the status of Hong Kong as a Special Administrative Region of the People's Republic of China shall be progressively replaced and withdrawn from circulation.

The Exchange Fund shall be managed and controlled by the Hong Kong Special Administrative Region Government, primarily for regulating the exchange value of the Hong Kong dollar.

VIII

The Hong Kong Special Administrative Region shall maintain Hong Kong's previous systems of shipping management and shipping regulation, including the system for regulating conditions of seamen. The specific functions and responsibilities of the Hong Kong Special Administrative Region Government in the field of shipping shall be defined by the Hong Kong Special Administrative Region Government on its own. Private shipping businesses and shipping-related businesses and private container terminals in Hong Kong may continue to operate freely.

The Hong Kong Special Administrative Region shall be authorised by the Central People's Government to continue to maintain a shipping register and issue related certificates under its own legislation in the name of "Hong Kong, China".

8

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

With the exception of foreign warships, access for which requires the permission of the Central People's Government, ships shall enjoy access to the ports of the Hong Kong Special Administrative Region in accordance with the laws of the Hong Kong Special Administrative Region.

IX

The Hong Kong Special Administrative Region shall maintain the status of Hong Kong as a centre of international and regional aviation. Airlines incorporated and having their principal place of business in Hong Kong and civil aviation related businesses may continue to operate. The Hong Kong Special Administrative Region shall continue the previous system of civil aviation management in Hong Kong, and keep its own aircraft register in accordance with provisions laid down by the Central People's Government concerning nationality marks and registration marks of aircraft. The Hong Kong Special Administrative Region shall be responsible on its own for matters of routine business and technical management of civil aviation, including the management of airports, the provision of air traffic services within the flight information region of the Hong Kong Special Administrative Region, and the discharge of other responsibilities allocated under the regional air navigation procedures of the International Civil Aviation Organisation.

     The Central People's Government shall, in consultation with the Hong Kong Special Administrative Region Government, make arrangements providing for air services between the Hong Kong Special Administrative Region and other parts of the People's Republic of China for airlines incorporated and having their principal place of business in the Hong Kong Special Administrative Region and other airlines of the People's Republic of China. All Air Service Agreements providing for air services between other parts of the People's Republic of China and other states and regions with stops at the Hong Kong Special Administrative Region and air services between the Hong Kong Special Administrative Region and other states and regions with stops at other parts of the People's Republic of China shall be concluded by the Central People's Government. For this purpose, the Central People's Government shall take account of the special conditions and economic interests of the Hong Kong Special Administrative Region and consult the Hong Kong Special Administrative Region Government. Representatives of the Hong Kong Special Administrative Region Government may participate as members of delegations of the Government of the People's Republic of China in air service consultations with foreign governments concerning arrangements for such services.

     Acting under specific authorisations from the Central People's Government, the Hong Kong Special Administrative Region Government may:

- renew or amend Air Service Agreements and arrangements previously in force; in principle, all such Agreements and arrangements may be renewed or amended with the rights contained in such previous Agreements and arrangements being as far as possible maintained;

negotiate and conclude new Air Service Agreements providing routes for airlines incorporated and having their principal place of business in the Hong Kong Special Administrative Region and rights for overflights and technical stops; and

negotiate and conclude provisional arrangements where no Air Service Agreement with a foreign state or other region is in force.

All scheduled air services to, from or through the Hong Kong Special Administrative Region which do not operate to, from or through the mainland of China shall be regulated by Air Service Agreements or provisional arrangements referred to in this paragraph.

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

9

The Central People's Government shall give the Hong Kong Special Administrative Region Government the authority to:

- negotiate and conclude with other authorities all arrangements concerning the

implementation of the above Air Service Agreements and provisional arrangements; issue licences to airlines incorporated and having their principal place of business in the Hong Kong Special Administrative Region;

-

designate such airlines under the above Air Service Agreements and provisional arrangements; and

issue permits to foreign airlines for services other than those to, from or through the mainland of China.

X

The Hong Kong Special Administrative Region shall maintain the educational system previously practised in Hong Kong. The Hong Kong Special Administrative Region Government shall on its own decide policies in the fields of culture, education, science and technology, including policies regarding the educational system and its administration, the language of instruction, the allocation of funds, the examination system, the system of academic awards and the recognition of educational and technological qualifications. Institutions of all kinds, including those run by religious and community organisations, may retain their autonomy. They may continue to recruit staff and use teaching materials from outside the Hong Kong Special Administrative Region. Students shall enjoy freedom of choice of education and freedom to pursue their education outside the Hong Kong Special Administrative Region.

XI

Subject to the principle that foreign affairs are the responsibility of the Central People's Government, representatives of the Hong Kong Special Administrative Region Govern- ment may participate, as members of delegations of the Government of the People's Republic of China, in negotiations at the diplomatic level directly affecting the Hong Kong Special Administrative Region conducted by the Central People's Government. The Hong Kong Special Administrative Region may on its own, using the name "Hong Kong, China", maintain and develop relations and conclude and implement agreements with states, regions and relevant international organisations in the appropriate fields, including the economic, trade, financial and monetary, shipping, communications, touristic, cultural and sporting fields. Representatives of the Hong Kong Special Administrative Region Government may participate, as members of delegations of the Government of the People's Republic of China, in international organisations or conferences in appropriate fields limited to states and affecting the Hong Kong Special Administrative Region, or may attend in such other capacity as may be permitted by the Central People's Government and the organisation or conference concerned, and may express their views in the name of "Hong Kong, China". The Hong Kong Special Administrative Region may, using the name "Hong Kong, China", participate in international organisations and conferences not limited to states.

     The application to the Hong Kong Special Administrative Region of international agreements to which the People's Republic of China is or becomes a party shall be decided by the Central People's Government, in accordance with the circumstances and needs of the Hong Kong Special Administrative Region, and after seeking the views of the Hong Kong Special Administrative Region Government. International agreements to which the

10 THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

People's Republic of China is not a party but which are implemented in Hong Kong may remain implemented in the Hong Kong Special Administrative Region. The Central People's Government shall, as necessary, authorise or assist the Hong Kong Special Administrative Region Government to make appropriate arrangements for the application to the Hong Kong Special Administrative Region of other relevant international agree- ments. The Central People's Government shall take the necessary steps to ensure that the Hong Kong Special Administrative Region shall continue to retain its status in an appropriate capacity in those international organisations of which the People's Republic of China is a member and in which Hong Kong participates in one capacity or another. The Central People's Government shall, where necessary, facilitate the continued participation of the Hong Kong Special Administrative Region in an appropriate capacity in those international organisations in which Hong Kong is a participant in one capacity or another, but of which the People's Republic of China is not a member.

Foreign consular and other official or semi-official missions may be established in the Hong Kong Special Administrative Region with the approval of the Central People's Government. Consular and other official missions established in Hong Kong by states which have established formal diplomatic relations with the People's Republic of China may be maintained. According to the circumstances of each case, consular and other official missions of states having no formal diplomatic relations with the People's Republic of China may either be maintained or changed to semi-official missions. States not recognised by the People's Republic of China can only establish non-governmental institutions.

The United Kingdom may establish a Consulate-General in the Hong Kong Special Administrative Region.

XII

The maintenance of public order in the Hong Kong Special Administrative Region shall be the responsibility of the Hong Kong Special Administrative Region Government. Military forces sent by the Central People's Government to be stationed in the Hong Kong Special Administrative Region for the purpose of defence shall not interfere in the internal affairs of the Hong Kong Special Administrative Region. Expenditure for these military forces shall be borne by the Central People's Government.

XIII

The Hong Kong Special Administrative Region Government shall protect the rights and freedoms of inhabitants and other persons in the Hong Kong Special Administrative Region according to law. The Hong Kong Special Administrative Region Government shall maintain the rights and freedoms as provided for by the laws previously in force in Hong Kong, including freedom of the person, of speech, of the press, of assembly, of association, to form and join trade unions, of correspondence, of travel, of movement, of strike, of demonstration, of choice of occupation, of academic research, of belief, inviolability of the home, the freedom to marry and the right to raise a family freely.

      Every person shall have the right to confidential legal advice, access to the courts, representation in the courts by lawyers of his choice, and to obtain judicial remedies. Every person shall have the right to challenge the actions of the executive in the courts.

Religious organisations and believers may maintain their relations with religious organisations and believers elsewhere, and schools, hospitals and welfare institutions. run by religious organisations may be continued. The relationship between religious organisations in the Hong Kong Special Administrative Region and those in other parts of

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

11

the People's Republic of China shall be based on the principles of non-subordination, non-interference and mutual respect.

The provisions of the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights as applied to Hong Kong shall remain in force.

XIV

The following categories of persons shall have the right of abode in the Hong Kong Special Administrative Region, and, in accordance with the law of the Hong Kong Special Administrative Region, be qualified to obtain permanent identity cards issued by the Hong Kong Special Administrative Region Government, which state their right of abode:

-

all Chinese nationals who were born or who have ordinarily resided in Hong Kong before or after the establishment of the Hong Kong Special Administrative Region for a continuous period of 7 years or more, and persons of Chinese nationality born. outside Hong Kong of such Chinese nationals;

all other persons who have ordinarily resided in Hong Kong before or after the establishment of the Hong Kong Special Administrative Region for a continuous period of 7 years or more and who have taken Hong Kong as their place of per- manent residence before or after the establishment of the Hong Kong Special Administrative Region, and persons under 21 years of age who were born of such persons in Hong Kong before or after the establishment of the Hong Kong Special Administrative Region;

any other persons who had the right of abode only in Hong Kong before the establishment of the Hong Kong Special Administrative Region.

      The Central People's Government shall authorise the Hong Kong Special Administrative Region Government to issue, in accordance with the law, passports of the Hong Kong Special Administrative Region of the People's Republic of China to all Chinese nationals who hold permanent identity cards of the Hong Kong Special Administrative Region, and travel documents of the Hong Kong Special Administrative Region of the People's Republic of China to all other persons lawfully residing in the Hong Kong Special Administrative Region. The above passports and documents shall be valid for all states and regions and shall record the holder's right to return to the Hong Kong Special Administrative Region.

     For the purpose of travelling to and from the Hong Kong Special Administrative Region, residents of the Hong Kong Special Administrative Region may use travel documents issued by the Hong Kong Special Administrative Region Government, or by other competent authorities of the People's Republic of China, or of other states. Holders of permanent identity cards of the Hong Kong Special Administrative Region may have this fact stated in their travel documents as evidence that the holders have the right of abode in the Hong Kong Special Administrative Region.

     Entry into the Hong Kong Special Administrative Region of persons from other parts of China shall continue to be regulated in accordance with the present practice.

     The Hong Kong Special Administrative Region Government may apply immigration. controls on entry, stay in and departure from the Hong Kong Special Administrative Region by persons from foreign states and regions.

Unless restrained by law, holders of valid travel documents shall be free to leave the Hong Kong Special Administrative Region without special authorisation..

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THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

The Central People's Government shall assist or authorise the Hong Kong Special Administrative Region Government to conclude visa abolition agreements with states or regions.

ANNEX II

SINO-BRITISH JOINT LIAISON GROUP

1. In furtherance of their common aim and in order to ensure a smooth transfer of government in 1997, the Government of the United Kingdom and the Government of the People's Republic of China have agreed to continue their discussions in a friendly spirit and to develop the cooperative relationship which already exists between the two Governments over Hong Kong with a view to the effective implementation of the Joint Declaration.

2. In order to meet the requirements for liaison, consultation and the exchange of information, the two Governments have agreed to set up a Joint Liaison Group.

3. The functions of the Joint Liaison Group shall be:

(a) to conduct consultations on the implementation of the Joint Declaration; (b) to discuss matters relating to the smooth transfer of government in 1997;

(c) to exchange information and conduct consultations on such subjects as may be

agreed by the two sides.

Matters on which there is disagreement in the Joint Liaison Group shall be referred to the two Governments for solution through consultations.

4. Matters for consideration during the first half of the period between the establishment of the Joint Liaison Group and 1 July 1997 shall include:

(a) action to be taken by the two Governments to enable the Hong Kong Special Administrative Region to maintain its economic relations as a separate customs territory, and in particular to ensure the maintenance of Hong Kong's participation in the General Agreement on Tariffs and Trade, the Multifibre Arrangement and other international arrangements; and

(b) action to be taken by the two Governments to ensure the continued application of

international rights and obligations affecting Hong Kong.

5. The two Governments have agreed that in the second half of the period between the establishment of the Joint Liaison Group and 1 July 1997 there will be need for closer cooperation, which will therefore be intensified during that period. Matters for consideration during this second period shall include:

(a) procedures to be adopted for the smooth transition in 1997;

(b) action to assist the Hong Kong Special Administrative Region to maintain and develop economic and cultural relations and conclude agreements on these matters with states, regions and relevant international organisations.

6. The Joint Liaison Group shall be an organ for liaison and not an organ of power. It shall play no part in the administration of Hong Kong or the Hong Kong Special Administrative Region. Nor shall it have any supervisory role over that administration. The members and supporting staff of the Joint Liaison Group shall only conduct activities within the scope of the functions of the Joint Liaison Group.

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG 13

7. Each side shall designate a senior representative, who shall be of Ambassadorial rank, and four other members of the group. Each side may send up to 20 supporting staff.

8. The Joint Liaison Group shall be established on the entry into force of the Joint Declaration. From 1 July 1988 the Joint Liaison Group shall have its principal base in Hong Kong. The Joint Liaison Group shall continue its work until 1 January 2000.

9. The Joint Liaison Group shall meet in Beijing, London and Hong Kong. It shall meet at least once in each of the three locations in each year. The venue for each meeting shall be agreed between the two sides.

10. Members of the Joint Liaison Group shall enjoy diplomatic privileges and immunities as appropriate when in the three locations. Proceedings of the Joint Liaison Group shall remain confidential unless otherwise agreed between the two sides.

11. The Joint Liaison Group may by agreement between the two sides decide to set up specialist sub-groups to deal with particular subjects requiring expert assistance.

12. Meetings of the Joint Liaison Group and sub-groups may be attended by experts other than the members of the Joint Liaison Group. Each side shall determine the composition of its delegation to particular meetings of the Joint Liaison Group or sub-group in accordance with the subjects to be discussed and the venue chosen.

13. The working procedures of the Joint Liaison Group shall be discussed and decided upon by the two sides within the guidelines laid down in this Annex.

ANNEX III

LAND LEASES

The Government of the United Kingdom and the Government of the People's Republic of China have agreed that, with effect from the entry into force of the Joint Declaration, land leases in Hong Kong and other related matters shall be dealt with in accordance with the following provisions:

1. All leases of land granted or decided upon before the entry into force of the Joint Declaration and those granted thereafter in accordance with paragraph 2 or 3 of this Annex, and which extend beyond 30 June 1997, and all rights in relation to such leases shall continue to be recognised and protected under the law of the Hong Kong Special Administrative Region.

2. All leases of land granted by the British Hong Kong Government not containing a right of renewal that expire before 30 June 1997, except short term tenancies and leases for special purposes, may be extended if the lessee so wishes for a period expiring not later than 30 June 2047 without payment of an additional premium. An annual rent shall be charged from the date of extension equivalent to 3 per cent of the rateable value of the property at that date, adjusted in step with any changes in the rateable value thereafter. In the case of old schedule lots, village lots, small houses and similar rural holdings, where the property was on 30 June 1984 held by, or, in the case of small houses granted after that date, the property is granted to, a person descended through the male line from a person who was in 1898 a resident of an established village in Hong Kong, the rent shall remain unchanged so

14

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

     long as the property is held by that person or by one of his lawful successors in the male line. Where leases of land not having a right of renewal expire after 30 June 1997, they shall be dealt with in accordance with the relevant land laws and policies of the Hong Kong Special Administrative Region.

3. From the entry into force of the Joint Declaration until 30 June 1997, new leases of land may be granted by the British Hong Kong Government for terms expiring not later than 30 June 2047. Such leases shall be granted at a premium and nominal rental until 30 June 1997, after which date they shall not require payment of an additional premium but an annual rent equivalent to 3 per cent of the rateable value of the property at that date, adjusted in step with changes in the rateable value thereafter, shall be charged.

4. The total amount of new land to be granted under paragraph 3 of this Annex shall be limited to 50 hectares a year (excluding land to be granted to the Hong Kong Housing Authority for public rental housing) from the entry into force of the Joint Declaration until 30 June 1997.

5. Modifications of the conditions specified in leases granted by the British Hong Kong Government may continue to be granted before 1 July 1997 at a premium equivalent to the difference between the value of the land under the previous conditions and its value under the modified conditions.

6. From the entry into force of the Joint Declaration until 30 June 1997, premium income obtained by the British Hong Kong Government from land transactions shall, after deduction of the average cost of land production, be shared equally between the British Hong Kong Government and the future Hong Kong Special Administrative Region Government. All the income obtained by the British Hong Kong Government, including the amount of the above mentioned deduction, shall be put into the Capital Works Reserve Fund for the financing of land development and public works in Hong Kong. The Hong Kong Special Administrative Region Government's share of the premium income shall be deposited in banks incorporated in Hong Kong and shall not be drawn on except for the financing of land development and public works in Hong Kong in accordance with the provisions of paragraph 7(d) of this Annex.

7. A Land Commission shall be established in Hong Kong immediately upon the entry into force of the Joint Declaration. The Land Commission shall be composed of an equal number of officials designated respectively by the Government of the United Kingdom and the Government of the People's Republic of China together with necessary supporting staff. The officials of the two sides shall be responsible to their respective governments. The Land Commission shall be dissolved on 30 June 1997.

The terms of reference of the Land Commission shall be:

(a) to conduct consultations on the implementation of this Annex;

(b) to monitor observance of the limit specified in paragraph 4 of this Annex, the amount of land granted to the Hong Kong Housing Authority for public rental housing, and the division and use of premium income referred to in paragraph 6 of this Annex;

(c) to consider and decide on proposals from the British Hong Kong Government for

increasing the limit referred to in paragraph 4 of this Annex;

ནི་

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

15

(d) to examine proposals for drawing on the Hong Kong Special Administrative Region Government's share of premium income referred to in paragraph 6 of this Annex and to make recommendations to the Chinese side for decision.

Matters on which there is disagreement in the Land Commission shall be referred to the Government of the United Kingdom and the Government of the People's Republic of China for decision.

8. Specific details regarding the establishment of the Land Commission shall be finalised separately by the two sides through consultations.

EXCHANGE OF MEMORANDA

(A) UNITED KINGDOM MEMORANDUM

MEMORANDUM

In connection with the Joint Declaration of the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the People's Republic of China on the question of Hong Kong to be signed this day, the Government of the United Kingdom declares that, subject to the completion of the necessary amendments to the relevant United Kingdom legislation:

(a) All persons who on 30 June 1997 are, by virtue of a connection with Hong Kong, British Dependent Territories citizens (BDTCs) under the law in force in the United Kingdom will cease to be BDTCs with effect from 1 July 1997, but will be eligible to retain an appropriate status which, without conferring the right of abode in the United Kingdom, will entitle them to continue to use passports issued by the Government of the United Kingdom. This status will be acquired by such persons only if they hold or are included in such a British passport issued. before 1 July 1997, except that eligible persons born on or after 1 January 1997 but before 1 July 1997 may obtain or be included in such a passport up to 31 December 1997.

(b) No person will acquire BDTC status on or after 1 July 1997 by virtue of a connection with Hong Kong. No person born on or after 1 July 1997 will acquire the status referred to as being appropriate in sub-paragraph (a).

(c) United Kingdom consular officials in the Hong Kong Special Administrative Region and elsewhere may renew and replace passports of persons mentioned in sub-paragraph (a) and may also issue them to persons, born before 1 July 1997 of such persons, who had previously been included in the passport of their parent.

(d) Those who have obtained or been included in passports issued by the Government of the United Kingdom under sub-paragraphs (a) and (c) will be entitled to receive, upon request, British consular services and protection when in third countries.

Beijing, 19 December 1984.

(Stamp of the British Embassy)

Urban Council Public Libraries

City Hall, Hong Kong

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THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

(B) CHINESE MEMORANDUM

Translation

MEMORANDUM

The Government of the People's Republic of China has received the memorandum from the Government of the United Kingdom of Great Britain and Northern Ireland dated 19 December 1984.

Under the Nationality Law of the People's Republic of China, all Hong Kong Chinese compatriots, whether they are holders of the "British Dependent Territories citizens' Passport" or not, are Chinese nationals.

Taking account of the historical background of Hong Kong and its realities, the competent authorities of the Government of the People's Republic of China will, with effect from 1 July 1997, permit Chinese nationals in Hong Kong who were previously called "British Dependent Territories citizens" to use travel documents issued by the Government of the United Kingdom for the purpose of travelling to other states and regions.

      The above Chinese nationals will not be entitled to British consular protection in the Hong Kong Special Administrative Region and other parts of the People's Republic of China on account of their holding the above-mentioned British travel documents.

Beijing, 19 December 1984.

(Stamp of the Ministry of Foreign Affairs of the Central People's Government)

    An explanation of the background to the two years of negotiations which preceded this historic event, an account of the negotiations themselves and of the process of consultation which accompanied and followed the negotiations and led to the decision by the British Government to sign the Agreement follows:

History

During the nineteenth century Britain concluded three treaties with the then Chinese Government relating to Hong Kong: the Treaty of Nanking, signed in 1842 and ratified in 1843 under which Hong Kong Island was ceded in perpetuity; the Convention of Peking in 1860 under which the southern part of the Kowloon peninsula and Stonecutters Island were ceded in perpetuity; the Convention of 1898 under which the New Territories (comprising 92 per cent of the total land area of the territory) were leased to Britain for 99 years from 1 July 1898. It was the fact that the New Territories are subject to a lease with a fixed expiry date which lay behind the decision by the British Government to seek to enter negotiations with the Government of the People's Republic of China (referred to hereafter as "the Chinese Government") on Hong Kong's future.

The Chinese Government has consistently taken the view that the whole of Hong Kong is Chinese territory. Its position for many years was that the question of Hong Kong came into the category of unequal treaties left over from history; that it should be settled peacefully through negotiations when conditions were ripe; and that pending a settlement the status quo should be maintained. The Chinese Government made its view of Hong Kong's status clear in a letter to the Chairman of the United Nations Special Committee

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG 17

     on the Situation with regard to the Implementation of the Declaration on the Granting of Independence to Colonial Countries and Peoples in March 1972. This maintained that the settlement of the question of Hong Kong was a matter of China's sovereign right and that consequently Hong Kong should not be included in the list of colonial territories covered by the Declaration on the Granting of Independence to Colonial Countries and Peoples.

The Background to the Negotiations

In the late 1970's, as the period before the termination of the New Territories lease continued to shorten, concern about the future of Hong Kong began to be expressed both in the territory itself and among foreign investors. In particular there was increasing realisation of the problem posed by individual land leases granted in the New Territories, all of which are set to expire three days before the expiry of the New Territories lease in 1997. It was clear that the steadily shortening span of these leases and the inability of the Hong Kong Government to grant new ones extending beyond 1997 would be likely to deter investment and damage confidence.

The British Government had by this time, following a detailed examination of the problem conducted in consultation with the then Governor, concluded that confidence. would begin to erode quickly in the early to mid-1980's if nothing was done to alleviate the uncertainty caused by the 1997 deadline. Accordingly, when the Governor of Hong Kong visited Peking in March 1979 at the invitation of the Chinese Minister of Foreign Trade, an attempt was made, on the initiative of the British Government, to solve the specific question of land leases expiring in 1997. These discussions did not result in measures to solve the problem.

In the course of the next two years there was increasing awareness of the need to remove the uncertainty which the 1997 deadline generated. The importance of the issue was publicly stressed by the senior Unofficial Member of the Executive Council in May 1982. In January 1982 Sir (then Mr) Humphrey Atkins, Lord Privy Seal, visited Peking and was given significant indications of Chinese policy towards Hong Kong by Chinese leaders, which confirmed the view of the British Government that negotiations should be opened with the Chinese Government.

The Prime Minister's Visit to China

Against this background the British Government decided that the Prime Minister's visit to China in September 1982 would provide an opportunity to open discussions with the Chinese Government on the future of Hong Kong. It was evident that the Chinese Government had reached the same conclusion, and substantive discussions took place during the visit. Following a meeting between the Prime Minister and Chairman Deng Xiaoping on 24 September 1982 the following joint statement was issued:

"Today the leaders of both countries held far-reaching talks in a friendly atmosphere on the future of Hong Kong. Both leaders made clear their respective positions on this subject.

They agreed to enter talks through diplomatic channels following the visit with the common aim of maintaining the stability and prosperity of Hong Kong."

The Course of the Negotiations

The Prime Minister's visit was followed by the first phase of negotiations conducted by the British Ambassador in Peking and the Chinese Foreign Ministry. These consisted of

18 THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

exchanges between the two sides on the basis on which the negotiations would be conducted, and on the agenda. On 1 July 1983 it was announced that the second phase of the talks would begin in Peking on 12 July. The pattern of negotiation in the second phase, which was continued until the end of the negotiations, was for formal rounds of talks to be held between delegations led by the British Ambassador in Peking and a Vice or Assistant Minister of the Chinese Foreign Ministry, supplemented as necessary by informal contacts between the two delegations. The Governor of Hong Kong took part in every round of formal talks as a member of the British delegation.

In the course of the negotiations the British Government explained in detail the systems which prevail in Hong Kong and the importance for these systems of the British administrative role and link. Following extensive discussion, however, it became clear that the continuation of British administration after 1997 would not be acceptable to China in any form. After full consultation with the Governor and the Executive Council of Hong Kong, the British Government therefore proposed that the two sides discuss on a conditional basis what effective measures other than continued British administration might be devised to maintain the stability and prosperity of Hong Kong and explore further the Chinese ideas about the future which had at that stage been explained to them, in order to see whether on this basis arrangements which would ensure lasting stability and prosperity for Hong Kong could be constructed. The Chinese Government was told that, if this process was successful, the British Government would consider recommending to Parliament a bilateral agreement enshrining the arrangements. The British Government also undertook in this event to assist in the implementation of such arrangements. Following this, the British Government sought to explore with the Chinese Government the implications of the Chinese Government's concept of Hong Kong as a Special Administrative Region of the People's Republic of China. In response, the Chinese side further elaborated its policies and ideas.

      In April 1984 the two sides completed initial discussion of these matters. There were a number of outstanding unresolved points, but it was by then clear that an acceptable basis for an agreement might be possible. At the invitation of the Chinese Government the Secretary of State for Foreign and Commonwealth Affairs visited Peking from 15 to 18 April. During his meetings with Chinese leaders the two sides reviewed the course of the talks on the future of Hong Kong, and further progress was made. In Hong Kong on 20 April Sir Geoffrey Howe made a statement on the approach of the British Government to the negotiations. He said that it would not be realistic to think of an agreement that provided for continued British administration in Hong Kong after 1997: for that reason the British Government had been examining with the Chinese Government how it might be possible to arrive at arrangements that would secure for Hong Kong, after 1997, a high degree of autonomy under Chinese sovereignty, and that would preserve the way of life in Hong Kong, together with the essentials of the present systems. He made it clear that the British Government were working for a framework of arrangements that would provide for the maintenance of Hong Kong's flourishing and dynamic society, and an agreement in which such arrrangements would be formally set out.

After Sir Geoffrey Howe's visit in April 1984 negotiations continued. A working group was established on 21 June 1984 to meet full-time in Peking and consider documents tabled by both sides. From 27 to 31 July 1984 the Secretary of State for Foreign and Common- wealth Affairs again visited Peking. The visit was devoted almost entirely to the future of Hong Kong. Sir Geoffrey Howe announced in Hong Kong on 1 August that very substantial progress had been made towards agreement on the form and content of

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG 19

documents which would set out arrangements for Hong Kong's future with clarity and precision, in legally binding form.

      Sir Geoffrey also announced on the same occasion that the two sides had agreed to establish a Sino-British Joint Liaison Group which would come into being when the agreement came into force and continue until the year 2000. It would meet in Peking, London and Hong Kong. It was agreed that the Group would not be an organ of power. Its functions would be: liaison, consultation on the implementation of the agreement, and exchange of information. It was agreed that it would play no part in the administration of Hong Kong. The British Government would continue to be responsible for the administra- tion of Hong Kong up to 30 June 1997.

      Following Sir Geoffrey Howe's visit the negotiations continued on the remaining unresolved issues and three further rounds of plenary talks took place. A further ad hoc working group was established in Peking on 24 August. By 18 September negotiators on both sides had approved the English and Chinese texts of the documents that make up the agreement and the associated Exchange of Memoranda. These were submitted to British Ministers and Chinese leaders for final approval. The texts were initialled by the two delegation leaders on 26 September and later that day were published simultaneously in Hong Kong, London and Peking.

Consultation with the People of Hong Kong: (I) In the course of the negotiations

     From the beginning of the negotiations the British Government were conscious that the negotiations concerned the interests and future of the five and a half million people of Hong Kong. It was the consistent position of the British Government that any agreement with the Chinese Government on the future of the territory had to be acceptable to the people of Hong Kong as well as to the British Parliament and the Chinese Government.

The negotiations were conducted on a basis of confidentiality. This was crucial to their success, but the maintenance of confidentiality also caused much concern and anxiety among the people of Hong Kong who were understandably anxious to know what was being negotiated for their future. All members of the Executive Council, as the Governor's closest advisers, were kept fully informed on the negotiations and consulted on a continuing basis throughout the period. The Unofficial Members of the Executive and Legislative Councils (UMELCO) provided invaluable advice to the Governor and to Ministers on the course of the negotiations and on the attitude of the people of Hong Kong. At a number of crucial points in the negotiations the Governor and Unofficial Members of the Executive Council visited London for consultations with the Prime Minister and other Ministers. British Ministers also paid a series of visits to Hong Kong, to consult the Governor, the Executive Council and the Unofficial Members of the Executive and Legisla- tive Councils and to keep in touch with opinion in the territory. The Secretary of State for Foreign and Commonwealth Affairs was able to describe the approach of the British Government to the negotiations in his statement in Hong Kong on 20 April 1984, and to fill in more details of what might eventually be included in an agreement in a further statement in the territory on 1 August 1984. In the course of the negotiations, and in particular following the statement of 20 April, numerous individuals and groups in Hong Kong made specific proposals on what should be included in an eventual agreement. The Legislative Council of Hong Kong debated aspects of the future of the territory on a number of occasions. The British Government paid close attention to these expressions of opinion which the Hong Kong Government relayed to Ministers, and to views about the future

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THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

-

expressed through a variety of channels by and through UMELCO, through the press, through individual communications addressed to the British Government or the Hong Kong Government. In this way the British Government sought to take into account the views of the people of Hong Kong to the maximum extent possible during the negotiations. In the same way the maintenance of confidentiality made the task of consulting Parliament on the negotiations more difficult. Despite this there were debates on Hong Kong in October and November 1983 and in May 1984, and part of the Foreign Affairs Debate in March 1984 was also devoted to Hong Kong. Members of Parliament kept in close touch with the people of Hong Kong, both through visits to the territory and through meetings with Hong Kong delegations visiting the United Kingdom.

     Consultation with the People of Hong Kong: (II) After publication of the draft agreement With the publication of the text of the draft agreement, many of the difficulties attendant on the process of consultation were removed. The British Government consistently recognised that an agreement on the future of Hong Kong must be acceptable to the people of Hong Kong as well as to Parliament. Accordingly, the people of Hong Kong were invited to comment on the overall acceptability of the draft agreement before it was submitted for approval by Parliament.

This process started on 26 September with the publication of a White Paper by the British Government and the Hong Kong Government. The paper explained the back- ground to the preceding two years of negotiations and their course, included the text of the draft agreement and the associated memoranda on the status of persons after 30 June 1997 who at present are British Dependent Territories citizens, and related issues. It set these documents in the context of the negotiations.

The White Paper set out the British Government's view that the draft agreement was a good one, which they strongly commended to the people of Hong Kong. It went on to say that the British Government were confident that the agreement provided the necessary assurances about Hong Kong's future to allow the territory to continue to flourish, and to maintain its unique role in the world as a major trading and financial centre.

In presenting the White Paper at a special meeting of the Legislative Council held on the evening of 26 September 1984, the Governor, Sir Edward Youde, said that the draft agreement took account of Hong Kong's needs and the realities of history. It foresaw that change must come but that, in providing for change it provided also for the preservation of the essential elements in Hong Kong's society. In as far as was possible for governments to provide for the future, the agreement removed the uncertainty which had existed because of the 1997 deadline. It constituted a blueprint for a new stage in Hong Kong's development. As such, he commended the agreement to the Legislative Council and to the people of Hong Kong. He concluded by saying he had no doubt that the people of Hong Kong could make the agreement work and could build for themselves a successful future. Speaking a few hours later in New York, Sir Geoffrey Howe said that the Prime Minister and he had no doubt that the agreement was a good one which could be confidently commended to Hong Kong people and Parliament.

Shortly before the White Paper was published an Assessment Office was set up under the authority of the Governor, staffed by civil servants under a Commissioner, but separate from the ordinary machinery of the Hong Kong Government. The task of the Office was to provide the British Government with an analysis and assessment of opinion in Hong Kong on the draft agreement. The Office came into full operation on 26 September.

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG 21

Two independent Monitors, Sir Patrick Nairne and Mr Justice Simon Li Fook-sean, were appointed by the Secretary of State for Foreign and Commonwealth Affairs. The Monitors were required to observe all aspects of the work of the Assessment Office and to submit an independent report to the Secretary of State whether they were satisfied that the Office had properly, accurately and impartially discharged its duties and faithfully followed the procedures set out in its terms of reference.

      The period allowed for views to be expressed for the purposes of the Assessment Office extended for just over seven weeks and ended on 15 November. During this period all the major representative bodies in Hong Kong placed on record their view that the draft agreement was acceptable. These included the Executive Council, the Legislative Council, the Urban Council, all 18 district boards and the Heung Yee Kuk. Additionally, the Assessment Office took account of the views expressed in the media, by 430 representative organisations and groups and 1 815 individuals who made written submissions to the Office and 23 opinion polls which came to the Office's attention.

On 23 November the Commissioner of the Assessment Office submitted his report to the Governor. This was published in London and Hong Kong on 29 November. (An extract is annexed to this chapter at pages 31 to 38) This concluded that, although anxieties had been expressed by many who had submitted their views to the Assessment Office, most of the people of Hong Kong found the draft agreement acceptable. This conclusion was unreservedly endorsed by the report of the independent Monitors.

      The last major expression of Hong Kong opinion came with the publication of a statement by the Unofficial Members of the Hong Kong Executive and Legislative Councils on 29 November. (It is annexed to this chapter at pages 39 to 41) This statement noted that the draft agreement was acceptable as a whole to the majority of the community. It also referred to concerns and points of detail which had been raised.

The final stage in the test of acceptability of the draft agreement came in early December when both Houses of Parliament debated the motion "that this House, having considered the views of the people of Hong Kong as set out in the reports laid before it, approves Her Majesty's Government's intention to sign the agreement on the future of Hong Kong negotiated with the Chinese Government". This motion was moved in the House of Commons on 5 December by the Secretary of State for Foreign and Commonwealth Affairs, Sir Geoffrey Howe, and in the House of Lords by the Minister of State, Baroness Young, on 10 December. On both occasions the motion was approved without a division. Both debates were attended by a delegation of Unofficial Members of the Executive and Legislative Councils and the Governor, Sir Edward Youde, was present for the debate in the House of Commons.

Signature of the Agreement

The British Government's requirement that any agreement on the future of Hong Kong must be acceptable to the people of Hong Kong as well as to Parliament had thus been met and the way was clear for the draft agreement to be signed. On 18 December the Prime Minister, Mrs Margaret Thatcher, accompanied by the Secretary of State, Sir Geoffrey Howe, arrived in Peking to sign the Agreement. The signature ceremony took place in the Great Hall of the People on 19 December in the presence of the Governor, Sir Edward Youde, and a representative group of observers from Hong Kong including the Senior Unofficial Member of the Executive Council, Sir S. Y. Chung, the Senior Unofficial Member of the Legislative Council, Sir (then Mr) Roger Lobo, other Members of the Executive and Legislative Councils and other prominent Hong Kong people drawn from

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THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

a wide cross section of the Hong Kong community. Mrs Thatcher signed on behalf of the British Government and the Chinese Prime Minister, Mr Zhao Ziyang, signed on behalf of the Government of the People's Republic of China. President Li Xiannian and the Chairman of the Central Advisory Commission of the Communist Party, Mr Deng Xiaoping, were present at the ceremony.

On 20 December Mrs Thatcher and Sir Geoffrey Howe travelled to Hong Kong. Sir Geoffrey had discussions with the Executive Council and in the evening Mrs Thatcher addressed a joint session of the Executive and Legislative Councils. Her address concluded with these words:

"The Agreement on its own cannot ensure a successful future for Hong Kong. So much lies, as it always has done, in your hands. You, the Hong Kong people, have earned the respect of the entire world for the astonishing success story which you have written. You have contributed resilience, imagination and sheer hard work. Above all you have shown the courage to adapt to changing circumstances. We have over 12 years to prepare together for the changes which lie ahead: I believe you will rise to that challenge and that the spirit, the enterprise and the prosperity of Hong Kong will flourish and endure".

EXPLANATORY NOTE ON THE

ANNEXES TO THE JOINT DECLARATION

ANNEX A

Introduction

     1. The following notes are intended to explain the material in the Annexes to the Joint Declaration and in the associated Exchange of Memoranda. They do not seek to be a comprehensive guide and do not include every point in the texts. They are designed to explain in simple terms, and to illustrate where appropriate, how the Annexes provide for the continuation of the essentials of Hong Kong's systems. Hong Kong is a highly developed industrial, commercial and financial centre and as such is a complex place.

Annex I: Elaboration by the Government of the People's Republic of China of its Basic Policies regarding Hong Kong

Section I: Constitutional Arrangements and Government Structure

2. When the People's Republic of China resumes the exercise of sovereignty over Hong Kong on 1 July 1997, Hong Kong will become a Special Administrative Region (SAR) of the People's Republic of China with a high degree of autonomy. A Basic Law to be enacted by the National People's Congress of the People's Republic of China will become the constitutional instrument for the Hong Kong SAR. The Letters Patent and the Royal Instructions, which have hitherto performed this function, will be revoked. As paragraph 3(12) of the Joint Declaration makes clear, the basic policies of the People's Republic of China as set out in the Joint Declaration and elaborated in this Annex will all be stipulated in the Basic Law.

3. This section of the Annex makes clear the important point that the Basic Law will stipulate that the socialist system and socialist policies practised in the rest of the People's

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG 23

     Republic of China will not be extended to the Hong Kong SAR and that Hong Kong's capitalist system and life-style will remain unchanged for 50 years after the establishment of the SAR.

4. The Annex also states that, except in relation to foreign and defence affairs, which are now the overall responsibility of the British Government, and will with effect from 1 July 1997 become the overall responsibility of the Central People's Government of the People's Republic of China, the Hong Kong SAR will enjoy a high degree of autonomy, including executive, legislative and independent judicial power. The SAR will also have authority to conduct its own external affairs in appropriate areas (including those relating to economic, trade, financial and monetary, shipping, communications, touristic, cultural and sporting matters) as amplified in section XI of this Annex, which deals with external relations. The SAR will enjoy a significant degree of autonomy in the maintenance and development of its air transport system as set out in section IX of this Annex, which deals with civil aviation.

5. The section of the Annex which deals with constitutional arrangements and government structure provides that the Hong Kong SAR will be under the direct authority of the Central People's Government. The SAR will therefore not be under the authority of any provincial Government.

6. This section of the Annex lays down the main elements of the structure of government in the Hong Kong SAR. It also states that the Government and legislature of the SAR will be composed of local inhabitants. The chief executive will be selected by election or through consultations held locally and be appointed by the Central People's Government. Officials of the rank equivalent to Secretaries will be nominated by the chief executive and appointed by the Central People's Government. The legislature will be elected.

7. Furthermore the Annex indicates that the executive authorities will be required to act in accordance with the law and will be accountable to the legislature; that both Chinese and English languages may be used in government and in the courts; and that, apart from the national flag and national emblem of the People's Republic of China, the SAR may use a regional flag and emblem of its own.

Section II: The Laws

8. This section of the Annex, which describes how the Hong Kong SAR will have its own system of laws, provides continuity of Hong Kong law beyond 1997. The law of the SAR will include the common law and laws passed by the legislature of the SAR. It will remain, as now, capable of adapting to changing conditions and will be free to take account of developments in the common law elsewhere. That this is so is reinforced by specific provisions in section III of this Annex providing that the courts of the SAR will be able to refer to precedents in other common law jurisdictions, that judges of the SAR may be recruited from other common law jurisdictions and that the SAR's court of final appeal may invite judges from other common law jurisdictions to sit on it.

9. Hong Kong laws and those enacted after 1 July 1997 by the legislature of the Hong Kong SAR will be valid unless they contravene the Basic Law. The policies stated in the Joint Declaration and in this Annex will be stipulated in the Basic Law.

     10. Laws enacted in the Hong Kong SAR will, as now, have to be passed by the legislature, or under its authority in the form of delegated legislation. Such laws may amend the laws of

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Hong Kong carried over in 1997 so long as the provisions of the Basic Law are not transgressed. After enactment, laws will have to be reported to the Standing Committee of the National People's Congress of the People's Republic of China for the record.

Section III: The Judicial System

     11. The courts of Hong Kong consist of the Supreme Court, the District Courts, the Magistrates' Courts, and various statutory tribunals. The courts are at the heart of Hong Kong's legal system, which plays an important role in maintaining the stability and prosperity of Hong Kong. The Annex contains the very important provision for continuity of the judicial system.

     12. The Annex indicates that the main change in the judicial system which will take place is the abolition of the system of appeal to the Privy Council and the substitution of arrangements for the final adjudication of disputes by a court of the Hong Kong SAR.

13. The independent exercise of judicial power and the obligation of the courts to decide cases in accordance with the law are both provided for in this section of the Annex. It also provides that the appointment of judges in the Hong Kong SAR will be subject to the recommendation of an independent commission similar to the existing Judicial Service Commission. The independence of the judiciary is protected by the provisions that judges of the SAR may only be removed from office on the grounds of inability or misbehaviour, and then only on the recommendation of a tribunal of judges of the SAR.

14. The Annex provides that the essentials of the system of appointment and removal of judges will remain unchanged, but the appointment and removal of judges of the highest rank will require the endorsement of the legislature of the Hong Kong SAR and have to be reported for the record to the Standing Committee of the National People's Congress.

15. At present the decision whether or not to prosecute in any particular case is the responsibility of the Attorney General. That responsibility is exercised independently free from government interference. The Annex provides that the responsibility will continue to be exercised in the SAR in the same independent way.

     16. The Annex provides that local lawyers and also lawyers from outside Hong Kong, who contribute greatly both to the strength of the present legal system and to the success of Hong Kong as a commercial and financial centre, will continue to be able to practise law in Hong Kong. Provision is also made to enable arrangements to be continued whereby, for example, judgments obtained in Hong Kong may be enforced in foreign states, and evidence may be obtained overseas for use in proceedings in Hong Kong.

Section IV: The Public Service

17. This section of the Annex provides for the continuation in Hong Kong of an impartial, stable and effective public service. This is an essential factor in ensuring Hong Kong's future stability and prosperity.

     18. Under the provisions of this section of the Annex serving officers will be able to continue in employment with the Hong Kong SAR Government on terms and conditions, including pay and pensions, no less favourable than before 1 July 1997. Special commis- sions dealing with pay and conditions of service will be retained. In addition, appointments and promotions will be made on the recommendations of a public service commission and on the basis of qualifications, experience and ability.

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG 25

19. The Annex states that the Hong Kong SAR may employ foreign nationals in a number of capacities, namely as public officers (except at the highest levels), as advisers and in professional and technical posts.

20. It is explicitly provided that all pensions and other benefits due to those officers leaving the public service before or after 1 July 1997 or to their dependants will be paid by the Hong Kong SAR Government.

Section V: The Financial System

21. This section of the Annex provides for continuity in that the Government of the Hong Kong SAR will determine its own fiscal policy and manage and dispose of its financial resources, in accordance with Hong Kong's own needs. There will be no requirement to remit revenue to the Central People's Government. The Annex also makes clear that the predominant authority of the legislature in financial matters, and the system for independent and impartial audit of public accounts, will continue unchanged.

Section VI: The Economic System and External Economic Relations

22. The Annex deals together with these two subjects, which are both important for Hong Kong's export-oriented economy. Hong Kong's prosperity is heavily dependent on securing continued access to its principal export markets in the developed world. This section of the Annex provides reassurance both to the community at large in Hong Kong and to its trading partners that the basis for Hong Kong's flourishing free market economy will continue. It also ensures that Hong Kong's distinct position within the international trading community, on the basis of which Hong Kong enjoys its present rights of access, will continue.

23. The Annex provides for:

(a) Hong Kong's right to continue to determine its economic policies, including trade

policy, in accordance with its own needs;

(b) the continuation of the free enterprise system, the free trade policies and the free port, which are the essentials of Hong Kong's consistent and successful economic policies;

(c) the continuation of individual rights and freedoms in economic matters, notably the freedoms of choice of occupation, of travel and of movement of capital, and the rights of individuals and companies to own and dispose of property.

All these essential requirements are met in this section of the Annex, read in conjunction with the appropriate paragraphs of section XIII, which deals with rights and freedoms. The right of the future Hong Kong SAR to decide its own economic policies is an essential part of the "one country, two systems" concept.

24. Hong Kong's participation in the General Agreement on Tariffs and Trade (GATT), through which it enjoys most favoured nation treatment in its major markets, has been an important element in its success as an exporter. Even in textiles and clothing, where the free trade principles of the GATT have been modified by the Multi-Fibre Arrangement (MFA) which is a negotiated derogation from the normal GATT rules, Hong Kong is able to develop its trade within the MFA and the bilateral agreements negotiated under its provisions. What is even more important, Hong Kong plays an active role in the GATT and the MFA. The continuation of Hong Kong's participation in the GATT and the MFA (if the latter is extended beyond 1986, in which year it expires) is, therefore, of prime importance: and that too is provided in this section of the Annex.

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THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

Section VII: The Monetary System

25. A freely convertible currency and the right to manage the Exchange Fund, which provides the backing for the note issue and is used to regulate the exchange value of the currency, are the essential elements of Hong Kong's monetary system. This section of the Annex clearly stipulates that these essential elements shall be maintained.

26. This section of the Annex also provides for the continuation of the arrangements by which currency is issued locally by designated banks under statutory authority.

27. The changes to the designs of bank notes and coins provided for in this section are a logical consequence of the fact that Hong Kong will become a Special Administrative Region of the People's Republic of China on 1 July 1997.

Section VIII: Shipping

28. A major factor in Hong Kong's trading success is its well-developed deep water port and the capacity to handle cargoes by up to date methods. Hong Kong's position as a major shipping centre will be preserved by this section of the Annex, which provides that systems of shipping management and shipping regulation will continue. Private shipping businesses and shipping-related businesses, including container terminals, may continue to operate freely.

29. The Annex states that the Hong Kong SAR will have its own shipping register and will issue certificates in the name of "Hong Kong, China".

30. The Annex also provides that merchant shipping will have free access to the ports of Hong Kong under the laws of the SAR.

Section IX: Civil Aviation

31. This section of the Annex makes clear that Hong Kong will continue as a major centre of regional and international air services, and that airlines and civil aviation related businesses will be able to continue operating.

32. Under the provisions of the Annex the Central People's Government of the People's Republic of China will negotiate agreements concerning air services from and to other points in China through the Hong Kong SAR. However there is also a provision that in dealing with such arrangements the Central People's Government will consult the SAR Government, take its interests into account and include its representatives in delegations to air service consultations with foreign governments. By virtue of section XI of the Annex, which deals with external relations, such representatives may also be included in delegations to appropriate international organisations. The Central People's Government will also consult the Hong Kong SAR Government about arrangements for air services between the SAR and other parts of China.

33. It is clearly provided that all scheduled air services touching the Hong Kong SAR which do not touch the mainland of China will be regulated by separate arrangements concluded by the SAR Government. For this purpose the SAR Government will be given specific authorisations from the Central People's Government to negotiate with foreign states and regions its own bilateral arrangements regulating air services. These will as far as possible maintain the rights previously enjoyed by Hong Kong. The SAR Government will also act under a general authority from the Central People's Government in negotiating all matters concerning the implementation of such bilateral arrangements and will issue

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG 27

its own operating permits for air services provided under these arrangements. The Annex also states that the SAR will have the authority to license local airlines, to keep its own aircraft register, to conduct the technical supervision of civil aviation and to manage airports in the SAR. In addition the general provisions in section II of the Annex, which deals with the laws of the SAR, provide for continuity of previously existing civil aviation laws beyond 1997.

34. Hong Kong's civil aviation industry will thus be able to continue to make an important contribution to the effective functioning of Hong Kong's economy in terms of servicing the needs of both business and tourism.

Section X: Culture and Education

35. This section of the Annex makes clear that Hong Kong's own system of education will be continued and that it will operate separately and differently from that in other parts of China. Although most of the funds for education in Hong Kong are provided by the Government, many educational institutes were founded and are run by community and religious organisations. Explicit provision is made for this system to be maintained. 36. This section also provides for continuity in the application of present educational standards, in the use of teaching materials from overseas and in the freedom to pursue education outside Hong Kong. It therefore provides a sound basis for Hong Kong to continue to develop an educational system which will ensure that the population will have the skills and expertise required to enable Hong Kong to maintain and improve its position in the fiercely competitive economic and trading environment within which Hong Kong operates.

37. Hong Kong has come to enjoy a varied cultural and intellectual life. This and other sections of the Annex provide for the present unique mix of cultural and intellectual influ- ences to continue. Provision is made in section XI of the Annex, which deals with external relations, for Hong Kong to continue to participate in international sporting events.

Section XI: External Relations

38. This section of the Annex provides that, subject to the principle that foreign affairs are the responsibility of the Central People's Government, the Hong Kong SAR will manage on its own certain aspects of its external relations, in particular those in the economic field. This is particularly important, since Hong Kong's access to its principal overseas markets in the industrialised world, which is crucial to Hong Kong's industry, depends upon recognition of the separate nature of these interests.

39. In keeping with the general provisions for Hong Kong to be a Special Administrative Region under Chinese sovereignty, overall responsibility for foreign affairs will lie with the Central People's Government, just as overall responsibility for these matters at present lies with the British Government. At the same time the Hong Kong SAR will be able, under the provisions of this section of the Annex, to look after its own particular interests in certain areas by virtue of the power to be given to it to conclude agreements in appropriate fields and to be represented in the delegation of the People's Republic of China at negotiations of direct concern to Hong Kong.

40. The detailed method by which the provisions of the second paragraph of this section of the Annex, which deals with the application to the Hong Kong SAR of international agreements, will be implemented will have to be worked out during the transitional period

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THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

and will be one of the matters to be considered by the Joint Liaison Group. There is a very large number of international agreements which apply to Hong Kong and whose continued application following the establishment of the Hong Kong SAR will need to be secured. This will require consultation with third countries.

41. The Annex provides for continuity of representation by all foreign states and organisations currently represented in Hong Kong, subject to the approval of the Central People's Government. Changes to the status of such missions may be required in order to take account of the existence or otherwise of formal relations between the People's Republic of China and a particular state. The United Kingdom will be represented in Hong Kong by a Consul-General after 1 July 1997.

Section XII: Defence, Security and Public Order

42. With the establishment of the Hong Kong SAR, the British garrison will be withdrawn and the Central People's Government of the People's Republic of China will be responsible for the SAR's defence. This section of the Annex makes clear that the maintenance of public order in the SAR will be the SAR Government's responsibility. It is also stated that military forces sent by the Central People's Government to be stationed in the SAR for the purpose of defence will not interfere in its internal affairs, and that expenditure for these military forces will be borne by the Central People's Government.

Section XIII: Rights and Freedoms

43. This section of the Annex explains that basic rights and freedoms will be protected in the Hong Kong SAR. It covers this important subject without an extended description of the rights and freedoms concerned by providing:

(a) that the rights and freedoms previously enjoyed under the laws of Hong Kong will

be maintained by the SAR Government; and

(b) that the provisions of the International Covenants on Civil and Political Rights and on Economic, Social and Cultural Rights, as they apply to Hong Kong, will continue to apply to the Hong Kong SAR.

44. It is thus made clear that persons in the Hong Kong SAR will enjoy the same protection of the law against infringements of their basic rights as they did before the establishment of the SAR.

45. While not restricting the range of rights and freedoms the text mentions specifically some of the more important rights and freedoms presently enjoyed under the law.

46. The Covenants are too lengthy to reproduce here but they are public documents1. They apply to Hong Kong, with certain reservations, and, in accordance with this section of the Annex, will continue to do so after 30 June 1997. The Covenants were drafted by the United Nations Human Rights Commission and adopted by the United Nations General Assembly, and entered into force in 1976. They state a general consensus of nations on basic rights and identify in detail specific human rights and freedoms: including the right to work, to an adequate standard of living, to life and liberty, and freedom of expression, conscience, religion and association.

47. The reservations entered by the United Kingdom in respect of the application of the Covenants to Hong Kong, which are also public, took account of the realities of the social

1 Command 6702 Treaty Series No. 6 (1977)

 HONG KONG

IN

1984

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7

Previous page: Fireworks lit up the sky during the Lunar New Year celebrations in February. Above: A giant mooncake made for the Mid-Autumn Festival in September.

10

+

In May, the annual Bun Festival on Cheung Chau, and its colourful procession, attracted a large crowd of residents and tourists.

ONG PUBLIC

   Fire-fighting techniques are among the skills taught at the Seamen's Training Centre run by the Vocational Training Council at Little Sai Wan.

na

   Although the year was drier than normal, the month of May proved an exception, with thunderstorms causing widespread flooding. Above: A lane awash in the Mid-levels of Hong Kong Island.

XASIS

Two new Peacock-class naval patrol craft arrived in November and the demonstration of their capabilities included a helicopter-to-ship transfer.

A:

The Chief Justice, Sir Denys Roberts, was among the dignitaries who laid wreaths at the Cenotaph in Central during the observance of Remembrance Day.

   Thousands of people flocked to the grounds of Government House on March 25 to see the azaleas in bloom. The open day has been an annual event since 1968.

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG 29

and economic conditions in Hong Kong: for example, in relation to Hong Kong the United Kingdom made reservations relating to immigration and to the deportation of aliens.

Section XIV: Right of Abode, Travel Documents and Immigration

48. This section concerns the right of abode in the Hong Kong SAR, the travel docu- ments to be used by residents of the SAR, and immigration matters. It provides for a high degree of continuity in these areas consistent with the change in Hong Kong's status on 1 July 1997.

49. The first paragraph defines the categories of people who will have the right of abode (including the right to enter, re-enter, live and work) in the Hong Kong SAR. These include:

(a) Chinese nationals who were born in Hong Kong or have lived there continuously for

at least 7 years;

(b) Chinese nationals born outside Hong Kong to Chinese nationals who have the right

of abode in Hong Kong;

(c) all non-Chinese nationals who have lived in Hong Kong continuously for at least 7

years and who have taken it as their place of permanent residence; and

      (d) any others who had the right of abode only in Hong Kong before 1 July 1997. Non-Chinese nationals born in Hong Kong to parents who have the right of abode there also have the right of abode but will retain it after the age of 21 only if they have met the requirements of seven years' residence and of taking Hong Kong as their place of permanent residence. The SAR Government will issue permanent identity cards to all those with the right of abode in the SAR. These cards will state the holder's right of abode.

      50. This section of the Annex states that Chinese nationals who have the right of abode in the Hong Kong SAR will be eligible for passports issued by the SAR Government. Other persons who have the right of abode, or are otherwise lawfully resident, in the SAR will be eligible for other travel documents issued by the SAR Government. Both these categories of persons may also use travel documents issued by the competent authorities of the People's Republic of China or by other governments to travel to and from the SAR: these include passports issued by the United Kingdom (see paragraphs 63 to 64 below).

51. The Annex makes clear that the right to leave the Hong Kong SAR for any purpose, e.g. business, study or emigration, will be maintained subject to the normal exceptions under the law. To facilitate entry by SAR residents into third countries, all travel documents issued to them will either include a reference to their right to return to the SAR or refer to the fact that they hold a permanent identity card as evidence of their right of abode in the SAR. The SAR Government will be assisted or authorised by the Central People's Government to conclude agreements with states or regions which provide for the mutual abolition of visa requirements.

Annex II: Terms of Reference of the Sino-British Joint Liaison Group

52. As the Secretary of State for Foreign and Commonwealth Affairs emphasised in his press conference in Hong Kong on 1 August 1984, it is fully agreed between the British Government and the Chinese Government that the British Government will remain responsible for the administration of Hong Kong until 30 June 1997. Nonetheless there will, of course, be a number of areas relating to the implementation of the Joint Declaration where further consultation between the two Governments will be required after the Joint Declaration has entered into force. One obvious example in the future is the arrangements

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THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

for Hong Kong's continued participation in international agreements and organisations. Such consultation will be facilitated by the Sino-British Joint Liaison Group, whose role and functions are clearly defined in Annex II.

Annex III: Land Leases

53. This Annex takes account of the important part which land plays in the development and economy of Hong Kong.

54. It considers existing leases under two main categories: those which continue beyond 30 June 1997 and those which expire before that date. In the case of the first category (mainly 75 year leases renewable for 75 years, and 999 year leases) the rights in the leases are recognised by the Annex and will be recognised and protected under the law of the SAR after 1997. These rights include the right of renewal in the case of renewable leases, as well as rights granted by the leaseholder to other persons, e.g. sub-leases, mortgages and rights of way.

55. Leases which expire before 30 June 1997 (mainly New Territories leases and 75 year non-renewable leases in the urban area) may be extended without premium until 2047. A rent of 3 per cent of current rateable value will be charged from the date of extension, except in the case of village land held by indigenous villagers who will continue to pay a nominal rent.

56. New leases running until 2047 may be issued by the Hong Kong Government in the period up to 30 June 1997. These will continue to be issued under the existing system of land disposal (i.e. by public auction, tender or private treaty grant). A premium will be payable and a nominal rent will be charged up to 30 June 1997. After that date, no additional premium will be payable but the rent will increase to 3 per cent of current rateable value. 57. The concept of charging a rent on the basis of rateable values follows that used since 1973 to fix rents on the renewal of leases. It has, however, been agreed that the rent will be based on current rateable values (i.e. a rent which will change as rateable values change) rather than based, as at present, on a fixed reference point (i.e. a rent which is based on the rateable value at the date of renewal and which remains unchanged for the whole term of the lease).

58. The amount of new land which may be granted by the Hong Kong Government will be limited to 50 hectares a year. The limit does not include land granted to the Housing Authority for the construction of public rental housing.

59. Modifications of lease conditions will continue to be dealt with by the Hong Kong Government in accordance with existing practice.

60. In recognition of the fact that leases which extend beyond June 1997 derive part of their value from the post-June 1997 portion of their term, the Annex provides for net premium income to be shared between the Hong Kong Government and the future SAR Government.

61. A Land Commission, consisting of an equal number of officials appointed by the British Government and the Chinese Government, will be set up. This Commission will monitor the implementation of the provisions in this Annex and will consider proposals for increasing the limit on the amount of new land which may be granted and for drawing on the SAR Government's share of premium income. It will not, however, consider individual land cases, nor will it be involved in deciding who should be issued with new leases. The Commission will be dissolved on 30 June 1997.

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG 31

Associated Exchange of Memoranda

62. The status after 30 June 1997 of persons who are now British Dependent Territories citizens, and related issues, are covered in two Memoranda which were formally exchanged between the British and Chinese Governments on the same day as the signature of the Joint Declaration. These Memoranda set out the respective positions of the two Governments. 63. Since Hong Kong will no longer be a British dependent territory after 30 June 1997, it will not be appropriate for those who are British Dependent Territories citizens by virtue of a connection with Hong Kong to be described as such after that date. The United Kingdom Government will seek Parliamentary approval for legislation which will give such British Dependent Territories citizens the right to a new status, with an appropriate title. This status will not give them the right of abode in the United Kingdom, which they do not possess at present, but it will carry benefits similar to those enjoyed by British Dependent Territories citizens at present, including the entitlement to use British passports and to receive British consular services and protection in third countries. The status will not, however, be transmissible by descent. The United Kingdom Government has pledged to do all they can to secure for holders of these British passports the same access to other countries as that enjoyed at present by holders of British Dependent Territories citizen passports.

64. This new status will be acquired by former Hong Kong British Dependent Territories citizens only if they obtain a British passport before 1 July 1997. The only exceptions to this are:

(a) persons included in the passport of a parent before 1 July 1997 will be able to acquire this new status and will be able to obtain a British passport of their own after that date;

(b) persons who were born between 1 January and 30 June 1997 will be able to acquire this new status if they obtain a British passport, or are included in the passport of a parent, on or before 31 December 1997. Those who are included in the passport of a parent will be able to obtain a British passport of their own after that date.

65. The Chinese Memorandum states the Chinese Government's position that Hong Kong Chinese are Chinese nationals. It indicates, however, that those Chinese nationals who hold British travel documents may continue to use them after 1 July 1997. Such persons will not, of course, be entitled to consular protection by the United Kingdom Government in the Hong Kong SAR or in other parts of China.

ANNEX B

Extract from "Report of the Assessment Office on arrangements for testing the acceptability of the draft agreement on the future of the territory"

CHAPTER 3 OVERALL ASSESSMENT OF THE EXTENT OF ACCEPTABILITY

Part I: The Extent of Acceptability

3.1 Under the most important of its terms of reference, the Assessment Office is required to make an overall assessment of the extent of acceptability by the people of Hong Kong of the

32

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

draft agreement. After the most careful analysis and consideration of all the information received, the Office has concluded that most of the people of Hong Kong find the draft agreement acceptable.

3.2 All but a few have acknowledged the inevitability of the reversion of sovereignty over Hong Kong to China in 1997. The proposition that an agreement between Britain and China on the future of Hong Kong is preferable to there being no agreement, is generally understood and accepted. Furthermore, although anxieties and reservations have been expressed by many who have submitted their views, the detailed provisions of the draft agreement have been welcomed, whilst the assurances that they will be implemented have been noted.

3.3

The overall assessment and the views on which it is based are analysed in the following paragraphs.

Views Expressed in the Media

3.4 The extent and significance of media coverage monitored by the Office is described in paragraphs 2.10 and 2.11. Its depth and range have been remarkable. The overall picture from the media is one of general acceptance of the draft agreement. A small number of newspapers and magazines is known consistently to take a pro-Beijing or pro-Taiwan stand but the majority of the daily newspapers and magazines read by the bulk of the Hong Kong people have no discernible political leanings. These publications and the coverage given by radio and television have consistently taken the view that the draft agreement is acceptable in general terms. This view is illustrated by the following quotations:-

"It has produced a document that, if nothing else, will be read by future generations as a landmark of good sense, human reasonableness, delicate compromise and high idealism. And if it succeeds, as we earnestly hope it will, not just Hongkong, but the world will be a better place."

-South China Morning Post 27.9.84

"The content of the draft agreement is better than expected.

"Meets the wishes of Hong Kong people."

-(Translation)

Oriental Daily 27.9.84

-(Translation)

Ming Pao 27.9.84

"The documents provide the most solid possible foundation on which the community of Hongkong and those who trade with and invest in Hongkong can go on building prosperity."

-Derek Davies

Far Eastern Economic Review 4.10.84

"From recent observations, a vast majority of Hong Kong people find the draft agree- ment satisfactory."

-(Translation)

Joseph Cheng Wide Angle 16.10.84

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG 33

Views Expressed by Representative Bodies

(A) Executive Council

      3.5 At a press conference on 28 September 1984, members of the Executive Council promulgated their stand. Sir S. Y. Chung made an open statement describing to the general public why the members of the Executive Council endorsed the draft agreement and commended it to the people of Hong Kong.

(B) Legislative Council

3.6 The Legislative Council held two special meetings on 15 and 16 October 1984 respectively to debate the acceptability of the draft agreement. The Honourable R. H. Lobo moved a motion which reads as follows:-

"That this Council endorses the draft agreement on the future of Hong Kong between the Governments of the United Kingdom of Great Britain and Northern Ireland and the People's Republic of China and commends it to the people of Hong Kong". All but two members supported the motion.

(C) Urban Council

3.7 On 9 October 1984, the Urban Council at its meeting resolved:---

"That this Council welcomes the draft agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the People's Republic of China on the future of Hong Kong."

Twenty-two members spoke in support of the motion; one abstained.

(D) Heung Yee Kuk

      3.8 The New Territories Heung Yee Kuk at a special meeting on 16 October 1984 passed the following resolution:-

"The New Territories Heung Yee Kuk appeals to the New Territories residents to support the draft agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the People's Republic of China on the future of Hong Kong."

(E) District Boards

-(Translation)

      3.9 All the 18 District Boards discussed and endorsed the draft agreement on the following dates:-

District Boards

Central and Western

Eastern

Islands

Kowloon City

Kwun Tong

Mong Kok

North

Sai Kung Sha Tin

Sham Shui Po

Southern

Date of Meeting

4 October 1984 18 October 1984 5 October 1984 25 October 1984 29 October 1984 8 November 1984

8 October 1984 8 October 1984

4 October 1984

19 October 1984 19 October 1984

34

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

District Boards

Tai Po

Tsuen Wan

Date of Meeting

4 October 1984

9 October 1984

12 October 1984

Tuen Mun

Wan Chai

Wong Tai Sin Yau Ma Tei

Yuen Long

17 October 1984

22 October 1984

26 October 1984

5 October 1984

     3.10 Thus all the principal representative bodies have unequivocally placed on record their view that the draft agreement is acceptable().

Views Expressed by Organisations and Groups

3.11 The views expressed directly to the Office by the wide range of organisations described in paragraph 2.18 indicate that out of a total of 430 organisations, an over- whelming majority of 334 have placed on record the fact that in the view of the members they represent the draft agreement is acceptable. 33 organisations have declared that their members reject it. The remainder gave no clear indication of their position. From the response it is clear that the most influential organisations from the professional and business sectors, the religious community, the student population and the civil service, and amongst pressure groups and trade unions have come out generally in support of the draft agreement.

     3.12 Some organisations have declared their unwillingness or inability to send their views directly to the Assessment Office, either because they disagreed with the concept of the Assessment Office, or they were unable to arrive at a consensus view. Amongst these were the Bar Association, the Law Society and the Hong Kong Observers. The Office has, nevertheless, taken their views as reported in the media into account(7).

3.13

the Office received a number of informal collections of views from groups of people sharing a common background but not forming an organisation in the sense of being able to express a representative corporate view. There were 249 of these group submissions coming mainly from groups of civil servants, groups of students, people attending welfare agencies, staff of commercial firms, and various other groups. Altogether some 6 000 people expressed their views in this way and generally indicated clear support for the draft agreement. Of those who did not find the draft agreement acceptable, five groups of some 300 people in all used stencilled forms in identical terms expressing their rejection of the draft agreement, mainly on the grounds of total distrust of the communist regime in China.

Views Expressed by Individuals

3.14 This was the most difficult category to deal with in the context of assessing overall acceptability because of shades of opinions expressed and the tone of the language used;

(6) Copies of the views expressed and resolutions passed are available for public reference in the United Kingdom

and Hong Kong.

(7) (a) The Bar Association was reported to have been unable to pass a resolution recommending ratification of

the draft agreement.

(b) The Law Society declared that it would not give its views on the draft agreement to the Office as it did

not feel a collective view would be appropriate.

(c) The Hong Kong Observers (a pressure group) whilst accepting the draft agreement, said the Office was

"a farce".

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG 35

in many cases, the writers simply asked questions, made suggestions, expressed concern or made comments on specific aspects. These concerns and comments have all been taken into account... But on the question of overall acceptability, just over 1 000 individuals have indicated a clear stand. Of these, 677 indicated positive acceptance of the draft agreement and 364 rejected it. The range of individual views is described in Part II of this chapter.

Opinion Surveys

3.15 The findings of various independent opinion surveys. . . indicated general acceptance of the draft agreement. Although the surveys were of varying reliability and validity, the consistency of the findings on the general question of overall acceptability is worthy of note.

3.16 The findings of some of the surveys may be of significance:-

(a) Survey by the Survey Research Hong Kong Ltd. (SRH)(8): This survey which was carried out by a professional market research company, was based on a random sample of 6 124 respondents aged 18 or over throughout Hong Kong and door-to- door interviews were conducted. The published report of this major survey was not available to the Office at the time of writing this Report, nevertheless, the Office has studied the tabulations of survey data which were received on 15 November 1984. In answer to one of the main questions in the survey (after reading visual aids briefly describing various sections in the draft agreement): "Taking the agreement as a whole now, do you believe the terms of this agreement are a good thing for the people of Hong Kong or a bad thing for them?", 10% said "very good", 71% "quite good", 14% "good in some way not so good in others", 1% "not particularly good nor at all good" and 4% "don't know".

(b) Survey by the Hong Kong Association for Continuing Education): 8 000 question- naires were distributed, and 5 068 were completed and returned, 96% of which were by respondents aged 15-45. Of the respondents, 14% accepted the draft agreement unconditionally; 39% accepted it with some reservations and 44% accepted for want of a better alternative.

(c) Survey by the New Hong Kong Researchers Ltd.(10): This was a street poll in which 4 616 respondents aged 20 or over were interviewed at various vantage points on Hong Kong Island and in Kowloon. 27% of the respondents did not understand the draft agreement, but 92% of those who did understand accepted it.

(d) Survey by Radio Television Hong Kong: This was a telephone survey seeking the views of elected District Board members on the draft agreement. 116 out of a total of 132 elected District Board members responded. 97% of them found the draft agreement acceptable.

(8) Survey Research Hong Kong Ltd. (SRH) is one of the largest market research companies in Hong Kong. (9) Hong Kong Association for Continuing Education is a group interested in educational issues with about 200

individual members and about 30 organisation members.

(10) New Hong Kong Researchers Ltd. is a newly formed organisation with about 200 members, some being

professionals, industrialists and businessmen.

36

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

(e) Surveys involving young people: Six surveys, covering a total of 4 200 respondents aged below 25, were conducted by student unions and organisations. All the topics in the draft agreement were found acceptable and the majority of respondents had confidence in Hong Kong's future but expressed a wish for direct elections and participation in drafting the Basic Law.

     3.17 Notwithstanding the extent of the response in support of acceptance, it is necessary to pose the question of whether there is a "silent majority" whose views have not been heard. The Office is convinced by the evidence available that the views of the so-called "silent majority" have been reflected in the response received, and that those who have suggested this is not so are unaware of the range and depth of the response from the media, from organisations and groups and from individuals and also clearly in the independent opinion surveys described above.

3.18 The readings obtained by the Office from the views expressed in each of the main categories are consistent one with another. The overall picture which emerges can reasonably be said to be one which gives a true indication of Hong Kong opinion and supports the statement made in paragraph 3.1 above. The range of views is described in Part II of this chapter.

Part II: The Range of Views

     3.19 In the following paragraphs the range of views on overall acceptability are sum- marised. Whilst acknowledging the overwhelming extent of overall acceptance, the Office, in examining the views expressed, has not underrated the degree to which those who have accepted the draft agreement have placed on record their concerns.

3.20 The favourable response to the draft agreement ranged from outright praise; to qualified acceptance; to acknowledgement that, in the light of the alternatives, it is the best that can be hoped for. Adverse reaction ranged from condemnation of certain parts of the draft agreement to total rejection.

3.21 The draft agreement was seen to provide way by which sovereignty could be restored to China peacefully whilst, at the same time, it removed the uncertainties about the future, provided a sound basis for continued prosperity and stability and would preserve for fifty years the familiar life style. The concepts of "one country, two systems" and "the Hong Kong Special Administrative Region with a high degree of autonomy" were praised as imaginative and farsighted. People holding these views were optimistic that the draft agreement would work and that the two sides would honour their commit- ment to Hong Kong.

"The agreement is a clear document and a good one in the light of present day politics. I salute and thank all who worked so hard for the millions living here."

-An individual

"The solution of the Hong Kong issue under the innovative guidance of the 'one country, two systems' concept will be conducive to maintaining the stability and pro- sperity of Hong Kong. Moreover, the success of this one country, two systems' arrangement may embody a more far-reaching international significance."

(Translation)

Hong Kong Federation of Education Workers

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG 37

"The White Paper also lays a solid foundation for the smooth resumption of sovereignty over Hong Kong by the People's Republic of China on 1 July 1997."

-Hong Kong Social Workers Association

3.22 Those whose acceptance was a qualified one expressed reservations about China's ability to implement the provisions of the draft agreement. The point was made that it was difficult to accept the assurances regarding implementation so far ahead, although they were prepared to give China the benefit of the doubt. They were concerned lest any reduction in Hong Kong's prosperity and thus its value to China after 1997 would remove the incentives for China to comply with the undertakings in the draft agreement. They were worried about the possibility of undue interference by China and stressed the importance of incorporating the basic principles of the draft agreement in the Basic Law with clarity and in detail. They insisted on the importance of participation by Hong Kong people in the drafting of the Basic Law and in the work of the Joint Liaison Group and the Land Commission. Not- withstanding these reservations, most took a pragmatic view towards the future and the common feeling was that it was up to the Hong Kong people to make it work.

     "It is difficult to foresee the future. The draft agreement is a postdated cheque. The result can only be known when it is proved."

-An individual

"The worry about Hong Kong being governed by people from Beijing or from the left-wing cannot be removed simply by the initialling of the draft agreement."

(Translation) Lung Ying

Cheng Ming Magazine October 1984

"China must give the Hong Kong people a role in the drafting of the Basic Law for the SAR... The Basic Law is as important a blueprint for Hongkong's future as is the Joint Declaration. What the Joint Declaration did not deal with in detail should be included in the Basic Law."

-HK Observers

South China Morning Post 29.10.84

"This is a historical moment for Hong Kong and we need to re-examine our roles and obligations. The Joint Declaration has only provided a basis; the future developments of Hong Kong depend on her people's continuous efforts and further commitments to be made on the existing foundation."

(Translation)

University of Hong Kong Students' Union

3.23 In number of cases, people expressed sadness at the severance of the link with Britain and the socio-economic system it has provided; disappointment at Britain's inability to maintain the status quo; resentment at the lack of involvement in the talks and frustration at the fact that the draft agreement could not be altered.

"I belong to the middle income group who do not have the means to emigrate to other countries and because I was born and educated in Hong Kong I would wish to stay in Hong Kong. For the purpose of your statistics you can classify me as one of those who

38

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

would accept the draft agreement but I hope you will also take into account that I only accept it with much reluctance and with many reservations about the feasibility of its implementation. My heart is not truly at ease and I have no full confidence in our future. The whole thing has not been a very fair play to us because we have not had any say and there is no other alternative other than not to have an agreement at all."

-An individual

3.24 Although a few of the small number of organisations which have rejected the draft agreement have done so because of their inability to accept its specific provisions, most have scarcely touched upon those provisions, but rather have challenged the validity of the draft agreement and the right of Britain and China to determine the future of Hong Kong in this way. They have argued either for the status quo, or for Hong Kong to have the right of self-determination, or that any negotiations should have been with Taiwan and not with Beijing. They have stated that the PRC cannot be trusted to keep any promises made; the example of Tibet was quoted. The five groups of people who used stencilled proformas to communicate their views to the Office generally took the same line.

"

    "They should render early support for the Hong Kong people to determine their own destiny by way of a referendum so as to avert the fate of future persecution by the communists.'

---(Translation)

Cotton Bleaching & Dyeing Free Workers Union

"If Britain wants to abrogate or amend the treaties, she should approach the Republic of China as it is the legal party to these treaties."

-(Translation)

The Sun Yat Sen Memorial Association of Hong Kong Ltd

3.25 The minority of individuals who rejected the draft agreement did so because of a complete inability to trust in its implementation because of the basic incompatibility of the two systems, or because of China's past history of political upheavals, or because of past personal experience. In some cases, there was so strong a dislike of one or more of the specific aspects of the draft agreement that acceptability as a whole became impossible. The strongest feelings expressed came from those who considered themselves adversely affected by the provisions on nationality.

"The British Government ought to have compassion on those people who fled the cruelties of communist China to Hong Kong so as to assist in resettling them elsewhere."

-An individual

"Britain cannot simply rescind a historic and moral responsibility of looking after her subjects. These people are legally British and cannot be made stateless."

-An individual

Conclusion

3.26 The range of views expressed and summarised above reflects the uniqueness and complexity of the position in which the people of Hong Kong find themselves. The calmness with which the draft agreement was received and the reasoned response to it underlines its overall acceptability. There is a general feeling of relief and a wish to build Hong Kong's future on the foundation provided by the draft agreement.

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG 39

ANNEX C

Statement issued by the Unofficial Members of the Hong Kong Executive and

Legislative Councils on 29 November 1984

THE FUTURE OF HONG KONG

Introduction

Unofficial Members of the Executive Council and the Legislative Council* (UMELCO) have always been aware of the concern of the people of Hong Kong about their future, and on the arrival of the Governor in May 1982, the Senior Member stressed publicly the importance and urgency to the people of Hong Kong of the satisfactory resolution of this issue.

       Since the Sino-British talks on the future of Hong Kong began in late 1982, UMELCO have received many representations about Hong Kong's future up to and beyond 1997.

      Before the debates took place in the two Houses of British Parliament in May this year, UMELCO sent a delegation to London and issued a statement to reflect the anxieties and wishes of the people of Hong Kong: there they listed, inter alia, the four most important criteria by which the acceptability of the Sino-British Agreement to the people of Hong Kong would be judged.

      Briefly, these are, first, that the Agreement must contain full details of the proposed administrative, legal, social and economic systems applicable in Hong Kong after 1997; second, that it must state that the provisions of the Basic Law will incorporate the relevant provisions of the Agreement; third, that it must provide adequate and workable assurances that the terms of the Agreement will be honoured; and fourthly, that the rights of Hong Kong British Nationals must be safeguarded.

      Following its publication, UMELCO received a large number of representations from a wide cross-section of the community expressing their support. The South China Morning Post commissioned an independent research firm to conduct a survey, which showed that 82% of the community approved fully or in part of the statement. In addition, about 70% of the elected and appointed Unofficial Members of the 18 District Boards gave their support.

      Three Unofficial Members went to Beijing in June this year and reflected to the Chinese leaders, including Chairman Deng, the anxieties and wishes of the people of Hong Kong. They also made three major proposals to the Chinese leaders, proposals which they considered would help to enhance the confidence of the people of Hong Kong about their future.

* The Governor consults the Executive Council in the execution of the powers and authorities granted to him by Letters Patent, and acts on its advice. At present, it consists of 4 Ex-officio Members, 2 Official Members and 10 Unofficial Members, appointed by the Governor.

The Legislative Council consists of 3 Ex-officio Members, 13 Official Members and 30 Unofficial Members. It enacts legislation and controls public expenditure.

The Unofficial Members are appointed from a wide spectrum of the community. Through their membership of over 300 boards and committees, including District Boards, the Urban Council and the Heung Yee Kuk, dealing with public affairs, with educational and legal matters, and with all facets of Hong Kong's economic and social life, Unofficial Members are in touch with all sectors of the community.

Apart from their duties in the two Councils, they monitor the effectiveness of the public administration, and consider complaints by members of the public against Government, for handling which they have far wider powers than is possessed by any Ombudsman.

40

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

These three major proposals were first, that the Sino-British Agreement must be detailed and binding and the Basic Law must be based on the Agreement; second, that the people of Hong Kong should participate in the drafting of the Basic Law and those sections relating to Hong Kong's internal affairs should be drafted in the territory, and not amended except at the initiation of Hong Kong; and third, that a committee of Chinese people of international standing should be appointed by China to monitor and advise on the drafting, implementation and subsequent amendments to the Basic Law.

      Their trip to Beijing also received overwhelming support from the public. A second poll taken by the same independent research firm showed that eight out of ten agreed with the UMELCO visit to Beijing; 74% supported the first, 78% the second, and 61% the third major proposal.

Acceptability of Joint Declaration

     Since its publication on 26 September 1984, all the Unofficial Members, with the exception of two Members in the Legislative Council, have endorsed and commended the Draft Agreement to the people of Hong Kong. The Draft Agreement or Joint Declaration, in their view, does meet substantially the four basic criteria contained in the UMELCO statement made in London in May. Furthermore, there are in the Joint Declaration many positive features which are to be welcomed and it contains much more detail than many people originally expected. It is a mutually binding agreement, freely negotiated and entered into between two sovereign states.

All the 18 District Boards, as well as the Urban Council and the Heung Yee Kuk, have found the draft Joint Declaration generally acceptable. Unofficial Members, in conjunction with some newspapers, commissioned an independent research firm to conduct a territory- wide survey covering 6 000 randomly selected adults above the age of 18. The results of this professional survey indicated that the majority of the people of Hong Kong found the Draft Agreement generally acceptable and that 90% of the respondents preferred the Agreement to no Agreement at all.

Whilst the Draft Agreement is acceptable as a whole to the majority of the community, some concern and points of detail have been raised. In particular, there is anxiety about interference from the Chinese Government; worry about conscription in the Hong Kong Special Administrative Region; uncertainty about the acceptability to third countries of the new form of British passport; doubt about the preservation of existing human rights and personal freedoms; fear about the stationing of PLA troops in Hong Kong; resent- ment about the termination of transmissibility of British nationality for Hong Kong BDTCs in 1997; reservations about possible incompatibility between the constitution of the People's Republic of China and the future Basic Law of Hong Kong; and concern about the faithful implementation of the Agreement and the policies of future Chinese leaders.

      There are also very strong requests that the people of Hong Kong should not only be consulted on, but should actively participate in, the drafting of the Basic Law and that Hong Kong people should also sit on the Sino-British Joint Liaison Group.

The ultimate success of the Joint Declaration depends on people's confidence that it will be implemented faithfully and that matters of concern and questions of detail which have been raised are satisfactorily resolved and clarified by the two signatory Governments. Therefore, in accepting the Agreement, we urge both the British and Chinese Governments to take steps to reassure the people of Hong Kong in these respects.

THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG

Move to Representative Government

41

      Given that Hong Kong will be a Special Administrative Region within China after 1997, with an elected legislature enjoying a high degree of autonomy, it is essential that a government structure consisting largely of local people is in place and in proper working order well before 1997. It is therefore necessary to move to a more representative form of government, transferring the powers of the present colonial government to the elected representatives of the people of Hong Kong.

In this respect, UMELCO welcome and support the basic proposals and the progressive approach outlined in both the Green and White Papers on the Further Development of Representative Government in Hong Kong. However, Unofficial Members echo the caution expressed in many quarters against any rapid or radical changes which may put at risk Hong Kong's raison d'etre, that is, stability and prosperity.

       Hong Kong is not an independent state and can never be. Despite the promise of a high degree of autonomy, its subsidiary relationship with the Chinese Central Government must be understood and accepted. Parliamentary government as practised in the West, featuring adversarial politics, is not necessarily suited to Hong Kong, recognising Hong Kong's unique status and the political constraints placed upon it by this status. Hong Kong must, therefore, devise its own unique style of representative government, building on the proven elements which have been responsible for Hong Kong's success.

The Next Twelve Years

      Most people in Hong Kong believe that only if stability and prosperity are maintained in the period prior to 1997 can there be any hope that stability and prosperity will be continued for fifty years after 1997. It is therefore generally felt that the next twelve years will be critical and crucial to Hong Kong's continual success beyond 1997. It is essential, therefore, that all concerned, Britain, China and the people of Hong Kong, play their part in furthering Hong Kong's stability and prosperity in the next 12 years.

The main task for Her Majesty's Government in the next twelve years is to ensure a smooth transition, so that 1997 does not represent an abrupt break with the past, but the continuation of a gradual process of evolution. To allay fears of Britain losing interest in Hong Kong, it is important that HMG continue to govern Hong Kong effectively. It must demonstrate its continual determination, resolve and commitment to Hong Kong's stability and prosperity.

       The Chinese Government must demonstrate its willingness to listen to the views and wishes of the people of Hong Kong. In particular, given the great significance attached by the people of Hong Kong to the Basic Law, it is hoped that, as was suggested by the Unofficial Members to the Chinese leaders in Beijing in June this year, the people of Hong Kong should be consulted on, and participate in, the drafting of the Basic Law.

As for the people of Hong Kong, they understand that the aim of the draft agreement is the maintenance of Hong Kong's stability and prosperity, and that stability and prosperity are the product of, among other qualities, their energy, talent, industry and confidence. The Agreement provides a sound basis on which to continue to apply these attributes. The people of Hong Kong are ready and willing to take on the challenge of the new circumstances they face. Given understanding and sensitivity by the two signatory Governments and their firm commitment to implementing the Joint Declaration in both letter and spirit, the people of Hong Kong will succeed in maintaining Hong Kong's stability and prosperity, and in making the draft agreement work.

2

The Further Development of

萊吃

Representative Government in Hong Kong 85

A White Paper on 'The Further Development of Representative Government in Hong Kong' was tabled in the Legislative Council on November 21. This chapter reproduces the text of the White Paper, which was prepared following the publication of a Green Paper in July.

INTRODUCTION

The Green Paper

      1. On July 18, 1984, the government published a Green Paper entitled The Further Development of Representative Government in Hong Kong and invited public comment on the proposals put forward in it.

2. The aims of the proposals were:

(a) to develop progressively a system of government the authority for which is firmly rooted in Hong Kong, which is able to represent authoritatively the views of the people of Hong Kong, and which is more directly accountable to the people of Hong Kong;

(b) to build this system on our existing institutions, which have served Hong Kong well, and, as far as possible, to preserve their best features, including the maintenance of the well established practice of government by consensus; and

(c) to allow for further development if that should be the wish of the community.

Public Response to the Green Paper

      3. The government received and recorded comments from a wide range of sources during the two-month period allowed for public consultation on the Green Paper pro- posals. In addition to over 360 written submissions to the Government Secretariat from various organisations, groups and individuals, extensive consultation was carried on through the district offices. Many meetings and public discussions were attended by government officers, several surveys of public opinion were carried out and an assessment was made of views expressed extensively in the media. Comments were received from many members of district boards, area committees and mutual aid committees. Urban Councillors expressed their views in an open debate on September 4 and 6, 1984, which was followed up by a resolution from the Standing Committee of the Whole Council on September 27, 1984, and unofficial members of the Legislative Council commented on the proposals during the debate in the Legislative Council on August 2, 1984.

4. Public reaction was generally in favour of the aims of the Green Paper and the gradual and progressive nature of the proposals made in it. The need to ensure that the prosperity and stability of Hong Kong are not put at risk by introducing too many

THE FURTHER DEVELOPMENT OF REPRESENTATIVE GOVERNMENT IN HONG KONG 43

     constitutional changes too rapidly was widely recognised. Many people supported the proposals as being a realistic and practical framework for the development of representa- tive government at the central level during the next few years.

The White Paper

      5. The purpose of this White Paper is to set out, in the light of public reaction, the government's intentions for 1985 with regard to the next stage of development of representative government in Hong Kong at the central level. The proposals in the Green Paper covered the period up to 1991. The revised plans for 1985 described in this White Paper include several of the original proposals concerning the composition of the Legislative Council in 1988.

      6. In preparing the White Paper the government has recognised the need to keep in mind the provisions of the Draft Agreement on the Future of Hong Kong, and the plans have been framed accordingly.

THE LEGISLATIVE COUNCIL

The Electoral College

7. It was proposed in the Green Paper that:

(a) the electoral college should be composed of all the elected and, to start with, all the appointed members of the Urban Council, the new Regional Council and the district boards;

(b) it should be able to elect anyone who is a registered elector on the general electoral roll and who has been ordinarily resident in Hong Kong for a minimum of 10 years, not necessarily from among its own members; and

(c) that these arrangements should be introduced progressively, with six unofficial

members being elected in 1985 and 12 in 1988.

8. There has been much comment on these proposals. One suggestion was for a single list of candidates. Another was for arrangements to be made which would ensure a reasonably balanced geographical distribution of members elected by the college. This might be achieved by dividing the members of the college into groups of districts, each of which would elect one member, with the Urban Council and Regional Council forming separate constituencies to elect one member each.

9. The government agrees that there should be a reasonably balanced geographical distribution. In consequence, in 1985, the district board members of the electoral college will be grouped into 10 geographical constituencies each based on one, two or three districts and representing roughly 500 000 people each; and members of the Urban Council and Regional Council will form two special constituencies. Thus the electoral college will return 12 unofficial members to the Legislative Council in the 1985 elections instead of the six members originally proposed in the Green Paper.

10. For the electoral college elections a list of all members of the Urban and Regional Councils and of the district boards will be published as the electoral college roll. The qualifications to be a candidate for election to the Legislative Council by the electoral college will be the same as those in the Electoral Provisions Ordinance for election to the Urban Council and the district boards, namely; a candidate must be a registered voter on the general electoral roll with a minimum of 10 years residence in Hong Kong.

11. Further details of these proposals are given at Appendix A.

44

THE FURTHER DEVELOPMENT OF REPRESENTATIVE GOVERNMENT IN HONG KONG

The Functional Constituencies

      12. The Green Paper stressed that full weight should be given to representation of the economic and professional sectors of Hong Kong society which are essential to future confidence and prosperity. It was therefore proposed that the present informal system of selecting unofficial members of the Legislative Council from functional constituencies should be developed into a formal representative system for the election of one or more representatives from each functional constituency to serve on the Legislative Council. It was also proposed that these arrangements should be introduced progressively, with six unofficial members being elected by functional constituencies in 1985 and 12 in 1988.

13. A further detailed examination has been conducted to identify functional consti- tuencies with the object of ensuring that those major sectors of the community having common social, economic and occupational interests are represented. It has been concluded that these would be best served initially by the election of 12 members from nine constituencies, namely commercial, industrial, financial, labour, social services, education, legal, medical, and engineers and associated professions.

14. The main guidelines which have been applied in determining the composition of these functional constituencies and eligibility to vote in them are as follows:

(a) In the case of economic and social constituencies, these will be based on well- recognised major organisations, associations, and institutions with a territory-wide coverage. The lists of the voting members of these organisations will be adopted as the electoral rolls for these constituencies. Corporate members will nominate representatives to vote on their behalf.

(b) In the case of professional constituencies, these will be based on membership of those professions with well-established and recognised qualifications. The electoral rolls for these constituencies will be based on either the membership lists of the various major professional bodies and institutions or on the statutory registers of members of those professions.

      15. Further details of the composition of the functional constituencies which have been identified and the number of seats to be allocated to them are given in Appendix B.

16. The electoral rolls will be published initially in the normal way as provisional rolls and thereafter as definitive or final rolls. Provision will be made for annual revision of the electoral rolls in the case of functional constituency organisations by notification by them of any addi- tions or deletions to their membership lists, but for the names of those nominated to represent corporate bodies to be varied at any time by advice in writing to the registration officer; and also for the constituencies to be defined and for the seats in each constituency to be declared by order. It is otherwise proposed that the provisions dealing with the nomination of candidates, the lodgement of nomination papers, the voting procedure and conduct of elections, the proces- sing of election appeals and so on should be as in the existing Electoral Provisions Ordinance and associated legislation applicable to the Urban Council and district board elections.

      17. As in the case of the electoral college constituencies the qualifications for nomina- tion as a functional constituency candidate will be that the nominee shall have registered as a voter on the general electoral roll and have resided in Hong Kong for the 10 years immediately prior to the date of his nomination and, additionally, the nominee shall also have registered as a voter for that constituency. It will also be necessary to be a registered voter on the general electoral roll to qualify as a voter in a functional constituency.

      18. Consultations will be held with the organisations and professional bodies which will make up the functional constituencies, with a view to working out detailed arrangements for the 1985 elections.

THE FURTHER DEVELOPMENT OF REPRESENTATIVE GOVERNMENT IN HONG KONG 45

Appointed Unofficial Members

19. It was proposed in the Green Paper that the number of appointed unofficial members should be reduced progressively to 23 in 1985 and 16 in 1988. Public comment on this proposal varied widely from support for the retention of appointed unofficial members indefinitely to suggestions that they should be removed from the council completely as soon as possible.

       20. If an element of continuity is to be maintained in the Legislative Council it would be unwise to reduce appreciably or too hastily the number of appointed members at this stage, for their experience in the workings of the council should not be lost. The introduction of 24 elected members into a council of the present size would require a significant reduction in the number of appointed unofficial members. It has therefore been decided to increase the overall size of the council to 56 and to reduce the number of appointed unofficial members to 22 in 1985. The increase in the overall size of the council is supported by the public view that the council should be larger in order to meet the wide and diverse needs of present-day Hong Kong.

Official Members

21. It was proposed in the Green Paper that the three ex-officio members of the Legislative Council, the Chief Secretary, the Financial Secretary and the Attorney General, should remain on the council, but that the overall number of official members should be reduced progressively to 13 in 1985 and 10 in 1988.

22. The general view was in favour of this proposal. It is now intended that the reduction to 10 will take place in 1985 in line with the increase in the number of elected members. This will still allow for a reasonable number of officials to remain in the Legislative Council at this stage to assist in the conduct of the business of the council.

The Composition of the Legislative Council

23. The composition of the Legislative Council in 1985 and 1988 proposed in the Green Paper was as follows:

(a) Elected by electoral college

(b) Elected by functional constituencies

(c) Appointed by the Governor

(d) Official members

Total

1985

6

6

23

13

48

1988

12

12

16

10

50

       24. As a result of the changes which have been made to the original proposals, the composition of the council in 1985 will now be as set out below. The additional seats required to cater for the increase in elected membership have been partially offset by a small reduction in seats for appointed and official members.

(a) Elected by electoral college

(b) Elected by functional constituencies

(c) Appointed by the Governor

(d) Official members

1985

12

12

22

10

Total

56

46

THE FURTHER DEVELOPMENT OF REPRESENTATIVE GOVERNMENT IN HONG KONG

Direct Elections

25. The relative merits of direct and indirect elections attracted considerable public interest and comment. However, there was little evidence of support in public comment on the Green Paper for any move towards direct elections in 1985. With few exceptions the bulk of public response from all sources suggested a cautious approach with a gradual start by introducing a very small number of directly elected members in 1988 and building up to a significant number of directly elected members by 1997. Proposals that the Legislative Council's unofficial members should all be returned by direct elections were in the minority. There was considerable general public concern that too rapid progress towards direct elections could place the future stability and prosperity of Hong Kong in jeopardy. In summary, there was strong public support for the idea of direct elections but little support for such elections in the immediate future.

The Review

26. It was proposed in the Green Paper that a review should take place in 1989, after the second elections to the Legislative Council had been held in 1988, with a view to deciding, in particular, the future position of appointed unofficial members and other possible mixes of members elected by the electoral college and the functional constituencies. It was further stated that other types of electoral arrangements including the possibility of direct elections, might be considered in the review.

27. There was strong public support for the idea that there should be a review and that it should occur before 1989. It was argued that this should take place before the 1988 elections and the second phase of development. This would give an opportunity for further consultation about future development including such questions as the introduction of direct elections.

      28. Since some of the Green Paper proposals concerning the composition of the Legislative Council have been brought forward from 1988 to 1985, it has been argued that the review should be held after 1988 in order to allow time for the new arrangements to settle down. On the other hand, there was strong public feeling that the timing of the review should be brought forward. There will also be a need to consider matters such as direct elections and other issues raised in the Green Paper and subsequently in public debate. After careful consideration the government has decided to bring forward the review to 1987.

THE EXECUTIVE COUNCIL

      29. It was proposed in the Green Paper that the majority of appointed unofficial members of the Executive Council should be replaced progressively by members elected by the unofficial members of the Legislative Council, but the number of ex-officio members should remain at four.

      30. There was much less comment on the Executive Council proposals than on those about the Legislative Council. An alternative proposal was made that any future Chief Executive should be free to choose his own Executive Council.

      31. It is not proposed to make any changes affecting the Executive Council in 1985. The issue will remain open for further public discussion and consideration.

THE FURTHER DEVELOPMENT OF REPRESENTATIVE GOVERNMENT IN HONG KONG 47

A Ministerial System

32. In response to the Green Paper a substantial number of suggestions were made that unofficial members of the Executive Council should be given more power and authority to control and supervise the policies and the operations of the government through some form of ministerial system in future.

33. This issue, like that concerning the position of the Governor, raises important constitutional questions. It is not a matter that need be decided in the immediate future nor is it the only way of proceeding. The whole subject will be addressed further at a later stage.

THE GOVERNOR

       34. Only one proposal was made in the Green Paper with regard to the position of the Governor, namely, that in due course he should be replaced as President of the Legislative Council by a presiding officer elected by the unofficial members of the Legislative Council from among their own number.

35. Although the proposal to replace the Governor as President of the Legislative Council by an elected presiding officer was, on the whole, reasonably well received, it seems clear that the general view is in favour of making no significant changes in the position of the Governor during the next few years. Public opinion seems to favour caution as far as the immediate future is concerned.

       36. It is therefore proposed to reconsider the Governor's position as President of the Legislative Council in the review in 1987.

37. As regards the position of the Governor in general, the Green Paper stated that the Governor will continue to be appointed formally by the Queen until 1997 and there was strong public support for this. Since the Green Paper was published the Draft Agreement on the Future of Hong Kong has been initialled in Peking. Any proposals for change in the position and role of the Governor will need to take into account the provisions of the Joint Declaration and these important issues will be considered at a later stage.

Civic Education

OTHER RELATED MATTERS

38. An opinion which has been expressed strongly by many organisations and in- dividual members of the public is that arrangements should be made for the people of Hong Kong to be educated more effectively and comprehensively in political and constitutional matters so that they will be able to understand better all the implications and complexities of proposals for the development of the system of government in Hong Kong.

39. The Education Department has been promoting civic education in schools for many years through Social Studies and Economic and Public Affairs courses. It is the intention to develop these further in a new syllabus covering Government and Public Affairs. Civic education will be pursued both through the formal school curriculum and extra-curricular activities, such as current affairs clubs, debating societies and visits for senior students to district boards, the Urban Council, the UMELCO Office, government departments and the Legislative Council.

40. It is also important that adults should be given the opportunity to receive more civic education and encouragement will be given to other educational institutions and organisa- tions to provide more courses in constitutional and public affairs for the general public.

48 THE FURTHER DEVELOPMENT OF REPRESENTATIVE GOVERNMENT IN HONG KONG

Remuneration for Unofficial Members of the Legislative Council

41. Several suggestions were made that unofficial members of the Legislative Council should be provided with adequate remuneration so as to enable them to devote the proper amount of time and attention to their duties as councillors. This would also help to ensure that prospective candidates for the Legislative Council are not prevented from standing for election for financial reasons.

42. Although arrangements already exist for certain expenses to be reimbursed to unofficial members, it is now proposed that a standard rate of remuneration as well as payment of expenses should be provided. The level is now under consideration, with a view to introducing the scheme when the first elected unofficial members join the Legislative Council.

LEGISLATION

43. In order to implement the changes in the composition and method of selection of the Legislative and Executive Councils it will be necessary to make some amendments to the two main constitutional instruments, the Letters Patent and the Royal Instructions. The intention is to effect these in stages, as and when necessary.

      44. It will also be necessary to enact legislation in Hong Kong to cover the holding of elections to the Legislative Council by the electoral college and the functional constituen- cies and who may vote in them. This legislation is now being drafted and will be published for debate in the Legislative Council early next year. As there is a degree of public familiarity with the legislation governing elections to the Urban Council and district boards, and in order to minimise possible confusion and misunderstanding, the electoral legislation will be framed on broadly similar lines.

      45. In order to give sufficient time for preparation of this complex legislation and for all the necessary administrative arrangements for the holding of the elections to be made, it is now intended to hold the first electoral college and functional constituency elections to the Legislative Council in September 1985, instead of July as originally proposed in the Green Paper.

SUMMARY

      46. A summary of the government's intentions and legislative proposals relating to the further development of representative government at the central level in Hong Kong is as follows:

Main Aims

(a) The main aims are to develop progressively a system of representative government at the central level which is more directly accountable to the people of Hong Kong and is firmly rooted in Hong Kong; to base this system on our existing institutions, as far as possible, and to preserve their best features; and to allow for further development later on. The objectives described in this White Paper are intended to cover only the next stage in the development of representative government in Hong Kong. Further developments will be considered later in the light of experience.

THE FURTHER DEVELOPMENT OF REPRESENTATIVE GOVERNMENT IN HONG KONG

The Legislative Council

(b) In 1985, 24 Unofficial members of the Legislative Council will be elected:

49

(i) by an electoral college composed of all members of the Urban Council, the new

Regional Council, and the district boards, and

(ii) by specific functional constituencies.

(c) The district board members of the electoral college will be grouped into 10 geographical constituencies. Members of the Urban Council and Regional Council will form two special constituencies. Thus 12 unofficial members will be elected to the Legislative Council from the electoral college in 1985.

(d) In 1985 there will be nine functional constituencies returning 12 members to the

Legislative Council on the basis set out in paragraph 14.

(e) The number of appointed unofficial members of the council will be reduced to 22

in 1985.

(f) The number of official members of the council will be reduced to 10 in 1985. (g) The composition of the Legislative Council in 1985 will be:

   (i) 12 unofficial members elected by the electoral college, (ii) 12 unofficial members elected by functional constituencies, (iii) 22 unofficial members appointed directly by the Governor,

(iv) 10 official members (including the three ex-officio members), making a total of

56 members.

(h) A review to assess progress made in the development of representative government will be carried out in 1987. Further consideration will be given to direct elections in the context of the review.

The Executive Council

(j) No conclusions have been reached about the development of the Executive Council, nor about the introduction of a ministerial system and these matters will be considered further at a later stage.

The Governor

(k) The position of the Governor as President of the Legislative Council will be considered further in the review in 1987. The general position of the Governor will need to be addressed at a later stage.

Other Related Matters

(1) Development of Government and Public Affairs courses in schools will continue and encouragement will be given to other educational institutions and organisations to provide more courses in civic education for the general public.

(m) Unofficial members of the Legislative Council will receive suitable remuneration

and expenses for their services.

Legislation

(n) The first elections will be postponed from July to September 1985 to allow for the enactment of the necessary legislation and for the necessary administrative arrangements to be made.

50

THE FURTHER DEVELOPMENT OF REPRESENTATIVE GOVERNMENT IN HONG KONG

APPENDIX A

The Electoral College

The electoral college will comprise all members of the district boards, the Urban Council and the new Regional Council. The college will elect 12 unofficial members to the Legislative Council in September 1985.

2. In order to achieve a more balanced and adequate representation the district boards. will be grouped into 10 geographical constituencies each representing approximately 500 000 people.

      3. The remaining two seats will be provided by the two special constituencies formed respectively by members of the Urban Council and the Regional Council. The interests of the Heung Yee Kuk will be represented through the Regional Council.

       4. Details of the 12 constituencies formed from the electoral college are in the table below.

Constituency

Population (000)

Population

1. East Island

696

Grouping

Eastern District

(000)

481

Wan Chai District

215

2.

West Island

507

Central and Western District

272

Southern District

235

3.

Kwun Tong

663

Kwun Tong District

663

4.

Wong Tai Sin

452

Wong Tai Sin District

452

5.

Kowloon City

441

Kowloon City District

441

6.

Sham Shui Po

435

Sham Shui Po District

435

7.

South Kowloon

389

Mong Kok District

215

Yau Ma Tei District

174

8.

East New Territories

524

North District

134

Tai Po District

109

Sha Tin District

281

9. West New Territories

459

Yuen Long District

238

Tuen Mun District

221

10. South New Territories

726

Tsuen Wan District

654

(Including Tsing Yi)

Island District

37

Sai Kung District

35

11. Urban Council

12. Regional Council

APPENDIX B

Functional Constituencies

Nine functional constituencies will return an overall total of 12 unofficial members to the Legislative Council in the elections planned for September 1985.

2. The commercial, industrial, and labour constituencies will each return two unofficial members to the Legislative Council. The remaining six constituencies will each return one unofficial member.

Constituency

THE FURTHER DEVELOPMENT OF REPRESENTATIVE GOVERNMENT IN HONG KONG

3. Details of the nine functional constituencies are in the table below.

Representative Organisations

51

No. of Seats

Total Seats

1. Commercial

Hong Kong General Chamber

of Commerce

1

Chinese General Chamber of

Commerce

1

2

2. Industrial

Federation of Hong Kong

Industries

Chinese Manufacturers

1

Association

1

2

3. Financial

Hong Kong Association of Banks

1

1

4. Labour

All Registered Employee Trade

Unions

2

2

5. Social Services

Hong Kong Council of Social

Services

1

1

6. Medical

7. Education

8. Legal

9. Engineers and

Hong Kong Medical Association

Electoral rolls compiled from:

statutory lists, as well as member- ship/staff lists of institutions and relevant professional bodies

1

1

1

1

1

1

associated professions

Total

1

1

12

- 1 = 1

3

Constitution and Administration

UR TH

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 government, 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 laws.

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 has been the Governor of Hong Kong since May 1982.

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.

      Several amendments were made to the Standing Orders in July 1984 with a view to improving the procedures followed by the council.

CONSTITUTION AND ADMINISTRATION

Central Government

Executive Council

333

53

The Executive Council consists of four ex-officio members - the Chief Secretary, the Commander British Forces, the Financial Secretary and the Attorney General - together with other members who are appointed by the Governor on the instructions of the Secretary of State. There are 12 appointed members, 10 unofficial and two official. Appointed members hold office for fixed periods.

The council meets once a week, in camera, and its proceedings remain confidential, although 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, then 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 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 61, comprising 29 official members, including the Governor, who is the President, and three ex-officio members - the Chief Secretary, the Financial Secretary and the Attorney General - and 32 unofficial members. The present actual membership is 17 official and 30 unofficial members. 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 reappointed for further periods of not more than four years each.

       The White Paper on the Further Development of Representative Government in Hong Kong, published in November 1984, introduced substantial changes in the composition of the Legislative Council, to be made from 1985.

54

CONSTITUTION AND ADMINISTRATION

The overall number of official members will be reduced to 10, including the three ex-officio members while the number of appointed unofficial members will be reduced to 22. Concurrently, elected members will be introduced into the council for the first time in its history. Twelve members will be elected from an electoral college which will consist of 12 constituencies; the district board members of the college will be grouped into 10 geo- graphical constituencies each based on one, two or three districts and representing roughly 500 000 people each; and members of the Urban Council and Regional Council will form two special constituencies. Another 12 members will be elected from nine functional constituencies, namely commercial, industrial, financial, labour, social services, education, legal, medical, and engineers and associated professions.

      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. Proceedings are bilingual; members may address the council in English or Cantonese, 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, one other official member of the council (at present the Secretary for Lands and Works) and all the unofficial members of the council. It scrutinises 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 financial implications of new policies. The special meetings were opened for the first time to the public in 1984 and, subject to the

CONSTITUTION AND ADMINISTRATION

55

relevant standing order being appropriately amended, all regular meetings will also be held in public with effect from March 1985. 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 17 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 in detail staffing proposals for directorate posts and for the creation of new ranks or changes in salary scales, and makes recommendations on them to the Finance Committee. It also examines reports on the establishments of departments.

Public Accounts Committee

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 Director of Audit's Report is tabled in the Legislative Council in November. The committee then meets in public and the controlling officers of different heads of expenditure give evidence on the different aspects of public expenditure covered in the Director of Audit's Report. The committee's report is laid on the table of the Legislative Council in January. The government's response to the report of the committee is contained in the government minute which describes the measures taken to give effect to the committee's recommendations or 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 of the laying of the Public Accounts Committee's report each year.

UMELCO

Unofficial Members of the Executive and Legislative Councils (UMELCO), by taking part in the process of Government, play a significant role in the administration of Hong Kong. They advise on the formulation of government policies, participate in the enactment of legislation, monitor the effectiveness of public administration, and consider complaints by members of the public against government departments.

       Activities of Unofficial Members include studying all Bills and major courses of action proposed by the government and receiving representations from public bodies or members of the public.

       Unofficial Members have formed a total of 16 panels, which meet regularly with senior government officials to deal with different programme areas, such as education and manpower, health and welfare, the Civil Service, housing, trade and industry, transport and public relations. Issues and policies of importance are discussed at these meetings and may

56

CONSTITUTION AND ADMINISTRATION

be debated and publicly questioned in the Legislative Council. There are also UMELCO Groups appointed by the Governor, such as the UMELCO Police Group consisting of seven UMELCO Members and the Attorney General as a co-opted member, which monitors the handling of complaints against the police; and the UMELCO ICAC (Independent Commission Against Corruption) Complaints Committee, comprising seven Unofficial Members and a law officer, which monitors the handling of complaints against the commission.

      Through regular visits to government departments and to urban and New Territories districts, Unofficial Members keep themselves up to date on developments throughout the territory.

The UMELCO Office provides Unofficial Members with research and administrative assistance. Although the office is funded by the government, it is not a government department. The UMELCO Office is also an established channel for the redress of grievances. It handles all public complaints, appeals and representations addressed to Unofficial Members alleging official maladministration. Unlike the statutory grievance systems operating in some countries, the UMELCO system is neither defined nor confined by law. Under the system, Unofficial Members have the right of access to government records and to senior officials. They also have the right to challenge the established practices and policies of government departments. They bring important issues to the attention of either of the two councils. 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 whose jurisdiction covers services to almost four million people living in the urban areas. The authority of the council is derived from the Urban Council Ordinance which charges it with a number of mandatory functions such as street cleansing, refuse collection, food hygiene including the health requirements for restaurants, food shops, markets, and abattoirs, and all other environmental hygiene and food hygiene functions. Closely connected with hygiene considerations is the control of street traders.

      The Urban Council also functions as the Liquor Licensing Board for the urban areas. Other functions involve recreational and cultural activities, including the building and control of all sports facilities such as swimming pools, parks and playgrounds, tennis courts, indoor and outdoor stadia.

       The Director of Urban Services is the council's chief executive and the Urban Services Department which he heads is charged with carrying out the council's policies and im- plementing its decisions. Since 1973, the council has been financially autonomous, receiving approximately 75 per cent of its revenue from rates and the balance from its various fees and licences. In 1984-5, its revenue is expected to be in the region of $1,556 million.

The council is composed of 30 members, 15 elected from district constituencies and 15 appointed by the Governor. The council meets in public once a month when it passes by- laws and deals with its finances. However, most of the day-to-day routine business is dealt with by 13 select committees and 14 sub-committees. The business at all meetings is con- ducted in either English or Cantonese with simultaneous interpretation where this is required. Almost all councillors are allocated to individual or collective ward offices where they deal with and answer complaints from the public on a great variety of matters. The vast

CONSTITUTION AND ADMINISTRATION

57

majority of matters lie outside the council's jurisdiction but members nevertheless attempt to obtain answers from various government departments and public bodies to assist the public.

        A few members of the council have no office accommodation of their own and the council has provided them with financial assistance to rent their own offices to enable them to carry out their duties efficiently.

       All councillors have seats on district boards, the elected councillors having seats on boards in which their constituencies lie and appointed members being assigned to boards by the council.

Regional Council

The new Regional Council was proposed in order to achieve a more efficient provision of services to cope with the future increase in population in the new towns. The Regional Council was introduced also to correct the anomalous situation whereby a wide range of services was provided to the public in the urban areas by the Urban Services Department under the direction of the Urban Council, while similar services were provided to the public in the New Territories by the New Territories Services Department under the direction of the central government. The Urban Council system has been working well in the urban areas for several years and it was decided that a similar system should be introduced for the rest of Hong Kong.

       The Regional Council will perform functions similar to those of the Urban Council in respect of environmental public health, sanitation and hygienic services in areas outside the aegis of the Urban Council. As far as recreational, cultural and amenities services are concerned, the functions of the Regional Council will include the provision of those services previously provided by the Recreation and Culture Department at the district and regional levels.

The Regional Council will consist of a total of 36 members, 12 of whom will be directly elected and constituency-based and 12 will be appointed. Each of the nine district boards in the New Territories will elect among themselves one representative to the council. Three representatives of the Heung Yee Kuk will be ex-officio members of the Regional Council. To allow some working experience to be gained before the full council comes into being in April 1986, a provisional Regional Council of appointed members will be established in early 1985. It is envisaged that elections for the 12 directly elected members will be conducted at the same time as those for the Urban Council in March 1986 and they will hold office from April 1, 1986, when the new council is formally established.

To provide the necessary executive support for the Urban Council and the new Regional Council, the present Urban Services Department and Recreation and Culture Department will be merged. Two new departments, each headed by a Chief Executive, will be formed, one servicing the Urban Council and one the Regional Council. There will also be a new Secretary for Municipal Services who will have policy responsibility for environmental hygiene matters, and cultural and recreational services. He will exercise a co-ordinating function to encourage co-operation, consistency and the best use of resources between the two departments and the two councils. He will also act as a bridge between the central government and the councils.

District Administration

District boards and district management committees were set up in each of the 18 adminis- trative districts throughout the territory in 1982. The objective behind establishing district

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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, and Urban Councillors or rural committee chairmen. They have a mainly advisory role, with substantial responsibility for the manage- ment of district affairs.

In monitoring the government's performance and achievements at the district level, the district boards discuss a wide range of matters affecting the well-being of residents in the district. All district boards have been allocated public funds for local recreational and cultural activities and for minor environmental works.

The district management committees, whose membership comprises 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.

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 that year.

The district boards have demonstrated their value in providing for public participation in the consultation and management of district affairs. To ensure that they continue to meet Hong Kong's changing needs and circumstances, a review on their composition and administrative arrangements was conducted in 1984. As a result of the review, it was decided that the representative status of the district boards should be strengthened by increasing the size of the elected element. It is envisaged that after the March 1985 elections the balance between elected and appointed members will be 2:1.

Where the doubling of elected members would result in a district board becoming too large and unwieldy, the size of the board will be trimmed by reducing slightly the overall number of members while retaining the 2:1 ratio. For the elections in March 1985, the number of elected seats will be increased from 132 to 237. There will be a very slight reduction in the number of appointed members from 135 to 132. Thus, altogether, there will be a total of 369 unofficial members.

       The second result of the review was that after the district boards election in 1985 official representatives will cease to be board members. They will, however, continue to be in regular attendance at district board meetings, to present papers, answer questions and give explanations. The chairmen of the boards will be elected from the unofficials.

      Thirdly, the review noted that Tsuen Wan District has developed into a large and complex conurbation and has the largest population of all. It includes not only old Tsuen Wan but Kwai Chung, from which it is separated by a range of hills, and Tsing Yi Island. Furthermore, Tsuen Wan and Kwai Chung/Tsing Yi differ in their developments and face different problems. It was therefore decided that two boards should be created - one for Tsuen Wan Town and one covering Kwai Chung and Tsing Yi - so that they can serve the local district more effectively. In other words, there will be 19 districts instead of the existing 18.

      Finally, the review concluded that since district boards had already made an impact on the management of the densely populated urban areas, their urban management role should be further developed.

The term of office for the present district board members will expire on March 31, 1985, and elections for the following term will take place in the same month. It is expected that with the introduction of the above-mentioned changes, the boards will prove to be even more effective in serving the residents of the districts.

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Links with the Urban Council, Regional Council and the Heung Yee Kuk District boards in both Hong Kong and Kowloon and the New Territories were linked from the outset with the 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.

From April 1985, each of the nine district boards in the New Territories will elect a representative to join the Provisional Regional Council and then, in 1986, the full Regional Council. This will provide for a strong link between the New Territories district boards and the Regional Council.

Electoral System for the Urban Council and District Boards

Elections to the Urban Council and district boards are on a constituency basis and through a very broad franchise. Practically everyone who is 21 years of age and who has been resident in Hong Kong for seven years, or who is a Hong Kong belonger, is eligible to apply for registration as an elector in the constituency in which he or she lives. Registration of new electors is conducted on a voluntary basis annually in August and September. The massive registration exercise for 1984 resulted in an addition of 521 951 new electors. At the end of the year, the electoral roll carried 1 421 391 names, representing 49 per cent of an estimated total potential electorate of 2.9 million. Of these electors, 995 321 are resident in the urban areas and are entitled to vote at Urban Council elections and at district board elections in the urban areas; the remaining 426 070 are resident in the New Territories and are entitled to vote at district board elections in the New Territories and at the new Regional Council elections in April 1986.

During the year, district board electoral boundaries were revised, taking into account the need to increase the size of the elected element in the district boards, and the geographical spread, growth, movement, and local characteristics of the population. For the district board elections to be held in March 1985, the territory will be divided into 19 districts and 145 constituencies - 10 districts with 83 constituencies in the urban areas and nine districts with 62 constituencies in the New Territories.

       This represents an increase of one district and 23 constituencies. Most constituencies will have two elected members, and the total number of elected members will be increased from 56 to 92 for the New Territories district boards and from 76 to 145 for the urban area district boards.

       For the Urban Council elections, there are 15 constituencies -- each covers an area made up of a number of district board constituencies in the urban areas and returns one elected member to the council. The new Regional Council will have, in addition to other types of members, 12 elected, constituency-based members.

An elector may vote only in the constituency in which he has been registered. He may, however, stand for election to the Urban Council, the new Regional Council or a district board in any constituency, provided he has been resident in Hong Kong for 10 or more. years and that his nomination is supported by 10 electors in that constituency. Voting is by simple plurality, in both single-member and double-member constituencies.

Elections are held on a three-year cycle. District board elections will be conducted simultaneously throughout the territory for the first time on March 7, 1985. The next Urban Council elections will be held in March 1986 together with those for the new Regional Council.

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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. Together 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 staff. 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.

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 out various executive duties such as setting levels of certain charges and remunerations, 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 retire- ment from office.

Structure of the Executive

The Executive of the Hong Kong Government is organised into 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 the Councils and Administration Branch, which has a director, all branches are headed by secretaries.

INDUSTRY

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Accent on Technology

Hong Kong's international reputation as a manufacturing centre has been achieved in large measure through the foresight and ingenuity of its entreprenuers and the self- motivation and industry of its workforce. The combination of these factors, plus strong backing from the government, has established the territory as a respected producer of quality products. Hong Kong's manufacturers are always ready to take up challenges that may lead to new markets or spawn new products. There is continual diversification and upgrading as industries become more capital-intensive, with a growing accent on technology. The use of new technology is particularly evi- dent in the electronics sector in which the manufacture of sophisticated computer and telecommunication equipment has be- come increasingly important. The textiles. and clothing industry remains the major manufacturing sector, quickly adapting to changing market needs world-wide, and in the plastics sector production is equally diversified. Industrial development re- quires a steady stream of manpower and, in this, the Vocational Training Council, which operates technical institutes, the polytechnics and the universities have im- portant roles to play. The government, too, plays a key role, in ensuring there is a stable industrial framework. Among its many activities, the government has set up industrial estates and in 1984 it opened a Standards and Calibration Laboratory, to provide precision measurements and cali- bration services to meet industrial and other needs.

Previous page: High-precision equipment used in tool-making. Left: A technician at work in the Hong Kong Productivity Centre's Metal Development Laboratory; inside the government's new Standards and Calibration Laboratory; a multi-function timeclock developed by the Productivity Centre.

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   Practical experience for engineering students in the Heat Treatment Shop of the Hong Kong Polytechnic's Industrial Centre. They are hardening carbon steel components by means of an 'oil quenching' process.

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A firm producing tools for making items ranging from computer keyboards to box fans uses an optical comparator to ensure that each component conforms to precise specifications.

   Workers assembling and checking toy cars which are driven by a battery, with movement controlled by an air pressure device. This plant can produce a large number of these toys every day, mainly for export.

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Printed circuit boards, packed with integrated circuits and other components, being prepared for fitting into such products as calculators, microcomputers and telephones.

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The manufacture of integrated circuits, vital components in modern electronics, requires perfection, and checks by microscope at various stages of production help to achieve this.

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Jeans being inspected prior to labelling and packing at a large Hong Kong jeans manufacturer which exports world-wide.

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The policy branches whose secretaries report directly to the Chief Secretary are Home Affairs, City and New Territories Administration, Security, Housing, Education and Manpower, Lands and Works, Health and Welfare, and Transport. 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 directly to the Financial Secretary are Economic Services, Monetary Affairs, and Trade and Industry. 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, the heads of government departments are responsible to the branch secretaries for the direction of their departments and the efficient implementation of approved government policy. The exceptions are such bodies as the Audit Department and the Independent Commission Against Corruption, whose independence is safeguarded by their director and commissioner respectively reporting directly 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. There are currently 59 departments and agencies in this structure.

During the year, certain changes in the structure of the Secretariat were recommended consequent upon the creation of the Regional Council. These changes entailed the creation of a new branch and the shuffling of some existing branches' schedules.

Civil Service

The Civil Service provides the staff for all government departments and other units of the administration. With Hong Kong's centralised form of government, the Civil Service operates a wide range of services which in many countries would be administered by local authorities, for example medical services, public works and utilities, urban cleansing and public health, and the police force. The departments in charge of these areas - namely the Medical and Health Department, with an establishment of 22 362, the Lands and Works group of departments (22 106), the Urban Services Department (26.469) and the Royal Hong Kong Police Force (29 646) - account for 57 per cent of the establishment of the entire Civil Service. At April 1, 1984, the strength of the service was 170 051, with 98 per cent of this number being local officers.

The government's policy is to provide additional staff only for new facilities and where such staff cannot be provided by redeployment. In line with this policy, the establishment increased by 1.5 per cent in 1983-4, compared with 3.3 per cent in 1982-3 and 9.7 per cent in 1981-2. Expenditure on Civil Service emoluments in 1984-5 is estimated at $8,900 million. This is 33 per cent of the estimated total recurrent expenditure of the government for the year, compared with 35 per cent in the previous year.

Recruitment and promotions to the middle and senior ranks of the Civil Service are subject to the advice of the Public Service Commission which is independent of the government. The commission has a full-time chairman and leading citizens are appointed as members on a voluntary basis.

The government is advised on matters relating to pay and conditions of service by two independent bodies. The Standing Committee on Directorate Salaries and Conditions of Service advises on matters affecting directorate officers (the 1000 most senior civil servants). The Standing Commission on Civil Service Salaries and Conditions of Service deals with all other civil servants. During the year, the Standing Commission concentrated much of its attention on allowances payable to civil servants whose jobs have certain special

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features, such as a high degree of danger or the need to work irregular hours. It also considered how to refine the way in which data is collected about the movement of wages and salaries in Hong Kong for the purpose of making adjustments to Civil Service pay, and how to evaluate fringe benefits in order to compare the 'pay package' of civil servants with that of employees in the private sector.

Responsibility for the management of the Civil Service lies with the Civil Service Branch. of the Government Secretariat. The branch deals with such matters as pay and conditions of service, appointments, staff management, manpower planning, training and discipline and it is also the focal point for consultation with the principal staff associations.

      The government attaches great importance to the training of civil servants to improve their operational efficiency, to prepare them for higher responsibilities and to meet the developing manpower requirements of the service. The Civil Service Training Centre provides expert advice to departments on training matters, and also arranges language and management training.

In September, the Governor opened the first in a series of courses designed to prepare mid-career officers for senior management responsibilities. Each course lasts for 12 weeks and has up to 40 participants, including a few from the private sector.

Advisory Committees

     The network of government boards and committees, of which there are 368, is a distinctive feature of the system of government in the territory which seeks to obtain, through consultation with interested groups in the community, the best possible advice on which to base its decisions. Thus advisory bodies of one kind or another are found in nearly all government departments. In general, advisory bodies may be divided into five categories: statutory bodies which give advice to a head of department (such as the Pilotage Advisory Committee); statutory bodies which give advice to the government (such as the district boards); non-statutory bodies which give advice to a head of department (such as the Labour Advisory Board); non-statutory bodies which give advice to the government (such as the Fight Crime Committee); and committees which are executive in nature (such as the Air Transport Licensing Authority).

      Government officials and members of the public are represented on these committees the members of the public being appointed on account of their specialist knowledge or expertise, or through their record or interest in contributing to the life of the community. Increasing importance has been attached to the contribution of unofficials to the formu- lation and execution of government policies and, in order to utilise their potential to the full, a systematic and regular monitoring of the composition and effectiveness of these bodies is carried out. The government also broadens the cross-section of representation and encourages the constant inflow of new ideas by maintaining, wherever possible, a reasonable turnover of membership.

Language

Chinese and English are the two official languages of Hong Kong. Chinese is widely used in daily life and English in the fields of commerce, banking, international trade and in the law courts. The majority of Chinese residents speak Cantonese, a South China dialect. Because of the increasing links between Hong Kong and China, Putonghua (Mandarin) is gaining popularity among the local population. Other foreign languages used by the mercantile community or tourists are not widely understood, though trained interpreters speaking Japanese and some European languages are available.

CONSTITUTION AND ADMINISTRATION

The Legal System

Law in Hong Kong

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     Generally speaking, the law of Hong Kong follows that of England and Wales. The Application of English Law Ordinance was passed in 1966 to declare the extent to which English law is in force in the territory. Section 3 provides that the common law of England and the rules of equity shall be in force in Hong Kong so far as they are applicable to the circumstances of Hong Kong or its inhabitants subject to such modifications as such circumstances may require. Additionally, some English Acts apply to Hong Kong, such as the Justices of the Peace Act of 1361 and the Habeas Corpus Act of 1679.

On occasions, laws are made to apply to Hong Kong by order of Her Majesty in Council: the power to make all such law as may appear necessary for the peace, order and good government of the territory being expressly preserved by Article IX of the Letters Patent. In practice, this is largely confined to matters which have a bearing on Hong Kong's international position. For example, the Air Navigation (Overseas Territories) Order 1977 is an Order in Council applying provisions of civil aviation treaties, to which the United Kingdom is a party, to the United Kingdom's overseas territories including Hong Kong.

Local legislation (that is, ordinances passed by the Legislative Council and assented to by the Governor) usually starts with one of the policy branches of the Hong Kong Govern- ment formulating drafting instructions for the Drafting Division of the Attorney General's Chambers. The instructions are prepared after consultation with the relevant government departments and, if appropriate, with interested public groups, as to the policy to adopt. After a Bill has been drafted it is submitted to the Governor in Council for approval to submit it to the Legislative Council. If the Bill is passed by vote of the Legislative Council, the Governor is empowered to enact by giving his assent to it and it is passed into law.

      In much the same way that the common law of England has evolved, so has that of Hong Kong, based on the English common law and rules of equity, following and applying local ordinances and English or United Kingdom Acts where applicable. Hong Kong ordinances are often closely modelled on United Kingdom statutes or the legislation of Common- wealth countries if considered more appropriate. Cases from Commonwealth countries and the United States of America are quoted in the courts and considered with respect. The Hong Kong courts apply a doctrine of binding precedent similar to that adopted by the English courts. The Hong Kong Court of Appeal is bound by its own previous decisions. Appeal from the Court of Appeal lies to the Privy Council and it was said in a Full Court case in 1969 that the Hong Kong courts were 'clearly bound by decisions of the Privy Council and of the House of Lords'. The Full Court again considered the question of precedent in 1973 and stated that 'any relevant decision of the Privy Council' was binding on the Hong Kong courts.

Judiciary

The Chief Justice is the head of the Judiciary. He is assisted in the discharge of his adminis- trative duties, by the Registrar and Assistant Registrars of the Supreme Court. The Chief Justice, the Justices of Appeal and the Judges of the High Court are appointed by Letters Patent issued under the Public Seal by the Governor on instructions from the Queen, conveyed through the Secretary of State. District Judges are appointed by the Governor, by instrument under the Public Seal, and magistrates by the Governor by warrant.

      The Judiciary tries all prosecutions and determines civil disputes, whether between indi- viduals or between individuals and the government. The principle of English constitutional

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law, that in the performance of their judicial acts members of the Judiciary are completely independent of the executive and legislative organs of the government, is fundamental in Hong Kong.

The courts of justice in Hong Kong are the Supreme Court (comprising the Court of Appeal and the High Court), the District Court, the Magistrates' Court, the Coroner's Court, the Juvenile Court and also the Lands Tribunal, the Labour Tribunal and the Small Claims Tribunal.

      The Lands Tribunal's jurisdiction was expanded in June 1982 to include landlord and tenant matters in pre-war buildings which were formerly dealt with by the Tenancy Tribunal. The Tenancy Tribunal was then abolished.

      The Lands Tribunal also deals with disputes originally heard in the District Court over landlord and tenant matters in post-war buildings. It determines applications for new tenancies in respect of domestic premises having a rateable value of $35,000 or over and also to premises under that rateable value where they form part of buildings completed on or after June 19, 1981, or, whenever completed, the tenancy was first created on or after June 10, 1983. For this purpose it may determine the 'prevailing market rent'.

      The Lands Tribunal's landlord and tenant jurisdiction was further extended in 1983 to include the same common law and other powers of the District Court.

The Small Claims Tribunal deals with monetary claims involving amounts not exceeding $5,000. The procedure followed is simple, informal and legal representation is not allowed. The Labour Tribunal deals with individual money claims arising from contracts of employment. The informal procedure followed is initially directed at reconciling the parties to the dispute.

Magistrates exercise criminal jurisdiction over a wide range of indictable and summary offences. Their powers of punishment are generally restricted to a maximum of two years' imprisonment, or a fine of $10,000, though cumulative sentences of imprisonment up to three years may be imposed for two or more offences tried together.

Proceedings in all indictable offences originate in a Magistracy. The Attorney General may apply to have a case transferred to the District Court or committed to the High Court depending on the seriousness of the case. Formerly, committals to the High Court for trial were only made by a magistrate if, after hearing evidence in a preliminary inquiry, he was of the opinion that there was sufficient evidence to put the defendant on trial in the High Court. However, since the Criminal Procedure (Preliminary Proceedings on an Indictable Offence) Ordinance 1983 became law on January 1, 1984, a defendant is allowed to elect to have an automatic committal instead of a preliminary inquiry.

      Lay assessors sit as advisers with newly arrived magistrates recruited from overseas. Assessors are local residents with a knowledge of local customs, traditions and community feelings. They are drawn from a panel of about 320 assessors.

Three Cantonese speaking special magistrates, who are not legally qualified but ex- perienced in judicial work, were appointed to deal with cases of a more routine nature, such as hawking and minor traffic cases. Their powers of punishment, however, do not include the power of imprisonment.

Two coroners conduct inquiries into the cause of, or circumstances connected with, deaths which occur suddenly, by accident or violence, or under suspicious circumstances. They may sit with a jury of three people.

The Juvenile Court has jurisdiction to hear charges against children (aged under 14) and young persons (aged between 14 and 16) for any offence other than homicide.

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       The District Court, established in 1953, has limited jurisdiction in both civil and criminal matters. It has civil jurisdiction to hear monetary claims up to $60,000 or, where the claims are for recovery of land, the annual rent or rateable value does not exceed $45,000. In its criminal jurisdiction, the court may try the more serious cases with the exception of a few very serious offences such as murder, manslaughter and rape. The maximum term of imprisonment it can impose is seven years. It also exercises appellate jurisdiction in appeals against the assessment of stamp duty imposed by the Collector of Stamp Revenue.

       The jurisdiction of the High Court is unlimited in both civil and criminal matters. The court also exercises jurisdiction in bankruptcy, company winding-up, adoption, probate and lunacy matters.

       The most serious criminal offences, such as murder, manslaughter, rape, armed robbery and drug offences involving large quantities, are tried by a judge of the High Court, sitting with a jury of seven. It is the jury which decides whether the accused is guilty or not guilty. The decision of the jury must be unanimous in cases in which the law provides for a death sentence. In other cases, a jury may return a majority vote of five to two.

      The Court of Appeal is the highest court in Hong Kong. It hears appeals on all matters, civil and criminal, from the High Court and the District Court, as well as appeals from the Lands Tribunal. It also makes rulings on questions of law referred to it by the lower courts.

Further appeals can be brought from the Court of Appeal to the Judicial Committee of the Privy Council in London. Such appeals are not frequent because of the expense involved and the stringent conditions which govern the grant of special leave to appeal.

       The new Supreme Court, conveniently situated in Queensway, on Hong Kong Island, was officially opened by the Governor on October 31. The 22-storey building has a gross floor area of about 55 800 square metres providing 36 courtrooms, accommodation for judges, supporting staff and facilities for the public.

Attorney General

The Attorney General is the Governor's legal adviser. The Royal Instructions provide for him to be an ex-officio member of both the Executive Council and the Legislative Council. In addition, he is Chairman of the Law Reform Commission of Hong Kong, a member of the Judicial Services Commission, a member of the ICAC Operations Review and Complaints Committees, and a member of the UMELCO Complaints Against Police Group. He is titular head of the Hong Kong Bar. All government departments requiring legal advice receive it from the Attorney General. He is the representative of the Crown in all actions brought by or against the Crown. He is further responsible for the drafting of all legislation and for the conduct of all prosecutions.

       The Attorney General's Chambers are divided into four divisions each headed by a law officer to whom the Attorney General delegates certain of his powers and responsibilities. The Civil Advisory Division is headed by the Crown Solicitor, and is responsible for giving all legal advice in civil matters and conducting all civil litigation involving the Crown. The Prosecutions Division is headed by the Crown Prosecutor who is responsible for deciding whether a prosecution shall be instituted. The Law Drafting Division is headed by the Law Draftsman who is responsible for drafting all legislation and subsidiary legislation.

       The Solicitor General heads the Administration Division, a part of which consists of the Law Reform Commission Secretariat.

      In the courts the Attorney General is usually represented by crown counsel who are members of his chambers. On occasions, the services of outside counsel are obtained.

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It is the Attorney General who is responsible for all prosecutions in Hong Kong, and it is for him alone to decide whether or not a prosecution should be instituted in any particular case and it is his responsibility to conduct and control the action. In this respect, the Court of Appeal in Hong Kong held in 1979 that the powers and responsibilities of the Attorney General in Hong Kong were mutatis mutandis, the same as those of the Attorney General in England.

The vast majority of minor prosecutions heard before magistrates are routine matters which are dealt with by law enforcement departments along settled guidelines issued under the authority of the Attorney General and without individual reference to the Attorney General's Chambers. Where such cases are complicated matters, or give rise to difficult points of law, then advice is sought from the Prosecutions Division and counsel from that division may conduct the subsequent prosecution. The advice of the Attorney General's Chambers must be sought in the case of serious offences where the venue of trial will be the District Court or the Supreme Court.

Legal Aid

For many years a comprehensive system of legal aid has been available in Hong Kong in both civil and criminal cases, to ensure that justice is made available to as many as possible of those who are unable to bear the cost of protecting their lawful rights or their freedom. Hong Kong's legal aid system is administered by the Legal Aid Department and provides legal representation in proceedings in the civil and criminal courts, while the Law Society Legal Advice and Duty Lawyer Schemes provide free legal advice in mainly civil matters, and in the Magistrates' Courts and Juvenile Courts provide free legal representation in certain criminal cases.

Legal Aid Department

The Legal Aid Department is a department of the Hong Kong Government which finances the legal aid scheme and provides funds for the cost of the civil and criminal litigation conducted on behalf of those granted legal aid. The total estimated expenditure for 1984-5 was $16.3 million for civil cases and $21.6 million for criminal cases.

In 1984, a total of 13 194 applications were received for legal aid in civil matters, 4 435 applications being made to the headquarters, and 8 759 to the Kowloon branch office. Of these, a total of 4 224 were granted legal aid.

In order to qualify for legal aid in civil cases, the applicant has to satisfy both a 'means' test and a 'merits' test. The present financial limits for the means test is a disposable income not exceeding $1,500 per month and disposable capital not exceeding $15,000. Disposable income is assessed by deducting from gross income a personal allowance for the applicant and each dependent family member, and the amount paid by him in rent and/or rates. Disposable capital is the applicant's total assets, whether in money or property, less personal allowances and the first $300,000 after deduction of the amount of any out- standing mortgage of the value of his dwelling if he is the owner/occupier.

Legal aid is free to a person whose disposable income does not exceed $750 per month and whose disposable capital does not exceed $5,000. However, if the applicant's income or capital exceeds these figures, then a contribution is payable on a sliding scale up to a maximum of $2,700 in respect of income and $3,750 in respect of capital. The liability of an aided person in an unsuccessful action is limited to his contribution and in a successful action, if the Director of Legal Aid recovers a sum sufficient to cover all his costs from the unsuccessful party, then the contribution is refunded to the aided person.

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Personal allowances used in calculating disposable income and disposable capital are constantly reviewed to ensure that the effects of inflation do not substantially reduce the number of people who fall within the legal aid financial limits. In accordance with this policy, on February 1, 1984, the personal allowances were raised by about 13 per cent and will be reviewed again in 1985. For an applicant to qualify on 'merits', the Director of Legal Aid has to be satisfied that the applicant has a reasonable chance of succeeding in the litigation for which he seeks aid. Upon being granted legal aid, the aided person's case is assigned to one of the Legal Aid Department's own lawyers, of whom 27 are solely engaged in conducting litigation on behalf of legally aided clients, or it may be assigned to a solicitor in private practice, and to a barrister, when necessary.

The department's litigation divisions handle principally personal injury cases, involving traffic accident claims and industrial accident cases, matrimonial and family law cases, and admiralty, winding-up and bankruptcy cases to recover unpaid wages on behalf of employees of companies in financial difficulties. In addition, a large number of general litigation cases are dealt with, involving landlord and tenant, breach of contract and professional negligence cases.

In 1984, a total of $61 million was recovered by the department's lawyers on behalf of legally aided clients.

Legal aid in civil cases is available for proceedings in the District Court, the High Court, the Court of Appeal, and for appeals to the Privy Council in London. An applicant who is refused legal aid may appeal against that refusal to the Registrar of the Supreme Court, or in Privy Council cases, to a committee of review. In criminal cases, legal aid is available in the District Court, High Court, Court of Appeal and for appeals to the Privy Council. Since January 1, 1984, legal aid may also be granted for representation at proceedings in the Magistrates' Court where the prosecution is seeking committal of the defendant to the High Court for trial.

The total number of applications for legal aid in criminal cases in 1984 was 3 048, of which 1 837 were granted.

Supplementary Legal Aid Scheme

The major innovation in 1984 was the introduction on October 1 of the Supplementary Legal Aid Scheme. This scheme was introduced to assist members of the so-called 'sandwich class', being those wishing to take legal proceedings, whose means place them outside the financial limits for legal aid but are not sufficient to meet the sometimes heavy cost of conducting litigation through a private solicitor.

Under the Supplementary Legal Aid Scheme, applicants may be granted legal aid if their gross income does not exceed $15,000 per month and their total assets, excluding the value of an owner occupied residence and other allowances, do not exceed $100,000. The scheme is at present restricted to claims for damages in the High Court for personal injuries or death, but depending on the success of the scheme it may be extended to cover other types of cases.

The scheme is financed by a fund established by a loan from the Government Lotteries Fund, and it is a condition of being granted legal aid under the scheme that applicants agree to make a contribution to the fund of a percentage of any damages recovered for them, such percentage depending on the amount recovered and whether or not the case is settled prior to trial of the action. The highest percentage is 12 per cent and the lowest five per cent. It is expected that the fund will eventually be self-financing, when there is sufficient income from successful actions to cover the cost of those which are unsuccessful.

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Legal Advice and Duty Lawyer Schemes

In 1978, the Law Society, through an Executive Committee including Bar Association nominees, accepted responsibility for the administration of two schemes for the legal welfare of Hong Kong people. The Free Legal Advice Scheme provides free legal advice in civil law matters and makes available authoritative pre-recorded legal information on a variety of topics through a simple telephone call; and the Duty Lawyer Scheme offers free legal representation for certain criminal cases heard in Magistrates' Courts and for serious charges in the Juvenile Courts. The schemes received a government subvention of $14.83 million in 1984, but in both schemes a healthy degree of subsidy is made by individuals from the Law Society and the Bar, emphasising both the schemes' independence of the government and the profession's commitment to assisting those in immediate need.

The Free Legal Advice Scheme comprises 285 unpaid volunteer lawyers - drawn from the Bar, practising solicitors, and Commonwealth lawyers in government service

                                                            who man eight evening bureaux in Eastern, Mong Kok, Wong Tai Sin, Wan Chai, Tsuen Wan, Sha Tin, Kwun Tong and Yau Ma Tei. The latter two were opened in April after consultation with district boards, and more are planned, in particular for Sham Shui Po in April 1985. Approximately 120 referral agencies - both voluntary and government - interview the prospective applicants for free legal advice, and forward details of the legal problem to the advising lawyer in order that essential research can be undertaken before lawyer and applicant meet, at the location chosen by the applicant, within a few days. Bureaux are running at capacity levels with 30 lawyers attending weekly.

      "Tel-Law', by which authoritative legal information in both English and Cantonese on two-and-a-half minute tapes is made available to the public on 10 telephone lines manned by experienced legal executives, was introduced experimentally in 1983 and became a full part of the schemes when it was officially opened by the Attorney General and the President of the Law Society in March 1984. The original 26 topics have been expanded to cover 50 subjects, with a further 25 planned. Virtually every core area of law is covered and the public demand, despite limited operational hours, is considerable - some 35 000 calls in the first four months. Scripts are prepared by specialists using layman's terms and regularly updated. Because of demand from school children, which threatened to overwhelm the 10 lines, scripts are now issued free to schools and educational establishments. It is hoped in 1985 to introduce all subjects by way of cassettes, available to schools and members of the public. The aim is to educate, inform, and to encourage the seeking of professional legal advice, perhaps through the Free Legal Advice Scheme, in order to solve legal problems.

      The Duty Lawyer Scheme, which comprises 383 lawyers - solicitors and barristers - provided free legal representation for 17 571 defendants in 1984 at the eight magistracies and four juvenile courts. The scheme covers nine scheduled offences in the magistracies: membership of a triad society, loitering, unlawful possession, going equipped for stealing, resisting arrest, possession of dangerous drugs, possession of apparatus fit for using dangerous drugs, possession of dangerous drugs for unlawful trafficking, and possession of offensive weapons, together with a large number of other offences that defendants may face at the same time. Extradition proceedings are also undertaken. In juvenile courts, the scheme is involved with all but minor offences. There is no means test.

Law Reform Commission

The Law Reform Commission was appointed by the Governor in Council to consider and report on such topics as may be referred to it by the Attorney General or Chief Justice. Its membership includes Legislative Councillors, academic and practising lawyers, and

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      prominent members of the community. The commission's proposals on commercial arbitration, bills of exchange, community service orders and contribution between wrong- doers have been enacted. Its reports on contempt of court and damages for personal injuries and death are in the course of implementation. The commission's report on laws governing homosexual conduct is under consideration and draft legislation is expected to be considered by the Legislative Council during its next session. The commission is considering aspects of insurance law, hearsay evidence in civil proceedings, the admissi- bility of confession statements, the legal effects of age, breach of confidence actions, unfair contract terms, coroners, and wills and intestate succession.

Foreign Relations

The Role of the British Government and the Political Adviser

Because of Hong Kong's status as a dependent territory, the Secretary of State for Foreign and Commonwealth Affairs is constitutionally responsible to the British Parliament for the actions of the Hong Kong Government. He and officials of the Foreign and Common- wealth Office, on his behalf, have authority to give directions to the Hong Kong Govern- ment. In practice, however, such formal directions are rarely issued, and the relationship between London and Hong Kong is essentially one of co-operation. For example, one important task routinely undertaken by the Foreign and Commonwealth Office is to ensure that Hong Kong's interests and views (which are not always identical with those of the United Kingdom) are properly considered within the British Government machinery, particularly when new policies are being formulated by other Whitehall departments.

Hong Kong's foreign relations are constitutionally the direct responsibility of the British Government. Thus the British Government is internationally responsible for ensuring that the Hong Kong Government fulfils its obligations under the many international conven- tions and agreements which extend to Hong Kong as well as to the United Kingdom. But in the day-to-day conduct of external affairs Hong Kong in practice now enjoys a consider- able degree of autonomy, particularly regarding trade matters.

The Political Adviser is a senior member of the British Diplomatic Service, seconded to the Hong Kong Government to advise on the political aspects of Hong Kong's foreign relations. His office provides the principal channel of communication between the Hong Kong Government and the representatives in Hong Kong of foreign and Commonwealth Governments. During the last two years, much of the work of the Political Adviser's office has been in assisting the Governor in connection with the Sino-British negotiations over Hong Kong's future. The Political Adviser's office continues to offer advice, and, in some cases, to co-ordinate action on a great many more routine matters, notably in promoting the wide range of contacts between Hong Kong Government departments and their counterparts in Guangdong Province, particularly in the Shenzhen Special Economic Zone. Close and effective cross-border co-operation has developed in such diverse areas as opening new border crossing points and transport links, and in coping with environmental pollution and flooding problems, as well as on questions concerning immigration, customs, postal services and telecommunications.

External Commercial Relations

      Hong Kong has considerable latitude in the management of its external commercial relations. The General Agreement on Tariffs and Trade (GATT), the basic aim of which is to liberalise world trade and protect the most-favoured-nation principle, is the cornerstone

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     of Hong Kong's external trade relations. The Multi-Fibre Arrangement (MFA), which aims at the orderly development and expansion of international trade in textiles, provides the framework within which Hong Kong negotiates bilateral restraint agreements with textiles importing countries. Under GATT rules, Hong Kong, being a separate customs territory (from the United Kingdom), is treated as if it were a separate contracting party to the GATT. Hong Kong, because of its status as a dependent territory of the United Kingdom, is represented in the GATT by the United Kingdom speaking on behalf of Hong Kong. When the United Kingdom joined the European Economic Community (EEC), the GATT was informed by Her Majesty's Government that a member of the United Kingdom delegation would continue to speak for Hong Kong. In practice, the United Kingdom spokesman in GATT meetings is invariably a Hong Kong Government official. This arrangement means that Hong Kong is able to take positions that are different from those of the EEC, and by implication, the United Kingdom.

Hong Kong Government Offices Overseas

The Hong Kong Government maintains representative offices in London, Geneva, Wash- ington, Brussels and New York. The London Office is the largest and carries the widest range of functions among the overseas offices. Besides providing a point of direct contact in London between Hong Kong and departments of the British Government, Members of Parliament, the media and organisations with an interest in Hong Kong, it also performs a range of specialised functions. It is responsible for all recruitment in the United Kingdom to the Hong Kong Civil Service and the Royal Hong Kong Police Force, and supervises further training courses. It keeps under review British commercial, economic and industrial developments and official thinking on international trade policies, and advises the Hong Kong Government on the likely repercussions of these developments. It incorporates an industrial promotion office to advise United Kingdom firms about opportunities for investment in Hong Kong industries. Another division of the office liaises with Hong Kong people in Britain and helps with problems arising from their living in Britain or relating to their families and interests in Hong Kong. It also provides advice and assist- ance to visiting Hong Kong residents, regarding problems encountered. The News and Public Affairs Division operates well-developed publicity services aimed at projecting Hong Kong's image to the British public. The Students Division looks after the interests of Hong Kong students in the United Kingdom and runs the Hong Kong Students Centre in London.

       Apart from playing a much wider representational role for Hong Kong, the main functions of the other overseas offices are to handle Hong Kong's commercial affairs in the countries they cover. The Geneva Office represents Hong Kong, through membership in the United Kingdom delegation, in the General Agreement on Tariffs and Trade (GATT), and the United Nations Conference on Trade and Development (UNCTAD). It keeps under review developments arising from the deliberations of the GATT, the UNCTAD and other international organisations in Geneva. The Brussels Office represents Hong Kong's economic and related interests concerning the European Community and the governments of the member states (other than the United Kingdom). The New York and Washington Offices keep under review economic or other developments, proposed legislation and regulations in the United States of America that might affect Hong Kong's economic interests in general and its trade with the USA in particular. The overseas offices are also developing a wider role in the public relations field. Details of representation overseas are at Appendix 2.

4

I

Industry and Trade

     OWING to its heavy dependence on exports, Hong Kong's manufacturing industry con- tinued to benefit in 1984 from the economic recovery in most of its major trading markets, in particular the United States. The value of domestic exports during the year amounted to $137,936 million - 32 per cent more than in 1983.

      The major factors that have given Hong Kong its international reputation as a leading manufacturing and commercial centre continued to work well. Among these are the consistent economic policies of free enterprise and free trade, low earnings and profits tax rates, an industrious workforce, a sophisticated commercial and industrial infrastructure, a modern and efficient seaport in which is located 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. A levy is also payable on first registration of motor vehicles, except franchised buses.

Apart from ensuring the provision of the necessary infrastructure, either through direct services or by co-operation with privately owned public utility companies and autonomous bodies, the government's principal role in the economy is to provide a stable framework in which commerce and industry can function efficiently and effectively with minimum interference. The government normally intervenes only in response to the pressure of economic and social needs. It neither protects nor subsidises manufacturers.

Industrial Development and Industrial Land

The manufacturing sector is the mainstay of the Hong Kong economy, accounting for 22 per cent of the gross domestic product and 38 per cent of total employment. It is estimated that up to 90 per cent of Hong Kong's manufacturing output is eventually exported. Light manufacturing industries, producing mainly consumer goods, predominate. About 68 per cent of the total industrial workforce is employed in the textiles, clothing, electronics, plastic products, toys, and watches and clocks industries. These industries together accounted for 75 per cent of Hong Kong's total domestic exports in 1984, a pattern which is likely to continue, However, within industries, there have been considerable changes and improve- ments in the range of products made. Many new and sophisticated product lines have been. introduced and many simpler product lines have been abandoned, partly because of com- petition from lower cost producers within the region and partly, as far as clothing and textiles are concerned, in response to pressures to move up-market resulting from the emergence of various forms of protectionism in some of Hong Kong's main markets.

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

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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 46 hectares of land for allocation to industries; the third stage, now under construction, will produce a further 20 hectares by 1987. A second estate at Yuen Long provides an additional 67 hectares of land.

By the end of 1984, 82 of the 226 applications received by the corporation had been approved and sites were granted to 38 companies in the Tai Po and Yuen Long Industrial Estates. During the first six years of its operation, the corporation has offered land at fixed premium, varied from time to time to take into account the cost of production of the estates and market conditions. In 1984, the corporation adopted a number of new measures, including the amendment of its selection and leasing terms, aimed at increasing the up-take of its land.

Besides offering sites to industrialists for the construction of their own purpose-built factory buildings, the Hong Kong Industrial Estates Corporation also offers 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, eight sites with an overall area of 49 863 square metres were sold for industrial use in 1984. The government also continued the construction of flatted factories. These were originally intended for reprovisioning squatter factories affected by clearance, but since January 1984 they had been available for acquisition by industrialists through an open application system. One factory block was completed in 1984, comprising 1 045 units of 25 square metres each.

Industry Development Board

Since its establishment in October 1983, the Industry Development Board, chaired by the Financial Secretary and comprising representatives from trade and industry, tertiary education institutions and civil servants, has been considering various industrial matters that fall within its purview. Three committees have been established to assist the board in its work. The General Development Committee is responsible for the consideration of the needs of industry, for example, through techno-economic studies and market research studies and for the supervision of industrial development projects. The Science and Technology Support Committee provides advice on technical and scientific issues relating to industry including the provision of technical information for industry. The Infrastruc- ture and Support Services Committee considers all other issues relating to the provision, by the government, of a suitable infrastructure within which industry can operate.

Throughout the year, the Industry Development Board and its committees continued to work towards improvements in the provision of industrial support facilities and technical back-up services for industry.

The government's Standards and Calibration Laboratory was officially opened on September 28. The laboratory maintains local reference standards of measurement which are traceable to international standards and also provides a calibration service primarily to meet the needs of the electrical and electronics manufacturing sector of industry.

Substantial ground work was made towards the implementation of the accreditation of laboratory testing services in Hong Kong. At the same time, a study on technology transfer commissioned by the board was completed. The recommendations made in this study had been considered in conjunction with the two other studies on the electronics and light metal engineering industries (both commissioned earlier by the board) and the feasibility of

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introducing industrial automation. The board had decided to adopt a unified approach for the purpose of co-ordinating effective implementation of the various proposals for industry support. In addition, the board was in the process of commissioning a techno-economic study on the plastics industry. Meanwhile, the three micro-electronics research projects undertaken by the universities and the Hong Kong Polytechnic continued.

Industrial Investment Promotion

The Industry Department continued to work closely with leading trade and industrial organisations to encourage local and overseas industrialists to invest in Hong Kong through a wide-ranging programme of promotion activities, undertaken by the One Stop Unit in the head office and the department's four overseas industrial promotion offices in Tokyo, London, Stuttgart and San Francisco. Major activities in 1984 included a series of industrial investment promotion missions to the United States, the United Kingdom, the Federal Republic of Germany, Japan, Australia, France and Italy. The missions to the United States, the United Kingdom and West Germany included Hong Kong industrialists who took the opportunities offered to meet potential overseas partners and to acquaint themselves with the latest developments overseas in their particular fields. The missions to the United States, the United Kingdom and Australia were led by prominent Hong Kong industrialists. The Director of Industry spoke at three seminars in the United Kingdom, and also in Tokyo, Osaka, Vancouver (where he addressed the plenary session of the Pacific Basin Economic Council), Zurich and Cologne. Other staff of the department addressed audiences of industrialists and other businessmen both in Hong Kong and overseas on numerous occasions throughout the year.

Other events in the department's Industrial Investment Promotion Programme included attendance at the Hanover Fair, where, as in previous years, the department had its own stand, and other important trade and industrial fairs in North America, Europe, Japan and Singapore. The department's promotion staff overseas also undertook a programme of visits to different parts of their areas. These were designed to spread the message of Hong Kong's advantages as a manufacturing base.

      In Hong Kong, the department continued to publicise its industrial promotion services locally, through industry and trade associations, contacts with individual industrialists and participation in seminars and other public meetings organised by local organisations.

      Another essential task of the department's investment promotion staff, both in Hong Kong and overseas, is that of dealing with individual companies which have expressed an interest in manufacturing in Hong Kong, and of following up a large number of enquiries from potential investors. During 1984, the department received a total of 830 industrial investment enquiries world-wide, and at the end of December had 490 active investment promotion files.

      During the year, work started on the production of a new industrial investment promotion film, designed to encourage potential overseas investors to choose Hong Kong as their manufacturing base in Southeast Asia.

Hong Kong continues to be an attractive location for overseas manufacturers. The United States remains the largest source of overseas industrial investment in Hong Kong, accounting for some 54 per cent of the total. Japan is in second place with 21 per cent and Britain is third with about seven per cent of the total. A survey in mid-1984 indicated that companies with overseas interests employed some 89 000 workers, or about 10 per cent of total industrial employment in Hong Kong. These companies had a combined output valued at over $27,209 million, of which over $18,618 million worth was exported. This

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represents about 18 per cent of Hong Kong's domestic exports. These companies are mainly in electronics, electrical products, building and construction materials, textiles and garments, and food and beverage and chemical products.

The Hong Kong/Japan Business Co-operation Committee continued to work closely with its counterpart in Japan. During the year, apart from providing assistance and support to the Industry Department's industrial promotion work in Japan, it organised two missions to Japan, one of which was joined by the Governor as the principal guest.

Textiles and Clothing

The textiles and clothing industries are Hong Kong's largest. Together they employ about 41 per cent of the total industrial workforce and produce some 40 per cent by value of total domestic exports. The export performance of the spinning and weaving sectors improved significantly in 1984 compared with the previous year Export earnings by the clothing sector also improved substantially, despite the continued enforcement of measures contained in the export restraint agreements which govern Hong Kong's trade with its most important overseas trading partners/Total domestic exports of textiles and clothing in 1984 were valued at $55,345 million, compared with $41,448 million in 1983./

The output of cotton yarn in 1984 was 136 million kilograms, compared with 141 million kilograms in 1983. Production of man-made fibre yarn and cotton man-made fibre blended yarn was 20 million kilograms, compared with 27 million kilograms in 1983, and production of woollen and worsted yarn was four million kilograms, compared with three million kilograms the previous year. Most of the yarn produced was used locally.

The weaving sector, with 19 516 looms, produced 709 million square metres of woven fabrics of various fibres and blends, compared with 708 million square metres in 1983. The bulk of the production - 92 per cent was of cotton. Much of the fabric produced was exported in the piece, but local clothing manufacturers used the major proportion of locally woven and finished fabrics.

The knitting sector exported 23 million kilograms of knitted fabrics of which 27 per cent was of man-made fibres or blended cotton man-made fibres, and 72 per cent was of cotton - compared with 19 million kilograms in 1983. In addition, a large quantity of knitted fabric of all fibres was used by local clothing manufacturers.

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

The clothing sector is the largest single sector within the manufacturing industry, employing some 300 873 workers or about 33 per cent of the total industrial workforce. Domestic exports of clothing in 1984 were valued at $46,714 million, compared with $34,365 million in 1983,

Other Light Industries

The electronics industry performed remarkably well in 1984 and maintained its position as the second largest export-earner among Hong Kong's manufacturing industries. Domestic exports of electronic products in 1984 were valued at $24,624 million, compared with $18,532 million in 1983. The industry comprises 1 441 factories employing 106 413 workers. It produces a wide range of products, including integrated circuits, wafer chips for integrated circuits, electronic modules, semiconductors, liquid crystal displays, quartz

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crystals, multi-layer printed circuit boards, computer memory systems, microcomputers, computer components and peripherals, calculators, radios, recorders, television sets and telecommunication equipment comprising digital diallers, cordless telephones and tele- phones with built-in memories. The boundary between this industry and others, notably toys and watches, is becoming increasingly indistinct due to the widespread application of electronics technology to other consumer products.

The plastics industry also performed very well in 1984. Domestic exports during the year were valued at $12,305 million, compared with $8,100 million in 1983. The industry has 5 426 factories and 92 355 workers. Hong Kong continues to be the world's largest supplier of toys, which represented the bulk of the plastic industry's output.

The watches and clocks industry fared well in 1984. Domestic exports during the year were valued at $9,227 million compared with $8,566 million in 1983. The industry has 1 904 factories employing 41 822 workers. Production includes both mechanical and electronic watches, clocks, watch cases, dials, metal watch bands, assembled watch movements and watch straps of various materials.

Other important light industries produce travel goods, handbags and similar articles, metal products, jewellery, domestic electrical equipment, 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 on Tsing Yi Island provide services to the shipping industry and construct oil rigs for exploration activities.

The port of Hong Kong, which ranks among the top three container ports in the world, handled approximately 2.10 million TEUS (20-feet equivalent units) in 1984.

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

       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 department comprises four divisions. The Environment and Resources Division handles a wide variety of issues involved in looking after the interests of the industrial sector. It maintains close liaison with local trade and industrial organisations in repre- senting 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 move- ment of freight within and outside Hong Kong at equitable freight rates, the manpower needs of industry 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. It co-ordinates the organisation of industrial promotion programmes with industry and trade organisations and advises the government on industrial land matters.

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The Promotion Consultancy Division is responsible for providing comprehensive information about Hong Kong to potential investors and assisting them in evaluating and setting up manufacturing projects in Hong Kong. The division liaises with the department's overseas industrial promotion offices in London, Stuttgart, San Francisco and Japan.

The Science and Technology Division comprises the secretariat for the Industry Development Board; a Standards Branch responsible for advising industry on overseas standards requirements; a Weights and Measures Branch responsible for legislation on weights and measures; the department's Standards and Calibration Laboratory; and a small secretariat responsible for the implementation of the Laboratory Accredita- tion Scheme.

External Trade

Total merchandise trade in 1984 amounted to $444,811 million, an increase of 32 per cent over 1983. Imports went up by 27 per cent to $223,370 million, domestic exports by 32 per cent to $137,936 million and re-exports by 48 per cent to $83,504 million. Domestic exports and re-exports together, valued at $221,441 million, registered an increase of 38 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 more than 5.3 million and its diverse industries. In 1984, imports of raw materials and semi-manufactured goods totalled $99,740 million, representing 45 per cent of total imports. The principal items imported were transistors, diodes, semi-conductors and integrated circuits ($9,346 million), fabrics of man-made fibres ($8,967 million), woven cotton fabrics ($6,647 million), iron and steel ($5,604 million), plastic moulding materials ($5,440 million), watch and clock movements, cases and parts ($4,725 million).

Imports of consumer goods, valued at $58,380 million, constituted 26 per cent of total imports. The major consumer goods imported were clothing ($11,613 million), radios, television receivers, gramophones, records, amplifiers and tape recorders ($6,588 million), diamonds ($3,959 million), watches ($3,631 million) and baby carriages, toys, games and sporting goods ($2,180 million).

      Imports of capital goods amounted to $32,781 million, or 15 per cent of total imports. Imported capital goods consisted mainly of electrical machinery ($5,281 million), transport equipment ($4,460 million), office machines ($4,066 million), electronic components and parts for computers ($2,585 million) and textile machinery ($1,112 million).

      Imports of foodstuffs were valued at $20,681 million, representing nine per cent of total imports. The principal imported food items were fish and fish preparations ($3,203 million), fruit ($2,728 million), meat and meat preparations ($2,687 million) and vegetables ($2,220 million).

      Some $11,788 million of mineral fuels, lubricants and related materials were imported in 1984, representing five per cent of total imports.

China and Japan were the two principal suppliers of imports in 1984, providing 25 per cent and 24 per cent, respectively, of the total. China alone supplied 45 per cent of Hong Kong's imported foodstuffs. The United States ranked third, providing 11 per cent of total imports, followed by Taiwan, Singapore, the United Kingdom, the Republic of Korea and West Germany.

Clothing remained the largest component of domestic exports in 1984, valued at $46,714 million or 34 per cent of the total. Exports of miscellaneous manufactured articles consisting mainly of plastic toys and dolls, jewellery, goldsmiths' and silversmiths' wares. and artificial flowers were valued at $21,838 million, representing 16 per cent of total

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domestic exports. Electrical machinery, apparatus and appliances consisting mainly of transistors, diodes and household type appliances amounted to $11,479 million or eight per cent of the total. Domestic exports of telecommunication and sound recording and reproducing apparatus and equipment, valued at $11,002 million, contributed another eight per cent to the total. Other important exports included photographic apparatus, equipment, supplies and optical goods, watches and clocks (eight per cent of the total), office machines and automatic data processing equipment (six per cent) and textiles (six per cent). The direction and level of Hong Kong's export trade is much influenced by economic conditions and commercial policies in major overseas markets. In 1984, 64 per cent of all domestic exports went to the United States and the European Economic Community. The largest market was the United States ($61,374 million or 44 per cent of the total), followed by China ($11,283 million or eight per cent), the United Kingdom ($10,497 million or eight per cent) and West Germany ($9,522 million or seven per cent). Domestic exports to Japan and Canada increased to $5,151 million and $4,510 million respectively, with Japan representing four per cent and Canada three per cent of total domestic exports. Other important markets were Australia and Singapore.

Re-exports continued to increase in 1984, accounting for 38 per cent of the combined total of domestic exports and re-exports. The principal commodities re-exported were textiles ($12,708 million), electrical machinery, apparatus and appliances ($8,389 million), clothing ($6,184 million), photographic apparatus, equipment and supplies and optical goods, watches and clocks ($5,089 million). The main places of origin of these re-exports were China, Japan, the United States and Taiwan. The largest re-export markets were China, the United States, Taiwan, Japan and Singapore.

International Commercial Relations

Hong Kong believes in free trade. The aims of Hong Kong's external commercial relations policy are thus to safeguard its rights and to discharge its obligations in the pursuit of free trade. Certain important aspects of these rights and obligations are enshrined in various bilateral agreements as well as multilateral instruments such as the General Agreement on Tariffs and Trade (GATT) and the Multi-Fibre Arrangement (MFA).

Textiles

      Textiles trade is the major sector that has been subject to restraint. Bilateral agreements negotiated under the MFA govern Hong Kong's textiles exports to Austria, Canada, the European Economic Community (EEC), Finland, Norway, Sweden, Switzerland and the United States. Three of these were concluded or renegotiated in 1984.

After four rounds of negotiations spanning two years, an agreement for three years from July 1, 1984, was finally concluded with Norway, thus ending the latter's import restrictions under Article XIX of the GATT against certain textile products from Hong Kong maintained since 1979.

      The two-year agreement between Hong Kong and Finland expired in July 1984. Negotiations in April led to a new agreement with the same product coverage for the period August 1984 to December 1986.

      The Hong Kong/Switzerland agreement which provided for an export authorisation arrangement of Hong Kong's exports of certain clothing items to Switzerland was further extended by another year until June 1985.

      In 1984, two major developments initiated by the United States tended to disrupt and curtail textiles trade from Hong Kong. First, following an announcement by President

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Reagan on December 16, 1983, the United States made an unprecedented number of requests for restraint of exports. Second, on August 3, the United States Government published interim regulations governing the entry of textiles from all sources.

The United States/Hong Kong Textiles Agreement (1982-1987) imposes specific quanti- tative limits on 39 categories of textile products. It also subjects all other categories to an export authorisation (EA) system. Under the EA system, the United States may seek consultations with Hong Kong with a view to establishing an appropriate level of restraint where it considers that imports from Hong Kong in respect of a particular category are causing disruption to the domestic market. After the December 1983 presidential announcement, the United States made 16 calls on Hong Kong, and consultations were held on all of them. Most of these calls resulted in limits being imposed (five) or agreed (eight), but three calls were withdrawn and consultations on seven calls were inconclusive. Under the interim regulations published on August 3, the United States unilaterally assumes the authority to determine the origin of textile imports. The regulations also introduced substantial additional documentation requirements which require the disclosure of commercially confidential information. Exporters no longer have certainty that goods properly licensed under the bilateral agreement will be granted entry into the United States on arrival. The documentation requirements affect all Hong Kong's MFA textiles exports to the United States. The new origin requirements threaten one-seventh of all exports of MFA products to the United States. In Hong Kong's view, the new regulations violate the MFA and the bilateral agreement and should be rescinded. The interim regulations were to be reviewed in late 1984.

      During GATT Council and GATT Textiles Committee meetings in September and October, the impact of these new regulations was discussed. The meetings reflected the opposition to the regulations stated by all delegations, and particularly reflected the view that the regulations should be withdrawn or at least postponed pending a full review.

Co-ordination with other developing exporting members - less developed countries (LDCs) - of the MFA remained an important activity. The year saw the opening for acceptance of an arrangement establishing the International Textiles and Clothing Bureau which aims at advancing LDC interests in international textiles trade. Hong Kong has accepted the arrangement.

Non-Textiles Issues

French quantitative restrictions: France has been maintaining unilateral quantitative restrictions against imports of eight products from Hong Kong, including quartz watches. After numerous rounds of inconclusive consultations with France and the EEC Commis- sion, Hong Kong referred its complaint to the GATT in August 1982 for a ruling. The GATT ruled in July 1983 that the restrictions maintained by France were without justification and recommended their termination.

Following the GATT's ruling, France lifted the restrictions on three products and increased the 1984 quotas for two. As for quartz watches, the EEC Commission, following internal procedures, decided to invoke Article XIX of the GATT authorising France to impose a temporary import quota on digital quartz watches. The global quota is for three years from April 20, 1984. As a major supplier, Hong Kong entered into consultations in September 1984 with the EEC Commission regarding the protective measure.

Generalised Schemes of Preferences (GSP): GSP are operated by most developed countries to promote the exports of goods from developing countries and territories by providing duty-free or reduced import tariff treatment. Except for Finland, all developed

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countries operating such schemes include Hong Kong as a beneficiary. However, certain products from Hong Kong are excluded in a discriminatory way from the schemes operated by Australia, Austria, Japan, Norway, Switzerland and the United States. These exclusions are the subject of continuing official discussions between Hong Kong and the countries concerned.

      The current US GSP was due to expire in January 1985, when it would be replaced by a new scheme valid for 8 years. Hong Kong would remain a beneficiary under the new scheme. The Canadian GSP was extended in July 1984 for a further 10 years until 1994. Hong Kong remains a beneficiary of the extended scheme.

Documentation of Imports and Exports

Being a free port, Hong Kong keeps its import and export licensing requirements to a minimum. Licences issued by the Director of Trade are required for all imports and exports of textile products. This requirement stems from Hong Kong's need to fulfil its inter- national obligations to restrain exports of textile products, and to monitor the flow of textiles into Hong Kong to help identify any breaches of the textile export control system. For health or safety reasons, licences are also required for imports and exports of a few non-textile products such as pharmaceutical products.

       To meet the requirements of various overseas customs authorities, there is in Hong Kong a certification of origin system to establish the origin of the goods which Hong Kong exports. The Trade Department is responsible for administering and safeguarding the integrity of this system, and issues certificates of origin where required. Other government-approved certificate issuing organisations are the Hong Kong General Chamber of Commerce, the Indian Chamber of Commerce, Hong Kong, the Federation. of Hong Kong Industries, the Chinese Manufacturers' Association of Hong Kong, and the Chinese General Chamber of Commerce.

Trade Department

The Trade Department is responsible for Hong Kong's commercial relations with foreign governments. It implements trade policy and agreements, and procedures for import and export licensing and origin certification. On matters of policy affecting trade, the Director of Trade takes advice from the Trade Advisory Board and the Textiles Advisory Board, both of which are appointed by the Governor and chaired by the Secretary for Trade and Industry.

The department consists of five divisions. Three of them deal with bilateral commercial relations with Hong Kong's trading partners. Their work includes the conduct of trade negotiations and the implementation of textile agreements, as well as collecting and dis- seminating information on developments, especially those relating to trade policy in Hong Kong's major markets, which may affect Hong Kong. The distribution of work among these three divisions is by geographical area. The fourth division deals with the multilateral aspects of Hong Kong's external commercial relations, such as its participation in the General Agreement on Tariffs and Trade and in the negotiation of the Multi-Fibre Arrangement. The fifth division is responsible for common services, origin certification, the import and export licensing of commodities other than textiles, and a rice control scheme. The department's work is assisted by Hong Kong Government offices in London, Brussels, Geneva, New York and Washington. Details are at Appendix 2. These overseas offices are administered by the Councils and Administration Branch of the Government Secretariat, although much of their business is trade-related. They represent Hong Kong's

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commercial relations interests on a day-to-day basis and provide information on interna- tional developments which may affect Hong Kong.

Customs and Excise Department

The department comprises the Customs and Excise Service and the Administration and Trade Controls Division.

The Customs and Excise Service is a disciplined and uniformed force. Its main duties are to enforce Hong Kong's laws on dutiable commodities, dangerous drugs, import and export controls and copyright protection. Chapter 14, Public Order, gives a detailed account of the work of the service.

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 on imported and exported goods and 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. It also investigates fraud relating to imports and exports, enforces the Trade Descriptions Ordinance and design copyright aspects of the Copyright Ordinance, and handles trade complaints.

In 1984, the division completed 51 003 inspections of factories and consignments, 1 117 costing checks in connection with applications under the Generalised Schemes of Preferences (Form 'A'), and 28 061 enquiries and verifications relating to trade declarations and manifests. It conducted 7 022 associated assessments resulting in the collection of $2.93 million in ad valorem charges and administrative penalties.

      The division also completed 1 619 cases, resulting in the imposition of fines totalling $7.4 million and prison sentences of up to eight months. Under the Trade Descriptions Ordinance, goods with a market value of $32 million were seized and goods valued at $4.9 million were forfeited to the Crown.

Hong Kong Trade Development Council

The Hong Kong Trade Development Council is a statutory body responsible for promot- ing and developing Hong Kong's overseas trade and publicising the opportunities and advantages of Hong Kong as a trading partner.

      The chairman is appointed by the Governor and the 16 other members include representatives of major trade associations, leading businessmen and industrialists, and two senior government officials. The council is financed by the net proceeds of an ad valorem levy on all exports and on imports other than foodstuffs; and by miscellaneous income from sources such as advertising fees and sales of publications.

The council was established in 1966 and has built up a network of 25 offices through- out the world in addition to the head office and Tsuen Wan branch office in Hong Kong. All offices process trade enquiries, provide up-to-date trade and economic information and offer advice to businessmen interested in developing trade with Hong Kong. The overseas representatives and consultants can put traders in touch with any Hong Kong manufacturers and exporters registered in the Trade Enquiries Service computer.

The staff of the council carried out an extensive trade promotion programme in 1984, organising more than 80 major international projects. In the United States, these included a combined fashion presentation/product display/economic mission to coincide with the annual meeting in New York of the National Retail Merchants Association, the Winter Consumer Electronics Fair in Las Vegas and the Summer Consumer Electronics Fair in Chicago, the American Toy Fair in New York, the National

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Hardware Show in Chicago and the New York Premium Show, as well as mounting a 'Made in Hong Kong' exhibition in Miami.

      In Europe, the council participated in the International Toy Fair in Nuremberg, INHORGENTA and the International Sports Equipment Fair in Munich, the Frankfurt International Spring Fair and the Birmingham Spring Fair as well as mounting an exhibition of watches and jewellery to coincide with the Swiss Industries Fair in Basle.

      A variety of Hong Kong business groups under the auspices of the council visited the United States, Europe, China, the Middle East and Japan to enhance old, or establish new, trade contacts. The council also received more than 150 inward missions from more than 30 countries, mostly notably from the United Kingdom, the United States, Spain, Scandinavia, Japan, the Middle East, Austria, Australia and China.

The council sponsored several economic missions which help develop trade opportunities by strengthening high-level contacts with senior government officials, plus business and industrial leaders. The mission to New York, led by the Governor, and consisting of several members of the Executive and Legislative Councils, was part of a three-in-one event called 'Return of the Fashionable Five-Toed Dragon' which also consisted of a fashion presenta- tion and the council's largest ever product display (more than 3 000 items), all coinciding with the 73rd annual meeting of the National Retail Merchants Association.

-

      In the field of fashion, clothes from leading Hong Kong designers were shown at the above-mentioned event in New York and at Harrods Department Store in London. The latter staged a 'Hong Kong Products' month -- which included fashions through- out the entire store. The council also participated in the Frankfurt Fur Fair as well as the Hungarotex/Tricotex Exhibition (for both knitted and non-knitted goods) in Budapest.

       To further promote exports of garments to Japan, the council organised the first- ever Hong Kong Fur Fair in Japan and an in-store garment promotion for the second year running, this time with AIC Inc., in leading department stores throughout the country.

      In Hong Kong, the council staged the Women's Sportswear Show and organised its tenth Hong Kong Toy and Gift Fair as well as acting as an adviser to the Hong Kong Electronics Fair and the third Hong Kong Watch and Clock Exhibition. All four were held in October.

       The council produces six publications which are distributed to 173 countries. They are the Hong Kong Enterprise, a monthly general products magazine; Hong Kong Household, a monthly featuring household and hardware products; the annual Hong Kong Toys, published each October to coincide with the Hong Kong Toy and Gift Fair; Hong Kong Apparel, a biannual fashion magazine which took top honours in the 1983 British Association of Industrial Editors (BAIE) awards competition; and the Hong Kong Trader, a monthly newspaper (sent airmail) giving news and views of the territory which won the BAIE's 1984 competition. The year also saw the advent of a new publication, Hong Kong Watches and Jewellery, an annual distributed at watch and jewellery trade fairs throughout the world.

       The computerised Trade Enquiries Service of the council processed more than 100 000 overseas trade enquiries. The Research Department continued to publish special market surveys and detailed product reports, specifying opportunities in overseas markets for Hong Kong exports.

       The council head office moved to larger premises in the Great Eagle Centre in Wan Chai in April. In December, the council signed a contract with a private developer for the

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construction of an exhibition/conference centre and supporting facilities including two hotels and a 33-storey office/trade mart tower. The government provided the 2.96 hectare site on the Wan Chai waterfront through a private treaty grant, free of premium. The complex will be known as the Hong Kong International Exhibition Centre. The portion of the development to be retained by the council will ultimately comprise around 73 000 square metres, and will include exhibition halls on two floors, a conference hall seating 3 000 people and an auditorium seating 800.

Hong Kong Export Credit Insurance Corporation

The government-owned Hong Kong Export Credit Insurance Corporation (ECIC) pro- vides protection for Hong Kong's manufacturers and exporters against the risks of non-payment for goods or services supplied abroad on credit terms.

      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. A substantial increase in business was recorded in line with the recovery in Hong Kong's exports to major industrialised countries.

The ECIC covers all manner of short-term credits and payment methods such as open account invoices, documents against acceptance, documents against payment, and some letters of credit, up to a maximum credit period of 180 days after shipment. The corporation's protection is also available for the export of capital and semi-capital goods sold on medium or long-term credit with payments spread over five years or longer. It provides its clients with a credit control service, and through an international credit information network checks the credit-worthiness of all overseas buyers trading with 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 banks. In addition, to assist in the funding of manufacturers who export capital or semi-capital goods on medium to long-term credit, the corporation is prepared to provide the financing bank with gilt-edged security in the form of its unconditional guarantee. This involves the full payment by the ECIC of any overdue payments plus 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 techniques used by member 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 arising from its insurance and guarantee operations. The statutory limit now stands at $3,500 million. The corporation does not receive any subvention from the government. 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, which currently consists of nine prominent figures from the private business sector and three senior government officials.

During 1984, close to $5.8 billion worth of goods and services were insured by the ECIC, which earned a premium income of more than $32 million. Some 134 claims were paid, involving a total of $18.5 million. A new Comprehensive Shipments Policy was launched during the year providing the corporation's clients with an improved scope of cover.

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       The ECIC's computer systems were further developed during the year, and simpler and more efficient means of providing policy-holders 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 increased productivity by industry in Hong Kong. The council has 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. 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 a wide range of industrial and management consultancy as well as process control services. It conducts a diverse range of training programmes in industrial technology, manage- ment techniques and electronic data processing. It also organises industrial exhibitions and overseas study missions, and operates a technical information service. With the implementation of the relevant recommendations by the Advisory Committee on Diver- sification, the centre has expanded its scope of services to undertake more comprehensive and wider responsibilities in the provision of industry support services.

The centre's facilities include nine 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.

During the year, the Industry Development Board appointed an ad hoc working group under the chairmanship of the Secretary for Trade and Industry to examine in detail the specific recommendations of the HKPC Study on the Electronics Industry. In endorsing the recommendations in principle, the working group recommended that the views of the electronics industry and the major trade and industrial organisations should be sought on the proposed facilities and methods of financing. A report on technology transfer was also completed for the Industry Development Board.

       There was a steady increase in the number of consultancy projects undertaken for a broad spectrum of the manufacturing industry, the government and the tertiary industries. The centre completed over 260 consultancy projects, including feasibility studies, produc- tion management, personnel recruitment and various technological support services. In metals technology, some 2000 heat treatment and metal finishing assignments were completed on behalf of client companies to enable them to compete not only on cost but also on quality.

       The Microprocessor Application Laboratory continued to promote the application of microprocessors in process control and provide facilities for the development of new microprocessor-based products. The centre carries out limited development work in priority areas so that upon successful completion these productivity improvement systems can benefit as many factories as possible. During the year, the centre successfully developed two cost-effective computer-aided design systems for local manufacturers: one for garment grading, the other for printed circuit board design. In electronic data processing, the centre undertook 28 projects including system studies and application software develop- ment. In environmental management, projects were undertaken for industrialists, cover- ing waste water treatment, air pollution control, solid waste management and noise control.

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The centre adopted a positive and personal approach in facilitating two-way com- munication with industry through a newly introduced Industry Liaison Scheme. During the year, the centre organised a series of liaison visits covering district boards as well as trade and industrial bodies. Open seminars and presentations were conducted for various area committees and industrial associations. Besides this, the centre organised some 330 training courses for 6 700 participants, covering management and supervisory tech- niques, advanced programming and electronic data processing appreciation courses, and a diverse range of technology programmes for various industries. It also arranged exhibi- tions on microprocessor technology, product finishing and environmental control. Four overseas study missions were organised to observe the latest technologies on the in- dustrial application of robots, quality control circles, air pollution control, and advanced tooling.

       As an active member of the Asian Productivity Organisation (APO), the centre handles all APO matters on behalf of the government. During the year, it held a symposium on technical information mechanism and extension services for small industry, under the sponsorship of the APO.

Other Trade and Industrial Organisations

The Hong Kong General Chamber of Commerce, founded in 1861, is the oldest and largest trade and industrial association in the territory. It comprises more than 2 700 companies representing all branches of commerce and industry. The chamber is actively involved in promoting Hong Kong's trade and attracting new industries. It is a member of the International Chamber of Commerce and has been approved by the Economic and Social Commission for Asia and the Pacific to arbitrate in commercial disputes. The chamber provides a wide range of services to its members and to more than 8 000 non-member companies. These include the issue of certificates of origin, commercial carnets, endorse- ment of invoices and the processing of trade and industrial enquiries. The government regularly consults the chamber on important issues affecting trade, industry and aspects

of social development.

      The Federation of Hong Kong Industries is a statutory organisation of manufacturers established in 1960. It has a membership which is broadly representative of all industries. It acts as a bridge between the government and the manufacturing industries on all related matters. The federation promotes and fosters the interests of Hong Kong's manufacturing industries. Through its Design and Packaging Centre, the federation plays a promotional and educational role in developing design and packaging skills in Hong Kong. The federation also acts as a central body of manufacturers with which many national and international organisations liaise. It handles about 6 000 trade enquiries a year in assisting local and overseas buyers to locate suitable manufacturers in Hong Kong. It is also one of the government-approved certificate issuing organisations.

       The Chinese Manufacturers' Association of Hong Kong was established in 1934. It has a membership of 3 000 industrial and trade establishments. A member of the International Chamber of Commerce, the CMA has played an important role in the industrial development of Hong Kong. It is authorised by the government to issue certificates of origin. On trade promotion, it operates a trade enquiry section and sponsors trade fairs. It promotes product development and holds the annual Hong Kong New Products Competi- tion. It also provides services to introduce new technology, encourage investment and promote trade. The CMA Testing and Certification Laboratories provide a wide variety of services including product testing, certification, production and pre-shipment inspection,

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and technical consultancy. The association is active in promoting industrial safety and manpower development in the industrial sector. It runs two prevocational schools which offer technical education for more than 2 000 students.

The Hong Kong Management Association is an incorporated body established in 1960 for the purpose of improving the effectiveness and efficiency of management in Hong Kong. Institutional and individual membership totals over 6 000. The association operates under its auspices a number of specialists clubs which provide opportunities for groups with similar interests to share and further develop their expertise. It regularly offers management consultancy and knowledge/skill oriented courses. More than 1000 programmes are offered annually, catering to over 30 000 executives. A highlight of the association's activities is the annual conference which provides a platform for eminent speakers to share their knowledge, experience and new thinking on the practice of management. Other management services provided by the association include the publication of The Hongkong Manager, a bilingual management journal, library and information services, seminars and forums, inter-firm competitions and translation services. To generate better management practices in small to medium-sized businesses, the Business Enterprise Management Centre was inaugurated in 1984 and a series of Chinese-language books on management has been compiled.

Consumer Council

Established in 1974, the Consumer Council is a statutory body charged with the respon- sibility of protecting and promoting the interests of consumers of goods and users of services. Its chairman and members, appointed by the Governor, are drawn from various walks of life. The council, with a staff of 88, is primarily financed by an annual subvention from the government.

The council is engaged in a variety of consumer protection activities including consumer representation, legislation, complaints, advice, comparative product testing, research and surveys, education and information, and publications. It is represented on many government committees to tender advice on matters affecting the interests of consumers. These include metrication, insurance, school textbooks and supplies, unfair contract terms, cigarette smoking and public health, and gas safety.

A key function of the council is the investigation of consumer complaints and the dissemination of independent, impartial information and advice on goods and services. During the year, it dealt with 9 537 complaints and 59 744 enquiries for advice. Two new Consumer Advice Centres were opened in Yuen Long and Kowloon City, bringing the number of centres throughout Hong Kong to 11.

The council's programme in comparative product testing continued to receive wide- spread attention from both consumers and traders. Results of the tests, complete with information on brand names, are published in the council's monthly magazine Choice. In the field of consumer education, the council maintains close liaison with the media and community organisations, and with schools and the Education Department.

In March, the council launched a massive consumer rights publicity campaign to educate the public on their rights and responsibilities as consumers. The two-week campaign. received wide publicity in the mass media and there was active participation from the public in the various events which included variety shows, exhibitions, competitions and a seminar. The council has also rendered valuable advice to the government in preparing new consumer protection legislation to provide controls over hire purchase transactions, travel agents and money changers.

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      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 derivatives, into and out of Hong Kong is strictly regulated by 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). While the licensing policy allows legitimate trade in scheduled specimens, import licences may not be granted in certain cases to help the survival of a species. For example, there has been a total ban on the import into Hong Kong of rhino products of all species of Rhinocerotidae since 1979.

      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. Illegal trade is investigated and prosecutions follow if there is evidence of a breach of the ordinance. During 1984, there were 240 seizures and 85 prosecutions under the ordinance.

Metrication

In the field of metrication, the government's objective is to facilitate 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 (SI) units by the private sector. The Metrication Ordinance, enacted in 1976, provides for the eventual replacement of non- metric units by SI units in all legislation in Hong Kong.

      A Metrication Committee, consisting of representatives of industry, commerce, con- sumer affairs and government officials appointed by the Governor, is the focal point of liaison on all matters concerning metrication. It advises and encourages various groups within the private sector in the framing of their metrication programmes. Partly through the efforts of the committee, public awareness of metrication has gradually increased and considerable progress has been made in the adoption of SI units particularly within the government and in some areas of the private sector.

Significant developments during the year included, in the public sector, a changeover in the units used for water charges from gallons to cubic metres with effect from April 1 and the metrication of road speed limits with effect from August 25. In the private sector, metrica- tion campaign activities were mainly consumer-oriented, stressing the reasons for the metric changeover and explaining the use of conversion factors. These activities included the production of promotional leaflets, posters, conversion cards, radio and television com- mercials, the staging of a territory-wide metric family lucky draw in April and the setting up of metric scale demonstration counters in major public markets throughout Hong Kong.

Trade Marks and Patents

Trade Marks are registered under the Trade Marks Ordinance, which is based on the United Kingdom Trade Marks Act 1938. The procedure is laid down in the Trade Marks Rules, and the prescribed forms may be obtained free from the Trade Marks Registry, Registrar General's Department. Every mark, even if already registered in Britain or any other country, must satisfy all the requirements of the Hong Kong Trade Marks Ordinance before it may be accepted for registration.

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During 1984, 6 409 applications were received and 2915, including many made in previous years, were accepted and allowed to be advertised. A total of 2 700 marks were. registered. The principal places of origin were: United States, 767; Hong Kong, 565; Japan, 365; United Kingdom, 233; France, 180; West Germany, 138; Switzerland, 89; Italy, 74; Netherlands, 51; Australia, 46. The total number of marks on the register at December 31, 1984, was 42 672.

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 1 010 patents were registered during the year, compared with 740 in 1983.

Companies Registry

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

Local companies are incorporated under the Companies Ordinance which until August 31, 1984, was based, to a large extent, on the Companies Act 1929 - formerly in force in Britain but now replaced by the Companies Acts of 1948 to 1981. However, following recommendations made by the Companies Law Revision Committee (June 1971 and April 1973), several parts of the Companies Ordinance - notably those dealing with prospectuses, accounts and audit - were amended and now incorporate most of the relevant provisions of the Companies Acts of 1948 and 1967. Most of the remainder of the recommendations in the committee's second report are given effect in the lengthy Companies (Amendment) Ordinance 1984 which was enacted in January and came into force on August 31.

On incorporation, a company pays a registration fee of $600 plus $6 for every $1,000 of nominal capital. In 1984, 13 434 new companies were incorporated - 1 876 more than in 1983. The nominal capital of new companies registered totalled $3,277 million. Of the new companies, 83 had a nominal share capital of $5 million or more. During the year, 4 079 companies increased their nominal capital by amounts totalling $13,141 million on which fees were paid at the same rate of $6 per $1,000. At the end of 1984, there were 130 712 local companies on the register, compared with 118 680 in 1983.

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. A registration fee of $500 and some small filing fees are payable in such cases. During the year, 215 of these companies were registered and 82 ceased to operate. At the end of 1984, 2005 companies were registered from 58 countries, including 473 from the United States, 293 from the United Kingdom and 238 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 Division

The Insurance Companies Ordinance 1983, which came into operation on June 30 that year, restricts the transaction of all classes of insurance business in or from Hong Kong to a

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company authorised to do so by the Insurance Authority, to Lloyd's of London, and to an association of underwriters approved by the Governor in Council.

The Registrar General, who has been appointed the Insurance Authority for the purposes of the ordinance, must be satisfied that certain conditions are met before authorising a company. These include the suitability of the directors and controllers of the company; a minimum paid-up capital requirement of $5 million ($10 million in cases of companies undertaking both long term and general business or statutory business, the latter meaning insurance cover required by statute); and a solvency margin requirement of $2 million ($4 million or $6 million in different cases depending on whether both long term and general business are carried on, and whether statutory business is included). Any company, irrespective of the place of incorporation, which is authorised to carry on insurance business in the United Kingdom is given certain exemptions under the new ordinance and may be authorised by the Insurance Authority on the strength of its compliance with the United Kingdom Insurance Companies Act.

     There are 284 insurance companies, including 130 local companies, authorised to transact insurance business in Hong Kong.

Money Lenders

Under the Money Lenders Ordinance, which came into force in December 1980, anyone wishing to carry on business as a money lender must apply to a Licensing Court, consisting of a magistrate and two lay assessors, for a licence. In the first instance, the application is submitted to the Registrar General as Registrar of Money Lenders and a copy is sent 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. During the year, 435 applications were received and 415 licences were granted. At year-end, there were 453 licensed money lenders.

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. Prior to May 16, 1984, the time limit for prosecuting a person for the last mentioned offence was six months. On that date this time limit was extended to two years by the Money Lenders (Amendment) Ordinance 1984.

Bankruptcies and Liquidations

In Hong Kong, the number of business failures leading to formal insolvency proceedings in court is always comparatively small in relation to the total number of businesses closing down, but nevertheless it has increased considerably since 1980.

During the year there were 312 petitions in bankruptcy and 424 petitions for the com- pulsory winding-up of companies. The court made 185 receiving orders, two administra- tion orders and 315 winding-up orders. As in past years, the Official Receiver was appointed trustee or liquidator in most cases. Assets realised by the Official Receiver during 1984 amounted to $157 million. In addition to these compulsory liquidations, 918 companies went into voluntary liquidation - 900 by members' voluntary winding-up and 18 by creditors' voluntary winding-up.

5

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The Economy

THE Hong Kong economy recorded another year of export-led growth in 1984. Domestic exports, re-exports and imports grew by about 17 per cent, 30 per cent and 15 per cent in real terms respectively, compared with corresponding growth rates of 14 per cent, 15 per cent and 10 per cent in 1983. Coupled with a steady growth in domestic demand, the gross domestic product (GDP) grew by an estimated 9.6 per cent in real terms in 1984. There was a slowing down in the rate of inflation during the year. The employment situation also improved, as both the unemployment and underemployment rates fell.

Structure of the Economy

Because of Hong Kong's limited natural resources, it has to depend on imports for virtually all of its requirements, including food and other consumer goods, raw materials, capital goods and fuel. It must, therefore, export on a sufficient scale to generate the foreign exchange earnings to pay for these imports, and the volume of exports must rise over time if the local people are to enjoy a rising standard of living.

The externally oriented nature of the economy can be seen from the fact that in 1984 the total value of visible trade (including domestic exports, re-exports and imports) amounted to 179 per cent of the gross domestic product, Between 1975 and 1984, the average annual growth rate of domestic exports in real terms was about 11 per cent, roughly twice the growth rate of world trade. As a result, the territory of Hong Kong now ranks high in the list of the world's trading nations.

Contribution of Various Economic Sectors

The relative importance of the various economic sectors can be assessed in terms of their value-added contribution to the GDP and their shares of total employment.

      Primary production (comprising agriculture and fishing, and mining and quarrying) is very limited and its contribution to the GDP is relatively insignificant.

Within secondary production (comprising manufacturing, electricity, gas and water, and construction), manufacturing still accounts for the largest share of the GDP as well as of employment. This is despite a decline in its relative contribution to the GDP, from 28 per cent in 1971 to about 23 per cent in 1981 and to about 22 per cent in 1983. The relative importance of the construction sector increased from about six per cent in 1971 to about eight per cent in 1981, but decreased to about six per cent in 1983.

The relative importance of the tertiary services sectors (comprising wholesale and retail trades and restaurants and hotels; transport, storage and communications; the financial and related business services sector; and the community, social and personal services sector) increased slightly between 1971 and 1983: their total contribution to the GDP was 63 per cent in 1971, and 64 per cent in 1981 and 1983. However, the relative contribution of the

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financing, insurance, real estate and business services sector increased significantly from 17 per cent in 1971 to 24 per cent in 1981, falling to about 19 per cent in 1983.

       In terms of employment, the most noticeable change in recent years is that employment in the manufacturing sector, though still accounting for the largest share of the total employed labour force, has declined in relative terms from 47.0 per cent in 1971 to 41.2 per cent in 1981 and to 37 per cent in 1984, while the share of the tertiary services sectors increased from 44 per cent in 1971 to 50 per cent in 1981 and to 54 per cent in 1984.

Nature and Relative Importance of Manufacturing

Though trade statistics indicate that Hong Kong's domestic exports are still dominated by a few major product groups, there has been considerable upgrading of quality and diversification within these product groups. The increasing pressure of protectionism and growing competition from other economies have resulted in efforts to diversify, not only in respect of products but also markets. It is estimated that up to 90 per cent of Hong Kong's manufacturing output is eventually exported. In 1984, manufactured goods accounted for 95 per cent of total domestic exports by value.

       Hong Kong firms must be flexible and adaptable to cope with the frequent changes in demand patterns and to maintain their external competitiveness. The existence of many small establishments and an extensive sub-contracting system have greatly facilitated the necessary shifts in production and increased the flexibility of the economy. Because of the limited amount of usable land, manufacturing industries in Hong Kong are generally those which can operate successfully in multi-storey factory buildings. In practice, this has meant a concentration on the production of light manufactures.

      Since the post-war years, many new industries have emerged and grown, the more prominent being plastics and electronics. Other new industries include fabricated metal products, watches and clocks, toys, precision and optical instruments, and genuine and imitation jewellery.

       Between 1973 and 1982, the average annual growth rate of net output by the manu- facturing sector was 14 per cent, while the growth rate of employment was four per cent. During this period, the most significant change was the textiles industry's declining share in the net output by manufacturing, from 27 per cent to 12 per cent, and in manufacturing employment, from 21 per cent to 12 per cent. The decline was largely matched by the relative expansion of the clothing, electrical and electronics, and professional and scientific equipment (including watches and clocks) industries. Their shares of net output increased from 20 per cent to 26 per cent, from nine per cent to 16 per cent, and from one per cent to five per cent respectively; and their shares of employment increased from 26 per cent to 31 per cent, from 11 per cent to 14 per cent and from two per cent to five per cent respectively. Domestic exports in 1984 consisted principally of articles of apparel and clothing accessories (34 per cent of the total value), electronics (18 per cent), plastic products (nine per cent), textiles (six per cent), watches and clocks (six per cent), electrical household appliances (four per cent) and metal products (three per cent). In terms of domestic export shares, the most significant changes in the past 10 years relate to the decline in relative importance of clothing (from 45 per cent in 1974 to 34 per cent in 1984) and textiles (from nine per cent in 1974 to six per cent in 1984), and the increase in relative importance of electronics (from 13 per cent in 1974 to 18 per cent in 1984), and watches and clocks (from two per cent in 1974 to six per cent in 1984).

       Market diversification, partly as a result of the promotion efforts of the government, has long ended the predominance of the United Kingdom and Commonwealth countries as

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Hong Kong's main export markets. Since the establishment of the 'certificate of origin' system in the late 1950s, the United States has become Hong Kong's largest export market. Gradually, the share of exports going to other countries such as the Federal Republic of Germany, Japan, Canada, Australia and those in Southeast Asia has also increased. In recent years, Hong Kong has also diversified into new markets, particularly China but also countries in the Middle East, Eastern Europe, Latin America and Africa.

Nature and Relative Importance of the Financial Sector

The financial sector, apart from growing in domestic importance as indicated by its rising contribution to the GDP, from 6.9 per cent in 1980 to 7.4 per cent in 1982, has also continued to enhance its international importance. Banks and other deposit-taking insti- tutions, insurance companies, pension funds, unit trusts and similar operations, foreign exchange and money brokers, stock and commodity brokers, other financial organisations and ancilliaries such as international firms of lawyers and of accountants, combine to provide a wide range of financial and related services to both local and international customers. The government has continually worked towards providing a favourable environment, with sufficient regulation to ensure, as far as possible, sound business standards and confidence in the institutional framework, but without unnecessary impedi- ments of a bureaucratic or fiscal nature. The favourable geographical position of Hong Kong, which provides a bridge in the time gap between Japan and Europe, together with the traditionally strong links with Southeast Asian countries and assisted by excellent communications with the rest of the world, has helped to develop the territory into one of the world's leading international financial centres.

Unlike most major economies, Hong Kong has no central bank. Most of the functions which might typically be performed by one such as prudential supervision of financial institutions, managing official foreign exchange reserves, certain open market operations, issuing banknotes or providing banking services to the government - are carried out by different government offices or by selected commercial banks.

      The deposit-taking sector in Hong Kong, under the three-tier structure established since 1981, is made up of three distinct classes of institutions: licensed banks, licensed deposit- taking companies and registered deposit-taking companies.

       Banking licences are granted at the absolute discretion of the Governor in Council in accordance with the provisions of the Banking Ordinance. At present, a domestic company (that is, a company incorporated in Hong Kong and predominantly beneficially owned by Hong Kong interests), in order to be considered for a banking licence, must have a paid-up capital of at least $100 million, have been in the business of taking deposits from and granting credit to the public for at least 10 years, and have at least $1,750 million of deposits from the public and total assets of at least $2,500 million. A bank incorporated outside Hong Kong wishing to apply for a banking licence is required to satisfy a separate set of criteria: it must show total assets (net of contra items) of at least US$12,000 million, and its country of incorporation must apply an adequate form of prudential supervision and offer some acceptable form of reciprocity to banks in Hong Kong. At the end of 1984, there were 140 licensed banks in Hong Kong, 44 of them being locally incorporated. They maintained a total of 1 547 offices in Hong Kong. In addition, there were 112 representative offices of foreign banks.

Only licensed banks may operate cheque or savings accounts. They may also accept deposits from the public of any size and any maturity. But the interest rate rules of the Hong Kong Association of Banks (of which all licensed banks are required by law to be

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members) result in the setting of maximum rates payable on bank deposits of original maturities up to 15 months less a day, with the exception of deposits of $500,000 or above for less than three months term to maturity, for which banks may compete freely.

      Licensed deposit-taking company status is granted at the discretion of the Financial Secretary. Licensed deposit-taking companies are required to have a minimum issued share capital of $100 million and paid-up capital of $75 million, and to meet certain partially subjective criteria regarding size, ownership and quality of management. They may also take deposits of any maturity from the public, but in amounts of not less than $500,000. There are no restrictions on the interest rates they may offer. At the end of 1984, there were 33 licensed deposit-taking companies.

      The authority to register deposit-taking companies rests with the Commissioner of Deposit-taking Companies. Since April 1981, the commissioner has, at the direction of the Governor, 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 of $50,000 or more with an original term to maturity of at least three months. At the end of 1984, there were 311 registered deposit-taking companies.

The Commissioner of Banking, who is also the Commissioner of Deposit-taking Companies, is the authority for the prudential supervision of all deposit-taking institutions, as provided for by the Banking and Deposit-taking Companies Ordinances. The commis- sioner's office also operates an international division which obtains monthly returns from and sends examination teams to the overseas branches of Hong Kong incorporated banks and deposit-taking companies (subject to the permission of the local authorities). The principles of the revised Concordat issued by the Committee on Banking Regulations and Supervisory Practices, which meets regularly at Basle in Switzerland, and the principles of world-wide supervision of banking groups based in Hong Kong are accepted and practised.

Exchange Fund and Currency

The Hong Kong Government Exchange Fund was established by the Currency Ordinance of 1935 (later renamed the Exchange Fund Ordinance). From its inception, the Exchange Fund has held the backing to the note issue, with notes being issued nowadays by two note-issuing banks - the Hongkong and Shanghai Banking Corporation and the Standard Chartered Bank - against their holdings of certificates of indebtedness. These are non-interest-bearing liabilities of the Exchange Fund, and are issued or redeemed as the amount of notes in circulation rises or falls. In 1976, the role of the fund was expanded, with 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 transferred to the fund. In both cases, the transfers were made against the issue by the fund of interest-bearing 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 Exchange Fund was further expanded in 1978 when the government began to transfer the Hong Kong dollar balances of its 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 by the Exchange Fund, mainly in the form of bank deposits in certain foreign currencies and in Hong Kong dollars, and in various interest-bearing instruments in foreign currencies. Today, the principal activity of the fund is the day-to-day management of these assets,

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while its statutory role as defined in the Exchange Fund Ordinance is to influence the exchange value of the Hong Kong dollar. The Exchange Fund is managed by the Monetary Affairs Branch under the direction of the Financial Secretary, who is advised by an advisory committee comprising prominent members of the banking community.

      Another function related to the fund is the supply of notes and coins to the banking system. 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. When the Hong Kong dollar was pegged to sterling prior to June 1972, certificates of indebtedness were issued and redeemed in sterling at a fixed exchange rate. But between June 23, 1972 and October 15, 1983, such payments were made in Hong Kong dollars. With effect from October 17, 1983, certificates of indebtedness have been issued and redeemed by the note- issuing banks against payment in US dollars at a fixed exchange rate of US$1 = HK$7.80. The Exchange Fund bears the costs of maintaining the note issue (apart from that propor- tion 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. The ninth of a series of $1,000 gold coins minted to commemorate the Lunar New Year was issued early in 1984. These gold coins are legal tender, but do not circulate. The total currency in circulation at the end of 1984, with details of its composition, is shown at Appendix 7.

Foreign Exchange, Money and Other Financial Markets

Hong Kong has a mature foreign exchange market where the local currency and major international currencies are actively traded. Several factors have contributed to the development of the foreign exchange market which has been an integral part of Hong Kong's emergence as a major international financial centre. First, there are no exchange controls in Hong Kong. Second, international banks may trade through their Hong Kong offices while other centres are closed. Third, the continuous requirements of local industry and commerce in relation to their transactions with the rest of the world have ensured active trading in the local currency.

There is also a well developed interbank money market, where wholesale Hong Kong dollar deposits are traded among the banks and deposit-taking companies. Other short- term instruments are less in evidence than in some other centres, partly because the government is not itself active as a regulator of the monetary system's reserves through open market operations in such instruments. Nevertheless, markets in locally issued certificates of deposit and commercial paper have been growing in significance.

       The stock market is a major source of capital to local enterprises and has attracted significant overseas investor interest. There are at present four stock exchanges in Hong Kong, namely, Far East Exchange, Hong Kong Stock Exchange, Kam Ngan Stock Exchange and Kowloon Stock Exchange. The Stock Exchanges Unification Ordinance was brought into operation on February 1, 1981, and all members of the four existing exchanges were invited to apply for membership of a new exchange company, the Stock Exchange of Hong Kong Limited, which will have the exclusive right to operate a stock market in Hong Kong from a date to be appointed by the Financial Secretary.

       The unification of the exchanges is expected to bring better overall management and to provide for more effective regulation. The Unified Exchange is expected to open by the end of 1985.

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The Securities Commission is responsible for ensuring compliance with the Securities Ordinance, the Protection of Investors Ordinance and the Stock Exchanges Unification Ordinance. The Securities Ordinance regulates registration of dealers and investment advisers and trading practices in securities and provides for the establishment of a Stock Exchanges Compensation Fund and the elimination of improper trading practices. At the end of 1984, 3 163 individuals and corporations were registered under the Securities Ordinance. The Protection of Investors Ordinance aims at protecting investors by pro- hibiting the use of fraudulent or reckless means to induce investors to buy or sell securities or to take part in investment arrangements, and regulates the issue of related publications. In March 1984, the Securities Commission, after extensive consultation with the securities industry, recommended to the Financial Secretary the removal of the provisions which at present forbid the new exchange company to admit to membership corporations, directors and employees of banks and deposit-taking companies, and practising solicitors and accountants. The commission also recommended that the formation of partnerships between members and non-members should be permitted. These proposals were approved by the Executive Council in July 1984 and it is expected that the legislation necessary to implement them will be enacted in 1985.

      The Chinese Gold and Silver Exchange Society operates a gold bullion market which is among the four largest in the world. Gold traded on the society is of 99 per cent fineness, measured in taels and quoted in Hong Kong dollars. Prices, after allowing for exchange rate fluctuations, parallel those in the other major markets of London, Zurich and New York. Membership of the society remained closed at 192 member firms. There is another gold market operating in Hong Kong, the main participants in which are major international bullion houses and banks. Trading in this market, which is commonly known as the loco-London market, has been increasing in recent years. Dealings principally take place in US dollars per troy ounce of 99.95 per cent fine gold, with delivery in London.

      The Commodities Trading Commission is responsible for ensuring compliance with the Commodities Trading Ordinance, which regulates trading in commodity futures contracts. The Hong Kong Commodity Exchange Limited, established in 1977, has been licensed under this ordinance as the sole company permitted to operate an exchange trading in futures contracts and has received permission to trade four such contracts: cotton, sugar, soyabeans and gold. The Commodity Exchange embarked on an extensive reorganisation. during 1984 and the Executive Council recommended the introduction of a small amend- ment Bill, intended to enable the exchange to broaden its membership and to trade financial futures contracts (including futures contracts based on the Hang Seng Index of share prices). A full review of the Commodities Trading Ordinance is underway and it is intended to introduce a major amendment Bill into the Legislative Council during 1985.

Diversification of the Services Sectors

Not only has the financial and business services sector grown in importance, other services sectors such as insurance, transport and tourism have also expanded. Most of the insurance and transport services are related to merchandise trade transactions. Hong Kong ship-owners have long been engaged in operating ships for charter and in providing international liner services. They have been expanding their fleets in the last two decades and ship ownership in terms of tonnage is now second in the world. (after Greece).

      The steady growth of Hong Kong's external trade has led to the expansion of a number of services related to shipping, notably cargo handling and storage facilities in the container

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      port. Hong Kong's air cargo handling facility also ranks as one of the largest in the world. According to the 1982 Survey of Transport Establishments, the direct contribution of ocean and air transport and related services to the GDP was about three per cent in value-added terms. The tourist industry has also expanded rapidly. The number of incoming tourists has increased from 1.3 million in 1974 to 3.15 million in 1984, with total spending reaching an estimated $13,700 million.

Inflation

Inflation has been a much more significant phenomenon in Hong Kong in the 1970s and 1980s than in the 1960s. Given the externally oriented nature of the economy, even under a floating exchange rate system, the inflation rate in Hong Kong cannot be insulated completely from what is happening in the rest of the world.

In the late 1970s, the inflation rate stayed at double-digit levels. Three factors were relevant during this period. First, the double-digit real growth rates of the economy for each year since 1976 resulted in a persistent imbalance, with the aggregate demand for domestic resources being in excess of their supply. Second, the rate of world inflation accelerated sharply in 1979, resulting in a rapid rate of increase in import and export prices. Third, the growth rate of the money supply was faster than the growth rate of GDP in money terms. In 1983, the rate of inflation, in terms of the Consumer Price Index (A), was 10.0 per cent, mainly due to the depreciation of the Hong Kong dollar. In 1984, the rate of inflation slowed down from 12.4 per cent in January (on a year-on-year basis) to 4.6 per cent at the end of the year. This deceleration largely reflects a stable Hong Kong dollar in terms of the US dollar under the linked exchange rate system and the moderate increase in world commodity prices.

Economic Policy

Economic policy in Hong Kong is to a certain extent dictated, and constrained, by the special circumstances of the Hong Kong economy. Owing to its small and open nature, the economy is vulnerable to external factors and government action to offset unfavourable external factors is often of limited effectiveness. The government is of the view that the allocation of resources in the economy is normally most efficient if left to market forces, and government intervention is kept to the minimum.

This basically free-enterprise market-disciplined system has contributed to Hong Kong's economic success. The narrowly based tax structure with low tax rates provides incentives for workers to work and for entrepreneurs to invest. Both workers and entrepreneurs are highly motivated, given that all individuals have equal opportunity to pursue the goal of individual betterment and accumulation of wealth. The primary role of the government is to provide the necessary infrastructure, together with a stable legal and administrative framework, conducive to economic growth and prosperity.

Monetary Policy

There are few monetary instruments available to the government for monetary policy purposes. From 1974 until October 1983, the Hong Kong dollar was a conventional floating currency and during this period the Exchange Fund's role in directly influencing the exchange rate through intervention in the foreign exchange market was limited at most to ironing out short-term fluctuations.

On October 17, 1983, after a period of much instability in the exchange rate, a revised system was introduced. Under the new arrangement, certificates of indebtedness issued by

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the Exchange Fund, which the two note-issuing banks are required to hold as cover for the issue of Hong Kong dollar banknotes, are issued and redeemed against payments in US dollars at the fixed exchange rate of US$1 = HK$7.80. In practice, therefore, any rise in the note circulation has to be matched by a US dollar payment to the Exchange Fund and any fall in circulation is matched by a similar payment from the fund. The note-issuing banks in turn extend this fixed rate to their note transactions with all other banks in Hong Kong. The forces of competition and arbitrage, aided by a largely favourable psychological impact, have ensured that the market exchange rate has been stable at a level close to the fixed rate of US$1 = HK$7.80 since October 1983.

      This important change in Hong Kong's monetary framework means that the exchange rate is, in effect, no longer a major variable element in the economy's adjustment process. Factors such as interest rates, money supply and the level of economic activity, rather than the exchange rate, now tend to adjust automatically to balance of payments pressures, without government intervention being necessary. The role of money market interest rates as an instrument of monetary policy has therefore altered. They now assume a more passive role, changing, more frequently perhaps, in response to balance of payments inflows and outflows.

The Hong Kong Association of Banks, which sets the maximum rates of interest payable on deposits with licensed banks, still has the statutory obligation to consult the government on these interest rates. This procedure was designed to ensure that the association took account of the wider public interest in its decisions, including, of course, their effect on the exchange rate. Under the new exchange rate system, however, it is neither so necessary nor so desirable for the government to play an active role in this process.

      Through its bankers, the Exchange Fund has operated a scheme which enables it to draw funds out of the local interbank market and to ensure that these funds are not directly recycled into that market. This arrangement is capable of tightening up the money market and putting upward pressure on market interest rates in the short term. Thus, despite the change in the monetary framework which took place in October 1983, the arrangements whereby the government may influence interest rates through the Hong Kong Association of Banks or the money market remain in place.

Public Sector and Public Finances

     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. Thus public sector expenditure is conventionally taken to include expenditure on 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 that 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 and the Kowloon- Canton Railway Corporation.

As an indication of the size of public sector spending, expenditure on the Consolidated Account rose from $6,703 million in 1974-5 to an estimated $44,024 million in 1984-5. The average annual growth rate for these years taken together was 20.7 per cent in money terms. Over this period, the relative size of the public sector (defined as the ratio of expenditure on the Consolidated Account to the GDP at current prices) rose from 15 per cent to around 16.5 per cent.

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Several principles are observed in formulating the government's budgetary policy. The first is that the growth rate of public sector expenditure should have regard to the growth rate of the economy, so that the government does not pre-empt resources which would otherwise be used more efficiently by the private sector. The second principle is that the pattern of public sector expenditure should reflect the government's conscious view as to priorities. For example, over the 10-year period 1974-5 to 1984-5, the share of total public sector expenditure taken by social services rose from 39.8 per cent to an estimated 43.4 per cent, reflecting a significant government effort in improving the social well-being of the population. The third principle is that a certain balance should prevail between direct and indirect taxation, and between direct and indirect taxation taken together and all other recurrent revenue, and the tax system should meet certain defined requirements such as simplicity, neutrality and equity. The fourth principle is that ex- penditure and revenue should meet certain guideline ratios, to ensure the financing of the capital account.

Public Expenditure

Expenditure on the General Revenue Account is usually around 83 to 86 per cent of public sector expenditure taken as a whole, and this account is thus the main instru- ment 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 appro- priation is sought in the Appropriation Bill introduced into the Legislative Council at the same time.

      The Estimates of Expenditure contain details of the estimated recurrent and capital expenditure of all government departments, including estimated payments to subvented organisations and estimated transfers to the statutory funds. They also provide for the repayment of the public debt.

With only four 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 there was a deficit of $137 million, 1974-5 when there was a deficit of $380 million, 1982-3 when there was a deficit of $3,500 million and 1983-4 when there was a deficit of $2,993 million. 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.

      The Urban Council, operating through the Urban Services Department, draws up its own budget and expenditure priorities. This expenditure is financed mainly from a fixed percentage of rates from property in the urban area and from fees and charges for services provided by the council.

      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 its balance sheet as a government contribution. Part of the authority's recurrent expenditure is financed from the General Revenue Account for such activities as squatter control and the management of temporary housing and industrial areas. The authority is also responsible for carrying out a new programme of squatter area improvement funded from the Capital Works Reserve Fund.

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

The Home Ownership Fund finances mainly 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. The fund also finances the recurrent expenditure on the administration and planning of the Private Sector Participation Scheme.

      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.

      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.

The Mass Transit Fund is used to finance the purchase of government equity in the Mass Transit Railway Corporation. Its income is derived entirely from transfers from the General Revenue Account.

The Student Loan Fund is used to finance loans to students of the two universities, the two polytechnics, Baptist College 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 only other source of funds being loan repayments.

The Capital Works Reserve Fund finances the Public Works Programme and land acquisitions. Its income is derived entirely 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.

Revenue Sources

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, storage or sale of dutiable commodities must be licensed.

-

In February 1984, a 20 per cent ad valorem duty was introduced on European-type liquor, except beer, cider and perry, and the relevant specific duty rates were reduced by 10 per cent. The specific duty rates on alcohol now range from $0.66 a litre on Hong Kong brewed beer to $60 per litre on brandy. On tobacco, the rates range from $33 a kilogram on Chinese prepared tobacco to $178 a kilogram on cigarettes. On motor and aircraft spirits the duty is $2 a litre and on diesel oil for road vehicles $1 a litre. On methyl alcohol the duty is $3.24 a litre.

Rates are levied on the occupation of landed property at a percentage of the assessed rateable value which is, briefly, the annual rent at which the property might reasonably be expected to be let. New valuation lists are prepared periodically as directed by the Governor, enabling rateable values to be reviewed and updated in line with market rental levels. The current lists came into effect on April 1, 1984, with all rateable values determined

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by reference to rents as at July 1, 1983. Having regard to the movement of rentals since the previous lists were prepared, the review resulted in considerably increased rateable values for almost all rated properties.

      The percentage charges on rateable values are determined annually by resolution of the Legislative Council. Owing to the much higher values resulting from the revaluation, these charges were reduced effective from April 1, 1984. Currently, general rates are charged at 3.0 per cent and Urban Council rates at 2.5 per cent in the urban areas. The total rates in these areas are thus 5.5 per cent of rateable values. General rates of 5.5 per cent are charged in the New Territories. A relief scheme, which was extended and modified as from April 1, 1984, generally limits the amount of rates payable for a particular property in any year to 20 per cent above that payable in the previous year.

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 taxes and duties making up the internal revenue, with the exception of air passenger departure tax and the cross-harbour tunnel tax, are collected by the Inland Revenue Department. These consist of betting duty, entertainment tax, estate duty, hotel accom- modation tax, stamp duty and earnings and profits tax.

Betting duty is imposed on bets on authorised totalisators and the proceeds of Mark Six Lotteries. The rate of duty is either nine per cent or 15 per cent depending on the type of bet placed, and is 30 per cent on the proceeds of lotteries.

Entertainment 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 30 per cent in the case of race meetings.

Estate duty is imposed on that part of a deceased's estate situated in Hong Kong. The rates of duty charged range from a minimum of 10 per cent on estates valued between $2 million and $2.5 million to a maximum of 18 per cent on estates valued in excess of $4 million. Estates valued at less than $2 million are exempt from duty.

      Hotel accommodation tax of five per cent is imposed on expenditure on accommodation by hotel and guest-house guests.

      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.

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. Personal assessment is a form of aggregation superimposed upon the schedular system. The standard rate of tax has been increased from 15 per cent to 17 per cent with effect from the year of assessment commencing on April 1, 1984.

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 17 per cent whereas profits of corporations are taxed at 18.5 per cent. Assessable profits are determined on the actual profits for the year of assessment. The tax is paid provisionally on the basis of profits of the year preceding the year of assessment. As in many 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,

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as are charitable donations to the extent of 10 per cent of net assessable profits. There is no withholding tax on dividends paid by corporations, and dividends received from corporations are exempt.

Salaries tax is charged on emoluments arising in, or derived from, Hong Kong. The basis of assessment and the method of payment are similar to the system for 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 17 per cent of income before the deduction of personal or other allowances.

Property tax is charged on the owner of land or buildings in Hong Kong at the standard rate of 17 per cent on the actual rent received, less an allowance of 20 per cent for repairs and maintenance. From the year of assessment commencing on April 1, 1983, a system of provisional payment of tax similar to that under profits tax and salaries tax has come into operation. Property owned by a corporation carrying on a business in Hong Kong is exempt from property tax but the profits derived from the ownership are chargeable to profits tax.

Interest tax is charged on interest arising in or derived from Hong Kong. This is basically a withholding tax deducted at source unless the interest forms part of the profits of a corporation carrying on a trade or business in Hong Kong, in which case it is subject to profits tax. The rate of interest tax on interest paid or payable after February 24, 1982, and before October 17, 1983, on deposits in Hong Kong currency placed with financial institutions carrying on business in Hong Kong was 10 per cent. The rate for all other chargeable interest is 17 per cent. Interest payable on foreign currency deposits placed with financial institutions carrying on business in Hong Kong is exempt from tax, as is interest paid or payable after October 16, 1983, on a deposit in Hong Kong currency placed with such financial institutions. Interest paid or payable by the government and public utilities is also exempt from tax, provided it does not exceed a specified rate, which varies according to the prevailing level of interest rates.

       Business registration fees, which form part of the revenue from fees and charges, are also collected by the Inland Revenue Department. Business registration is compulsory for companies incorporated in Hong Kong, overseas companies with a place of business in Hong Kong and businesses operating in Hong Kong, except those run by charitable institutions and licensed hawkers. The annual registration fee is $350 but exemption from payment is granted where the business is small. With effect from October 1, 1984, every branch of a business is required to obtain a branch registration certificate and pay an annual registration fee of $15. In addition, a levy of $100, which is to be paid to the Protection of Wages on Insolvency Fund, is imposed on each business registration certificate issued to a business or its branch.

Other revenue arises from taxes on 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

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in Hong Kong. The director's appointment, tenure of office, duties and powers are set out in the Audit Ordinance, which also 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 for tabling. 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 exercise 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. Up to 1983, the committee held all its meetings in camera but this was changed in 1984 and hearings are now held in public except where the committee is of the opinion that the public interest requires confidentiality. The report by the Public Accounts Committee on the Director of Audit's report relating to the accounts of the government is also tabled in the Legislative Council. Both are copied to the Secretary of State.

The Economy in 1984

In comparison with 1983, economic performance in 1984 was characterised by higher GDP growth, moderating inflation, improved employment and a much reduced visible trade gap. These were largely the result of the rapid expansion in the export sector and the relative stability of the Hong Kong dollar in terms of the US dollar during the year. Partly reflecting this, earnings increased both in money terms and in real terms, and private consumption improved. Nevertheless, there were a few problem areas, including a generally sluggish property sector mainly influenced by the over-supply problem in the last few years and the new country-of-origin rules imposed in September by the United States Govern- ment which could adversely affect domestic exports of textiles and clothing to this market. For 1984 as a whole, the preliminary GDP estimate indicated a growth rate of 9.6 per cent in real terms, which was considerably higher than the provisional estimate of 5.1 per cent for 1983. As in the previous year, economic growth in 1984 was export-led. This was in contrast to the years 1980 to 1982 when domestic demand was the main source of growth. The export sector showed an impressive growth rate in 1984, largely due to the sustained recovery in the economies of several of Hong Kong's major markets, particularly the United States. Taking the year as a whole, domestic exports grew by 32 per cent in money terms or roughly 17 per cent in real terms. Domestic exports to the United States, Hong Kong's largest export market, increased by about 21 per cent in real terms. Considerable increases were also recorded in other major markets, including China (59 per cent), the United Kingdom (eight per cent), the Federal Republic of Germany (six per cent) and Japan (25 per cent). As a result of the very rapid increase in domestic exports to China, that country overtook the United Kingdom and the Federal Republic of Germany to become Hong Kong's second largest market, though still well behind the United States.

      In terms of major commodities, domestic exports of clothing increased by about 14 per cent and of textiles by roughly four per cent in real terms in 1984. Domestic exports of other products also increased, by about 20 per cent in real terms, with electronic components and domestic electrical appliances showing the fastest growth rates.

The entrepôt trade also expanded rapidly in 1984, with re-exports increasing by 48 per cent in money terms or about 30 per cent in real terms. China remained the largest market for Hong Kong's re-exports, followed by the United States, Taiwan, Singapore, Japan and Indonesia. It was also the most important source of the goods re-exported through Hong Kong, followed by Japan and the United States. The major end-use categories of goods

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re-exported through Hong Kong were raw materials and semi-manufactures and consumer goods, representing about 42 per cent and 37 per cent of the total value of re-exports respectively. In terms of major product categories, industrial machinery, textile yarn, fabrics and made-up articles, clothing and miscellaneous manufactured articles, which accounted for about 25 per cent, 15 per cent, seven per cent and six per cent of the total value of re-exports respectively, showed substantial increases in real terms.

In 1984, imports grew by 27 per cent in money terms or about 15 per cent in real terms. Much of the overall increase was due to substantial increases in imports of raw materials and semi-manufactures and of capital goods. As the growth rate of the value of total exports (domestic exports plus re-exports), at 38 per cent, was faster than that of imports, at 27 per cent, the visible trade gap narrowed significantly to one per cent in 1984, from eight per cent in 1983.

     The growth rate of domestic demand was four per cent in real terms in 1984, and compared favourably with the two per cent recorded in 1982 as well as in 1983. Private consumption expenditure grew further, by five per cent in 1984, partly reflecting the improved employment and earnings situation. Investment, measured in terms of gross domestic fixed capital formation, increased by one per cent in real terms in 1984, after a fall of 10 per cent in 1983. Overall expenditure on building and construction decreased, with most of the fall occurring in the expenditure by the private sector. On the other hand, overall expenditure on plant, machinery and equipment staged a significant recovery and increased by 21 per cent in real terms in 1984, after a decline of 14.3 per cent in 1982 and a marginal increase of one per cent in 1983.

Labour Market

     Reflecting increases in both the labour force participation rate and the population of working age, the supply of labour increased in 1984. The buoyant export sector and the generally improved economic situation, however, also resulted in an increase in the demand for labour. Thus for the labour force as a whole, the employment situation improved. The seasonally adjusted unemployment rate and the underemployment rate fell to an estimated 3.9 per cent and 0.8 per cent respectively in the fourth quarter of the year, from 4.0 per cent and 1.5 per cent in the first quarter. Full employment in Hong Kong is probably represented by an unemployment rate of between 3.0 and 3.5 per cent.

      The quantity index of industrial production increased by around 16 per cent in the first three quarters of 1984 compared with the same period in 1983, indicating that industrial activity has been maintained at a relatively high level during this period. The high level of manufacturing activity and exports in 1984 was probably accompanied by a further improvement in labour productivity, measured in terms of either manufacturing output per person engaged or domestic exports per person engaged in manufacturing. This improvement was in part due to increased overtime work.

      Manufacturing employment in September 1984, at 904 710, was five per cent higher than in September 1983. Employment in the wholesale, retail and import/export trades, and in restaurants and hotels increased by six per cent and five per cent respectively. Employment in the finance, insurance, real estate and business services sector also increased, by three per cent. Employment on building and construction (including civil engineering) sites, however, declined. The decrease was concentrated mainly on public sector building sites. However, employment in the building and construction industry (covering both site workers and non-site workers) remained fairly stable, suggesting that additional off-site jobs were largely able to absorb the redundant on-site workers.

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      In comparison with other sectors, workers in the manufacturing sector enjoyed a relatively faster rate of increase in earnings (measured by payroll per person engaged) in money terms and in real terms in the 12 months ending September 1984, as they continued to benefit from the strong performance in the export sector. Over the same period, salaries in the tertiary services sectors, in terms of payroll per person engaged, also increased in real terms. However, construction wage rates continued to fall in real terms, although a moderate increase in money terms was recorded.

Property Market

     The rate of take-up for most types of finished property appeared to have improved or remained at a reasonably high level in 1984. Given the reduced level of completions, the vacancy rates for all types of property were lower at the end of 1984 than at the end of 1983. The demand for small residential flats in convenient locations and for industrial property in established industrial areas has been particularly strong. Prices and rentals of finished property in general remained soft in the first half of the year, but have become stable or firmed up in some sectors since mid-year. Reflecting the adjustment to the over supply situation made by some developers, the supply of new private sector property, in terms of total usable floor area of all buildings completed, fell in 1984. However, the value index of construction work performed by main contractors in the first three quarters of 1984 was about the same as in the corresponding period in 1983.

Movements in land prices are closely related to movements in the prices of property. Although there is no reliable overall measurement of movements in land prices, land prices seemed to have remained largely steady in 1984, with some indications of increased confidence by developers towards the end of the year.

The Financial Scene in 1984

The global performance of the US dollar and developments over the future of Hong Kong were the dominant factors affecting the financial scene in 1984. During the year, the exchange rate of the Hong Kong dollar held relatively steady against the US dollar. It was traded for most of the time within half a per cent on either side of the linked rate of $7.80 per US dollar in February and March. In line with the world-wide strength of the US dollar, the Hong Kong dollar appreciated against many other currencies and the trade-weighted exchange rate index advanced sharply to close the year at 75.9, representing an appreciation of 11.1 per cent over the end of 1983. Thus, the linked exchange rate system adopted in October 1983 had achieved its principal aim of stabilising the exchange rate and restoring confidence in the Hong Kong dollar.

The stable performance of the Hong Kong dollar was, nevertheless, associated with considerable fluctuations in local interest rates. The behaviour of the monetary aggregates was also quite volatile, and interpretation of their movements was further complicated by unmeasured but seemingly varied activity in foreign currency swap deposits. At the beginning of the year, speculation of a revaluation of the linked rate against the US dollar caused a substantial expansion in Hong Kong dollar deposits, which exerted severe downward pressure on money market rates and on local administered interest rates. This was followed by several increases in administered rates in the following four months to counter the pressure generated by the switch back into foreign currency deposits as the likelihood of any revaluation of the Hong Kong dollar link receded and as US dollar interest rates firmed. But with the favourable shift in political sentiment towards the end of September upon the initialling of the Sino-British draft agreement on the future of Hong

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Kong, there was a recovery in the growth rate of Hong Kong dollar deposits and admin- istered interest rates also eased. Reflecting the changes in Hong Kong dollar deposits, both the Hong Kong dollar and foreign currency components of the money supply fluctuated during the year. But for the year as a whole, they both recorded significant increases. Meanwhile, some shift in deposits from banks to deposit-taking companies was recorded during the second and the third quarters, because the interest rates offered by the latter, being closely related to money market rates, were mostly above those set by the Hong Kong Association of Banks during this period. But the shift was reversed in favour of banks in the fourth quarter, as money market rates generally eased.

      The monetary sector expanded further with five more bank licences granted to foreign banks, and four additional deposit-taking company licences and six new registrations of deposit-taking companies granted during the year. There were several revocations and suspensions of deposit-taking company registrations, mostly due to failure to meet statutory liquidity or capital requirements. This was not indicative of any serious problems in the deposit-taking company sector, which may arguably emerge stronger overall as a result of some rationalisation.

      The Hong Kong stock market continued to function efficiently and contributed actively to the channelling of equity finance. During the year, there were eight flotations of new shares, four companies made rights issues and four others made private placements, with a total of $2,158 million raised in equity capital. Although trading in certificates of deposit was less buoyant when compared with 1983, probably because holders preferred to hold these instruments to maturity now that the withholding tax on Hong Kong dollar deposits has been abolished, a market in commercial paper began to emerge in 1984. In April, the government launched a bond issue (the first since 1975) of a nominal value of $1,000 million, which was heavily over-subscribed. As these bonds qualified as liquid assets under the Banking and Deposit-taking Companies Ordinances, a large portion was held by banks and deposit-taking companies and there was little trading of the bonds in the secondary market.

Political uncertainties continued to affect the stock market, which exhibited wide fluctuations during the year. The turnover on the four stock exchanges in 1984 was: Far East Exchange, $19,882 million; Hong Kong Stock Exchange, $11,215 million; Kam Ngan Stock Exchange, $17,615 million; and Kowloon Stock Exchange, $75 million. The total turnover of $48,787 million was 31.3 per cent higher than in 1983. The Hang Seng Index ended the year at 1 200.38 (July 31, 1964100), as compared with 874.94 at the end of 1983. The highest point reached during the year was 1 206.83, recorded on December 24.

The turnover on the Commodity Exchange in 1984 was: sugar, 167 524 lots of 50 long tons each; soyabeans, 372 352 lots of 30 000 kg each; and gold, 5 845 lots of 100 troy ounces each.

      Trading in gold on the Chinese Gold and Silver Exchange Society was fairly active in 1984. Prices paralleled those in the other major markets of London, Zurich and New York, fluctuating between a high of $3,767 and a low of $2,803 per tael of 99 per cent fine gold. The price of gold loco London declined to US$308 at the end of 1984, from US$384 per troy ounce at the end of 1983.

Inflation

The rate of inflation, as measured by the increase in the Consumer Price Index (A), averaged 8.1 per cent in 1984. This represents a slowing down from 10.0 per cent in 1983 and 10.6 per cent in 1982. On a year-on-year comparison, the rate of increase slowed down

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from 12.4 per cent in January 1984 to 4.6 per cent in December. The moderation in the rate of inflation was helped by a stable Hong Kong dollar in terms of the US dollar under the linked exchange rate system. Because of the global strength of the US dollar, the Hong Kong dollar in fact strengthened against many other currencies. Other factors were also favourable. For example, the moderate increase in domestic demand in the economy was not imposing undue pressure on the overall supply of resources, domestic credit demand increased only modestly, and the rate of inflation in Hong Kong's major trading partners remained moderate.

      Among all the components of goods and services in the Consumer Price Index (A), clothing and footwear, services, housing, and transport and vehicles recorded the most rapid rates of increase during the year, at 10 per cent, 10 per cent, nine per cent and nine per cent respectively. While 71 per cent of the overall increase in the index was accounted for by these four components, another 25 per cent was due to the footstuffs components, by virtue of its large weighting in the overall index.

Expenditure on the General Revenue Account in 1983-4 and 1984-5

In the financial year 1983-4, total expenditure on the General Revenue Account was $33,393 million, comprising recurrent expenditure of $22,876 million and capital expendi- ture of $10,517 million. Estimated expenditure in 1984-5 is $37,333 million, comprising recurrent expenditure of $26,933 million and capital expenditure of $10,400 million. In 1983-4, there was a deficit of $2,993 million, and for 1984-5 an overall deficit of $2,139 million, of which $1,000 million was to be financed by the issue of Government Bonds, was anticipated in the Budget. Detailed breakdowns of revenue by source are given at Appendices 9 and 9a, and of expenditure by function at Appendices 10 and 10a. A comparative statement of recurrent and capital revenue and expenditure is given at Appendix 11, while a statement of revenue from duties is given at Appendix 12. At March 31, 1984, the accumulated reserves stood at about $16,077 million. At the same date, the public debt amounted to $390 million.

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SDIE

Employment

HONG KONG has a resourceful and energetic workforce of 2 541 500 - comprising 1 600 600 men and 940 900 women as estimated from findings of the July - September 1984 General Household Survey. They are engaged in: agriculture and fishing, mining and quarrying, 29 800; manufacturing, 959 400; electricity, gas and water, 12 100; con- struction, 201 700; wholesale and retail trade, restaurants and hotels, 549 600; transport, storage and communications, 203 000; financing, insurance, real estate and business services, 130 600; community, social and personal services, 455 200; and unclassifiable activities, 100.

An establishment survey of Employment, Vacancies and Payroll in the manufacturing sector, held in September 1984, recorded 904 709 people engaged in 48 992 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 380 782 people - the largest portion 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 at 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 25 per cent of the manufacturing workforce now works there.

Labour Legislation

During 1984, 10 items of labour legislation were enacted to provide for higher standards of safety, health and welfare of workers. This brings the total number of items of labour legislation enacted in the last 10 years to 152.

The Employment Ordinance was amended in 1984 to improve the provisions regarding severance payment, to clarify the obligations of employers in respect of contractual end-of-year payments, to re-assign one of the two 'floating' holidays consequent upon amendments to the Holidays Ordinance, and to make various minor amendments. Action was also being taken to legislate for the establishment of a Protection of Wages on Insolvency Fund to protect workers against loss of wages in the event of their employers becoming insolvent. In this connection, the Business Registration Ordinance was amended to provide for the imposition of an annual levy on companies required to hold business registration certificates as a source of finance for the operation of the fund.

      The Apprenticeship Ordinance was amended to empower the Director of Technical Education and Industrial Training to exempt, with the approval of the Commissioner for Labour, any person or class of persons from any regulation made under the ordinance.

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With advice from employers' associations and employees' unions, considerable progress was achieved in formulating proposals for a scheme of compulsory employment of safety officers and safety supervisors in the construction industry.

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 1984, Hong Kong had applied 30 conventions in full and 19 with modification, making a total of 49. This compares favourably with most member nations in the region.

       During the year, there were 7 140 prosecutions for breaches of ordinances and their regulations administered by the Labour Department. Fines totalling $7,883,530 were imposed.

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.

       Wages 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 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, supervisory, clerical and secretarial capacities. On the other hand, monthly rates of pay are most common for workers in the non-manufacturing industries. Men and women receive more or less 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 1984. After allowing for the increase in consumer prices, there was an increase of 1.7 per cent in real terms during the 12 months ending September 1984. Hong Kong's domestic export performance continued to show significant improvement in both money and real terms throughout the year. The improvement helped to reduce unemployment and under- employment and to sustain wage increases.

      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 urban households spending between $1,000 and $3,499 a month in the base period of 1979-80. In December 1984, this index stood at 156.7 (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 1984, 75 per cent of manual workers engaged in manufacturing industries received daily wage rates (including fringe benefits) of $74 or more (males $85 and females $72), and 25 per cent received $106 or more (males $123 and females $100). The overall average daily wage rate was $91 (males $106 and females $86).

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

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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 establishments. Since March 1982, an expanded survey of wages, salaries and employee benefits has been con- ducted, to record wage rate statistics for non-manual workers in the manufacturing in- dustries as well as for manual workers and non-manual workers in the non-manufacturing industries.

      The Employment of Children Regulations, made under the Employment Ordinance, prohibit the employment of children under the age of 15 in any industrial undertakings. Children who have attained the age of 13 may be employed in non-industrial establish- ments subject to very stringent conditions aimed at ensuring their education to Form 3 and at protecting their health, safety and welfare.

      Under the Women and Young Persons (Industry) Regulations, women and young persons aged 15 to 17 are permitted to work eight hours a day and six days a week in industry. Women and young persons aged 16 and 17 must be given a break of at least 30 minutes after five hours of continuous work. In the case of young persons aged 15, the break must not be less than one hour. Women may be employed to work overtime for not more than two hours a day and 200 hours a year. Overtime employment of young persons is not permitted. Furthermore, women are not allowed to work between 8 p.m. and 6 a.m., while young persons are prohibited from working between 7 p.m. and 7 a.m. The regulations also prohibit women and young persons from working underground or in dangerous trades. Although night work for women is forbidden, 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 early 1984, the Labour Inspectorate of the Labour Department has taken up the responsibility for enforcing the provisions on compulsory insurance of the Employees' Compensation (Amendment) Ordinance. Under this, all employers are required to take out an insurance policy to compensate employees or their dependants for injury or death resulting from accidents arising out of and in the course of employment. They must also display notices giving details of the insurance policy.

In 1984, the Labour Inspectorate made 276 504 day and night inspections of places of employment which included both industrial and non-industrial establishments. Three special campaigns were conducted against the employment of children and illegal im- migrants, covering 31 450 establishments. During the year, 238 cases of child employment involving 238 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.

Control on Illegal Employment

Under the Immigration Ordinance, employers are prohibited from employing persons who have no valid proof of identity and those Vietnamese refugees who have been prohibited from taking up employment. The ordinance also requires all persons to carry proof of their identity and employers to maintain up-to-date records of their employees. These legislative requirements which aim at stopping the flow of illegal immigrants into Hong Kong are currently enforced by the Labour Inspectorate.

JOCKEY CLUB CENTENARY

Community the Winner

The Royal Hong Kong Jockey Club looked back on an enviable record of service to the community as it celebrated its centenary in 1984. Through the years the non-profit making club has funded an almost boundless range of worthy projects covering education, health, recreation, social welfare and the arts. The funds surplus revenue from racing operations - are disbursed through Hong Kong Jockey Club (Charities) Ltd. Allocations to chari- table and community projects in 1983-4 totalled $266 million, while over $1,560 million has been allocated to charities since Hong Kong racing turned profes- sional in 1971-2. Major projects financed wholly or partly by the club range from hospitals, clinics and schools to sports complexes, swimming pools and parks. Large projects completed in recent years include Ocean Park and the Jubilee Sports Centre in Sha Tin, which have added a new dimension to leisure, recreation and sport. The cultural life of the community has been enriched through the club's support for organisations both large and small. Fittingly, at year's end the club's major cultural undertaking, the Hong Kong Academy for Performing Arts, was substantially complete. The club further- more announced it was donating $200 million towards the Museum of History and the Museum of Science and Tech- nology. The spread of the assistance reaches every corner of the community: in 1983-4, more than 94 charitable organisa- tions and community projects received financial support.

Previous page: The hills of Sha Tin valley form a picturesque backdrop as Tony Cruz, reigning champion jockey in the centenary season, takes a mount to the starting stalls. Left: In the parade ring at Sha Tin; fans absorbed in a race; 'They're off!'

At both Sha Tin and Happy Valley courses, a large computerised video screen situated in front

of the stands enables patrons to follow a race from start to finish.

This image is unavailable for access via the Network

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

M

Top: The spectacle at Happy Valley in 1858, 26 years before the Jockey Club was formed.

Above: The modern racecourse at Sha Tin, which was opened in 1978.

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   One of the club's manifold community projects is the Jubilee Sports Centre in Sha Tin. Top: A test of strength during a company's sports day held at the centre. Above: Graceful gymnasts training at the centre.

The Octopus a-go-go, one of several 'thrill rides', including a roller coaster, provided by a $240 million redevelopment at Ocean Park.

Lady Youde, wife of the Governor, admiring a friendly macaw after opening the Royal Hong Kong Jockey Club's Centenary Rock Garden in Ocean Park. The garden's attractions include a Centenary Pagoda (background).

3

ORFULA

RIDING

Waarhe The fusers Sup

Super Stuck

The Jockey Club's riding school at Pok Fu Lam provides horse riding for the handicapped as well as classes for other members of the public.

EMPLOYMENT

Trade Unions

109

Trade unions in Hong Kong 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, eight new unions were registered; three of these were formed by civil servants. At the end of the year, there were a total of 432 unions comprising 383 employees' unions with about 351 820 members, 33 merchants' or employers' organisations with some 3 190 members, 15 mixed organisations of employees and employers with about 26 290 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, which supports the policies of the govern- ment of the People's Republic of China, has 73 affiliated unions with about 168 280 members. A further 17 unions are friendly towards this federation and they have about 19 680 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 supports the policies of the authorities in Taiwan and is affiliated with the International Confederation of Free Trade Unions. It has 71 affiliated unions with a membership of about 35 700 and seven associated unions with some 810 members. These unions are mainly in the catering and building trades.

       The remaining 216 employees' unions are politically independent and have a membership of about 127 350, mostly drawn from the Civil Service and the teaching profession.

Labour Administration and Services

The Labour Department has an establishment of 1 651 and its services continue to expand. 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 department initiates labour legislation and ensures that Hong Kong's obligations under international labour conventions are observed. It is made up of 16 divisions: administration, air pollution control, development, information and public relations, employees' compensation, employment services, factory inspectorate, labour relations, mines, occupational health, pressure equipment, prosecutions, selective placement, staff training and development, women and young persons, and the youth employment advisory service and overseas employment service.

        During the year, the Staff Training and Development Division organised two induction courses for 41 new recruits and 12 in-service training courses for 535 serving officers. In addition, a total of 29 officers were sent overseas for further training and in preparation for new areas of service to be provided to the public.

Labour Relations

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

       In 1984, 147 trade disputes were handled by the conciliation service provided by the Labour Relations Service of the Labour Department. These disputes led to 11 work

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stoppages, with a loss of 310 man-hours in one of the stoppages and a total of 3 083 working days in the other 10. This compared with 2 530 days lost in 11 stoppages in 1983. The service also dealt with 17 560 labour problems. These were mostly grievances involving individual claims for wages in lieu of notice, severance pay, wages in arrears, annual leave pay and holiday pay.

During the year, the Promotion Unit of the Labour Relations Service - responsible for the promotion of harmonious labour-management relations - made 452 advisory visits to employers and conducted a series of promotional activities. These included 37 training courses on the Employment Ordinance and four seminars on labour relations. A total of 1 892 management personnel, union officials and workers' representatives took part. In addition, four mini-exhibitions were organised on a district basis and attracted a total of 20 000 people.

In February, the Wage Security Fund Unit was established under the Labour Relations Service to undertake all preparatory work relating to the setting up of the Protection of Wages on Insolvency Fund. The Working Group on Problems Experienced by Workers of Companies in Receivership recommended that a statutory fund, financed mainly by a levy on business registration certificates, should be set up to make payments of arrears of wages up to the preferential limits under the Companies and Bankruptcy Ordinances to workers whose employer is presumed insolvent and unable to pay these wages.

The Labour Tribunal, which is part of the Judiciary, provides a quick, inexpensive and informal method of adjudicating certain types of dispute 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 1984, the tribunal heard 3 560 cases involving employees as claimants, and a further 328 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, 93.98 per cent were referred by the Labour Relations Service after unsuccessful conciliation attempts.

Finding Employment

The Labour Department provides a free placement service for job-seekers. The Local Employment Service helps employers to recruit suitable staff and job-seekers to secure employment. It operates from 15 offices which are linked by a facsimile system for the efficient transmission of information on employment opportunities. The Central Recruit- ment Unit, an extension of the Local Employment Service, acts as the central agency for all government departments in the recruitment of non-pensionable staff such as artisans, drivers and labourers. During the year, 40 918 people were successfully placed in employ- ment including 2 949 who found jobs in the Civil Service.

The Special Register gives free employment assistance to graduates of local and overseas universities and job-seekers possessing post-secondary or professional qualifications. During the year, 406 people found employment through this register.

The Selective Placement Service was started in 1980 to provide specialised placement assistance free of charge to physically handicapped people seeking open employment. With effect from the second half of 1984, the service was extended to cater also for the mentally retarded and former mental patients. The Employment Service of the Hong Kong Council of Social Service and other voluntary agencies remain responsible for the placement needs of socially maladjusted job-seekers. During the year, 704 disabled people found work through the Selective Placement Service.

EMPLOYMENT

Careers Service

111

The Youth Employment Advisory Service of the Labour Department is engaged in a programme of activities geared to helping students and young people choose a career best suited to their interests and abilities. In 1984, officers of the service gave 612 careers talks to 110 761 students in 254 secondary schools, organised seven regional careers conventions in conjunction with the Hong Kong Association of Careers Masters, took part in 35 other careers-oriented activities, and mounted the 13th large-scale annual careers exhibition at the City Hall which attracted 100 300 visitors. The service has altogether produced 42 pamphlets giving careers information on a wide range of jobs.

       The service operates three careers information centres, each equipped with a reference library as well as slides, video-cassette recordings and cassette recordings on employment and training opportunities. In 1984, some 38 196 students and young people visited the

centres.

      The service also organised training programmes for careers teachers, in co-operation with the Education Department.

Overseas Employment

The Contracts for Overseas Employment Ordinance controls contracts entered into in Hong Kong between overseas employers, or their authorised representatives, and manual workers proceeding overseas for employment. Such contracts must be attested by the Commissioner for Labour before the workers leave Hong Kong. During the year, 834 contracts were attested, compared with 185 in 1983.

Foreign Domestic Helpers

Administrative measures are in force to regulate the employment of domestic helpers recruited from overseas, mainly from the Philippines, under contracts that must be attested by the Labour Department. During the year, 19 883 such contracts were attested. The department is also responsible for conciliation of disputes between foreign domestic helpers and their local employers. During the year, 526 claims, 1 539 consultations and 37 933 enquiries were handled.

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 188 licences to employ- ment agencies dealing with local employment, and 24 to those catering for employment

overseas.

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 other dangerous occurrences.

      The Construction Sites (Safety) (Amendment) Regulations 1983, which provide for the better protection of persons, particularly with regard to working at height, came into

112

EMPLOYMENT

     operation on February 1, 1984. Specific requirements are laid down in the regulations as to the safety of workplaces and the means of access and exit.

The Metal-ware Industry Safety Sub-committee, the fifth industry-based, tripartite safety sub-committee, was formed in February under the Labour Advisory Board Committee on Industrial Safety and Accident Prevention. Sub-committees for the construction, textiles, shipbuilding and ship repairing, and plastics industries were set up between 1980-2. These sub-committees bring together representatives of employers, workers and the Labour Department to promote work safety in various industries.

      The Factory Inspectorate, in collaboration with the Information Services Department, continued to expand its publicity programme for the promotion of industrial safety through extensive use of the media and other means. A revised version of Safety Extravaganza, an audio-visual presentation on industrial safety first shown in Hong Kong in 1982, was shown at Kowloon Bay in February and at an industrial safety and health exhibition in Tsim Sha Tsui in May.

The Labour Advisory Board Committee on Industrial Safety and Accident Prevention held a photographic competition for employees with industry safety as the main theme at the end of the year. Seminars were organised by the construction, plastics and ship- building and ship repairing industries safety sub-committees for workers in these industries. For the second time, the construction industry safety sub-committee organised a safety award scheme and the textiles industry safety sub-committee also organised a safety day to promote safety awareness among people engaged in that industry. The main committee also organised a seminar for top-level executives from industry on cost effectiveness in safety at work. The seminar was held in December, and the Chief Factory Inspector, United Kingdom, was the principal speaker.

      Throughout the year, the Factory Inspectorate's Industrial Safety Training Centre provided safety training courses for workers from various industries and for technical students. In conjunction with the Hong Kong Polytechnic, the centre organised for the sixth successive year an evening course, and for the second time a part-time day-release programme, leading to a certificate of proficiency in industrial safety. In addition, the department assisted the Construction Industry Training Authority to run a construction safety officer course which started in August.

Pressure Equipment Division

The Pressure Equipment Division of the Labour Department enforces the requirements of the Boilers and Pressure Receivers Ordinance and the Gasholders Examination Ordinance for ensuring the safe use and operation of all equipment covered by the ordinances. This includes all types of boilers, steam receivers, steam containers, air receivers, cement tanks on trucks and trailers and gasholders for storage of town gas. The division gives industry, the Fire Services and other government departments technical advice relating to pressure equipment, especially that covered by the Dangerous Goods Ordinance. It continues to provide short training courses for operators of electrically heated ironing boilers.

The division conducts examinations for boiler attendants for the issue of certificates of competency and approves qualified engineers in the private sector as appointed examiners under the Boilers and Pressure Receivers Ordinance. These examiners are authorised to approve the material, design and fabrication techniques of all pressure equipment covered by the ordinance and they undertake periodic inspections of the equipment. The ordinance also gives approval to local companies as inspection authorities for inspection and certification of boilers and pressure receivers manufactured in Hong Kong.

EMPLOYMENT

Occupational Health and Hygiene

113

The Occupational Health Division of the Labour Department provides an advisory service to the government and the public on matters concerning the health of workers and the hygiene of the workplace and complements the Factory Inspectorate Division in super- vising health standards and practices in industry. It works to maintain and improve the physical and mental well-being of workers and to protect them against any health hazard arising from their employment. During the year, the division participated in a number of seminars and exhibitions for the promotion of occupational health and also published a series of booklets and codes of practice on the prevention of occupational hazards.

      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 were conducted in various industries and an epidemological study on the health and hygiene conditions in quarries and construction sites is underway.

The division carried out medical examination of personnel exposed to ionising radiation, government divers and compressed air workers. It also deals with cases of silicosis under the Pneumoconiosis (Compensation) Ordinance. The division's nurses handle medical clear- ance for employees' compensation cases and its occupational health officers are appointed as members of assessment boards under the Employees' Compensation Ordinance.

The Occupational Health Division's laboratory carries out analytical tests on biological samples from workers and other environmental samples taken during site visits.

Employees' Compensation

The Employees' Compensation Division of the Labour Department administers the Employees' Compensation Ordinance and the Pneumoconiosis (Compensation) Ordin- ance. 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 persons covered by the Pneumoconiosis (Compensation) Ordinance obtain compensation as soon as possible from the Pneumoconiosis Compensation Fund, which is financed by a levy imposed on the construction and quarry industries.

The provisions on compulsory insurance under the Employees' Compensation Ordin- ance were brought into effect on January 1, 1984. These provisions require all employers to insure against their full liabilities for both compensation under the ordinance and damages in civil actions independent of the ordinance for any injury sustained by their employees from accidents arising out of and in the course of employment. The second schedule to the ordinance was also revised and expanded to include a number of diseases for which a causual connection with certain occupations has been established in recent years. The new certification system for the settlement of minor claims is working satisfactorily and has helped to speed up the processing of such claims.

Under the two-tier Employees' Compensation Assessment Board System, the Ordinary Assessment Boards and the Special Assessment Boards have been in operation since August and October 1983 respectively. In 1984, the Ordinary Assessment Boards convened 529 sessions to make 14 842 assessments and 495 review assessments of claims for employees' compensation, and the Special Assessment Boards convened 39 sessions to make 70 assessments of claims referred to them by the Ordinary Assessment Boards and six review assessments.

7

璜菜

童明禁

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. Only about two per cent of the labour force is engaged in primary production - agriculture and fisheries - yet its people, according to the Food and Agriculture Organisation of the United Nations, 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, 600 head of cattle, 250 tonnes of poultry, 450 tonnes of fish and 1 000 tonnes of fruit. Much of this is imported, but Hong Kong farmers help to satisfy some of the demand. In quantity terms, local farmers produce about 31 per cent of fresh vegetables, 55 per cent of live poultry, 20 per cent of live pigs, and 12 per cent of freshwater fish, while the fishing fleet of nearly 5 000 vessels supplies about 90 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 20 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 mainly of high-value, perishable foods and full advantage is taken of the local consumers' preference for fresh food, as opposed to frozen or chilled food.

Agriculture and Fisheries Department

The Agriculture and Fisheries Department encourages 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 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. Statistics on production factors and food supplies, including imports, are collected and

PRIMARY PRODUCTION

115

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 of vegetables, flowers and fruit. The department advises livestock farmers on modern methods of animal production, supplies good quality breeding stocks of pigs and poultry, and provides an artificial insemination service for pigs.

       Fisheries research is conducted on marine resources, aquaculture, hydrography and the effects of marine pollution on the fisheries environment. In marine resources, emphasis is placed on investigating new offshore fish stocks for commercial exploitation within the range of the Hong Kong fleet and on monitoring the performance of existing capture fisheries.

       Aquaculture research is concerned with the development both of more efficient culture systems for fish and molluscs and of improved methods of producing marine fish fry. Hydrographic investigations are designed to supply environmental information for an assortment of biological programmes. Research is also aimed at assessing the impact of pollution, including red tides, on fisheries, particularly mariculture, in order to minimise production loss.

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 1984, there were 5 900 rotary cultivators and 2 335 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 their installation for better farming results. The cultivation of edible mushrooms has gained considerable popularity in recent years and at the end of 1984 there were 53 mushroom farms. The locally produced mushroom has about a 85 per cent share of the local market.

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.

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 600 farmers attended farm discussion groups led by professional and technical officers from the department and 63 600 visits were made 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

Urban Council Public Libraries

City Hall, Hong Kong.

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PRIMARY PRODUCTION

arrangement is provided for fishermen, while experiments and demonstrations are con- ducted to test the suitability of new fishing gear. Training classes in navigation and business management for coxswains, engineers and radio-telephone operators working on fishing boats are organised in the main fishing centres.

Education is provided for the children of fishermen at 13 schools) run by the Fish Marketing Organisation. At the end of 1984, more than 3 613 children were attending these schools. A further 44 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, 1984, loans issued since the inception of these three funds had reached a total of $203 million. Of this, $188 million had been repaid.

The Fisheries Development Loan Fund, with a capital of $7 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, which has operated as a revolving loan fund since January 1, 1983, by the transfer of $13 million from the organisation's surplus and deficit account, is another important source of loan finance for fishermen. The department administers another revolving loan fund, financed by the Co-operative for American Relief Everywhere (CARE), specifically for shrimp fishermen. On December 31, 1984, loans issued since the inception of these four funds totalled $138 million, of which $120 million had been repaid.

Co-operative societies operate under a Co-operative Societies Ordinance, which provides for the appointment of a registrar - the Director of Agriculture and Fisheries. His powers and duties relate to the registration of co-operative societies and their by-laws, the auditing of accounts, inspection and inquiry, general supervision of operations, and such matters as mediation in disputes and dissolution of co-operative societies when necessary. At the end of the year, some 11 760 farmers and more than 1900 fishermen were members of co-operative societies. There were 76 societies and two federations among the farming community, and 68 societies and four federations supported by fisherfolk. A further 252 societies and one federation formed by co-operative building societies with about 8 660 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 65 credit unions with about 19 900 members registered with the Agriculture and Fisheries Department. There are 33 credit unions comprising groups of people having a common bond of association, 25 unions of people having bonds of employment, and seven unions formed by groups each with a common bond of residence.

PRIMARY PRODUCTION

Land Usage

117

Hong Kong's land area totals 1067 square kilometres. Of this, 9.0 per cent is used for farming, 74.7 per cent is marginal land with different degrees of sub-grade character, and built-up areas comprise the remaining 16.3 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, however, has 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

100

9.4

22 12

(ii) Rural developed lands

74

6.9

(iii) Woodlands

125

(iv) Grass and scrub lands

625

11.7 58.6

(v) Badlands

46

4.3

        (vi) Swamp and mangrove lands (vii) Arable

0.1

75

7.0

(viii) Fish ponds

Agricultural Industry

21

2.0

Remarks

Main urban area of Hong Kong Island, Kowloon and six new towns in the New Territories (Tsuen Wan, Tuen Mun, Yuen Long, Fanling, 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 lands, 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.

Fresh and brackish water fish farming exclud- ing coastal marine fish farms but including fallow farms.

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

Common crops are vegetables, flowers, fruit and other field crops. The value of crop production has increased from $93 million in 1963 to $460 million in 1984. Vegetable production accounts for more than 31 per cent of the total value, having increased from $64 million in 1963 to $364 million in 1984.

The main vegetable crops are white cabbage, flowering cabbage, lettuce, Chinese kale, radish, watercress, leaf mustard, spring onion and chives. They grow throughout the year, with peak production in the cooler months. Water spinach, string beans, Chinese spinach, green cucumber and many species of Chinese gourd are produced in summer. A wide range of exotic temperate vegetables including tomato, sweet pepper, cabbage, celery, head lettuce, cauliflower and carrot is grown in winter. Straw mushroom is also produced, using industrial cotton waste as the growing medium.

Among the common types of flowers, gladioli and chrysanthemums grow throughout the year; dahlias, roses, asters, snapdragons and carnations are produced in winter; ginger lilies and lotus flowers in summer. A wide range of ornamental plants - including philodendrons, dieffenbachia, bamboo palms and poinsettia - is produced in commercial

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PRIMARY PRODUCTION

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 4 790 hectares in 1976 but has since declined gradually to 2 760 hectares in 1984, mainly as a result of new town development.

The amount of land used to cultivate rice has dropped from 9 450 hectares in 1954 to less than 10 hectares in 1984. Rice production has given way to intensive vegetable production, which gives a far higher return. Much former paddy land around the more remote villages has fallen into disuse and now lies fallow.

      Various types of fruit are grown in Hong Kong. The principal crops are longan, lychees, wampei, tangerines, local lemons, bananas and guavas. Land under orchards in 1954 totalled 390 hectares; by 1984 it was 600 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 60 hectares were under rain-fed crops in 1984 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. The value of locally produced pigs killed in 1984 amounted to $364 million.

The production value of poultry, including chickens, ducks, pigeons and quails, amounted to $631 million in 1984. Local chicken production, still suffering from the after-effects of the chicken hormone problem in 1983, decreased by 8 per cent to about 14 million birds, representing 60 per cent of total consumption.

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. 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 carried out 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 canine movement into and out of the gazetted rabies- infected area. By the end of the year, 14 000 dogs had been humanely destroyed and another 35 000 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, lizardfishes, big-eyes, croakers and squids.

Total estimated production from the two major sectors - marine capture and culture fisheries amounted to 200 000 tonnes with a wholesale value of $1,750 million in 1984. These figures represent an increase of six per cent in weight and nine per cent in value compared with 1983. Of the total production, 96 per cent in weight came from marine

PRIMARY PRODUCTION

119

      capture and four per cent from culture fisheries. In terms of wholesale value, 90 per cent came from marine capture and 10 per cent from culture fisheries.

       An estimated 29 000 fishermen work a fleet of 5 000 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 68 per cent or 78 000 tonnes of marine fish landed in 1984. The total landed catch of live and fresh marine fish available for local consumption in 1984 amounted to 95 000 tonnes, with a wholesale value of $720 million. This represented 90 per cent of the local consumer demand.

      Pond fish farming is the most important culture activity. Fish ponds covering 1 640 hectares are located in the New Territories, principally in the Yuen Long district. Traditional pond fish farming is similar to that practised in China for hundreds of years. Several different carp species are cultured in the same pond, each deriving its food from a different source and 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, the ponds yielded 6 500 tonnes, or 12 per cent of the local consumption of freshwater fish.

Marine fish culture has developed considerably in the past decade. 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. Under the Marine Fish Culture Ordinance, 27 fish culture zones have been designated and all marine fish culture is now required to be conducted at sites within these zones under licence issued by the Director of Agriculture and Fisheries.

       In 1984, live marine fish supplied by this activity amounted to 1 300 tonnes valued at $98 million.

Marketing

Much of the wholesale marketing of primary products - particularly fresh foods - is the responsibility of the Agriculture and Fisheries Department and the Vegetable and Fish Marketing Organisations. During 1984, 49 per cent of the total quantity of locally produced vegetables, and 70 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 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 secondary and tertiary education scholarships to the children of farmers. During the year, 74 098 tonnes of vegetables valued at $174 million were sold through the organisation.

       The Fish Marketing Organisation operates under the Marine Fish (Marketing) Ordin- ance, 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 organisation operates seven wholesale fish markets. Revenue comes 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

120

PRIMARY PRODUCTION

to fishermen, improvements to the markets, financial support for the 13 schools for fishermen's children, and scholarships for secondary and tertiary education.

      In 1984, the wholesale fish markets handled 75 000 tonnes of marine fish, crustacea and molluscs which were sold for $540 million. This included 780 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 on to 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 introduced a number of temporary wholesale markets at Cheung Sha Wan in Kowloon for fresh water fish, poultry and imported vegetables, and at Western District on Hong Kong Island for fruit.

Mining

At the end of 1984, one mining lease and three mining licences for extraction of feldspar and kaolin were in operation. Details of the leases and licences are published twice a year in the Government Gazette.

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

Most of the tunnelling works for the Mass Transit Railway's Island Line project had been completed and the consumption of explosives decreased gradually towards the end of the year. Storage space was provided for about five tonnes of fireworks for a display. in February to mark the Lunar New Year. Space was also provided for about 2.3 tonnes of fireworks for a display in December to mark the opening of the New Town Plaza in Sha Tin and also to instil a sense of belonging among the community and to further promote the work of the Sha Tin District Board. Approval was given for continued importation and use in Hong Kong of Chinese-manufactured explosives and blasting accessories after storage and firing tests were undertaken by the Mines Division. The consumption of explosives during the year was 4 337.5 tonnes.

8

XXD

100

Education

AN Education Commission was set up in April to co-ordinate and give consolidated advice on educational policy in Hong Kong. It was established in response to one of the major recommendations made in the report A Perspective on Education in Hong Kong by an international panel of visitors appointed by the government to conduct an overall review of the local education system.

During the year, the approved policies for all levels of education as set out in the White Papers of 1974, 1978 and 1981 continued to be implemented. Some $287.3 million in capital expenditure and $6,024.7 million in recurrent expenditure was provided for education in the government's estimates for 1984-5, representing 16 per cent of the total Budget.

The School Building Programme continued to make progress. During the year, 16 primary schools were completed, providing 33 480 places on a bisessional basis. Fourteen of these schools were located within public housing estates in the new towns or in urban areas. The first centralised primary school, established to replace small village schools in remote areas, came into operation at Sai Kung in September.

The year also saw further expansion in secondary education. Thirteen secondary schools were completed, providing 14 920 school places. Approval was given for another 11 new secondary schools to be constructed between 1987 and 1991, mainly in the new towns. The additional schools will increase the total number of secondary schools in the Secondary School Building Programme from 130 to 141, of which 110 schools have already been completed.

The Codes of Aid for Primary Special Schools and Special Classes and for Secondary Special Schools and Special Classes, which prescribe the rules and conditions under which government subsidies are granted, were replaced by the Unified Code of Aid for Special Schools in April. Improvements under the new code include an increased teacher to class ratio, and the provision of additional graduate teachers, speech therapists and para- medical staff.

In May, the government announced a further two non-graduate teachers would be provided for each standard-size government and aided secondary school, one in September 1986 and the other in September 1987. This followed the provision of two additional graduate teachers in September 1982 and a third graduate teacher in September 1983. The additional staff will enable schools to improve services in remedial teaching, pupil counselling and guidance, and extra-curricular activities which complement and reinforce the formal curriculum.

Under a pilot scheme organised by the Education Department in accordance with the government's aims stated in the 1978 White Paper on the Development of Senior Secondary and Tertiary Education, Computer Studies is now an examination subject for the Hong Kong Certificate of Education Examination and is taught at Form 4 and Form 5 † Figures should read: $934.7 million in capital expenditure and $5,913 million in recurrent expenditure.

122

EDUCATION

level in selected secondary schools. Computer Studies is being introduced into public sector secondary schools by phases. The first phase of the pilot scheme was launched in September 1982, when the subject was introduced in 30 government and aided secondary schools, and an encouraging pass rate was achieved by the students who completed the course. Under Phase 2 of the pilot scheme, the subject was offered in a further 75 government and aided secondary schools from September. The number of microcomputers and peripherals provided for each participating school has also been increased from nine sets to 11. It is intended to strengthen and expand the scheme so that all public sector schools can eventually include this subject in their curriculum. The principal aim of Computer Studies is to give students a basic understanding of the functions of the microcomputer and its application to the modern world, and the syllabus is intended to develop problem-solving skills and inculcate an awareness of data processing concepts.

      The new Hong Kong Academy for Performing Arts (see Chapter 19), opened in September in temporary premises, has added variety to the tertiary education sector. It is an independent institution governed by its own ordinance and is financed by the government through the Recreation and Culture Department.

Kindergartens

     In September, there were 775 kindergartens in Hong Kong providing pre-school education for 226 450 children in the three-to-five year 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 the public. In-service training for teachers is provided through seminars, exhibitions and training courses, including a two-year part-time course conducted at Grantham College of Education and a 12-week part-time course run twice yearly by the Advisory Inspectorate of the Education Depart- ment, with an annual intake of 120 and 360 teachers respectively. Other government assistance includes allocation of premises and reimbursement of rates and rents to non-profit- making kindergartens in public housing estates, and fee assistance to needy parents.

       During the year, four kindergarten teachers were released from their teaching duties to serve on the Education Department's Kindergarten Curriculum Development Team for the production of curriculum materials. In July, the Guide to the Kindergarten Curriculum was issued to all kindergartens for reference.

Primary Education

Primary education has been free in all government schools and nearly all aided schools since September 1971. In the few aided primary schools where fees are charged, they may be remitted for up to 20 per cent of the total enrolment to meet cases of genuine hardship. To help needy parents further, an annual textbook grant of up to $135 per pupil is available to a maximum of 25 per cent of pupils enrolled in government and aided primary schools. A minority of parents continue to send their children to the 98 private primary schools, although places are available for them in the public sector.

       In September, the primary school enrolment totalled 536 220 compared with 539 856 the previous year. In addition, 4 995 pupils attended primary-level night schools for adults. During the past year, 27 180 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. Of the 76 769 children who took part in the second cycle of the Primary One Admission System, 44 696 or 58 per cent were allocated discretionary places in schools of their choice. The remainder were centrally allocated places in schools in their own district by the Education Department.

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The Pupil Record Card System which came into effect with the Primary One Admission System was extended to cover all Primary 1 and Primary 2 pupils in 1984. The system will enable schools and the Education Department to trace the educational history of pupils for record and research purposes.

      Primary 6 leavers are allocated junior secondary school places in the public sector through the Secondary School Places Allocation (SSPA) System. The system is based on internal school assessments, scaled by a centrally administered Academic Aptitude Test, and allocation takes into account parental choice of secondary schools. In July, 89 980 Primary 6 pupils participating in the SSPA were allocated Form 1/Middle I places in government schools, aided schools, private non-profit-making schools in receipt of per capita grants, and private independent schools in the 'bought places' scheme.

      The Student Guidance Scheme provides a school social work service to 844 primary school sessions.

Secondary Education

There are four main types of secondary schools in Hong Kong: Anglo-Chinese grammar schools, Chinese middle schools, technical schools and prevocational schools. The Anglo- Chinese grammar schools had enrolments totalling 375 673, compared with 380 203 in 1983. 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 English. Students with satisfactory 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 1984, there were 63 Chinese middle schools accommodating 36 841 pupils, compared with 38 671 in 1983. 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 21 571 students in 22 schools; 10 of these schools are run by the government and 11 are government-aided. Secondary technical schools prepare their students for the HKCEE with emphasis on technical and commercial subjects. Suitably qualified candidates can continue their studies in Form 6 or at technical institutes, the Hong Kong Polytechnic, the City Polytechnic of Hong Kong or the Hong Kong Technical Teachers' College.

Prevocational schools are government-aided secondary schools which provide students with a general education and an introduction to a wide range of technical skills upon which future vocational training may be based. Since 1981, senior secondary places have been made available to about one-third of the more academically capable Form 3 leavers to enable them to continue their general education up to the Certificate of Education level. The curriculum content is made up of about 50 per cent technical subjects and about 50 per cent general subjects in Forms 1 to 3. The technical content is reduced to about 30 per cent in Forms 4 and 5. It is envisaged that after completion of Form 3, a high proportion of prevocational school 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 at school. In addition, direct entry into the second year of an approved craft apprenticeship may be given.

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At present, there are 13 prevocational schools providing 10 039 places. A further 11 schools of this type have been included in the School Building Programme for completion in the next two or three years.

The Junior Secondary Education Assessment (JSEA) System, which selects and allocates Form 3 leavers to Form 4 places in the public sector, completed its fourth cycle in July. A total of 421 schools, comprising 54 Chinese middle schools, 323 Anglo-Chinese grammar schools, 22 technical schools, 12 prevocational schools, and 10 special schools, participated in the system. Of the 75 580 pupils presented for the assessment, 2 150 discontinued schooling before completing Form 3 or opted out from allocation. Another 1 703 were admitted into full-time post-Form 3 courses at the five technical institutes. Of the remaining pupils, 72 per cent (51 660) were allocated Form 4 places in government and aided schools. Of these, 82 per cent (42 332) were allocated back to their own schools.

The Careers Education Section of the Education Department continued to work closely with the Hong Kong Association of Careers Masters and the Labour Department to provide a comprehensive service to young people. The Careers Education Centre in the Education Department headquarters is now making use of a computer to meet the wide and varied needs of students.

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 and the subsequent review of the programme plan. A total of 22 184 special places for handicapped children were provided in 1984. There were 69 special schools - three for the blind, four for the deaf, 19 for the physically handicapped, eight for the maladjusted and socially deprived, and one for children with learning difficulties. The boarding sections of 14 special schools subvented by the Education Department also provided a total of 725 residential places.

      In addition, there were 97 special education classes in 45 ordinary government schools - 59 for children with learning difficulties, eight for the partially sighted and 30 for the partially hearing. There were also 396 special education classes for children with learning difficulties in 294 ordinary aided schools. These special education classes, and a school for children with learning difficulties, were for the less severely handicapped and included both primary and junior secondary levels. In addition, 2010 less severely handicapped children were integrated into ordinary classes in government and aided schools.

      Intensive remedial services were also provided by the Special Education Section of the Education Department for children with learning difficulties and maladjusted children integrated into ordinary schools. These services included remedial support outside school hours in resource teaching centres and adjustment units, a peripatetic teaching service in ordinary schools during school hours, and advisory services to schools.

      Preventive and follow-up measures in the form of screening, assessment and remedial services identify special educational needs among school-age children and enable remedial action to be taken as early as possible. The remedial services include speech and auditory training, speech therapy, teacher and parent counselling, adjustment groups and resource teaching. During the year, 317 395 cases were handled: 292 500 under the combined screening programme (including speech, hearing and vision screening) and the group testing programme for Primary 2 pupils of all primary schools in Hong Kong; and 24 895 cases were given further help in the form of remedial services after audiological, speech or psychological assessments.

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Two-year part-time in-service courses of training for teachers of children with special educational needs were operated by the Sir Robert Black College of Education. Altogether, 460 places were available for serving teachers in special schools and special education classes. Different courses were run to cater for teachers of the visually handicapped, the hearing impaired, the physically handicapped, the maladjusted, the mentally handicapped and children with learning difficulties, and for teachers who assist in speech therapy work. Short courses, seminars and workshops for teachers of students with special educational needs in ordinary schools and for trainee teachers at Colleges of Education, as well as refresher courses for teachers in special schools and special education classes, were conducted by the Special Education Section.

      The earmould laboratory, established in June 1983 at the Special Education Services Centre in accordance with the 1981 Rehabilitation Programme Plan Review, provided 513 custom-made earmoulds for hearing-impaired children.

Post-Secondary Education

There are two post-secondary colleges the Hong Kong Shue Yan College and Lingnan College - registered under the Post Secondary Colleges Ordinance. The Hong Kong Shue Yan College, registered in 1976, has three faculties - Arts, Social Science and Business. The college has 13 departments offering day and evening courses with an enrolment of 3 196 students. It operates a four-year diploma programme without government financial assistance. Lingnan College, registered in October 1978, has two faculties Arts and Business and an enrolment of 1 162 students. It offers two-year Form 6 courses and two-year post-Form 6 courses, for which it receives government financial assistance. A fifth year course is available for students who have successfully completed the college's post-Form 6 courses.

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      The Hong Kong Baptist College, which was registered in 1970 as an approved post-secondary college, came under the auspices of the University and Polytechnic Grants Committee in November 1983. However, the Education Department will continue to fund the two-year Form 6 courses at this college until June 1985.

      Students on the two-year post-Form 6 courses at Lingnan College are eligible to apply for grants and loans, the maximum levels for which were set at $3,300 and $3,900 per annum respectively in the 1984-5 academic year. Loans up to a maximum of $7,200 per annum were available to students in the further one-year post-Form 6 course at Lingnan College and to students in the four-year course at Shue Yan College.

      Some private day and evening schools, registered under the Education Ordinance, offer post-secondary courses of varying standards but they do not receive any aid from the government.

Higher Education

The government's main source of advice on the development and funding of higher education is the University and Polytechnic Grants Committee (UPGC). During the year, funds were provided for continuing increases in student numbers at the two universities and the Hong Kong Polytechnic, the latter entering into an interesting consolidation stage as it nears its maximum population of 13 500 full-time equivalent students within which the number of degree students will gradually increase to up to 30 per cent. Grants were also provided through the UPGC to the Hong Kong Baptist College which is undertaking a substantial reorganisation of its programmes before increasing its student numbers back up to about 3 000. A proportion of these will be at degree level.

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The major event in higher education in 1984 was, however, the enrolment of the first 1 228 students (504 full-time and 724 part-time) in seven courses at the City Polytechnic of Hong Kong. The City Polytechnic is operating in an office block at Argyle Centre, purchased with a bank loan, pending the construction of its new campus in Kowloon Tong. The increasing size and complexity of the higher education system makes it all the more necessary that the system is co-ordinated to ensure efficiency and value for taxpayers' money, without impinging on the academic autonomy of the institutions. The UPGC expects to play an increasing role in examining issues such as whether certain disciplines. should be provided only in some institutions or whether long-term demand is thought to be sufficiently strong to justify multiple provision of sometimes expensive courses, for example medicine. Another area potentially involving co-operation between institutions and correlation with community requirements is part-time or 'open' education. The UPGC has made general recommendations to the government whereby the existing wide range of courses by subject, level and mode of attendance, at existing institutions might be expanded and co-ordinated.

University of Hong Kong

The University of Hong Kong was incorporated under a Hong Kong ordinance of 1911 to take over the work of the College of Medicine. In the 74 years of its existence, it has grown from modest beginnings to its present student population of over 7 000. The university's central estate is on the northwestern slopes of Hong Kong Island; the Faculty of Medicine is adjacent to Queen Mary Hospital, the university's teaching hospital; and the Faculty of Dentistry is located in the Prince Philip Dental Hospital in Western District.

      There are nine faculties: arts, architecture, dentistry, education, engineering, law, medicine, science, and social sciences. Enrolment for Bachelor's degrees in March 1984 totalled 5 145, and at the undergraduate level almost the entire population are Hong Kong residents. Competition for places at the university is intense, and over 15 000 applications were received for the 1 618 first-year places available in September 1984.

      All undergraduate courses are full-time and lead to honours degrees. They are of three years' duration except courses for the degrees of Bachelor of Architecture, Bachelor of Dental Surgery, and Bachelor of Medicine and Bachelor of Surgery, which are of five years' duration, and for the degree of Bachelor of Science (Quantity Surveying), which is of four years' duration. The medium of instruction throughout the university is English, except in the Department of Chinese.

All faculties, with the exception of the Faculty of Education, teach both undergraduate and postgraduate courses. The Faculty of Education at present teaches only at post- graduate level and offers courses mainly leading to the Certificate in Education, and the Advanced Diploma in Education. The university offers, in all its faculties, facilities for both Master's and Doctor's degrees. Master's degrees by coursework are available in a number of subjects and the Master of Philosophy degree is awarded on the basis of research at Master's level. Doctorates are awarded on the basis of research. In March 1984, higher degree students numbered 913, and over 1 000 students read for various diplomas and certificates.

       Close links are maintained with other universities through the Association of Common- wealth Universities and the Association of Southeast Asian Institutes of Higher Learning. The structure of the degrees and the governance of the university are based mainly on the British system and external examiners, generally from Britain, who are eminent academics in their field, visit in each subject area at least once every three years and moderate each

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year's finals papers. Degrees conferred by the university are usually considered by relevant professional institutions as equivalent to those obtained in a British university, for the purposes of professional examination and practice. Senior academic staff are recruited by international advertisement.

      The university is in the middle of a substantial building programme. The Haking Wong Building, which houses the Faculty of Engineering, was officially opened in October 1983. Since then, two new buildings have come into use, one for the Faculty of Education, and the other for the Departments of Mathematics and Statistics, the Centre of Computer Studies and Applications, and the Centre for Media Resources. Nearing completion is a composite building for general student amenities purposes.

       At present, accommodation is provided for about only 20 per cent of undergraduate students in residential halls. To help students with homes where facilities for study are poor or who wish to avoid lengthy travel, yet cannot be accommodated in a hall of resi- dence, the university has increased its emphasis on the provision of general amenities, which include study and rest rooms, games and music rooms, and restaurant facilities. To improve sports facilities, a new site is being developed with a grandstand nearing completion - on reclaimed land at Sandy Bay on the western shore of Hong Kong Island. At the same time, the university's sports facilities have been augmented with the opening of the Flora Ho Sports Centre, a new indoor sports hall adjacent to the existing Lindsay Ride Sports Centre.

      The Department of Extra-mural Studies offers, though not to a degree level, a wide variety of vocational and professional courses and courses of general or cultural interest. Evening classes held at the university, and day and evening courses at its town centre, are attended by nearly 25 000 students each year.

      With the re-equipping of the university's laboratories under the present development programme, its Science and Engineering Departments contain the latest teaching equip- ment. It also has one of the best-equipped libraries in Southeast Asia. The main library accommodates more than 600 000 volumes - including the Fung Ping Shan Chinese Library with its valuable collection of works in Chinese - while the Faculties of Medicine, Law, Dentistry, Education, and the Department of Music have their own specialist libraries. The Fung Ping Shan Museum of Chinese Art, which is open to the public, is also used as a teaching museum by the Department of Fine Arts. Research projects continue through the university's various departments, the Language Centre, the Centre of Urban Studies and Urban Planning, and the Centre of Asian Studies which serves as a focal point for multi-disciplinary research on China, Hong Kong, East Asia and Southeast Asia.

The Chinese University of Hong Kong

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The Chinese University of Hong Kong was inaugurated in 1963 as a federal university composed of three constituent colleges-New Asia College (founded in 1949), Chung Chi College (founded in 1951) and United College (founded in 1956). It is a self-governing corporation which draws its income mainly from government grants. The campus occupies more than 110 hectares of land near Sha Tin.

       The university offers a wide range of undergraduate courses spanning 35 disciplines in five faculties. Chinese is the principal language of instruction in the university, but English is also stressed and widely used. Four of the faculties arts, business administration, science and social science - offer four-year programmes leading to Bachelor's degrees. The fifth faculty, the Faculty of Medicine, established in 1981, runs a five-year programme with two years of pre-clinical studies followed by three years of clinical work. Clinical teaching is conducted mainly in the university's teaching hospital - the Prince of Wales Hospital in Sha

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Tin, which became operational in April 1984. This is supplemented by facilities at the United Christian Hospital and the Lek Yuen Health Centre in Sha Tin. The university will confer its first Bachelor of Medicine and Bachelor of Surgery degrees in 1986.

      At the postgraduate level, there are 43 academic and professional programmes leading to the degrees of Doctor of Philosophy, Master of Philosophy, Master of Business Administration, Master of Social Work, Master of Divinity and Master of Arts as well as Diplomas in Education and Social Work.

      The part-time degree programme, established in 1982-3, offers a variety of courses leading to first and higher degrees.

      New programmes launched in 1984-5 comprised the Doctor of Philosophy programmes in Economics and Sociology, the Master of Business Administration programme in Marketing and International Business, the Master of Arts programme in Translation and the Diploma in Social Work.

      Accelerated expansion in the fields of education, social work, computer science and medicine is expected in the coming years. There are also plans to increase substantially the development of postgraduate studies, especially research work and training of research students, as well as to increase the number of part-time degree programmes in the 1985-8 triennium.

Of the 15 841 candidates who sat for the 1984 Hong Kong Higher Level Examination, some 4 868 fulfilled the entrance requirements. A total of 1 312 were admitted to the university for the 1984-5 academic year. Student enrolment in September totalled 6 605, including 5 011 full-time and 372 part-time undergraduate students, and 447 full-time and 775 part-time postgraduate students. About 45 per cent of full-time students are now housed in campus hostels. The overall growth rate in student enrolment in the coming three years will be 6.1 per cent per annum, and the student population is likely to reach 7 000 by 1988. The majority of the university's 450 teaching staff members have been educated abroad and hold higher degrees.

      In 1984-5, the Department of Extramural Studies offered more than 1000 courses conducted in Cantonese, Putonghua (Mandarin) and English to about 34 000 students. Besides offering general courses and those that award certificates or diplomas, the department also encourages individualised learning through a mixture of correspondence, radio, audio tapes, programmed text, and resource materials.

      Construction projects completed during the year included an academic building on the central campus, a transport and security depot, a block of junior staff quarters, and improved facilities for the disabled. Further academic buildings, annexes, student hostels, staff quarters and sports facilities are being constructed, designed or planned to meet the requirements of the next few years.

      The library system consists of the University Library, the Medical Library, and three branch libraries in the colleges. The total collection in 1984 was 831 022 volumes.

      Research is conducted not only in individual departments, but also in the university's three research institutes: the Institute of Chinese Studies, the Institute of Science and Technology, and the Institute of Social Studies. 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.

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 government through the UPGC.

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The polytechnic has a total of 22 academic units which are organised into divisions and institutes/interdisciplinary units. The Division of Applied Science comprises the Depart- ments of Applied Science, Mathematical Studies, Nautical Studies, and the School of Social Work. The Division of Commerce and Design comprises the Departments of Accountancy, Business and Management Studies, Computing Studies, Institutional Management and Catering Studies, Languages, and the Swire School of Design. The Division of Construc- tion and Land Use comprises the Departments of Building and Surveying, Building Services Engineering, Civil and Structural Engineering, and the Centre of Land and Engineering Surveying. The Division of Engineering comprises the Departments of Electrical Engineering, Electronic Engineering, Mechanical and Marine Engineering, Production and Industrial Engineering, and the Industrial Centre. Other units are the Institute of Medical and Health Care, the Institute of Textiles and Clothing, and the Centre of Environmental Studies.

At present, the polytechnic offers full-time, sandwich, part-time day release, part-time evening and mixed-mode programmes of usually one to four years' duration in a variety of technical and commercial subjects. Successful completion of these courses leads to the awards of degree, associateship, professional diploma, higher diploma, diploma, post registration certificate/diploma, endorsement certificate, higher certificate, certificate, certificate of proficiency and other qualifications.

In October 1984, eight degree programmes were offered: Bachelor of Arts (Hons) in Computing Studies, Bachelor of Engineering (Hons) in Electronic Engineering, Bachelor of Engineering (Hons) in Mechanical Engineering, Bachelor of Social Work, Bachelor of Science (Hons) in Combined Studies in Mathematics and Science, Bachelor of Engineering (Hons) in Civil Engineering, Bachelor of Arts in Design, and Bachelor of Engineering (Hons) in Electrical Engineering.

       The Hong Kong Polytechnic will confer degree awards on students who successfully complete the degree programmes. The UK Council for National Academic Awards (CNAA) acts as an adviser to the UPGC in assessing the standard of the degree programmes to be offered by the Hong Kong Polytechnic and ensuring that it is comparable to that of degree courses offered by universities and polytechnics in the United Kingdom. During the year, degree course proposals in other academic fields, such as textile and clothing marketing, manufacturing engineering, and building services engineering, were being prepared for possible inclusion in 1985.

      The polytechnic also offers short full-time courses of less than one year's duration, provided to meet recurrent demand, and extension courses organised on an ad hoc and self-supporting basis. These courses do not lead to polytechnic academic awards.

      Since 1972, student and staff numbers have increased greatly. At the beginning of the 1984-5 academic year, there were 7 397 full-time, 738 sandwich, 188 mixed-mode, 3 413 part-time day release and 12 816 part-time evening students. In July 1984, the staff strength stood at 2 211, comprising 796 teaching, 213 senior administrative and 1 202 technical, clerical and ancillary staff.

Campus development in 1984 saw the completion and fitting out of the new fourth floor extension to the Main Building and its occupation by the Department of Nautical Studies; and also most of the construction of the Phase IIB extension to the Tang Ping Yuan Building which when completed will provide additional teaching and staff accommodation. The polytechnic library offers a comfortable study environment for staff and students with over 1 600 seats provided for readers. The library has an extensive reference collection, a comprehensive standards collection, a large collection of non-print materials and a newspaper clippings collection. The collection has grown to approximately 300 000

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volumes mainly in the scientific, engineering and business areas. Facilities are provided for disabled students.

      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.

      Since 1981, the polytechnic has been discontinuing its diploma and certificate level work as corresponding courses are added to the programmes of the technical institutes. Together with the development of degree programmes, this reflects the polytechnic's move towards a greater proportion of higher level academic work, which requires increased and higher level research activities.

City Polytechnic of Hong Kong

In October, the City Polytechnic opened its doors to its first students: almost 500 full-time and over 700 part-time students registered for courses offered by the Departments of Accountancy, Business and Management Studies, Computing Studies, and Social Administration at professional diploma, higher diploma or diploma level. The number of applications received (over 12 000) exceeded all expectations and confirmed the need for establishing the polytechnic.

      The polytechnic has begun its courses in Tower II of the Argyle Centre, which was purchased in January 1984 with the aid of bank loans of $260 million. This building will house the polytechnic until 1988-9 when it is expected that the permanent campus in Kowloon Tong will be ready for phased occupation. By then, it is expected that the polytechnic will have grown to 2 500 full-time students and a similar number of part-time students. Clearance of the site has been completed. It is anticipated that the buildings will begin to take shape in 1986. The ordinance establishing the polytechnic was enacted in November 1983, and the polytechnic formally came into being on January 1, 1984. By that time the first group of 16 senior staff was already in post, and the Planning Committee for the polytechnic was appointed en bloc to be the first Council of the new institution. This has helped continuity during the transition from concept to substance and has ensured that the philosophy evolved by the Planning Committee has been followed faithfully. The recruit- ment of staff continued apace as the opening date drew nearer, by which time 90 academic staff and 120 support staff were in post. Staff have been recruited not only from Hong Kong, but also from the United Kingdom, the United States, Australia and India, and include persons born in Hong Kong working overseas.

Hong Kong Baptist College

The Hong Kong Baptist College, founded 28 years earlier by the Baptist Convention of Hong Kong (known then as the United Hong Kong Christian Baptist Churches Association) reached a milestone in 1984: the college was operating its first full year as a self-governing publicly funded institution of higher education with its own ordinance. Since November 1983, the college has been officially taken into the ambit of the UPGC through which it receives government financial support for its academic programme. In the course of the year, the college has also discussed with the UPGC various academic development proposals including the time scale for the mounting of degree courses.

       Concurrent with the Hong Kong Baptist College Ordinance coming into effect on January 1, 1984, both statutory governing bodies of the college - the Board of Governors

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and the Council - have been restructured to include members independently appointed by the Governor from the sectors of commerce, industry and education.

During the year, proposals were submitted to the government for a five-year phased programme to redevelop the campus which the college has been occupying since 1966.

The college offers three-year post-Advanced Level courses covering 17 disciplines and leading to the award of the honours diploma. There are four faculties: Arts (with departments of Chinese language and literature, English language and literature, and music and fine arts); Business (with departments of accounting, business management, economics, and secretarial management); Science and Engineering (with departments of biology, chemistry, civil engineering, mathematics, and physics); and Social Sciences (with depart- ments of communication, geography, history, social work, and sociology).

Students are full-time and admitted on the results of the Hong Kong Advanced Level Examination. Demand for places is high, and for the 1984-5 academic year the ratio of applicants to places was 8:1. At the beginning of the 1984-5 academic year, student enrolment in the post-Advanced Level courses totalled 2 090, with a breakdown by faculty of: arts 364, business 616, science and engineering 388, and social sciences 722. Staff strength stood at 344 comprising 162 teaching, 56 administrative, and 126 technical, secretarial and clerical staff. Senior academic and administrative staff are recruited by international advertisement. At the end of the 1983-4 academic year, 558 students graduated with the honours diploma.

Enrolment in the Division of Basic Studies, which is financed by government grants through the Education Department and offers a full-time integrated two-year programme leading to the Hong Kong Advanced Level Examination or the International Baccalaure- ate Examination, has continued to be reduced, as part of the planned phasing out of the division to allow further development of the post-Advanced Level courses. At September 1984, the enrolment figure was 289, including 38 first-year students taking a specialised course in music which will be the only course retained in the Basic Studies Programme after the 1984-5 academic year.

Since the completion of the new library building in September 1983, library facilities for students and staff have expanded and collection development has remained a top priority. Library holdings reached 134 608 volumes and a programme to automate the library services is being started. A valuable collection for supporting research work in con- temporary China was acquired through a private donation.

The college serves the community through helping to meet the growing demand for education by people in employment and offers, in its Division of Continuing Education, a broad spectrum of courses which are professional, vocational, and of general or cultural interest. The division is financially self-supporting, and besides using the campus for classes in the evening, it also maintains additional centres on Hong Kong Island and in Sha Tin for day and evening courses. A total of 26 865 students were enrolled in 884 courses in the division during the year.

Vocational Training

To meet increasing demand for skilled manpower, opportunities for vocational training are being expanded to give more people the opportunity to acquire skills and knowledge in a wide and ever-growing range and level of jobs.

Much of this effort is the result of the activities of the Vocational Training Council which was set up in 1982 under the Vocational Training Council Ordinance. The council's role is to advise on measures required to ensure a comprehensive system of technical education

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and industrial training suited to the developing needs of Hong Kong; to set up, develop and operate training schemes for training operatives, craftsmen, technicians and technologists necessary to maintain and improve Hong Kong's industry, commerce and services; and also to establish, operate and maintain technical institutes and industrial training centres.

      Under the council are 19 training boards and six general committees. The train- ing boards cover major economic sectors: accountancy; automobile; banking; building and civil engineering; clothing; electrical; electronics; hotel, catering and tourism; insurance; jewellery; journalism; machine shop and metal working; merchant navy; plastics; printing; shipbuilding and ship repair; textiles; transport and physical dis- tribution; 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 assess the future manpower needs of their respective industries or commercial sectors and recommend measures to meet such needs, prepare job specifications, design training programmes and trade test guidelines, and carry out other duties such as operating and maintaining training centres. The general committees are responsible for specific training areas which cut across several sectors of the economy. The council, its training boards and committees are serviced by the Technical Education and Industrial Training Department which acts as its executive arm. Most of the officers in the department work directly to the council through its executive director who is also the head of the department.

During the year, nine manpower surveys were conducted, covering the fields of accountancy; automobile; banking; electronics; machine shop and metal working; merchant navy; printing; shipbuilding; and wholesale/retail and import/export. A special survey was also carried out on management and supervisory training. In the same period, the training boards prepared or revised job specifications, training programmes and trade test guidelines for all principal jobs in their industries. A glossary of common technical terms used in commerce and services was also being finalised. All completed survey reports and manuals are on sale at the Government Publications Centre.

Technical Education

     The five existing Technical Institutes - Morrison Hill, Kwai Chung, Kwun Tong, Haking Wong and Lee Wai Lee - continued to provide courses at craft and technician levels by full-time, block-release, part-time day release and part-time evening attendance. A number of short courses were also offered, providing updated knowledge and skills. The main disciplines covered by the institutes include: clothing, commercial studies, construction, design, electrical engineering, general studies, hotel-keeping and tourism studies, industrial technology, marine and fabrication, mechanical engineering, motor vehicle engineering, printing and textiles.

Most technician level courses have been validated by the UK Business and Technician Education Council (BTEC). Students attending these courses are able to register for the council's awards. BTEC qualifications are recognised for qualification or exemption purposes by many professional and technical bodies in the United Kingdom.

The demand for places on most courses continued to be high. The average ratio of qualified applicants to full-time places was 11:1. Student enrolments for the 1984-5 academic year were about 6 200 full-time, 10 700 part-time day, and 26 400 part-time evening students. In September 1984, the full-time teaching establishment of the technical institutes was about 500, with about 400 supporting staff.

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The annual employment survey of full-time course graduates again showed that they had little difficulty in finding employment in their respective disciplines after completion of their studies. A computer centre at the Lee Wai Lee Technical Institute, with terminals linking all five institutes, enables the study of computer applications to be included in most courses. Computer facilities in each technical institute are also being improved and expanded.

      In order to meet increasing demand for courses, an expansion programme has been undertaken. Phase II of the Lee Wai Lee Technical Institute was completed in December 1983 and became fully operational in January 1984. Work on an annexe to the Haking Wong Technical Institute was due for completion in February 1985.

Three more technical institutes are being planned at Tuen Mun and Sha Tin for 1986 and at Chai Wan for 1987.

Industrial Training

Construction of the Vocational Training Council's nine-storey Kowloon Bay Training Centre Complex was completed in November. The 10-storey Kwai Chung Training Centre Complex is under construction and should be completed by mid-1985. The complex at Kowloon Bay houses five training centres for the electronics, hotel, machine shop and metal working, plastics, and printing industries. The complex at Kwai Chung also has five training centres for the automobile, electrical, electronics, machine shop and metal working (including welding), and textiles industries. These training centres will have the capacity to provide basic off-the-job training for about 9 000 trainees a year, ranging from operative to technologist level. The Kowloon Bay complex has started offering one-year full-time courses: short courses will commence in early 1985.

      The Seamen's Training Temporary Centre at Little Sai Wan started operation in February. The centre provides 30-day residential training programmes to Hong Kong seamen to enable them to obtain the necessary certificates required under the Interna- tional Maritime Organisation's Convention on Standards of Training, Certification and Watchkeeping for Seafarers 1978. In 1984, the centre provided training for about 800 local seamen.

      The Engineering Graduate Training Scheme was launched by the Vocational Training Council in February 1983 to provide 18-month practical training to enable engineering graduates to become qualified professional engineers. In 1984, 60 firms with 200 trainee- engineers participated in the scheme.

      The Management Development Centre of Hong Kong started operation in October to undertake research, development, co-ordination and promotion of management training in Hong Kong.

Apart from industrial apprenticeship schemes, commercial traineeship schemes were also introduced to the accountancy and insurance sectors. The Training Course Subsidy Schemes operated by the Vocational Training Council were popular with the journalism sector and the wholesale/retail and import/export trades.

Training Authorities

The Clothing Industry Training Authority and the Construction Industry Training Authority are statutory bodies set up in 1975 to establish and operate training centres for the two industries. The former collects a training levy based on the export value of clothing items and the latter collects a levy based on the value of construction works exceeding $0.25 million. Two construction industry training centres are already in operation and a third is being planned. A second clothing industry training centre started operation in mid-1984.

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The Apprenticeship Ordinance provides a legal framework for the training of craftsmen and technicians. It requires an employer to enter into a contract of apprenticeship when engaging a person aged between 14 and 18 in one of the 42 designated trades specified in the ordinance, unless that person has completed an apprenticeship in the trade. The contract must be registered with the Director of Technical Education and Industrial Training. Contracts for apprentices engaged in non-designated trades or for apprentices aged over 18 engaged in designated trades may also be registered voluntarily with the director.

      The Apprenticeship Section of the Technical Education and Industrial Training Department is responsible for administering the ordinance. Its duties include advising and assisting employers in the training and employment of apprentices, ensuring that the training is properly carried out, helping to resolve disputes arising out of registered contracts, and co-operating with educational institutes 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.

      Apprenticeship contracts registered in 1984 totalled 3 600, of which 800 were for non-designated trades. These contracts covered 2 900 craft apprentices and 700 technician apprentices. By the end of the year, 8 500 apprentices were being trained in accordance with the ordinance.

Vocational Training for the Disabled

Development of vocational training, vocational assessment and technical aids and resource services continued to make steady progress. The total number of vocational training places in both government and subvented centres stood at 616, while the number of people who had completed vocational assessment totalled 200.

      Special tutorial classes for disabled students attending full-time and part-time courses at technical institutes continued to be offered. In response to increased demand from disabled persons, the Technical Aids and Resource Centre completed some 40 projects on special aids and machine adaptations during the year. The production of videotaped learning programmes for disabled students at technical institutes and trainees at the skills centre commenced with the installation of a studio in the centre in May. This is considered beneficial especially to persons with hearing impairment or low reading ability.

      The introduction of a modular training approach to subvented vocational training centres was among the steps taken to improve the quality of training. Guidelines for the operation and administration of residential facilities in vocational training centres have been prepared and incorporated into a Standard of Practice.

Teacher Education

     General 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.

The three Colleges of Education offer a two-year full-time course of initial training to students with the Hong Kong Advanced Level Examination qualifications and a three-year full-time course of initial training to students with the Hong Kong Certificate of Education Examination qualifications. The Colleges of Education also conduct in-service courses, including the Advanced Course of Teacher Education, part-time courses for teachers of kindergarten, primary and secondary schools, and courses for teachers of students with

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special educational needs. An eight-week retraining course for primary school teachers is run at Grantham College of Education and a refresher training course for serving secondary school teachers at Northcote College of Education. In September, there were 1 371 students in the three-year full-time course; 1 156 students in the two-year full-time course; 58 students in the advanced course; and a total of 1 850 students in the in-service training and retraining courses.

      Technical teacher training is offered by the Hong Kong Technical Teachers' College. The college trains technical teachers for secondary and prevocational schools. 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. A three-year full-time course is open to secondary school leavers who have prior studies in either technical or commercial subjects. The college also offers in-service courses for teachers, including the Advanced Course of Teacher Education in Design and Technology, and courses for supervisors and instructors employed in industry. An additional advanced course in commercial subjects will be offered in 1985. In September, there were 189 students in the full-time courses and 210 students in the part-time 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 Institute of Language in Education (ILE), established in September 1982 as part of the government's multi-million dollar language package to improve language standards, conducts refresher courses for primary school teachers of Chinese and English. The main objectives of the refresher courses are to introduce teachers to recent developments in Chinese and English language teaching theory and practice, and to provide them with the opportunity to improve their own language proficiency in English and Putonghua. In its second academic year, the institute conducted two four-month refresher courses for 400 primary school teachers.

The institute plans to expand the refresher courses to accommodate 1 000 non-graduate primary and secondary language teachers each year, starting from September 1986. It is also developing a resource centre of language teaching materials and a modest programme of research and publication began in March.

Adult Education

The Adult Education Section of the Education Department provides a wide range of courses and recreational activities for adults and young people who no longer attend formal education courses in day schools. These courses and activities are provided by the Evening School of Higher Chinese Studies, the Evening Institute, 17 Adult Education and Recreation Centres, and 39 subvented voluntary organisations.

A credit unit system for the diploma course, offering studies in Chinese literature, philosophy and sociology to secondary school leavers, is run by the Evening School of Higher Chinese Studies. It may be completed over three to five years by taking 12 basic core units of the diploma course and 18 other units in aspects of Chinese classics and culture. Enrolment increased by 500 to more than 1 800.

       The 110 centres of the Evening Institute offer courses ranging from literacy to secondary and post-secondary studies. A general Adult Education Course provides education at primary level to meet the needs and interests of adults. Practical courses teach such 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

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     Adults - which prepare students for the Hong Kong Certificate of Education Examination. To improve proficiency in English, a course covering Primary 4 to Form 5 is offered 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 21 000 people enrolled in these formal courses.

      The 17 Adult Education and Recreation Centres organise many cultural, social and recreational activities designed to stimulate individual awareness within the community, cultivate creative ability and develop individual talents. Various activities were organised with other government departments and organisations, such as the Independent Commis- sion Against Corruption, the Labour Department, District Offices, Civil Aid Services, the Urban Council and the St. John Ambulance Brigade. During the year, more than 23 000 people were enrolled in these non-formal courses.

       Adult education retrieval courses run by voluntary bodies have been subvented on a recurrent basis since the 1982-3 school year. In 1984-5, 102 projects from 39 organisations were granted government subsidies.

Advisory Inspectorate

The main function of the Education Department's Advisory Inspectorate is to promote the quality of teaching. This involves frequent 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 is also responsible for curriculum development, production of educational television programmes, and evaluation of textbooks and instructional materials.

      Close liaison is maintained with the universities, the polytechnics, the approved post- secondary colleges, the Hong Kong Examinations Authority, the British Council, the Consumer Council and other government departments.

      Curriculum innovation and renewal continued during 1984 at pre-primary, primary and secondary levels, highlighted by the publication of a revised curriculum guide for kindergartens, the implementation of revised syllabuses for Primary Science and English Language and the issue of new syllabuses in Physics, Economics and Public Affairs and Religious Education (Christianity) for secondary schools. Work continued on the streng- thening of sex education, moral education and civic education programmes. Syllabus implementation was encouraged through the provision of in-service training courses for serving teachers and the production of teaching resources and schemes of work by the newly formed curriculum development teams.

      There was an expansion of the Activity Approach to teaching in Primary 1 to 3 classes following the dissemination of this informal method of teaching through seminars and workshops for heads and teachers.

       The Textbooks Committee continued to give guidance to schools on the selection of books through the publication of quarterly lists of recommended textbooks and close links were maintained with publishers of educational material.

Teaching Centres

The Advisory Inspectorate runs six teaching centres in connection with the teaching of Chinese, English, Mathematics, Science, Social Subjects and Field Studies.

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       During the year, the Chinese Language Teaching Centre conducted 44 refresher courses and workshops and 28 seminars which were attended by over 3 000 teachers. Its teaching resources units were open to primary and secondary school teachers and group visits from schools were also entertained. Both primary and secondary schools benefitted from the centre's free dubbing services and over 900 recordings of teaching tapes were made during the year.

The English Language Teaching Centre organised a total of 67 seminars, workshops and talks for over 2 400 teachers. As well as providing schools with a free tape-dubbing service, the centre has a tape library containing about 700 English language tapes for schools to use as listening materials in their Wirefree Induction Loop Systems. The centre's reference library, which is open to teachers, has over 5 700 books on English language teaching and linguistics.

The Mathematics Teaching Centre in Kowloon continued to organise refresher courses for junior secondary mathematics teachers. Eleven courses on internal assessment and classroom teaching techniques were attended by 330 teachers. In addition, workshops on the effective use of teaching aids and games were conducted for serving teachers as well as student teachers. The Mathematics Teaching Centre on Hong Kong Island held eight courses for 240 primary school mathematics teachers. The training centred on the implementation of the new teaching syllabus recommended by the Curriculum Develop- ment Committee and on remedial teaching. As a resource centre, it was visited by 2 254 teachers.

The Science Teaching Centre was extensively used for conducting refresher courses, seminars, workshops and teachers' meetings. More than 3 300 primary and secondary school science teachers and laboratory technicians visited the centre for in-service courses and meetings and saw the display of new science equipment, teaching materials and science projects.

The Social Subjects Teaching Centre continued to serve as a training venue and resource centre for teachers of Social Studies, History, Economics, Geography, Economic and Public Affairs and Moral Education at primary and secondary levels. Teaching materials and audio-visual equipment relating to these subjects were on display and over 1000 teachers visited the centre during the year. At the same time, more than 20 workshops or seminars with over 1 000 participants from primary and secondary schools were conducted in the centre.

       The Field Studies Centre, within the campus of the Sai Kung Outdoor Recreation Centre, is an educational and resource centre for ecology and geography studies. During the year, 32 residential ecology and geography courses were organised for 1 492 sixth formers. The course programme emphasises the importance of the practical approach in the study of ecology and geography and incorporates recreational activities to strike a balance with academic work. One special residential course was organised for students from Northcote College of Education and special one-day field courses were also organised for participants in the Duke of Edinburgh Award Scheme Gold/Silver Level exploration course and training camp for student conservation leaders. Other activities organised by the centre included talks on countryside education, visits, and the collection, development and pro- duction of teaching and reference materials on field studies and environmental education.

Visual Education Centre

The Visual Education Centre makes available through its library a wide range of audio-visual aids for free loan to schools. The stocks consist of about 7 000 16mm films,

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filmstrips, slides, audio-cassette tapes, filmloops, overhead transparencies, learning pack- ages, picture sets and video-cassette tapes. The Media Production Services Unit is open seven days a week to all teachers for the production of teaching aids. The facilities of the unit include photographic, reprographic, graphic, model making, tape duplicating, booklet binding, picture preservation and screen printing equipment, and a microcomputer system. During the year, more than 150 courses and seminars on the use of audio-visual aids and the production of audio-visual materials were organised by the centre for over 3000 teachers. Total attendance of teachers at the unit reached 6 000.

Cultural Crafts Centre

The Cultural Crafts Centre provides facilities for primary and secondary school teachers to update their pedagogical skills in Art and Design, Craft, and Home Economics. In 1984, about 3 500 teachers attended seminars, courses and workshops. The three exhibitions of pupils work staged by the centre attracted a total of more than 30 000 visitors.

Music

The 80 students enrolled in the two-year pilot project for centralised music training in September 1982 sat the Certificate of Education Music Examination in May. Of these, 100 per cent passed and 40 per cent obtained grade C and above. The scheme was further expanded in September to include a class at Form 6 level to prepare students for the Higher Level Examination in Music.

      The number of participants in the 36th Hong Kong Schools Music Festival rose to 60 000 with the increase coming mainly from New Territories schools. The festival ended with a series of prize-winners' concerts which were well attended.

Physical Education

The Physical Education Section is responsible for the improvement of teaching standards in physical education in schools and the promotion of school sports. In 1984, 39 courses and seminars were conducted for 957 teachers.

      Some 11 300 primary and secondary students took part in swimming training schemes and life saving courses; 3 600 students participated in the 'Summer Sports Training' scheme for eight sports; 21 000 students took part in Outdoor Education Camps; and 3850 students attended school camps in the New Territories during the summer holidays. The 20th Schools Dance Festival attracted 3 867 participants from 282 schools and was highlighted by the presence of Lady Youde, wife of the Governor, as guest of honour at the opening performance at the City Hall in April. A total of 237 students were selected to take part in the 1984 International Youth Dance Festival and Performances held in July.

The Education Department is responsible for the Duke of Edinburgh Award Scheme in Hong Kong. During the year, 28 more schools joined the scheme, bringing the total to 145, with 23 500 student members, for whom 120 courses at various levels were organised.

The Physical Education Section continued to administer the Royal Hong Kong Jockey Club Fund for the Summer Youth Programme for schools, through which some 300 000 students from 552 primary and secondary schools benefitted. In addition to taking part in the Annual Hong Kong-Macau Schools Interport Sports Competitions, the Hong Kong schools sports teams also participated in the 1st Coke-Cup Invitational Football Tourna- ment held in India in October. The Physical Education Section also assisted the Hong Kong Schools Sports Council in organising the Inter-Cities Invitational Basketball Tournament held here in December.

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     During the year, technical subjects, as part of the general curriculum for secondary schools, continued to expand at both Form 1-3 and Form 4-5 levels. The Technical Subjects Section was involved in the planning of new workshops and in modifying and improving existing ones to meet requirements for the teaching of technical subjects. Several new subject disciplines have been created for prevocational schools including marine engineer- ing, light engineering metal work and jewellery.

      In conjunction with the Technical Teachers' College, the Technical Subjects Section produced a comprehensive programme of in-service courses for technical teachers and these were well attended. The section continued to organise the Young Hong Kong Designer of the Year Award under the sponsorship of the Hong Kong Federation of Industries. Response from schools was excellent.

      With the rapid growth of commercial subjects in schools, books specially written for the Curriculum Development Committee's Principles of Accounts and Commerce syllabuses were produced locally for the first time. A number of in-service courses on the teaching of commercial subjects were organised by the Commercial Subjects Section.

The Commerce Projects Competition was again organised jointly by the Chinese Gold and Silver Exchange Society and the Education Department. About 1 000 senior secondary pupils took part. An exhibition, displaying all the winning and commended projects, was well attended by teachers and students.

Community Youth Club

The Community Youth Club, established in 1977, has continued to participate actively in building up a strong community spirit and in promoting civic-mindedness among students. Its 120 000 members contributed substantially to various public campaigns. With the addition of three more districts during the year, there are now 17 district committees co-ordinating the club's activities.

      Thousands of members gained awards under the Merit Award Scheme which required them to set examples of good citizenship by offering services to the community. Outstand- ing members were selected for an educational tour to Japan at the end of 1984.

School Library Services

School library services expanded with the training of more librarians in secondary schools. In primary schools, following the success of two pilot projects, the Class Library Scheme was fully implemented in Primary 3 to Primary 6 classes in all government and aided primary schools in September, while a pilot project was introduced for Primary 1 and 2 classes. Each class is provided with an initial grant of $500 for bookcases and $10 per pupil per year for library books.

During the year, one three-day workshop on school library practice was organised for trained school librarians, while three seminars for 450 primary school heads and teachers, 18 training courses for 850 primary school teachers, and an exhibition on children's books were held in connection with the Class Library Scheme.

Educational Television

Programmes produced by the Educational Television Service (ETV) are regarded as the most useful audio-visual supplement to classroom teaching and regular viewing has become a normal part of school life in Hong Kong. The total audience of ETV programmes during 1983-4 was estimated to be 350 000 primary and 240 000 secondary school pupils.

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The programmes are produced jointly by the Education Department and Radio. Television Hong Kong, and are transmitted by the two commercial television stations. They are based on syllabuses used in local primary and secondary schools. Primary school ETV programmes cover Chinese, English, Mathematics and Social Studies at Primary 3 to 6 levels; secondary school programmes are produced for Forms 1 to 3 in the same four subjects and in Science.

      In September 1983, ETV programmes on Science and Health Education were introduced at Primary 3 level to be extended by one level each year to reach Primary 6 in 1986. Additional programmes were also produced for English Language and Social Studies for secondary students.

In conjunction with these programmes, notes for teachers are produced to include suggested preparation and follow-up activities, and in the case of primary school pro- grammes, notes for pupils are also provided.

Necessary TV equipment, including colour television receivers and video-cassette recorders, are provided and installed in all government and aided schools and private secondary schools with 'bought places'. In 1983-4, about $4.6 million was spent on the provision of equipment to these schools.

Hong Kong Examinations Authority

The Hong Kong Examinations Authority, an independent statutory body, began admin- istering the Hong Kong Certificate of Education Examination in 1978, the Hong Kong Higher Level Examination in 1979, and the Hong Kong Advanced Level Examination in 1980. In 1984, a total of 170 825 candidates entered for the Hong Kong Certificate of Education Examination; 17 226 entered for the Hong Kong Higher Level Examination; and 16 488 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 the United Kingdom 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 profes- sional qualifications.

British Council

During 1984, the British Council's English language teaching programme was further developed to include computer based English language testing, computer assisted language learning and computerisation of teaching facilities. Refresher courses were attended by 400 primary school teachers and 350 secondary school teachers. The number of students attending general English courses continued to exceed 30 000 while more than 5000 students attended the summer school. The council also continued its work in testing and evaluation, teacher education and maintained its consultancy and advisory role for the government and the private sector in both English language teaching and media. Library membership almost doubled, reaching 14 763.

Five British Council and four Sino-British Fellowship Trust scholarships were awarded and selection was made for the new Foreign and Commonwealth Office scholarships. In addition, 29 people involved in various fields were brought to Hong Kong from the United Kingdom, and 17 people from Hong Kong visited the United Kingdom. Twenty-two specialists, in fields ranging from bioengineering to literature, also visited Hong Kong from the United Kingdom under the council's auspices.

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       To mark its 50th anniversary, the council sponsored two concerts by the Hong Kong Philharmonic Orchestra, with Sir Charles Groves conducting. An exhibition of contem- porary textile art, a visit from the United Kingdom by Marion Thorpe to chair the judging panel for Radio Television Hong Kong's Young Pianist of the Year Competition, and the appearance of two street entertainers during the Festival Fringe illustrated the variety of the rest of the council's cultural programme.

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 and nurses in training in the United Kingdom. The division continued to work closely with the Education Department and other government departments in Hong Kong. It monitored developments in education in the United Kingdom and, in order to promote the interest of Hong Kong students, maintained close relations with universities and colleges, departments of the British Government, local education authorities, the British Council, welfare organisations and in the case of trainee nurses, medical authorities. 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 educational establishments in Britain and other countries. Altogether, 5 394 students went to Britain during the year; 3 284 went to Canada; 2 049 to the United States and 428 to Australia.

Student Finance

Financial assistance is made available to Hong Kong students attending higher education institutions in Hong Kong and in the United Kingdom through two means-tested schemes administered by the UPGC Secretariat.

       Full-time students attending the University of Hong Kong, the Chinese University of Hong Kong, the Hong Kong Polytechnic, the Hong Kong Baptist College and the City Polytechnic of Hong Kong may receive grants to cover their faculty expenses, tuition fees and student union fees together with interest-free loans to meet their living expenses. During the year, 8 860 students received grants totalling $32 million and 9 970 students received loans totalling $81 million.

Under a joint-funding arrangement between the United Kingdom Government and the Hong Kong Government, grants are made to full-time students attending first degree or Higher National Diploma courses in the United Kingdom to meet the difference between home and overseas student fees. To be considered for a grant under the joint-funding arrangement, students must submit their applications by October 1 in any year. Late applications, received after October 1 and not later than November 1, are considered for a loan from the Hong Kong Government. Upon conclusion of the first exercise in February, grants totalling £3.40 million were paid to 130 institutions on behalf of 1 350 students and loans totalling £51,000 were paid to 16 institutions on behalf of 20 students.

9

Health

SEVERAL major medical projects were completed in 1984, the most important being the $826 million Prince of Wales Hospital in Sha Tin. More major projects are in the pipeline as part of a wide-ranging development programme to cope with the demands of a steadily growing population. These demands have placed considerable pressure on existing hospitals, clinics and other facilities, with attendances and admissions reaching unprecedented levels.

      The first phase of the 1 446-bed Prince of Wales Hospital opened early in the year, marking an important step in the regionalisation of medical and health services. The new hospital, which is also the teaching hospital for the Chinese University of Hong Kong, becomes the regional hospital for the eastern New Territories.

The first two phases provide 799 beds in such specialist units as medicine, surgery, paediatrics, and gynaecology and obstetrics. The other 647 beds are being put into use in two further phases with the hospital expected to be fully operational during 1985.

      The Li Ka Shing Specialist Clinic - incorporated into the Prince of Wales Hospital building - was officially opened by the Governor, Sir Edward Youde, in June. It is the first major polyclinic in the eastern New Territories and provides essential supporting services to the Prince of Wales Hospital.

Other important projects in the provision of medical services in the new towns include construction of the Tuen Mun Hospital, which is well underway, and expansion of the Pok Oi Hospital in Yuen Long and the Yan Chai Hospital in Tsuen Wan. The ultimate aim of these development plans is to provide a self-sufficient network of medical services within easy reach of the public in the New Territories.

      Also completed during the year was the $73.6 million MacLehose Rehabilitation Centre, at Sandy Bay on Hong Kong Island, a subvented institution run by the Hong Kong Society for Rehabilitation. The 11-storey building has 150 beds for patients who have suffered major physical injury or impairment and require an intensive programme of treatment and rehabilitation.

      When fully operational, the centre will provide services ranging from physiotherapy and occupational therapy to speech therapy and clinical psychology. The centre will provide an out-patient service for former patients who require follow-up treatment and also serve as a clinical training institute in the rehabilitation field. In addition, space has been allocated at the centre for a Rehabus depot and a technical and resource centre.

      Other major clinics opened during the year included the Yung Fung Shee Memorial Centre in Kwun Tong which has comprehensive facilities including family health and chest services, and day services in geriatrics and psychiatry.

      There are also physiotherapy and occupational therapy services as well as a health education centre.

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      During the year, site formation work for a hospital in Chai Wan began and work on the Queen Mary Hospital extension moved ahead steadily.

      For the financial year 1984-5, the Medical and Health Department's estimated ex- penditure is $1,996 million. In addition, subventions totalling about $1,009 million are being made to many non-government medical institutions or organisations. The capital expenditure on hospitals and other buildings, including equipment and furniture, totals around $326 million.

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 high standard of living. This progress is further reflected in the highly satisfactory health indices and the general decline in the incidence of major communicable diseases.

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

       One local case of cholera was reported. The common communicable childhood diseases, such as diphtheria and poliomyelitis, have been brought under control.

      Two imported cases of rabies in humans were reported during the year, and both patients died of the disease. The first victim was a child who was bitten by a rabid animal in Shenzhen and was brought back to Hong Kong for treatment. The second victim was a pregnant woman living on a fishing boat adjacent to Lau Fau Shan. Seven cases of animal rabies were reported, and human contacts were given the necessary prophylactic treatment at medical centres.

      In view of the resurgence of indigenous malaria in Hong Kong in 1983, the World Health Organisation (WHO) was asked to send experts to the territory to give advice and to review preventive and control measures. Government staff were also sent overseas under WHO sponsorship to acquire more knowledge of the latest malaria control methods used in neighbouring countries.

      During the year, 101 imported, 10 indigenous and two relapsing cases of malaria were notified. The indigenous cases occurred in the border areas and in Sai Kung. Besides intensi- fying the surveillance and control measures taken against malaria and its vectors, emphasis was placed on educating the public, especially in the border areas and in Sai Kung, on how to prevent the disease. Health talks in schools, film shows, posters, press releases and radio messages were some of the means employed to urge people, especially picnickers, to protect themselves against mosquitoes and to eliminate mosquito breeding sites.

      Tuberculosis cases notified during the year numbered 7 843 with 420 deaths, representing an incidence rate of 146.22 per 100 000. The low prevalence of the disease may be due to the decrease in the number of illegal immigrants and also to the continuing protective effect of the wide BCG vaccination coverage of school children.

      Measles and rubella vaccination programmes were carried out in family health clinics and schools. Measles vaccinations were given to one-year-old babies and rubella vaccina- tions to girls in Primary 6 classes. Rubella vaccinations were also made available to women of child-bearing age. The response to these vaccination programmes was satisfactory.

Both viral hepatitis A and hepatitis B remain prevalent in the community with 1 780 notified cases and 12 deaths reported during the year. Because of the public health implications of this disease which usually leads to long-term liver complications such as

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cirrhosis and cancer, and in line with a WHO recommendation on the control of viral hepatitis, the Medical and Health Department has introduced a hepatitis B vaccination programme. A special advisory committee was set up in early 1983 to advise the government on an overall strategy to provide immunisation against hepatitis B to certain high risk groups in the community. The first group comprises babies born to mothers who are carriers of the disease. The second group comprises health care workers who are in frequent contact with blood and blood products or tissue fluids.

During the year, the Medical and Health Department began a combined neo-natal screening programme for glucose 6 phosphatase dehydrogenose deficiency and congenital hypothyroidism to facilitate early diagnosis and treatment of infants who may otherwise develop disabilities or mental retardation. The programme covers babies born in govern- ment and subvented institutions.

Hospitals and Development Programmes

There are three types of hospitals in Hong Kong - government, government-assisted and private with a total of 24 073 beds, representing 4.5 beds per thousand of the population. During the year, pressure on the service was experienced on all fronts; this was reflected by the increase in attendance at out-patient clinics, and accident and emergency departments, and by the number of hospital admissions.

The Medical and Health Department's overall plan for the decade involves the construction of at least four more government hospitals: a 1 600-bed hospital in Tuen Mun, a 1 600-bed hospital in Chai Wan and 1 400-bed hospitals in East Kowloon and Tai Po. Plans also include the provision of extension blocks to the first three regional hospitals: the Queen Mary, Queen Elizabeth and Princess Margaret Hospitals.

Other projects in the pipeline include further extensions to the Caritas Medical Centre, Yan Chai Hospital and Pok Oi Hospital and the redevelopment of the Ruttonjee Sanatorium into a 432-bed general hospital. One new private hospital with a capacity of 600 beds is in the planning stage.

       In 1984, the total attendance at government and government-assisted accident and emergency departments was 1 078 000, averaging 2 950 attendances per day. More than 623 000 patients were treated at the 14 government and 20 government-assisted hospitals.

Clinics

General out-patient services form a vital part of the health care system. The government now operates 62 general out-patient clinics as well as polyclinics and specialist clinics. Evening, Sunday and public holiday sessions continued at clinics in the more densely populated areas as part of the overall measures to meet the expanding demand for out- patient services. The medical development programme includes 19 clinic and polyclinic projects throughout the territory.

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 the assistance of the Royal Hong Kong Auxiliary Air Force.

       At the end of 1984, 345 clinics were registered under the Medical Clinics Ordinance. Of these, 91 clinics were under the control of a registered medical practitioner and 254 were registered under the provisions for exempting certain clinics. Registered medical practitioners members of the Estate Doctor Association - set up clinics in housing estates to provide a low-cost service for residents.

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The total attendance figure at government out-patient clinics was 14.9 million in 1984, 9.1 per cent more than in the previous year.

Family Health

The Family Health Services of the Medical and Health Department operate 44 maternal and child health centres, providing a comprehensive health programme for women of child- bearing age and children aged up to five years. Family planning is an important component of the Family Health Services. Ante-natal and post-natal health consultation sessions are conducted for mothers. Immunisation programmes are carried out against tuberculosis, diphtheria, whooping cough, tetanus, poliomyelitis, measles and rubella. During 1984, about 93 per cent of newborn babies were checked at the family health centres.

       The comprehensive observation scheme to detect and assess early developmental abnor- malities, and where necessary to provide follow-up treatment, is now available at 44 family health centres. Children attending these centres may, if their condition warrants it, be referred to child assessment centres or various specialist units for further examination. The system enables rehabilitation processes to start as early as possible. Seven regional multi-disciplinary child assessment centres are included in medical projects planned for the next decade.

       Health education is extended to expectant mothers at major government hospitals, with particular emphasis placed on the promotion of breastfeeding. A telephone service is available to answer enquiries from the public. The government-subvented Family Planning Association of Hong Kong runs 31 birth control clinics providing various services, including vasectomy and female sterilisation services.

School Health

The School Medical Service Scheme is operated by an independent School Medical Service Board. Participation is voluntary and for a token fee of $10 a year children from Primary 1 to Form 3 can receive free medical attention from a general medical practitioner of the school's choice. The government contributes $65 a year for each pupil enrolled and also bears the administrative cost. The general response to the scheme is good: more than 308 000 school children from 783 schools have participated representing about 40 per cent of the eligible school population and more than 260 general medical practitioners have enlisted.

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       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 to advise on matters concerning the health of children and organise health education activities and 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 1 078 beds - and at psychiatric units in various regional and district hospitals. In line with the universal trend of operating smaller psychiatric units within general hospitals, an additional 2 400 beds are planned for such future 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

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basis. The centres also operate day hospital places and provide other social, occupational and recreational therapy services for the mentally ill.

      Additional psychiatric day centres and day places are provided in the Yung Fung Shee Memorial Clinic and the Tuen Mun Polyclinic. The Mental Health Service introduced a 24-hour hotline service in April to offer advice on urgent psychiatric problems to psychiatric patients and their families. The service is only advisory in nature and will initially run for one year on a trial basis.

      Special emphasis is placed on the follow-up and after-care of discharged mental patients during their reintegration into the community. During the year, the recently established Community Psychiatric Nursing Service was expanded on a regional basis to provide continuity in after-care treatment programmes to patients discharged from the Castle Peak Hospital and the Kwai Chung Hospital. Other complementary rehabilitative supporting services include after-care social services, placement services, half-way houses, long-stay care homes and social clubs organised by various agencies and closely monitored and co-ordinated by the Rehabilitation Development Co-ordinating Committee.

      Severely mentally handicapped persons requiring intensive nursing and medical treat- ment are cared for at the 200-bed Siu Lam Hospital and the Caritas Medical Centre, which has 300 beds for this purpose. A further 700 beds in this category have been planned for the next decade to meet the continuing need.

Dental Services

The School Dental Care Service provides regular dental examination and treatment services to primary school children. Essentially preventive in nature, the service has proved to be an appropriate and cost effective means of promoting dental health among school children. The response from parents and schools authorities has been most encouraging; some 233 700 children, 65.9 per cent of Primary 1, 2, 3 and 4 pupils, participated during 1984-5, compared with 56.8 per cent in 1983-4. Three school dental clinics have been established and six more are planned for the next four years. Dental health education programmes, involving lectures and exhibitions, are held to promote dental health awareness in children and adults.

      Training in dentistry is provided at the Prince Philip Dental Hospital, and some 70 dentists will graduate in 1985. The Tang Shiu Kin Dental Therapists Training School is responsible for training the dental therapists required by the rapidly expanding school dental care programme.

The Government Dental Service provides dental care for all monthly-paid government servants and their dependants, as well as simple dental treatment for inmates of penal institutions and specialist treatment for patients in government hospitals. Emergency treatment is also provided for the public at a number of district dental clinics.

Port Health

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

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

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       The health staff also maintains close surveillance of the food catering service provided for international airlines to ensure that food and water supplied to flight kitchens 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 Vietnamese refugees arriving in Hong Kong remained relatively small during the year. Under the Immigration (Amendment) Ordinance 1982, all new arrivals were transferred to closed centres for quarantine and detention after initial disinfection procedures. The centres provide a range of facilities including recreational, social, medical and family planning services. The health of the refugees is closely monitored and proved to be satisfactory during 1984.

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

Special Services

The Pathology Service provides clinical and public health laboratory services for govern- ment hospitals and clinics, and a consultant service for the government-assisted sector. It also administers hospital mortuaries and blood banks. The Institute of Immunology produces vaccine and other biological products for use in the local health services. The Virus Unit provides a central laboratory service for the diagnosis and surveillance of viral infections and valuable services for the screening, assessment and guidance of vaccination programmes against viral infections. In 1984, a Central Neo-natal Screening Laboratory was established in the Kwong Wah Hospital on a temporary basis. The main function of this unit is to co-ordinate the laboratory activities of the territory-wide neo-natal screening programme on congenital hypothyroidism and glucose 6 phosphatase dehydrogenose deficiency. The Forensic Pathology Service, through its forensic laboratory, works closely with the Royal Hong Kong Police Force on the medical aspects of criminology and other medical-legal work. It also administers public mortuaries.

The Institute of Radiology and Oncology provides diagnostic organ image services for the government as well as consultant services for all government-subvented hospitals and private institutions. Computerised axial tomography (CAT) whole-body scanners are installed in all government regional hospitals including the new Prince of Wales Hospital. The Nuclear Medicine Unit was established in December 1983. The main tasks of the unit are to co-ordinate and improve the various nuclear medicine procedures and to train medical personnel in the field.

      The institute provides comprehensive radiotherapy programmes and a chemotherapy service. It also operates a cancer registry covering the whole territory. Professional staff of the Radiation Health Unit carry out regular inspections of medical, commercial and industrial premises and monitor the working conditions of radiation workers. During the year, more than 1 200 radiation licences were issued to proprietors in accordance with the Radiation Ordinance.

      The Pharmaceutical Service is made up of two main divisions. The first is the hospital and clinic pharmacy service which has a staff of about 500 and is responsible for dispensing medicine in all government hospitals and clinics. The second division is the pharmacy

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law enforcement service whose staff includes 17 pharmacists. During the year, intensified action against the illegal sale and distribution of poisons and antibiotics resulted in a record 122 prosecutions.

Community Nursing Service

The Community Nursing Service extends 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.

      The service is provided by trained community nurses. Jointly operated by eight agencies, including the Medical and Health Department, it is largely hospital-based, with domiciliary services provided through a network of 39 sub-centres. During the year, 10 100 new patients were treated by community nurses and more than 216 000 home visits were made.

Health Education

The Central Health Education Unit of the Medical and Health Department is responsible for organising, co-ordinating and promoting health education activities. During 1984, the major theme for health education was a Healthy Family and to promote the message Health Begins at Home various activities were organised, including competitions, radio and television programmes, exhibitions, and a carnival at Victoria Park. Other themes publicised during the year included Anti-Smoking, Mental Health, and Adolescent Health. The unit runs an audio-visual service and also loans health education materials to schools and voluntary agencies.

A 24-hour hotline service was started in mid-1984. This service has an automatic telephone answering system with a pre-recorded message on various medical and health topics which are changed every month. The overwhelming response indicates that Hong Kong people are becoming increasingly aware of the importance of health education.

Medical Charges

In May 1984, the charge for a consultation at a general out-patient clinic was increased from $5 to $7. The charge for a consultation at a specialist clinic was also raised, from $6 to $10. These charges cover medicine as well as X-ray examinations and laboratory tests. Charges for physiotherapy, occupational therapy and child assessment were raised to $10 per visit. However, charges for injections and dressings, and for visiting family planning clinics and methadone clinics remained unchanged at $2 and $1 respectively. Even at the increased rate, the charges still represent a substantial subsidy from public funds. They may be reduced or waived in cases of hardship certified by a medical social worker.

      From May, patients in third class beds in government hospitals were charged $15 per day, an increase of $5. This fee is all inclusive, covering diet, X-ray examinations, laboratory tests, drugs, surgery and any other forms of special treatment required. The fee for home visits by community nurses was also increased from $10 to $15. These fees may also be waived if warranted. Despite the increase, hospital charges remain barely adequate to cover the cost of patients' meals. A limited number of private beds are provided at major government hospitals with higher maintenance and treatment charges.

Free medical services continued to be offered at maternal and child health centres, tuberculosis and chest clinics, social hygiene clinics, accident and emergency departments, floating clinics and through the 'flying doctor' scheme.

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Graduates of the Faculty of Medicine at the University of Hong Kong are awarded Bachelor of Medicine and Bachelor of Surgery degrees recognised by the General Medical Council of Great Britain. Both the government and the university maintain a comprehen- sive post-graduate training programme. Opportunities are available for local doctors to sit for higher professional examinations, attain fellowships and attend professional con- ferences, seminars and workships. During the year, more than 170 qualified doctors went overseas under government sponsorship or other scholarships to receive further training.

      The University of Hong Kong produces about 150 medical doctors a year, and the Chinese University of Hong Kong has an annual intake of 120 medical students.

       The number of nurses employed by the government has grown to more than 9 000. Basic training for general registered nurses is available at government, government-assisted and private hospitals. There are now eight such training schools with a total of 1 200 places. Over the next 10 years four more nurse training schools are planned. Training places for general enrolled nurses will be increased from 612 to 777.

Training schools for registered psychiatric nurses are at the Kwai Chung Hospital and the Castle Peak Hospital, with an annual capacity of 120 and 40 respectively. Two more training schools for psychiatric nurses are planned to be in operation by the late 1980s. One will be at the United Christian Hospital and the other at the new hospital to be built in Chai Wan. Psychiatric enrolled nurses are trained at the Castle Peak Hospital. The present capacity of about 60 nurses will be increased to 80 in 1986.

There is increasing awareness of the need for continued training and education for nurses. The post-basic school of the Nursing Unit continues to provide regular post- registration courses in midwifery, health nursing and community health nursing. An Institute of Medical and Health Care at the Hong Kong Polytechnic provides training for para-medical and para-dental staff.

Government Laboratory

The Government Laboratory is the main centre for analytical chemistry and the greater part of its programme is directly related to technical aspects of government policy, notably revenue, health, environment and, where appropriate, law enforcement. The first edition of a booklet describing the laboratory's functions and various services was published during the year.

One of the traditional functions of the laboratory is to provide a comprehensive analytical and technical advisory service to the Customs and Excise Service. Commodities of industrial importance such as tobacco, spirits, beer, cosmetics and hydrocarbon oils were regularly examined.

The laboratory undertook consulting and investigatory work for various government departments. Dangerous goods, government purchases, pesticide formulations and forged consumer goods remained the main areas of interest. Work was initiated on the provision of a full statutory gold assay service to support the enforcement of the Trade Descriptions (Marking) (Gold and Gold Alloy) Order 1984. The laboratory continued to examine monthly samples of cigarette brands on sale locally in order to determine their tar and nicotine yields. The results from this testing programme are published twice yearly in the form of tables which show the brands ranked according to tar yields.

Interest in environmental matters remained at a high level and the demand on the laboratory for the analysis of air and water samples continued undiminished. Concurrently, there was an increase in the number of requests to investigate occupational atmospheres for a wide range of chemicals.

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Regular work continued on the examination of pharmaceutical products purchased by the government for use in its hospitals and clinics and also those items submitted for registration under the provisions of the Pharmacy and Poisons Regulations. The labora- tory's role in this respect ensures that pharmaceutical products comply with the required standards of safety, quality and efficiency before being offered to the public.

The laboratory continued to provide a practical and advisory service to the Urban Council and Urban Services Department in respect of the quality control of imported and locally manufactured foods. Foods are laboratory-tested for compliance with the regulations made under the Public Health and Urban Services Ordinance, some of which necessitate extensive investigations. During the year, a comprehensive survey of the chemical composition of branded mineral waters was carried out for consumer protection. The laboratory also provided a urinalysis service in support of the methadone main- tenance and detoxification programme for drug abusers.

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 comprehensive treatment and rehabilitation programme for drug addicts and to dissuade residents, particularly young people, from experimenting with drugs so as 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 show that the size of the addict population in 1984 was in the region of 50 000.

      Data collected by the registry, based on 250 000 reports on 49 000 individuals, indicate that 93 per cent are male and seven per cent female. As to age distribution, 72 per cent were over 30 as at the end of 1984, 23 per cent were in the 21 to 30 bracket and five per cent were under 21. The principal drug of abuse in Hong Kong is heroin, which was used by 98 per cent of the addicts reported to the registry in 1984. Opium abusers accounted for one per cent and the remaining one per cent took other drugs. The most widely-used method of taking heroin was by injection followed by fume inhaling, commonly known as 'chasing the dragon'. Opium abusers generally smoke the drug.

      Typical addicts are adult males over 21 in the lower income group, generally employed as casual labourers or as unskilled or semi-skilled workers and living in overcrowded conditions. They have generally not more than six years of formal education and are single or, if married, usually separated from their families.

The government's overall strategy to combat drug abuse 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, thus inducing

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addicts to seek treatment voluntarily. Addicts who wish to rid themselves of their drug habits are offered a wide range of treatment programmes, the effectiveness of which reduces the demand for illicit drugs. At the same time, preventive education and publicity measures are used to dissuade others, especially the young, from experimenting with drugs. Co-operation at the international level enhances the effectiveness of efforts in these three areas through the exchange of information and experience.

All these efforts are co-ordinated by the Action Committee Against Narcotics (ACAN), a non-statutory body comprising a chairman, nine government officials and seven unofficial members. The committee, formed in 1965 and reconstituted in 1974, is the government's sole advisory body on all anti-narcotics policies and actions, whether internal or external, and whether related to government departments or voluntary agencies. It is serviced by the Narcotics Division which is headed by the Commissioner for Narcotics.

Given the abundant supply of illicit drugs as a result of successive bumper crops of opium from the 'Golden Triangle' region since 1981, the year saw unrelenting action against narcotics trafficking and abuse. In law enforcement, effective action by the police and customs resulted in 11 300 detections being made in respect of drug offences. Sustained pressure on traffickers at all levels resulted in more heroin being seized than in the previous year.

As a result, the price of heroin was at times more than addicts could afford, leading to increasing numbers seeking treatment. The majority sought treatment in the methadone treatment programme which provides both maintenance and detoxification services on an out-patient basis. Methadone maintenance is a long-term treatment approach which is intended to prevent an addict's return to illicit heroin or other forms of narcotic abuse, while detoxification is a short-term form of treatment aimed at eliminating the physical dependence on narcotics. At present, there are 24 methadone clinics operated by the Narcotics and Drug Administration Division of the Medical and Health Department.

The largest voluntary in-patient treatment programme is run by SARDA. The society operates two treatment centres, one for men and the other for women. The male centre, on the island of Shek Kwu Chau, has a capacity of 500 patients, while the Women's Treatment Centre, in Wan Chai, can cater for 30 patients. Linked to these centres are three units for the intake of patients, five regional social services centres, four half-way hostels, two out-patient clinics and an employment placement office.

A compulsory treatment programme is operated by the Correctional Services Depart- ment under the Drug Addiction Treatment Centres Ordinance. The ordinance provides for the sentencing of a drug dependent person, who has been found guilty of an offence punishable by imprisonment, to detention in a drug addiction treatment centre. The Correctional Services Department now runs an addiction treatment centre for male adults and another for young males under 21 on the island of Hei Ling Chau. In addition, a section of the Tai Lam Correctional Institution is set aside for treating female addicts. The treatment programme ranges from four to 12 months, and all persons discharged are given one year of statutory after-care.

In 1984, the two voluntary treatment programmes and the Correctional Services. Department's compulsory treatment programme admitted 18 500 addicts for treatment. On average, there were 14 000 addicts and ex-addicts receiving some form of treatment, rehabilitation and after-care every day.

During the year, the clinical trial on the efficacy of buprenorphine in the treatment of drug addiction was concluded. It was found that the drug, the primary use for which is as an analgesic, was not suitable for use on a mass scale in the detoxification of heroin addicts

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when taken in its oral form. The drug precipitated withdrawal symptoms in subjects suffering from chronic heroin addiction and this made the drug unacceptable to them.

Preventive education and publicity play an important part in Hong Kong's fight against drug abuse. Work in this area is focused on heightening public awareness of the dangers of drug abuse, promoting community involvement in tackling the problem, dissuading young people from experimenting with drugs or becoming involved in drug crime, and encouraging addicts to come forward for treatment.

Four district campaigns with community involvement were held in 1984. Among the events organised to drive home the anti-narcotics message were concerts, variety shows, sports tournaments, fun fairs, film shows and exhibitions, as well as competitions in essay writing, poster and slogan design, painting, and singing.

The major territory-wide event of the year was the Students Against Drugs Movement, launched in October, in which more than 1 000 secondary students took part. This project consisted of a series of competitions: poster and slogan design, essay and lyric writing, telematch, singing, and exhibition stall design. Quizzes were also held. All these activities were aimed at educating young people on the dangers of drug abuse.

In 1984, a school talks team was formed in the Narcotics Division of the Government Secretariat to give drug education talks to students aged between 12 and 15 at secondary schools throughout the territory. A total of 55 000 students in 108 schools attended.

The Youth Against Drugs Scheme ran for the fourth year. It helped 20 groups of young people to plan and implement 39 anti-narcotics promotional activities. The 50-member ACAN Youth Volunteer Group, which was established in 1981 with a view to training and encouraging young volunteers to play an active part in anti-narcotics work, participated in the four district campaigns and organised various community involvement activities. The Drug Education Liaison Centre also organised anti-narcotics training and education for young people, parents, teachers, students, social workers, scout leaders and voluntary organisations. The centre produced a range of anti-drug publications during the year, as well as films and slides, and handled requests from the public for information on drug abuse.

       To support these activities and publicise the anti-narcotics message, television and radio newsclips and dramas, films, posters and leaflets were produced.

       During the year, the Drug Abuse Telephone Enquiry Service received 2 025 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. Hong Kong took part in 11 international meetings concerned with anti-drug law enforcement, treatment and rehabilitation, and preventive education. Hong Kong also made its 10th 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' on the borders of Burma, Laos and Thailand which area is the source of most of Hong Kong's opiate drugs.

       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 overseas. In 1984, 158 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 a United Nations body such as the World Health Organisation or the

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Colombo Plan Bureau. At the same time, experienced officers from the Royal Hong Kong Police Force and the Customs and Excise Department frequently went overseas to act as lecturers or consultants on training courses related to anti-drug work.

Environmental Hygiene

The work of the Urban Services Department includes street cleansing, the collection and removal of refuse and nightsoil, the management of public toilets and bathhouses, pest control, and the disposal of the dead. An important role is also the control of food hygiene. A regular workforce of 6 200 in the urban areas and 3 350 in the New Territories is employed in cleansing duties. The cleansing force is equipped with a fleet of 639 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 3 620 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.

Although the Clean Hong Kong Campaign formally ended in December 1982, the government continued to maintain the higher standard of cleanliness achieved. In 1984, a programme in six phases was put into operation covering housing estates, block cleansing, villages, squatter areas, beaches and countryside and including a general beautification programme. In addition to education, publicity and community involvement, law enforce- ment remained the major tactic in the fight against litter. During 1984, a total of 50 632 people were fined for litter offences.

Controls

Health inspectors regularly inspect licensed and permitted premises, common parts of residential and commercial buildings, construction and vacant sites and squatter areas to enforce the Public Health and Urban Services Ordinance and its subsidiary legislation so as to maintain and improve standards of hygiene. Special inspections are also carried out to deal with complaints relating to vermin infestation and unhygienic conditions. The Urban Services Department also works closely with the staff of the Medical and Health Department in the investigation and control of food poisoning outbreaks and infectious diseases.

      Integrated programmes are carried out to prevent and control rodents, mosquitoes, flies and other public health pests. Measures taken during the year included environ- mental improvements, public health education campaigns, the destruction of breeding places, the use of pesticides and law enforcement. Pest control teams also combat vector- borne diseases.

      Additional emphasis was placed on the education of the younger generation through teaching, participation schemes and the mass media. The health education section of the Urban Services Department organised talks, instruction courses, contests and competitions for students and youth groups to stimulate their awareness of and concern for public health matters. Throughout the year, a number of educational campaigns on environmental and food hygiene were also launched. Lectures, seminars and courses on various topics of public health were arranged for food service workers, leaders of voluntary welfare agencies, mutual aid committee members, elderly people and Vietnamese refugees. Efforts were

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also made to educate special target groups, including immigrants from China and Filipina maids, through mobile broadcasting.

Food

For the protection of public health, the food section of the Urban Services Department continued to ensure that food for sale, whether imported or locally produced, was hygienic and safe for human consumption. The ever increasing quantities and varieties of food items on sale have added weight to the importance of law enforcement including regular monitoring of standards of food hygiene and safety, and systematic inspection and sampling of food products for laboratory examination. The section also continued to liaise with the World Health Organisation and other bodies to keep Hong Kong abreast of international developments in food science and toxicological evaluation so as to benefit and protect local food traders and consumers. Consequently, the Preservatives in Food Regulations were completely revised.

Markets

In the urban areas of Hong Kong and Kowloon, the Urban Council runs 54 public retail markets with more than 7 500 stalls selling different commodities ranging from fresh foodstuffs such as meat, poultry, vegetables and fruits, to general merchandise such as clothing, household goods and other daily necessities. The commodities available for sale in public markets have diversified over the years with the increase in the number of on-street hawkers being moved into market buildings. A cooked food centre is now a standard facility in modern market complexes.

Many public markets are still located in old buildings and it is the policy of the Urban Council to redevelop these into modern multi-purpose complexes which besides markets also provide other community facilities such as rest gardens, games halls, libraries and auditoria for the performing arts. During the year, two such complexes - at Sai Wan Ho and To Kwa Wan - were completed. In addition, the Chai Wan Temporary Market and the Kowloon City Temporary Market were built in preparation for the construction of complexes on the sites of the old markets.

       To meet the demand for lunch facilities for the industrial workforce in Kwun Tong District, two cooked food centres with 84 stalls, located in Tsun Yip Street and Kwun Tong Ferry Concourse, began operation. The Woosung Street Cooked Food Bazaar in Yau Ma Tei also opened.

       In the New Territories, the government runs 44 public markets outside public housing estates with accommodation for more than 5 500 stallholders. Seven new markets were completed during the year, providing an additional 1 600 stalls.

Hawkers

The Urban Council is responsible for the management and control of hawkers in the urban areas while in the New Territories the New Territories Services Department undertakes this work. In 1984, there were 30 900 licensed hawkers throughout the territory, a decline of 2 800 compared with 1983. This reduction was the result of continuing efforts to move on-street hawkers into markets and also of the ex gratia payment scheme in the urban areas under which 307 on-street cooked food stall operators voluntarily surrendered their hawker licenses in return for a payment of $36,000 each.

       The number of unlicensed hawkers tends to fluctuate from year to year, but it was estimated that there were 19 000 in 1984. Under the control of district urban services

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officers, General Duties Teams work closely with the Royal Hong Kong Police Force in containing illegal hawkers and taking necessary enforcement action.

Abattoirs

The two government abattoirs - in Kennedy Town on Hong Kong Island and in Cheung Sha Wan in Kowloon - continued to supply the bulk of the population with fresh meat. During the year, 2 676 000 pigs, 134 000 head of cattle and 12 000 goats were slaughtered in these two abattoirs.

      Slaughtering services in the New Territories are provided by licensed private slaughter- houses in Kwai Chung, Yuen Long and Tai Po which handled 871 000 pigs and 42 000 head of cattle during the year. The Kwai Chung works can slaughter 3 000 pigs daily and also helps to meet the demand from Kowloon. A new abattoir to be built in Sheung Shui will serve the needs of the new towns in the northeastern New Territories. Animals slaughtered in government abattoirs and private slaughterhouses are inspected by specially trained health inspectors of the Urban Services Department.

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 Island 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.

      During the year, the department's commitments continued to increase in keeping with the rapid pace of new town development. Besides making better use of existing resources, additional projects were being planned to enable the department to cope with the development. A total of 22 capital projects were completed in 1984 and 425 new projects were in the planning stage. These included markets and cooked food centres, pleasure and sports grounds, nurseries, indoor games halls, swimming pools, beach buildings, crematoria and columbaria, public toilets, and refuse collection points.

Cemeteries and Crematoria

It is the government's policy to encourage cremation rather than burial for disposal of the dead. During 1984, 63 per cent of the dead were cremated and several additional cremation facilities were provided. These included a 2 000 niche columbarium at the Diamond Hill Crematorium and the new Fu Shan Crematorium with 9 700 niches in Sha Tin. Human remains in public cemeteries are subject to exhumation after six years. The exhumed remains are then either cremated or removed to an urn cemetery.

The Urban Council operates two funeral depots, one on Hong Kong Island and one in Kowloon, which provide free services for the disposal of the dead. In the New Territories, there are five public cemeteries, three public crematoria and eight private cemeteries; and in the urban areas there are five public cemeteries, two public crematoria, and 18 private cemeteries. There are two war cemeteries, under the management of the Commonwealth War Graves Commission.

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Social Welfare

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DURING the year, further improvements were made in the provision of social welfare services, in line with the policy objectives stated in the three White Papers - Integrating the Disabled into the Community: A United Effort; Social Welfare into the 1980s; and Primary Education and Pre-Primary Services, which were published in 1979, 1980 and 1981 respectively.

The government's housing scheme to provide self-contained accommodation for elderly people who are able to live independently in the community has continued. A further 23 flats were made available in a private housing development. Including the 80 flats purchased in 1983, the scheme has now provided accommodation for 595 elderly people. To focus efforts more effectively on the provision of self-care and care-and-attention homes, the Director of Social Welfare assumed responsibility for the strategic planning of group accommodation for the elderly.

      The non-contributory Public Assistance Scheme, which is intended to help needy families and individuals, remains the most important element of the social security system. The level of cash benefits made available under the scheme was increased by about 13 per cent in February. The administration of this and other social security schemes has been enhanced by the introduction of a computerised system.

In the field of family welfare services, reviews of the family casework and home help services were initiated, following recommendations made by the 1984 Five Year Plan Review Committee. The number of foster care places available for children increased from 40 to 120 during the year and close liaison between the Social Welfare Department's Central Foster Unit and the welfare agencies supervising placement of children has continued. The Working Group on Child Abuse completed in late 1983 a general review of the handling of child abuse cases. The Working Group was reconvened in 1984 and reviewed the implementation of the recommendations and considered further improve- ments, which are being put into effect.

      Direct welfare services continue to expand. The year saw the opening of one self-care home for the elderly, with a capacity of 85 places, and four social centres for the elderly. Twelve child care centres were opened to provide 1 070 places for children aged between two and six years and the number of foster places available for children increased from 40 to 120. Increased provision of community services for the disabled included 335 additional places in sheltered workshops for the disabled and 40 places in day work activity centres for the severely disabled. Four community halls were built to provide venues for a wide range of community activities.

      For the 1984-5 financial year, the total estimated expenditure on social welfare is $1,677.2 million, with $1,385.5 million being spent on public assistance and the related special needs allowances. In addition, subventions total about $400.9 million. A working

G PUBLIC LIBRAR

HEALTH

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More Clinics, Hospitals

Meeting the medical and health needs of an ever growing population requires con- tinual expansion of Hong Kong's already extensive medical services which have earned a reputation of being among the finest in Asia. More hospitals, both public and private, are being built as part of a continuing 10-year development plan. In the coming decade, it is expected that 14 400 more beds will be added to the approximately 24 200 now provided in medical institutions. The territory's most modern hospital - the Prince of Wales. Hospital, built at a cost of around $971 million - became operational in early 1984. This hospital is located in Sha Tin as part of a programme to build regional hospitals in both the new towns and the older- established districts. The government also runs 61 out-patient clinics as well as polyclinics and specialist clinics which are heavily patronised. More clinics are being built. Mobile dispensaries and floating clinics provide medical services for people living on outlying islands and in the more remote areas. Other inaccessible areas are visited regularly by a 'flying doctor' service. Dovetailing with the expansion of services is a rapid growth of teaching and training programmes for doctors and nurses. Generally, Hong Kong people have con- tinued to enjoy good health, reflecting the emphasis placed on preventive health measures provided by the Medical and Health Department.

Previous page: The computerised axial tomography (CAT) scanner at the Prince of Wales Hospital. Left: The central monitoring station in the hospital's intensive care unit; a linear accelerator used for treating cancer in the radiotherapy unit; staff monitor treatment and closed circuit television consoles as a patient undergoes radiotherapy.

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A young mother accepts advice from a nurse at the Prince of Wales Hospital on the balanced nutrition that her newborn baby will require.

Among the physiotherapy facilities at the Prince of Wales Hospital is a hydrotherapy pool which is of special benefit to patients recovering from limb fractures.

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   Exercise on a bicycle in the physiotherapy unit of the United Christian Hospital helps put this lad on the road to recovery.

Top: A young patient receives treatment at a government dental clinic. Above: A nurse joins in a chat with two patients in the geriatric unit of the Kwong Wah Hospital.

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1ST AID ROOSE

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KEI FREN TRENIN MARN

Top: Donors prepare to give blood at the Blood Bus operated by the Red Cross Blood Trans- fusion Service. Above: St John Ambulance volunteers on beach duty give first aid to swimmers.

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A doctor examines a child on board a "floating clinic' launch that regularly visits outlying villages, in this instance Sok Kwu Wan on Lamma Island.

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group is now reviewing the procedures relating to applications from voluntary agencies or government departments for grants from the Lotteries Fund, with a view to formulating improvements to expedite processing.

The Social Welfare Advisory Committee keeps social welfare services under continuous review and advises the government on all matters of social welfare policy. The Rehabilita- tion Development Co-ordinating Committee advises on policy and principles governing the development of rehabilitation services.

The Director of Social Welfare, who heads the Social Welfare Department, is responsible for carrying out government policies. The Social Welfare Department works closely with the non-government welfare sector which plays a complementary role in the provision of services. Most non-government welfare agencies are affiliated to the Hong Kong Council of Social Service which is actively involved in the review of the Five Year Plan for Social Welfare Development.

Social Security

In addition to the Public Assistance Scheme, the Social Welfare Department administers the Special Needs Allowance Scheme, the Criminal and Law Enforcement Injuries Com- pensation Scheme and the Traffic Accident Victims Assistance Scheme. It also provides emergency relief.

       The means-tested but non-contributory Public Assistance Scheme is designed to ensure a basic level of income so that essential needs can be met. To be eligible, a person must have resided in Hong Kong for at least one year, although the Director of Social Welfare has discretion to waive this requirement in cases of genuine hardship. An able-bodied unemployed adult aged between 15 and 59 is eligible only if he is actively seeking employment and has registered with the Local Employment Office of the Labour Department. At the end of 1984, the number of active public assistance cases was 59 320 compared with 54 711 in 1983. Expenditure on public assistance in the 1983-4 financial year totalled $486.6 million.

The rates of assistance are reviewed and increased from time to time to keep in line with the cost of living. The existing monthly basic rate is $510 for a single person, $370 for each of the first three eligible members of a family, $315 for each of the succeeding three members, and $245 for each subsequent eligible member. In addition to the basic rate, old age supplements, disability supplements and long-term supplements can be given. An old age supplement of $255 per month is given to those aged 60 and over provided they are not in receipt of a special needs allowance or disability supplement. A disability supplement of $255 per month is payable to those who are partially disabled with at least a 50 per cent loss of earning capacity, and are not in receipt of an old age supplement or a special needs allowance. An annual long-term supplement of $1,290 for a family or $645 for a single person is given to those who have received public assistance continuously for 12 months, to enable them to meet the cost of replacement of household ware and durable goods. Separate allowances are also payable to assist with the cost of renting accommodation, of meeting special expenses relating to education or dietary needs, or of other essential requirements.

To provide some encouragement to public assistance recipients to undertake part-time employment, their earnings up to $255 a month are disregarded in calculating the assistance given. This arrangement does not apply, however, to able-bodied adults who are expected actively to seek employment as a condition of receiving public assistance.

The Special Needs Allowance Scheme, which is non-means-tested and non-contributory, provides flat rate old age and disability allowances. Any person, regardless of age, who is

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severely disabled and has resided in Hong Kong continuously for at least one year before claiming the allowance, is eligible for a disability allowance. Any person aged 70 or over is eligible to apply for an old age allowance provided he has resided continuously in Hong Kong for at least five years immediately before doing so. The current rates of the disability and old age allowances are $510 and $255 respectively. The number of people receiving these two allowances at the end of the year was 255 470, compared with 235 220 at the end of 1983. Expenditure on special needs allowances in the 1983-4 financial year was $709.2 million, an increase of $86.3 million over the previous year.

      The Criminal and Law Enforcement Injuries Compensation Scheme provides financial assistance for those injured, and for dependants of those killed in violent crimes or through the actions of law enforcement officers in the execution of their duties. The scheme is non-means-tested and is administered by the Criminal Injuries Compensation Board and the Law Enforcement Injuries Compensation Board. Total payments in 1984 amounted to $4 million, compared with $2.9 million in 1983.

        The Traffic Accident Victims Assistance Scheme is non-means-tested and aims at providing immediate financial assistance to traffic accident victims, or their dependants in the case of death, regardless of who was at fault in causing the accident. For a person to be eligible for assistance, a report must be made to the police and the application has to be made within six months of the date of the accident. In the case of injury, assistance is given where evidence of at least three days' sick leave can be produced in the form of a medical certificate signed by a registered medical practitioner. The scheme covers only traffic accidents as defined under the Traffic Accident Victims (Assistance Fund) Ordinance. Damage to property is not covered, but the scheme does not affect the applicant's right to claim common law damages in the usual way. Beneficiaries of the scheme who subsequently receive other compensation in respect of the same accident are required to refund the payments they have received from the scheme or the amount of compensation, whichever is less. During the year, 6 060 applications were received; 5 490 were approved for assistance, and payments amounted to $32 million.

       Emergency relief is provided to victims of natural and other disasters in the form of immediate material aid such as hot meals, blankets and other essentials. In addition, grants from the Emergency Relief Fund are made to victims of such disasters. During the year, emergency relief was given on 145 occasions to 7 550 registered victims.

To prevent abuse of the various schemes, a special team conducts in-depth investigations in cases of suspected fraud or over-payment. During the year, the team completed investigations into 192 cases, some of which were later referred to the Attorney General for legal advice and possible prosecution.

The Social Security Appeal Board is an independent body which considers appeals from individuals against decisions by the Social Welfare Department concerning public assistance, special needs allowances and traffic accident victims assistance payments. It heard a total of 49 appeals during the year. Of these, 10 related to public assistance, 38 to special needs allowances, and one to traffic accident victims assistance.

Services for Offenders

The overall objective is to give effect to the directions of the courts on the treatment of offenders by social work methods, with the aim of reintegrating them into the community through probation supervision, residential training, and remand home and after-care services.

Probation applies to offenders of all age groups. The probation officer provides supervision and personal guidance to probationers through regular home visits and

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interviews during the period specified in a probation order. The probation officer also works closely with the probationer's family and arranges any special treatment or services that may be appropriate. Volunteers also participate in the probation service under a volunteer scheme.

The Social Welfare Department operates six residential institutions and remand homes to provide training and residential facilities to help young offenders reintegrate into the community. These include the Begonia Road Boy's Home, the Ma Tau Wai Girls' Home, the Castle Peak Boys' Home, the O Pui Shan Boys' Home, the Kwun Tong Hostel and the newly opened Pui Chi Boys' Home. After-care workers try to establish good relationships with offenders during their stay in residential institutions and help them reintegrate into the community upon discharge. Complementary to the services provided by the Social Welfare Department, the voluntary agencies provide various types of services with a view to helping young offenders and young people with behavioural problems.

Family Welfare Services and Child Care

Family services are aimed at preserving and strengthening the family unit by helping individuals and families both to solve problems and to prevent them from arising. Services are provided by the Social Welfare Department, mainly through a network of 20 family services centres and by a number of non-government welfare agencies. These services include counselling on personal and family problems; care and protection of young people under the age of 21; residential and foster care for children up to the age of 21; and 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 active cases at December was 21 352.

The Social Welfare Department is responsible for carrying out a number of statutory responsibilities under the Protection of Women and Juveniles Ordinance, the Offences Against the Persons Ordinance, the Marriage Ordinance, the Guardianship of Minors Ordinance and the Matrimonial Causes Ordinance. The department provides supervision and/or residential accommodation for boys and girls under 18 whose parents or guardians do not exercise proper care over them, and for those under 21 who have no parents or guardians or who are adopted other than by a court order.

Special efforts have been made in the field of child care. The Social Welfare Department operates a children's reception centre for the temporary care of children aged up to eight. A Child Protective Services Unit has been set up to provide intensive services for children who have been, or are suspected to have been, abused, whether physically, psychologically or sexually. Through the Adoption Unit, the Social Welfare Department handles both overseas and local adoption. The assistance of the International Social Service, Hong Kong Branch, is sought in arranging overseas adoptions. During 1984, there were 386 legal adoptions, 62 proposed adoptions and 41 overseas adoptions.

Child care centres are established for the care and protection of children under the age of six. Such centres must comply with the standards laid down in the Child Care Centres Ordinance and they are subject to registration and inspection. At the end of the year, there were 23 061 places in day child care centres and another 964 places in residential child care centres. Low income families may apply for fee assistance through the Social Welfare Department. Some 11 400 children were receiving fee assistance at year-end.

Social work services are also provided by medical social workers stationed in hospitals and clinics. During the year, they handled 94 643 cases.

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      The Social Welfare Department co-ordinates efforts in the provision of a wide range of family life education programmes. These are designed to improve the quality of family life, prevent family breakdowns and promote understanding of inter-personal relationships. A territory-wide publicity campaign is held each year to promote a particular theme. The 1984 theme of Building a Happy Family incorporated specific messages on preparing for marriage, learning to be a parent, understanding roles and responsibilities in the family, strengthening family ties and child rearing. Apart from the major publicity campaign, family life education programmes are organised by social workers at the district level. Fifty-six family life education workers operate from 14 non-government agencies.

Care of the Elderly

As specified in the White Paper entitled Social Welfare into the 1980s, the guiding principle for the planning of services for the elderly is 'care in the community'. A range of community services and improved cash benefits is provided to encourage families to look after their elderly members, or to enable old people to live on their own in the community for as long as possible. Such community services include home help, provision of meals, home visiting, community education, day care and social and recreational activities. At the end of 1984, there were 270 home helpers, 70 special centres for the elderly, eight multi-service centres and two day care centres. A priority housing scheme exists to benefit those families applying for public housing who have elderly family members living with them. Priority is also given to housing old people in public housing estates under a special quota system and the compassionate rehousing scheme.

       Residential institutional facilities are established for those elderly people who, for health or other reasons, can no longer live with their families or on their own. More homes have been built for elderly people with various needs. During the year, 85 additional subvented places were provided and, by year-end, there were 5 370 places in self-care homes (including 1 720 non-subvented places) and 880 places in care-and-attention homes. In addition, flats have been purchased in two private housing developments to provide accommodation for elderly people who are still in good health and can live independently with minimum assistance.

Social Work Among Young People

Nearly 44 per cent of the population is under the age of 25 and a wide range of services has been designed for the young. The overall objective is to assist and encourage young people to become mature and responsible members of the community by fostering the development of their personality, character, sense of civic responsibility, social attitudes, and ability to use their leisure time constructively.

A network of children's and youth centres is being developed within easy reach of all young people. These centres, which are mainly run by subvented welfare agencies, provide a venue for young people to meet together, to develop hobbies and interests and to receive guidance and counselling from social work staff. Five children's centres, five youth centres and nine combined children's and youth centres opened during 1984. At year-end, there were 136 children's centres, 147 youth centres and 90 combined children's and youth centres.

The Opportunities for Youth Scheme, which is administered by the Social Welfare Department, continues to provide activities to promote personal and social development and to encourage participation in community activities. The scheme attracted an en- thusiastic response from young people, and a total of $230,000 was granted to youth groups to carry out about 100 community projects during the year.

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      In addition, the government provides financial assistance to various uniformed youth groups which manage a number of youth camps and hostels.

       Services are also designed for those young people who are not motivated to participate in organised youth activities. Particular attention is paid to those who may be in danger of delinquency. Eighteen outreaching teams have been specially established to reach out to young people at risk. The social workers in these teams pay particular attention to young people who frequent playgrounds, parks, fast food restaurants and discotheques, in order to gain their confidence and to encourage them to seek help to overcome personal, emotional and behavioural problems.

A school social work service is available to all primary and secondary school pupils. Social workers in the Social Welfare Department or subvented agencies visit secondary schools on certain days of the week to assist pupils who may need their help. Student guidance officers of the Education Department are based in primary schools to provide personal, educational and vocational guidance to pupils, with the support of trained social workers from the Social Welfare Department.

Rehabilitation

Rehabilitation services have the main objective of integrating the disabled into the community. Services in this area are, therefore, aimed at enabling disabled people to develop their physical, mental and social capabilities to the fullest extent. The Social Welfare Department is responsible for meeting the general welfare and social rehabilitation needs of the disabled, either through direct services or by providing subvention for a wide range of services and activities operated by voluntary agencies.

Rehabilitation is a complex area and the work of the several government departments and many welfare agencies in the field is carefully co-ordinated by means of annual reviews of the Rehabilitation Programme Plan under the auspices of the Rehabilitation Development Co-ordinating Committee. The Education Department is 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. The Technical Education and Industrial Training Department co-ordinates vocational training for disabled young people and adults. Job placement for the deaf, the blind and other physically disabled people has been the responsibility of the Selective Placement Service of the Labour Department for some time and, in July, the service also took over responsibility for the placement of the ex-mentally ill and the mentally handicapped. The Hong Kong Council of Social Service operates a placement service for the socially handicapped.

       The Social Welfare Department provides the disabled with direct services such as financial assistance, counselling services, compassionate rehousing, day and residential care centres, sheltered workshops, work activity centres and sports, recreational and transport facilities. It operates 17 centres and institutions and subvents 70 centres run by 26 voluntary agencies. The services of these agencies include, in addition to those also provided by the Social Welfare Department, child care centres, programmes for disabled children under the age of two and their parents, and half-way houses.

       Day care services for the disabled include work activity centres and sheltered workshops. Work activity centres provide day care for the more severely mentally handicapped adults who cannot benefit from vocational training or sheltered work. At the end of 1984, there were a total of 638 work activity places provided by the Social Welfare Department and subvented voluntary agencies. Four new centres were under active planning to provide an additional 220 places in 1985. Sheltered workshops provide work opportunities for those

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disabled who are unable to compete in the open job market. At year-end, the department and voluntary agencies operated 2 200 places in sheltered workshops and a further 390 places will become available in 1985. The improved staffing standards, recommended in the Sheltered Workshop Working Party's report, are being implemented and preparatory work is also underway for the setting up of pilot workshops for more highly skilled workers.

      Residential care is provided for those people whose disabilities are so severe that they either cannot be cared for at home adequately or have no close relatives to provide such care. There are 490 places in homes for mentally handicapped adults with plans in hand to provide an additional 220 places in the coming year. There are 400 places in homes for the physically disabled, including the elderly blind who are no longer able to care for themselves.

      Following recommendations by a Working Group on Ex-mental Patients with a History of Violence or Assessed Disposition to Violence, comprising representatives of government departments and unofficials involved in the care of the ex-mentally ill, the government is taking steps to improve the co-ordination of after-care and rehabilitation services provided for discharged mental patients. These include increasing the number of medical social workers in psychiatric hospitals and out-patient clinics and providing more places in halfway houses.

      Halfway houses provide an important service to help ex-mental patients adjust gradually to the pressures of independent living with the help and support of trained social workers. By the end of 1984, there were some 240 places in halfway houses. Unfortunately, one of the constraints hampering the development of this service has been a negative public attitude towards the ex-mentally ill which has been particularly evident in efforts to integrate services for them into the community. The Committee on Public Education in Rehabilitation launched a major effort during the year to promote better public under- standing of the needs of ex-mental patients and it is hoped this will encourage a more positive and sympathetic attitude towards them. This is a long-term public education exercise which will continue to be a priority of the government.

      The Working Party on Pre-school Care, Training and Education of Disabled Children completed its deliberations in March. The government has accepted its report. The main recommendations include the establishment of a new service for disabled infants up to the age of two years which will include regular training and therapy for the infants as well as guidance and counselling for their parents on how best to help their children at home. The Working Party has also recommended improvements to the staffing standards in child care centres for disabled children and to the level of training of child care workers in the field.

Training

Training of social workers is the responsibility of the two universities, the polytechnics and post-secondary colleges. The Social Welfare Department and non-government welfare agencies assist in the provision of field work placements for social work students in these institutions.

      The Social Welfare Department, through its Training Section at the Lady Trench Training Centre, provides in-service training programmes, refresher courses and staff development programmes both for departmental staff and for staff of subvented welfare agencies. During the year, the number of courses, programmes, seminars and workshops organised by the section totalled 116, compared with 82 in 1983. The section also operates a demonstration child care centre to provide day care for 100 children aged between two and five.

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To equip staff with updated and specialised skills in the various areas of welfare services, the department sends experienced personnel to attend advanced training courses and international seminars. During the year, 37 officers attended 22 such courses and seminars. The Social Work Training Fund and other scholarships also provide funds to promote advanced social work training.

Research and Evaluation

The Research and Statistics Section of the Social Welfare Department conducts studies to assist in planning and monitoring services provided by the department. Thirteen studies were undertaken in 1984 including one carried out jointly with the Hong Kong Council of Social Service. This was on the social welfare manpower situation in Hong Kong. Other studies are geared to obtaining statistical information for the planning and review of social security schemes, probation and other services.

The department, through its Evaluation Section, is responsible for assessing services provided by the subvented welfare agencies. Departmental staff make regular visits to these agencies and reports are subsequently submitted to the Subventions and Lotteries Fund Advisory Committee which advises on subvention applications. During the year, the department also conducted five in-depth evaluations of individual subvented social welfare programmes and organisations as well as experimental projects financed by the Lotteries Fund, the Community Chest and the Royal Hong Kong Jockey Club.

Community Building

Rapid development and increasing urbanisation in the territory often bring about the creation of new communities, population relocation and high density living. In this situation, it is important to maintain Hong Kong as a cohesive and harmonious society. Efforts are carried out under the overall theme of Community Building which seeks to foster among residents a sense of belonging, mutual care and civic responsibility. These objectives are promoted through the provision of purpose-built facilities for group and community activities, formation of citizen's organisations, and encouragement of citizen's participation.

      Many government departments and voluntary organisations contribute towards Com- munity Building which is monitored and co-ordinated by the Community Building Policy Committee. The government departments principally responsible for this programme area are the City and New Territories Administration (CNTA) and the Social Welfare Depart- ment. The former implements the specific objectives of community building through a network of district offices, and is primarily concerned with promoting mutual care and community spirit through community organisations such as area committees, mutual aid committees, rural committees, kaifong welfare associations, women's organisations and local arts and sports associations. The Social Welfare Department is responsible for various aspects of group and community work aimed at promoting the social development of individuals and groups and at fostering a sense of community responsibility. Community centres, run by either the Social Welfare Department or voluntary agencies, are provided throughout the territory to serve as bases for community building work.

To meet an increasing level of activity and to make best use of expert social workers, the management of community centres will in future become a general administrative responsibility of the CNTA. This will allow the Social Welfare Department to devote its resources to extending and developing its work among groups of young people and adults, particularly those with special needs where the skill of trained social workers is required.

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Housing

For many years housing has been given a high priority in the allocation of public funds and 1984 was no exception. The development and maintenance of subsidised public housing continued to receive about one-third of the total public capital expenditure and one-tenth of the annual recurrent expenditure. Public housing - both rental and home ownership - now accommodates 2.5 million people, some 45 per cent of Hong Kong's population.

During the year, the Housing Authority produced a record 36 440 new units, which meant that for the fifth year in succession it had exceeded its annual construction target of 35 000 units.

      While public housing production has increased more than fourfold in 10 years, the achievements in quality are no less impressive and residents of modern public housing estates now live in comfortable and well-designed homes in pleasant landscaped environ- ments, where schools, shopping complexes, community facilities, parks, transport inter- changes and sports facilities are provided.

      To ensure that policies are geared to the needs of the public, a wide cross-section of the community is represented on the policy-making body - the Housing Authority. Unofficials serving as members of the authority include Urban Councillors, district board members, professionals and public housing tenants. Reviews of housing needs and policies are a continuing process but 1984 would be remembered as the year in which the Housing Authority took stock of its achievements and the public's aspirations, and undertook the most comprehensive review of its public housing allocation policies to date.

      A consultative document - published in April - covered the authority's policies on the rehousing of squatters, rental housing for small households, well-off tenants in public housing, measures to promote home ownership, additions of married children and their families to tenancies and inheritance of public rental flats. The consultative document listed the pros and cons of the possible options on each issue and encouraged an uninhibited and lively discussion at meetings of district boards, mutual aid committees, community organisations and professional associations.

      Throughout the consultation process, comments and suggestions on the allocation policies and the options listed were collected from the 18 district boards, from hundreds of organisations and individuals, and from the media. In addition, a public attitude survey on housing matters, which included the options contained in the consultative document, was conducted and the views of 2 000 household members aged 16 to 65 were gathered. Due consideration was given to the views expressed and consequently several far-reaching changes of policy were adopted. These included: allowing single persons to apply for specially designed units in rental housing, with priority given to those living in temporary housing areas; allowing two-person families to apply for both rental and Home Ownership Scheme flats; and the provision of additional non-financial

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incentives aimed at encouraging existing Housing Authority tenants to apply for Home Ownership Scheme flats.

The Home Ownership Scheme (HOS) and Private Sector Participation Scheme (PSPS) provide low income families with the opportunity to purchase their own flats at prices below those of comparable units on the open market. During the year, 11 700 units were completed for sale under the Home Ownership Scheme. Although no PSPS flats were completed in the year, the scheme continues and some 13 300 flats are due for completion in 1985 to boost public sector production.

       The year also saw the completion of the first phase of a rural housing scheme at Tui Min Hoi, Sai Kung, by the Hong Kong Housing Society, which manages small rental estates and is involved in urban redevelopment schemes.

On the private sector front, some 20 000 units were completed in what was a difficult year for developers. The property market in general remained depressed, although sales of small flats in good locations were buoyant. There were signs, however, that a recovery was in sight and completions for 1985 were forecast to increase to 27 000 units. The private housing supply of 20 000 units in 1984 was low compared with 24 000 for 1983 and a five-year average of 27 000 units per annum for 1978-82.

Housing Authority

The Hong Kong Housing Authority, established under the Housing Ordinance, is a statutory body responsible for co-ordinating all aspects of public housing. The authority advises the Governor on all public housing policy matters and through its executive arm, the Housing Department, plans and builds public housing estates for categories of people determined by the authority with the approval of the Governor; manages public housing estates, cottage areas, temporary housing areas and transit centres throughout the territory; clears land for development; prevents and controls squatting; and plans and co-ordinates improvements to squatter areas. The authority also plans, builds and subsequently manages, on behalf of the government, flats provided under the Home Ownership Scheme. It acts as the government's agent in the sale and development of land for the scheme, and also nominates purchasers for flats built under the Private Sector Participation Scheme. Legal powers to carry out these functions are provided by the Housing Ordinance.

The Housing Authority is chaired by the Secretary for Housing and comprises 14 unofficial and six official members. Six committees, each chaired by an unofficial member, oversee building, finance, estate management, operations, the Home Ownership Scheme and appeals. These committees are augmented by co-opted members who are not Housing Authority members. There are 31 unofficials serving on the authority and its committees and they constitute a two-thirds majority. Many of these members also serve the community as Legislative Councillors or Urban Councillors, or as members of the Heung Yee Kuk, district boards or mutual aid committees. Together, they have a broad base of experience and representation and are able to apply a critical and conscientious perspective in determining public housing policies.

The Housing Authority is responsible for its own finances and management. Capital funding for the public housing programme is provided through government funds on the basis of a four-year expenditure forecast rolled forward annually. The government subsidises the programme by providing free land for rental and home ownership projects, and providing loans from the Development Loan Fund (DLF) to finance the construction of rental estates. The Home Ownership Scheme is funded by the government which recoups the money from sales of the cost-price flats. Loans from the DLF are repayable over 40

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years at an annual interest rate of five per cent. However, in order to alleviate the cash flow burden on the authority, the government does not require the authority actually to pay the interest in cash. The interest charge must, nonetheless, be fully accounted for and, accordingly, along with the free land provided, is reflected in the Housing Authority's balance sheet as part of the government's contribution to public housing. At March 31, 1984, the government's contribution stood at $14,750 million which included, among other subsidies, free land worth $12,009 million and $976 million in respect of interest foregone. Furthermore, the 40-year repayment period for loans means that, having regard to the declining value of money over time, the government recovers only a fraction of the real value of the housing loans.

      In the 1983-4 financial year, recurrent expenditure on the Housing Authority's domestic rented properties - covering mostly management and maintenance costs - totalled $1,486 million while income from domestic rents was $1,297 million, resulting in a deficit of $189 million. This deficit arose because the very low rents on old estates were insufficient to meet management expenses and the high cost of maintenance and improvements. The Housing Authority was able to offset this loss from income derived from its non-domestic (commercial) properties which in the same period generated $734 million against expendi- ture of $375 million. Any surplus funds are used to finance the housing programme.

      The Housing Authority spent $2,824 million on its capital programmes, of which $2,350 million was financed by the government (mostly loans on concessionary terms) with the balance being financed from Housing Authority funds. In addition, the Housing Authority, acting as the government's agent, spent $569 million on the construction of flats for sale under the Home Ownership Scheme.

Construction

The Housing Authority construction programme is firmly geared to achieving the target of about 215 000 flats over the next five years. This programme comprises 158 000 public rental flats, 32 000 Home Ownership flats, and another 25 000 flats built for sale under arrangements with private developers in the Private Sector Participation Scheme. During 1984, 52 building contracts worth a total of $3,580 million were let. At the end of the year, 86 contracts were in progress, and the completion of these in the next few years will provide 93 000 rental flats, 29 200 Home Ownership flats, 12 schools and 15 commercial centres. In addition, 10 temporary housing areas and one factory project containing 2 200 working units were under development.

Home Ownership Scheme

The Home Ownership Scheme (HOS) is administered by the Housing Authority with funds from the government to provide flats for sale at cost to public housing tenants and other lower middle income families who are subject to certain eligibility criteria. Since Phase I started in 1978, a total of 44 300 flats under the HOS and the related PSPS have been sold to qualified families. About 37 per cent of these families were public housing tenants who were not subject to restrictions on income and property ownership, but were required to surrender their tenancies for reallocation by the Housing Authority to other families in need of rental housing. During the year, the ceiling of the family income eligibility was raised from $6,500 to $7,500 to keep the HOS (and PSPS) flats within the reach of the target population.

      A total of 14 100 flats were put up for sale in three sales exercises during the year. The first sales (Phase VB) took place in February and consisted of 3 200 HOS flats with prices

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ranging from $116,200 (47 m2 gross area) at Siu Hong Court in Tuen Mun to $310,000 (65 m2) at On Kay Court in Ngau Tau Kok.

       The second sales exercise (Phase VIA) commenced in June when 5 200 HOS and 1 400 PSPS flats were offered. HOS prices ranged from $99,800 for a 50 m2 flat in a Trident block at May Shing Court, Sha Tin, to $223,400 for a 55 m2 flat in a standard HOS block at the same estate. Prices for the PSPS flats at Tai Po Plaza ranged from $156,500 to $248,800.

       The third sales exercise (Phase VIB) in October consisted of 4 300 PSPS flats at Richland Gardens, Kowloon Bay, priced at $188,300 to $340,600. In January 1985, a further 3 800 flats were due to be put up for sale under Phase VIIA. These HOS flats, located in Sha Tin, Tsing Yi and Shek Wu Hui, were priced in the range of $96,600 to $186,200.

Urban Housing and Redevelopment

On Hong Kong Island, the Housing Authority has carried out major site formation works so as to solve the problem of scarcity of land for development. In Chai Wan, site formation work will provide 3 700 flats for rental and 640 flats for home purchasers, while on Ap Lei Chau building of 4 000 flats is underway.

      In East Kowloon, 731 flats in Sau Mau Ping and 456 Home Ownership Scheme flats at On Kay Court were completed. Projects under construction for Lok Wah Phase III and IV, Diamond Hill Phase I and Lam Tin North Extension Phase II will provide 12 900 flats for rental and the HOS. Site formation works at Lam Tin South and Diamond Hill Phase II will provide building sites for a further 5 000 flats.

      In central Kowloon, 2 100 flats at Chuk Yuen Phase I and 1 600 HOS flats at Cheung Wo Court were completed. Major housing projects are under construction at Chuk Yuen (further phases) and Ma Chai Hang, and, on completion, will provide 4000 rental flats and 2 750 HOS flats. A joint venture between the Housing Authority and the Urban Council will produce 400 flats and market facilities at Po On Street and work is progressing smoothly.

      An extensive redevelopment programme to accelerate the rehousing of all Mark I and II tenants by 1990 was drawn up. Under the programme, the redevelopment of the first estate in Shek Kip Mei was completed in 1984. A total of 6 600 flats were produced under the redevelopment projects in Tai Hang Tung, Wang Tau Hom, Shek Kip Mei, Lei Cheng Uk and Tai Wo Hau. The conversion schemes in Shek Kip Mei and Hung Hom provided another 540 self-contained flats for small households.

       Construction of new blocks was progressing well at the Wan Tsui Extension, Tai Hang Tung, Lower Wong Tai Sin, Kwun Tong (Tsui Ping Road), Wang Tau Hom, Tung Tau and Hung Hom. Altogether, they will produce 7 900 flats for rehousing purposes. Building of a large shopping centre in Lok Fu is in its final stage. Several old blocks were demolished in Tai Hang Tung and Lower Wong Tai Sin and more will be pulled down in Wang Tau Hom, Tung Tau, Tai Wo Hau and Lei Cheng Uk for construction of new domestic blocks.

Housing in New Towns and Rural Townships

In Tsuen Wan, 3 200 flats were completed under Cheung Hong Phase III and IV and a further 2 000 flats will soon be completed under Phase V. A housing estate project at Shek Lei Extension and Tsing Yi Area I will produce a total of 4 600 flats.

      In Sha Tin, 6 000 flats were completed under Lung Hang Phase III and Chun Shek Phase I. A total of 8 500 flats are due to be completed in the next two years at Mei Lam,

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Pok Hong, Sun Chui, Chun Shek and Hin Keng. Piling work has already started at Hang On, Ma On Shan, to prepare for future housing estates.

In Tuen Mun, 4 600 flats for rental and sale were completed at Siu Shan Court, Wu King Estate and Sui Hong Court. Construction work at Shan King Estate (6 100 flats) is progressing smoothly. Piling work is underway at Leung Tin for the production of 4 500 flats for rental and for sale.

      In Tai Po, 1 500 flats were completed under Kwong Fuk Phase II. The Kwong Fuk Phase III, using semi-mechanised construction methods, will provide an additional 2 400 flats. Another 5 500 flats at Fu Shin are under construction.

      In Shek Wu Hui, 1 600 HOS flats were completed and construction of the remaining 500 flats is progressing satisfactorily. In Fanling, the completion of Cheung Wah Estate added 4 500 flats to the housing stock, while at Tin Ping 5 200 flats are under construction.

      In Yuen Long, construction work at Long Ping is progressing satisfactorily and on completion will produce 8 500 flats. Elsewhere, a rural housing estate of 500 flats was completed on Cheung Chau, and piling work for rental and HOS sites is underway in Junk Bay. These sites will yield 6 000 flats.

Allocations

The Housing Authority possesses one of the world's largest public housing stocks, comprising 520 000 rental flats in 117 housing estates. These flats are of varying sizes, amenities and rent levels to meet the wide-ranging requirements of families in need of public housing.

      During the year, 25 800 new flats and 3 700 vacated units were let to the various categories of eligible applicants. The biggest shares went to waiting list applicants (40 per cent), families affected by development clearances (25 per cent) and tenants involved in the redevelopment of Mark I and II blocks (15 per cent). Victims of fires and natural disasters, occupants of huts and other structures in dangerous locations, and compassionate cases recommended by the Social Welfare Department took up the rest of the flats.

       The waiting list and the allocation of accommodation have been computerised. Informa- tion regarding nearly three million applicants and tenants is stored in the Housing Applications and Tenancies Management Information System (HATMIS). The computer- isation enables housing allocations and duplication checks to be carried out effectively and produces useful statistical information for management.

      The 12 200 flats allocated to waiting list applicants during the year were located mostly in Tai Po, Tsuen Wan, Sha Tin and Shek Wu Hui. Waiting time varied from seven years for estates in Sha Tin to four years for those in the other areas.

      Applications from families of at least three persons are considered in the order of registration and in accordance with the choice of districts indicated by the applicants. Accommodation is offered to those who, on investigation, are found eligible in respect of their existing living space and family income. The income limits are fixed having regard to the average household expenditure, plus the rent for a self-contained flat in the private sector. Currently, the income limits range from $4,500 for a family of three to $7,000 for a family of 10 or more. The number of live applications at the end of the year stood at 169 000. In the past, about 55 per cent of applications were found to be eligible on investigation.

      As a means of helping the elderly, the Housing Authority provides a priority scheme whereby elderly couples or single elderly persons applying in groups of three or more will be allocated public housing within two years. So far, 2 400 flats have been allocated to this

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category. In 1982, the authority approved an incentive scheme under which families with elderly members were allocated housing one year ahead of their normal waiting time, and each year about 1 000 families benefit from this scheme.

Rent Policy for Public Housing

Rents for domestic premises in public housing estates have been maintained at low levels despite increasing operating and maintenance costs. On average, rents charged at present represent approximately seven to eight per cent of the average household income of tenants an extremely low figure compared with the 20 per cent paid by tenants of private housing.

      It has been possible to keep rents low because of heavy government subsidies: land is pro- vided free of charge, no land value is included in the rents charged, and construction of rental estates is financed largely by loans provided by the government on concessionary terms.

       Rents are reviewed on a biennial basis and adjusted in view of increases in rates, maintenance and other costs, estate values in terms of location, facilities and services provided, and tenants' ability to pay. Owing to the very low rents at old estates where maintenance and improvement costs are high, there was a substantial deficit in the Housing Authority's estate working account for domestic properties in 1983-4.

       The Housing Authority also has a large number of commercial premises with 16 513' shop, market stall, bank and restaurant tenancies of various sizes. Shops and markets in new commercial centres are let on tendered rents, thus giving an opportunity to the smaller operator with limited capital to obtain an estate shop. Apart from 8 449 small shops at the old estates, commercial properties are generally let on three-year agreements. It is the authority's policy not to subsidise commercial operators and the intention is to keep rents at near-market levels on renewal of an agreement. However, in many cases where the increases are substantial, because of increases in market values, it is the authority's policy to apply increases in stages over two or three years. In 1983-4, these commercial properties generated a surplus of $360 million. The authority also manages 17 200 factory units in 34 purpose-built blocks, and 4 200 cottages in various districts.

       Some 544 welfare premises at estates are let at concessionary rents. These premises include children's and youth centres, nurseries, social and community services centres, libraries, study rooms, welfare clinics, sheltered workshops, hostels and centres for the mentally or physically handicapped. Hostels for the elderly are let to voluntary agencies at normal domestic rents. During the year, 46 welfare lettings were made. In order to maintain a balanced community for public housing tenants, a total of 445 premises are let for educational purposes such as kindergartens, and primary and secondary schools. In most cases, kaifong and residents' associations and mutual aid committees in housing blocks are also provided with office accommodation. Medical clinics and premises for various government departments are generally let at commercial rents.

Management

      Estate environments have been greatly improved since the Housing Authority was em- powered to introduce road restrictions at estates and impose charges for the removal and towing of vehicles parked illegally within estates. During the year, road restrictions were further extended to six estates, bringing the total number of estates with road controls to 92. Notable examples were the road control operations carried out at estates in Lei Muk Shue and Lower Ngau Tau Kok which resulted in greatly improved access roads and in some 400 additional car parking spaces being made available for use by estate residents.

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      The management staff continued to take strenuous and persistent action to combat hawking activities. The hawker situation is under control at most estates in the daytime but special measures have to be taken at estates where hawker problems are more serious.

      In line with the development of the District Administration Scheme, senior estate management staff are responsible for fostering closer contact with district boards and local interest groups. Close contact has also been maintained with tenants through frequent visits by estate staff. Regular meetings are held with more than 933 mutual aid committees and residents' associations.

Temporary Housing

During the year, 14 342 people were rehoused in temporary housing areas managed by the Housing Department. Most of them were people affected by development clearances or victims of natural disasters who did not qualify for immediate entry into permanent public housing.

      Temporary accommodation has been improved over the years. In late 1983, the space allocated to each family was increased and, in 1984, the electricity supply in 10 temporary housing areas was improved to allow for unrestricted use of domestic electrical appliances including air-conditioners.

      Unlike traditional part-built structures in which only roof, supporting frames and bracings were provided, new temporary housing units constructed during the year were fully built, complete with partitions, kitchen/bath compartments, electricity and metered water supply. These were built at Kwai Fuk Road in Tsuen Wan and Mui Wo on Lantau Island.

      During the year, 13 378 temporary housing residents moved into permanent public housing. At the end of the year, 133 426 people were living in 47 temporary housing areas. Development of four new areas was underway.

Transit Centres

There are nine transit centres in the territory to provide immediate shelter for persons made homeless by natural disasters. The transit centre at the Housing Authority's Hoi Tai Flatted Factory Building was expanded, bringing the total capacity of transit centres to over 5 000 people.

       The Chai Wan Transit Centre was cleared in August to make way for the construction of a new hospital. A replacement was set up in Yue Wan.

Cottage Areas

A programme had been started to provide individual metered water supply to all cottage areas. During the year, work was completed in the Tung Tau, So Kon Po and Fo Tan cottage areas. At the end of the year, 14 392 people were living in 10 cottage areas, the largest being Rennie's Mill Village.

Squatter Control and Clearance

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     Full control over squatting was maintained. Racketeering - the construction of squatter huts for sale was effectively suppressed and illegal structures were demolished upon detection. In 1984, 17 900 illegal structures or extensions were demolished and six prosecutions were instituted against illegal excavation and hut building.

      At the same time, clearance operations made available 690 hectares of land for development. Of the residents affected by these clearances, 18 000 were rehoused in

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permanent public housing and 8 700 in temporary housing. Some 3 800 commercial and agricultural undertakings affected by clearances were granted ex gratia allowances. During the year, 7 100 people who became homeless as a result of fires and landslips were provided with either permanent or temporary accommodation.

Improvements to Squatter Areas

The squatter area improvements programme entered its second year of operation in 1984. Efforts continued to concentrate on the large and more densely populated urban squatter settlements, in order to bring about safety and sanitation improvements. The number of projects increased from eight in 1983 to 15 in 1984.

        Three firebreaks were laid down in the Shau Kei Wan area and huts were cleared to make way for a further two at Diamond Hill. Coupled with the fire hydrants and fire mains which were installed, these firebreaks make the squatter areas safer in the dry season for the 34 000 residents.

Management of Private Residential Buildings in Multiple Ownership

During 1984, 170 new owners' corporations were formed under the Multi-Storey Buildings (Owners Incorporation) Ordinance. This legislation, passed in 1970, enables owners of a building in multiple ownership to incorporate themselves and appoint a committee for the better management of their building, particularly to ensure its maintenance and to uphold environmental standards. By the end of the year, there were 2 420 owners' corporations in existence.

A standing committee, on which relevant government departments were represented, was set up in 1982 to consider problems associated with multi-storey building management and to suggest solutions. During 1984, as a result of its work, a many-pronged programme of action to improve building management was drawn up. The programme included legisla- tive changes to make owners' corporations more effective, and new administrative arrangements which would make government expertise and advice in the field of building management more readily available to both owners and tenants.

A sub-committee of the standing committee met several times during the year to consider problems relating specifically to deeds of mutual covenant. A deed of mutual covenant is a conveyancing document, a private agreement entered into between the seller and first purchaser of a building. It is concerned largely with setting out provisions for the future management of the building once it is in multi-ownership and consequently its content may have an important bearing on the extent to which a building is effectively and efficiently managed. On the advice of the sub-committee, the standing committee made several recommendations regarding the content and the form that a deed of mutual covenant ought to take in order to ensure the establishment of a framework within which good building management can flourish.

Private Housing

      Roughly half of Hong Kong's permanent housing stock is privately owned. Over the five-year period, 1979-83, the private sector produced on average about 26 000 units annually, a high proportion of which are located in the New Territories. Supply in 1984 was just over 20 000 units while the forecast for 1985 was 27 000 units.

The current trend is for private developers to concentrate on the development of small flats typically with a floor area in the 30 to 40 m2 range. The great majority of these units are offered for sale and most are taken up for owner occupation.

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Rent Control in the Private Sector Statutory controls on rents and security of tenure in Hong Kong date back to 1921. The present legislation governing these matters is the Landlord and Tenant (Consolidation) Ordinance.

      The legislation is complicated but is under constant review to improve its working and to achieve the objective, recommended in 1981 by a Committee of Review and endorsed by the government, that as soon as circumstances permit, rent control should be phased out.

      At present, statutory controls apply only to domestic premises in the private sector unless otherwise excepted. Tenants are afforded rent increase control and security of tenure. Unless a tenant voluntarily vacates the premises, a landlord must apply on certain specified grounds and obtain an order from the Lands Tribunal before he can recover possession.

      Heavy penalties are prescribed for harassment of a protected tenant with intent to induce him to leave. However, provisions exist to facilitate negotiations by which the parties may reach an agreement whereby the tenant surrenders his protected tenancy in exchange for a consideration.

      The Rating and Valuation Department publishes explanatory pamphlets to help people understand their position in relation to the legislation, and provides an advisory and mediatory service to deal with the many practical problems arising from rent controls. It also operates a scheme under which rent officers attend urban and New Territories district offices on set days each week to deal with referred cases and answer enquiries on landlord and tenant matters.

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 in 1947 was embodied in the Landlord and Tenant Ordinance since re-enacted as Part I of the Landlord and Tenant (Consolidation) Ordinance.

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      Part I previously applied to both domestic and business premises but as from July 1, 1984, it applies only to domestic premises. It restricts rents by reference to pre-war levels (standard rent). New or substantially reconstructed buildings are excluded from Part I controls.

      Increases in rents have been permitted annually in recent years, the latest being in July 1984 when the legislation was amended to provide for permitted rents to be 21 times (previously 16 times) the standard rent. However, in no case is the permitted rent to exceed the prevailing market rent. The Commissioner of Rating and Valuation is empowered to certify the standard rent and the prevailing 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 compensa- tion to the protected tenants. Jurisdiction under Part I is exercised by the Lands Tribunal while technical functions are performed by the Commissioner of Rating and Valuation.

Post-war Premises

Comprehensive rent control legislation affecting post-war domestic premises has been in force in one form or another since 1963 - apart from the period between 1966 and 1970 - and is now embodied as Part II of the Landlord and Tenant (Consolidation) Ordinance.

      Part II, which provides security of tenure and controls rent increases, now covers the majority of tenancies and sub-tenancies in post-war domestic premises completed or substantially rebuilt after August 16, 1945. It does not, however, apply to tenancies in

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NEW TOWNS

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Homes for Millions

Large parts of the New Territories have been dramatically altered by the vast new town development programme that was begun to ease the population pressure in the urban areas. However, the continuing growth of population has been so great that even the new town programme has been extended. At the outset in 1972, the aim was to provide by the mid-1980s homes for 1.8 million people, most of them living in three new towns and a number of rural townships. Now the programme extends into the 1990s and the new towns. increased to seven, and rural townships have been designed to accommodate over three million people. The population in the New Territories at present exceeds 1.7 million. The new towns offer residents a healthy environment with a full range of facilities from shops to schools as well as public amenities that help to foster a sense of community belonging. Flats provided in the public and private housing develop- ments come in sizes designed to meet individual needs. Industrial development ensures that there are job opportunities for the workforce. Transport links to serve the new towns have been improved and expanded. Besides the extension of the Mass Transit Railway to Tsuen Wan and the electrification of the Kowloon-Canton Railway, major new road connections are being built.

Previous page: A harmonious blend of old and new at Tsuen Wan New Town. Left: Tranquillity at a shopping complex at Lung Hang Estate, Sha Tin; high-rise develop- ments in Sha Tin; a model of Lung Hang Estate and the adjoining Sun Chui Estate.

Happy youngsters at an estate playground in Sha Tin: playgrounds are an integral part of

estate planning, to provide ample outlets for youthful energy.

iv

Extensive residential and industrial development has transformed Tsuen Wan into a thriving community that is now home to around 700 000 people, and it is still expanding.

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The well-stocked market at Butterfly Estate in Tuen Mun provides local housewives with a

ready supply of fresh fruit, fish, meat and vegetables.

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    A family relaxes in their public housing flat in Tuen Mun: in 1984, the Housing Authority produced a record 36 440 new flats.

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The once quiet market town of Tai Po is undergoing a transformation into an important residential and industrial centre.

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buildings first certified for occupation after June 18, 1981, nor to new lettings created on or after June 10, 1983, nor with effect from December 19, 1984 - to tenancies of premises having a rateable value of or above $35,000 as at June 10, 1983.

Under Part II, landlords and tenants are free to agree on an increase in rent, but such agreements must be endorsed by the Commissioner of Rating and Valuation. Increases, except by agreement, are permitted only once every two years. 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. From December 19, 1984, the permitted increase is arrived at by taking the lesser of (i) the difference between the prevailing market rent and the current rent, or (ii) 30 per cent of the current rent. However, if the increase so determined, when added to the current rent, results in a rent being less than 45 per cent of the prevailing market rent, the permitted increase will be an amount necessary to bring the current rent up to 45 per cent of the prevailing market rent. Both landlord and tenant are at liberty to apply to the commissioner for a review of his certificate and further to appeal to the Lands Tribunal against the commissioner's review.

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 and who is prepared to pay the prevailing market rent on renewal. However, Part IV does not impose control on rents. 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 rebuild 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 they can apply to the Lands Tribunal for a determination.

       The scheme under Part IV 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. Moreover, there are provisions enacted in June 1984 enabling tenancies to be transferred, under certain statutory conditions, from the ambit of Part II to Part IV.

12

Land, Public Works and Utilities

POLICY responsibility for land, public works and private building is that of the Secretary for Lands and Works, who is also the chairman of the Town Planning Board and who heads a branch which, in addition to its policy functions, monitors the performance of the six departments which form the Lands and Works group.

      The development of land through public works projects is one of the government's largest items of expenditure. Projects covered include the formation and reclamation of land; its servicing by the provision of roads, drains, sewers and water supplies; the construction of highways, bridges and tunnels; port and airport works; public buildings; railway works; and the disposal of liquid and solid wastes.

      In 1984-5, funds for capital works amounted to $6,782 million, about 18 per cent of the government's total expenditure. The largest portion, $3,483 million, was for the develop- ment of new towns. Some $679 million was to be spent on roads and $675 million on waterworks. In addition, $1,118 million was allocated for the acquisition of leased land for the projects involved. Details of the more important projects are contained in this chapter and in Chapters 13 and 20.

Apart from its development for public purposes, land is also in demand for private development. Since all land in Hong Kong is Crown land, its disposal by lease for such development is an important element of government revenue. It was estimated that some $4,230 million might be realised from land transactions in 1984-5.

       The initial results of a series of land and transport planning studies covering all of Hong Kong and looking forward to the 1990s and beyond were announced in June 1984. The studies extended over a three-year period and were carried out with the assistance of consultants of international standing. In simple terms, their purpose was to define the land requirements and the associated transport systems and other infrastructural needs to which the government's major development programmes are forecast to give rise; to identify and compare potential opportunities throughout Hong Kong for meeting such future require- ments; and to formulate a development strategy to match the requirements and the opportunities. The overall aim will be to provide for continuing growth and to maintain satisfactory living conditions while recognising the need to do so within the limits of available resources.

The initial results indicate that, even after completion of the current new towns programme in the early 1990s, a wide range of potential development options exists which will provide ample scope for still further growth during the remainder of this century and well beyond it. Whereas the estimated land and related infrastructure requirements up to the year 2001, beyond those which current programmes are designed to meet, were based on the projected needs of an increase in population of 0.9 million people, a selection of the best options identified in the studies could meet the needs of up to 3.3 million people. The

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vast quantity of statistics on costs and benefits produced and the need to choose from many options called for the use of computer techniques to assist analysis. As a result, several components of potential development common to possible alternative strategies were identified which would assist the growth and diversification of the economy by enhancing port, business and financial facilities, enable road and rail systems to be extended, and improve and help relieve some of the pressures of population growth.

       First efforts in the 1990s beyond the new towns programme are therefore likely to concentrate on such common components as further reclamation and other works around the harbour which will leave the choice of long-term options open for the time being. By the end of the period under review, preparations were being made for detailed planning and engineering studies, necessary for the implementation of these works, to be undertaken.

Land Administration

The Director of Lands is the authority for all land matters in Hong Kong. The Lands Department co-ordinates all aspects of land administration - surveying, planning, land sales and development, and legal matters throughout the territory. In addition to its headquarters, the department has 12 district lands offices: two on Hong Kong Island, two in Kowloon and eight in the New Territories. District lands officers are responsible for most aspects of land administration and land disposal, while the headquarters formulates territory-wide policy and gives guidance on more complex matters. The establishment of district lands officers has paralleled 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 both quickly and sympathetically to district needs.

Land Supply

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 Island and Kowloon to a term of 75 years, usually renewable for a further 75 years at a reassessed Crown rent under the pro- visions 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.

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.

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(As from the date of coming into force of the Sino-British Joint Declaration on the future of Hong Kong, the policy with regard to land grants and leases will be governed by the provisions of Annex III to the Joint Declaration).

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

       The year saw the continuing low level of both values and development activity that had been detected in the previous year. Conscious of the need to sustain private sector involvement, the Lands Department has continued to respond to this position by taking a flexible and lenient approach on certain aspects of development in order to render assistance. Examples of this were the sympathetic consideration of applications for modifications to permit construction of smaller residential units, reduction in parking requirements and a reduction in the premium charged for extending the time limits imposed for completion of development.

       Low-rent and low-cost housing is provided by the Hong Kong Housing Society under the Urban Improvement Scheme or by the Housing Authority and the private sector in joint ventures under the Private Sector Participation Scheme. Land for such purposes is granted by the government. In all such cases, the government reserves the right to nominate purchasers of individual flats provided under the scheme.

It is also government policy, in certain areas, to modify old lease conditions which restrict the development permitted on a lot in order to allow redevelopment complying with the applicable town planning requirements. A premium - equivalent to the difference in land value between the development permitted under the existing lease and that permissible under the new lease terms - is normally payable for any modification granted.

A premium is also payable where a lot held on an expiring non-renewable 75-year lease is re-granted to the former owners. Special arrangements were 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 imposes a new Crown rent related to the rateable value of the property situated on the lot. This ordinance has been in effect since 1973.

An important change in land sales policy was introduced in 1984 when, for the first time, the surrender of land exchange entitlements was accepted as an option in lieu of cash for sale by auction and tender of sites in the New Territories. This, together with the acceptance of these entitlements as payment for other forms of land related transactions, proved to be very popular with land owners and developers who had continued to feel the affects of low property values and high interest rates. It is intended that the 'currency value' of the land exchange entitlements will be reviewed at six-monthly intervals to reflect changes in the property market.

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 at 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 Registrar General's Department is assuming responsibility for

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      land registration throughout the New Territories under a phased programme; the district land offices in Tsuen Wan and Yuen Long were taken over in 1982, the Sha Tin office in 1983 and the Sai Kung office in 1984.

       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; and the recovery of outstanding Crown rents. It also provides 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 re-grants, interest-free loans to schools and the purchase of properties for government staff quarters and homes for the elderly. The Land Office gives legal and other advice to the government on matters relating to land and government land transactions.

        Since June 1981, under the Land Registration Ordinance, all memorials delivered to the Land Office for registration have been microfilmed. All the 2 096 156 memorials registered before that date had been microfilmed by the end of 1984. They are transferred to satellite storage and are available for search at the Land Office in microfilm form only.

        Work on the computerisation of Land Office register cards, with a view to introducing a computerised land registration system, continued on schedule during the year.

       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, 176 625 instruments were registered at the Land Office, compared with 160 383 in 1983. Detailed statistics are at Appendix 29. At the end of the year, the card index of property owners contained the names of 468 015 owners, an increase of 23 144 over the previous year. Some own several properties throughout the territory, but most are owners or part-owners of small, individual flats.

Important Transactions

Important land transactions during 1984 included the sale by public auction of a site of approximately 6 300 square metres adjacent to and over a portion of the Mass Transit Railway at Admiralty Station, on the periphery of the Central business area of Hong Kong Island. This site will be developed for commercial purposes including, possibly, a hotel.

       The sale by private treaty grant to the Mass Transit Railway Corporation of a site comprising some 17 hectares at Kornhill, Quarry Bay, was completed in April. This project, part of which straddles the MTR Tai Koo Shing Station, will provide a comprehensive development including over 100 000 square metres of commercial floor space, about 9 500 apartments and a full range of supporting facilities. The development will be phased with completion expected by 1996.

In Kowloon, one of the last remaining sites in the popular Tsim Sha Tsui East shopping area was sold by auction in July for commercial or composite commercial/residential development, including the option to provide a hotel.

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       Towards the end of the year, tenders were under consideration for the sale of a 2.4 hectare site north of the Harbour City development in Tsim Sha Tsui; this site will be sold on a joint venture basis with the developer being required to construct and hand back to the government, on completion of the project, a ferry terminal complex which is urgently required to cater for the increasing flow of passengers between Hong Kong and China. In addition to the ferry terminal, the project will include a commercial podium development with offices or apartments above; as an option, a hotel development may be provided.

       In the New Territories, sites continued to be sold in the new towns for development by the private sector. A 1.6 hectare site on reclaimed land forming part of the town expansion in Tai Po was sold in July for residential development under the Private Sector Participa- tion Scheme; when completed this will provide about 1 500 flats for sale to purchasers within limited income groups nominated by the Housing Department. A further site under the PSPS was put out to public tender in November. This comprises 7.3 hectares of newly formed land at Ma On Shan overlooking the Shing Mun River estuary and Sha Tin New Town. The sale of this site is expected to be completed early in 1985 and the proposed development will provide 4 000 PSPS flats together with associated commercial floor space, contributing to what is one of the major 'town expansion' areas.

Environmental Improvement

Acquisition of land for environmental improvement projects in the Urban Improvement Districts of Western, Wan Chai and Yau Ma Tei continued to be given impetus in 1984 with efforts being concentrated in assembling project sites that are already partially acquired. During the year, about $5 million had been spent on payment of compensation for the acquisition of private properties zoned for open space or government, institutional and community use in the town plans for these districts.

      Other projects of similar nature implemented included a pilot scheme to resume private streets in residential areas. These streets, in multiple and sub-divided ownership, were in poor state of repair. The transference of the ownership of these streets to the government will enable proper repair works to be carried out with the result that the environment of the residential areas concerned would be significantly improved. The scheme will be fully evaluated after its completion and, if it is considered successful, consideration will be given to working out a long-term programme.

Acquisition for Public Purposes

When private property needed for carrying out public works projects cannot be acquired by negotiation, the use of compulsory powers becomes necessary. Property may then be acquired under either the Crown Lands Resumption Ordinance or the Land Acquisition (Possessory Title) Ordinance, the Mass Transit Railway (Land Resumption and Related Provisions) Ordinance, or through the Roads (Works, Use and Compensation) Ordinance in the case of land required for road projects. These ordinances provide for the payment of compensation based on the value of the affected properties as at the date of reversion. If agreement cannot be reached on the amount payable, either party can refer the claim for compensation to the Lands Tribunal for determination.

      When it is necessary for the government to acquire private land for new town development in the New Territories, power is exercised under the Crown Lands Resump- tion Ordinance and statutory compensation is paid for the extinguishment of rights conferred by a lease. In practice, a system of ex gratia compensation applies with enhanced rates paid for land situated within the new town development areas. In the case of building

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land, the ex gratia compensation is paid in addition to the assessed statutory compensa- tion. The need for land for development continued to grow and, during 1984, about 1.5 million square metres of private land were acquired in the New Territories in order to carry out various public works projects, largely for new town development.

The compulsory acquisition 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. These ordinances provide for lodging of objections to a scheme and for payment of compensation. Private rights over Crown foreshores or seabed affected as a result of road projects are dealt with under the Roads (Works, Use and Compensation) Ordinance.

During 1984, about $50 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 for various public projects. These included the widening of Shau Kei Wan Road, landslip preventive measures, the Home Ownership Scheme in Ngau Chi Wan, completion of Cha Kwo Ling Road, stage four of the West Kowloon Corridor and phase five of the Tai Hang Tung redevelopment scheme.

Development of New Towns and Rural Townships

      By the 1970s, it was necessary to move beyond the range of hills north of Kowloon to the largely rural expanse of the New Territories for the creation of new centres of urbanisation. Since 1972, an ambitious programme of building new towns, one of the biggest of its kind in the world, has been taking place.

       The New Territories Development Department (NTDD) was created in 1973 and charged with the responsibility of planning and building new towns. As works progressed needs have changed. Fresh ideas have emerged and unforeseen difficulties have had to be solved, requiring innovation. The new town programme has responded to the challenge. The objective of the 1972 housing programme was to house 1.8 million people, the majority of whom would be accommodated in three new towns and a number of rural townships. Since then the new town programme has been extended into the 1990s and the scope has been substantially increased with the present population design capacity of seven new towns and rural townships being well in excess of three million people.

       To foster the growth of the new towns as carefully planned communities, the department was constituted on a multi-disciplinary basis and consists of professional officers with expertise in the fields of civil engineering, town planning, architecture and landscaping. Apart from construction, town planning and the co-ordination of works by the NTDD, major roles in the development of the new towns have been played by the Lands and Works group of departments and the Housing Department.

       A number of other government departments are providing services which the City and New Territories Administration co-ordinates in its important work of community building. Moreover, there has been a heavy use of consultants by the NTDD and the private sector has played a vital role in development ranging from single buildings to comprehensive housing schemes.

The 1984 population in the New Territories, predominantly contained in the new towns and rural townships, exceeded 1.7 million. This represents almost half of the currently planned population. While there is much still to be done, major new town centre developments in Sha Tin, Tuen Mun and Tsuen Wan are in progress or about to start in the near future, and the next few years will see these new towns begin to mature rapidly, as will the other new towns in due course.

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The thrust of initial post-war development in Tsuen Wan was private industry. As a result, there is today a strong manufacturing base in the new town. In 1963, a plan for the development of Tsuen Wan as a self-sufficient new town was approved by the Governor in Council. To achieve this, the plan allowed for extensive residential development, both public and private, with the appropriate infrastructure of community facilities, open space and cultural and recreational opportunities. This remains the philosophy behind present planning in Tsuen Wan.

      The new town development plan covers an area of 2 670 hectares and the present population is 700 000. When all major development is completed in 1993, the new town will be home to about 890 000 people and offer job opportunities to 450 000 workers.

      The major development in the initial plan involved large reclamation schemes in Tsuen Wan Bay and the estuary of Kwai Chung Creek. These have been completed and with the exception of a few sites, notably the Kwai Chung South town centre site at Kwai Fong, all have been fully developed. A second stage of reclamation in both these areas is now in progress: in Kwai Chung to provide for extensions to the container port, now with the third largest throughput in the world, plus land for container related activities, and in Tsuen Wan Bay to provide land for open space and recreational facilities and government, residential and industrial uses. On this reclamation, adjacent to the Tsuen Wan Town Hall, a new ferry pier has been opened and behind this the territory's largest transport complex is nearing completion.

      The completion of the Tsing Yi Bridge in 1974 marked the beginning of major development of Tsing Yi Island and its potential was further increased when a number of large platforms were formed during the process of providing fill for the container port. Tsing Yi town centre will eventually form the focal point for the island's proposed population of 200 000. Cheung Ching, the first of six large public housing estates, has been completed. In the southern half of the island, large areas of land have been produced by earthworks and reclamation which are intended for specialist and land intensive industries. A contract has been awarded for the construction of the Tsing Yi North Bridge which is expected to be completed by mid-1987. This will greatly improve access to and from the island and will promote rapid development in the north and in the

town centre.

      The platforms created by extracting fill material for the initial Tsuen Wan Bay and Kwai Chung reclamations have now been developed as public housing estates. The greatest proportion of the new town's population currently live in public housing. There is also considerable private sector activity. For example, by 1986 some 20 000 people will be housed above the Tsuen Wan and Kwai Fong Mass Transit Railway stations, and at both ends of the Tsuen Wan Bay reclamation substantial industrial areas have been re-zoned for comprehensive residential development.

      The Mass Transit Railway's Tsuen Wan Extension, completed in 1982, provided a much needed passenger transport link with Kowloon and Hong Kong Island. The impact of the railway on the new town has been particularly noticeable at Tsuen Wan station where extensive commercial activity has developed quickly. Similar developments are planned adjacent to the Kwai Fong and Lai King stations. Transport continues to be a matter of prime interest in the new town. The Tsuen Wan Bypass, across the Tsuen Wan Bay reclamation, is due to be opened in April 1985. Projects in the design stage include the Tsuen Wan to Sha Tin Route 5 Highway and the Texaco Road improvement and connection to the Tsing Yi North Bridge.

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       The railway construction, other formation works and the central area clearance affected a number of villages, and resite programmes undertaken by the government have been largely completed. Improvement and expansion plans are being drawn up for existing villages, many of which lie in the green belt area of the foothills, to the north of Tsuen Wan. In addition, there are proposals to reduce pollution and conserve many of the natural features of this area, which should ensure its future as a valuable recreational facility within easy reach of the new town. An extensive programme to provide additional park and recreational facilities is underway to meet the needs of an expanding population. More swimming pools, games halls and squash courts are planned, together with the reconstruc- tion of Yeung Uk Road Sportsground as a modern stadium.

About 1 300 hectares of serviced, developed land already exist within the new town, and another 600 hectares will be made available in the future. More than 30 per cent of this will be used for public housing and community facilities and a further 25 per cent set aside for open space and recreational facilities. Investigations have commenced on the comprehen- sive development of the Sham Tseng area with a possible population of up to 60 000.

Sha Tin

Sha Tin Valley contains some 1 700 hectares of serviced land which include 640 hectares of reclamation. The development of Ma On Shan as an extension of the new town will add another 419 hectares, of which 160 hectares will be reclaimed land. Land formation in the valley continued and by the end of the year was virtually complete, while engineering works for reclamation and land formation began at Ma On Shan.

Since 1974, the population of Sha Tin has grown from 25 000 to nearly 300 000. The ultimate population of 800 000 will be reached by the mid-1990s. To maintain a balanced social mix, about 60 per cent of the population will be housed in over 20 public housing estates (including Home Ownership and Private Sector Participation Schemes) with the remainder in private development schemes or in existing villages.

Building works in the town are approximately 36 per cent complete and a full range of job opportunities and social, recreational, educational and community facilities is being provided to keep pace with this development. A comprehensive road, rail, cycle and foot- path network is being laid down to link these functions of the new town. Stage one of the sewage treatment works is complete and stage two was under construction during the year. One of the features of Sha Tin is its recreational and social facilities along the Shing Mun River. Added to the Sha Tin Racecourse and the Jubilee Sports Centre will be an international rowing course, a stadium, swimming pool complex and squash and tennis courts. All these will be linked by a proposed riverside promenade and culminate in a 9.5-hectare town park which is nearing completion. The town park will in turn link with the town centre, where the New Town Plaza has been opened; alongside this is the nearly complete cultural complex plus other commercial office and hotel accommodation.

Other important regional facilities include the new Prince of Wales Hospital, providing over 1 400 beds, and the Chinese University of Hong Kong. Plans for other hospitals, a college of education, and a technical institute are being considered.

Tuen Mun

Although detailed planning for Tuen Mun did not begin until the mid-1960s, the new town already houses 238 000 people. This rapid pace of development is expected to continue over the next decade; it is estimated that by the mid-1990s, the total population will be about 490 000.

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      The main 'high-density core' of the new town is being developed on land reclaimed from Castle Peak Bay and on the adjacent valley floor. Elsewhere, sites are being formed on hillsides to accommodate mainly medium and low-density residential developments. At the end of 1984, over half of all land for new development areas had been formed and serviced. In contrast, those existing areas of high landscape value which give Tuen Mun its impressive natural setting are being preserved as far as possible.

Like other new towns, Tuen Mun has been planned to meet demand for a wide range of housing types and flat sizes. Substantial areas within the heart of the town have been set aside for high-density public and private housing. Public housing development is already well advanced: at the end of 1984, the new town contained seven public housing estates accommodating more than 150 000 people. In parallel, the provision of land for both high and low-density private housing has been proceeding well.

Although still largely in its infancy, industrial development in the new town is progress- ing rapidly. About 30 hectares of industrial land within the core of Tuen Mun have been developed, accommodating a wide range of light manufacturing industries and godowns. New sites are being formed and serviced to meet the growing needs of a wide variety of industrial operations. Development of cargo handling facilities is also proposed at suitable locations along the waterfront and the construction of the Castle Peak Power Station and a cement plant is approaching completion.

To keep pace with the day-to-day needs of the growing community, a wide range of social and community facilities is being developed. Many facilities which serve individual housing areas, such as open spaces, schools and recreational facilities, have already been completed, while work on the development of those serving the wider needs of the population is also well underway, including the Tuen Mun Hospital, a town park, a technical institute and a major swimming pool complex. Development work has started on a new regional shopping centre, and a cultural complex in the town centre which will be a focus for the new town's social and economic activities.

      The six-lane Tuen Mun Road, the high-speed hoverferry service to Hong Kong Island and the Mass Transit Railway extension from Kowloon to Tsuen Wan have brought the new town within easy reach of the main urban areas. The proposed Light Rail Transit system will provide rapid tram links within the town and between Tuen Mun and Yuen Long.

Tai Po

Tai Po New Town (including Shuen Wan) covers an area of 3 424 hectares. Of the total development area, about 420 hectares have been designated for private residential and commercial development, 84 hectares for public housing development, about 74 hectares for industrial development and about 415 hectares for government, institutional and community use, plus public open space. New residential and commercial development is planned on the reclamation to the north and east of the existing Tai Po Market. Site formation work for the Tai Po Industrial Estate, which will cater to high technology industries, is almost complete.

      A rapid build-up in population in recent years has overshadowed Tai Po's more. traditional role as a market centre for the surrounding region. In 1984, Tai Po had a population of about 116 000 and the ultimate population capacity is over 300 000. About 120 000 people will be accommodated in six public housing estates planned; four will include an element of home ownership. On full development, private residential areas are expected to house approximately 145 000 people. The electrification of the

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Kowloon-Canton Railway makes it possible to travel to the centre of Kowloon in less than 30 minutes.

Fanling

      Fanling New Town, which includes Fanling, Luen Wo Hui, Shek Wu Hui and Sheung Shui, lies about eight kilometres north of Tai Po. It will be linked to Yuen Long, Sha Tin and Tai Po by the New Territories Circular Route now under construction. The population of the new town reached 87 900 during 1984, its projected total capacity being about 226 000. About 100 000 people will be accommodated in public sector housing. The town covers an area of about 780 hectares. Of the total development area, about 180 hectares are designated for residential and commercial development, 50 hectares for industrial development, and 160 hectares for government, institutional and community use as well as for public open space.

The existing retail and commercial 'core' of Shek Wu Hui and Luen Wo Hui will be redeveloped and the On Lok Tsuen industrial area is being improved. Provision has been made for the retention and expansion of the existing villages.

Yuen Long and Northwest New Territories

       Development of Yuen Long is well advanced, with extensive areas of land to the north and south formed and serviced for residential, commercial and industrial development, and community facilities. The population has reached more than 60 000 and the projected total for the year 2000 is more than 150 000. A major new public housing estate which will accommodate more than 30 000 people by 1990 is being built at Long Ping to the northwest of the town. The two completed industrial estates at Tung Tau and Wang Chau provide over 70 hectares of serviced industrial land.

       In addition to the new town, the sub-region is experiencing rapid growth and change from its former rural character. During the next decade, it is planned to build another major settlement at Tin Shui Wai, with a projected population of 135 000. This settlement will be built in an area to the west of Yuen Long, at present occupied by fish ponds. Initial work will start shortly.

       A study carried out by consultants for the government on the remaining rural areas in the northwestern New Territories was completed during the year. Proposals to be considered cover road and rail links - including a major new trunk road from Tuen Mun to Au Tau - and major flood protection, drainage and sewerage schemes. The study also proposes a comprehensive planning strategy to direct future development in an orderly manner, ways to upgrade existing settlements with limited intervention by the government, and ways to protect the small but valuable amount of agricultural land in the area. The major areas of urbanisation will be limited to Yuen Long, Tin Shui Wai and the Tuen Mun/Yuen Long Corridor.

       The established settlements at Kam Tin and Lau Fau Shan will be improved and further limited expansion is planned to enable them to serve the surrounding rural areas.

Junk Bay and Sai Kung

The approved Junk Bay Outline Development Plan makes provision for 380 000 people to be accommodated within the new town. During the year, work continued on planning and design. Formation of land for the first public housing estate for 26 560 people has been completed at the head of the bay and construction of the estate is underway. The distribution of new housing is planned to be 50 per cent public rental, 30 per cent Home Ownership and Private Sector Participation Schemes, and 20 per cent private development.

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The town is being planned around three main districts, each with a population of between 60 000 and 95 000. Each district centre will have shopping and other commercial facilities, community facilities and a transport interchange. Initial development will be served by the improved Po Lam Road, which is planned to be followed by a Junk Bay Road Tunnel; a Mass Transit Railway extension might be introduced later if and when necessary. Outside the new town, planning for Sai Kung District has given priority to recreation and restricts urban development. Planning studies continued in 1984 on the expansion of the town of Sai Kung to serve an ultimate population of 40 000 compared with the present population of 14 300.

Islands District

In recent years, the outlying islands have taken on an increasingly important role in the life of Hong Kong. As part of the New Town Development Programme, projects continued during the year - both planned and underway - to provide for existing and future growth in population, to upgrade living standards, and to improve general facilities for the increasing number of visitors to the islands. Although development remains generally low-rise and rural in character, the programme of works is large and diverse, concentrating mainly on the population centres of Mui Wo and Tai O on Lantau Island, and on the islands of Cheung Chau and Peng Chau.

       More facilities will become available throughout the district, including ferries, schools, market buildings, recreational facilities, sewage treatment plants and abattoirs.

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. The limited land resources must be properly planned to meet the competing demands of housing, commerce, industry, transportation, recreation, education, medical and health, and other community facilities. This applies both to new development areas, such as Tuen Mun and Sha Tin, and to the older congested urban districts, such as Yau Ma Tei and Western District, where the need for improvement is even more apparent.

The two authorities mainly responsible for town planning are the Town Planning Board, chaired by the Secretary for Lands and Works, comprising nine official and 10 unofficial members, and the Land Development Policy Committee, chaired by the Chief Secretary and comprising 10 official members.

Town plans, which can be broadly classified into two groups

statutory and depart-

mental - are prepared to guide future development and redevelopment. They ensure the provision of the required community facilities and public utility services, and control land use and building volume on individual sites to meet the demands of the territory's growing population.

Statutory plans for existing and potential urban areas are prepared under the provision of the Town Planning Ordinance, the Town Planning Division of the Lands Department, under the direction of the Town Planning Board, being responsible for their preparation and revision. These statutory 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, 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

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give approval to any plans of building works which would contravene any draft or approved plan prepared under the Town Planning Ordinance. 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 board published 16 draft statutory plans including draft outline zoning plans for Quarry Bay, Tsim Sha Tsui, Tsing Yi and Tuen Mun. It considered three objections to the published plans 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 were 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 makes provision for a Schedule of Notes to be attached to each statutory plan. This schedule shows the land uses permitted in a particular zone together with other uses for which the Town Planning Board's permission must be sought. This provision for applications for planning permission allows greater flexibility in land use planning and improved control of development to meet changing needs. During the year, the board considered 142 applications, compared with 138 the previous year. Should the board refuse to grant permission, the applicant may apply for a review of the decision. In 1984, there were 10 applications for review, compared with 19 in 1983.

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

       Outline development and layout plans, compared with statutory plans, are normally drawn to a larger scale, showing road proposals and the disposition of sites in greater detail. They are action plans enabling land to be prepared and released for public and private development. Examples of those prepared during the year cover Siu Chai Wan, the Diamond Hill area, several planning areas in Ma On Shan, Tin Shui Wai and several village clusters in the northwestern New Territories. In addition, many existing plans, such as those for Chai Wan, Ngau Chi Wan, Tsing Yi town centre and Kam Tin, were revised to take account of changes in population forecasts, government policies, planning standards. and other trends.

       The Hong Kong Planning Standards and Guidelines is a document mainly concerned with criteria to be applied, in the preparation of town plans, regarding provision standards, locational factors and site requirements for the reservation of land for various uses, and for compiling planning briefs for individual major projects. The document is constantly kept under review to take account of changes in government policies, demographic characteris- tics and other social and economic trends. During the year, sections involving public utilities, car parking, retail and educational facilities were revised.

       Surveys in land and floor uses covering the whole territory were conducted or updated during the year to provide the basic input in the preparation of statutory plans, departmental plans and other planning studies. To achieve greater efficiency and accuracy, and to facilitate other special planning studies, work began on developing and maintaining computer systems for the storage and processing of planning data.

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Survey

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     Major responsibilities of the Survey Division of the Lands Department include the revi- sion and production of topographical and special use maps of Hong Kong, land title boundary surveys, geodetic surveys, large scale basic mapping, and cartographic and reprographic services.

       Revision and metrication of the 1:1 000 basic mapping series and production of the new New Territories 1:5 000 series continued as major tasks throughout the year, as did cyclic revision for all other mapping series. Various special maps were reprinted including the Hong Kong Official Guide Map and the Countryside Series Sheet 1, Hong Kong Island, both of which were completely redesigned. A photo mosaic covering the whole territory was also produced from high level aerial photography.

      During the year, cadastral surveys for the alienation of Crown land, acquisition of land for government projects, allocation of land for government purposes and boundary re-establishment of existing lots for redevelopment, again accounted for the bulk of the work in the urban areas. In the New Territories, demand for cadastral surveys continued in the new towns and there was a steady requirement for surveys of village house lots in the rural areas.

The geodetic sections continued the upgrading, extension, and essential maintenance of the geodetic control networks, both horizontal and vertical, upon which all mapping, cadastral and engineering surveys in Hong Kong are based.

      The Photogrammetric Unit continued with the large scale mapping for essential development purposes as well as the territory-wide metrication programme of the basic mapping series. With the addition of digital assessory equipment, the unit enhanced its capacity for processing data taken from aerial photography and used for engineering designs, environmental studies, volumetric calculations of quarries and reservoirs, danger- ous slopes and dam movement monitoring, and recording historical monuments and buildings. The Air Survey Unit was equipped with a new aerial surveying camera and, with the assistance of the Royal Hong Kong Auxiliary Air Force, provided all the photography for mapping, revision, special study, and record purposes.

      Advancement in computerisation within the division continued. This involved processing field survey data, automated plotting of the records for field surveys of cadastral or large scale site plans, and the automation of other survey activities. The training school of the Survey Division continued to provide training for land surveying and cartographic technicians. In addition, 10 officers were undergoing post-graduate training in Hong Kong and 13 were on government training scholarships overseas.

Public Building

In 1983-4, the Architectural Office of the Building Development Department completed 190 major building projects. Total capital expenditure, including that on minor works, was $2,105 million. In addition, the office's Maintenance Branch spent $318 million in carrying out maintenance and alteration work on 5 105 government, Urban Council and British Forces buildings, including 2 600 offices and leased quarters.

      Capital expenditure on public building projects undertaken by the Building Develop- ment Department decreased only slightly, by 0.7 per cent, compared with the 1982-3 figure. This decrease was due to lower spending on buildings in the new towns upon completion of such large projects as the Prince of Wales Hospital in Sha Tin, the Tuen Mun Polyclinic and the Tsuen Wan multi-storey carpark and transport interchange. Another reason was the completion of most of the major items under the Defence Reprovisioning Programme

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      under which the Lye Mun, Sham Shui Po and Victoria Barracks are to be relocated. Funds allocated in the 1984-5 Budget amounted to $2,169 million, some 75 per cent of which was spent in 1984.

Tendering continued to be active and competitive. Tender prices rose by about 10 per cent during the 12-month period to June 1984, reversing the decreases of the previous two years. During the same period, labour costs increased only marginally, by one per cent, while basic material costs rose by about six per cent.

       The major project completed during 1984 was the Supreme Court Building in Queens- way. This 22-storey building, comprising a six-storey podium and a 16-storey tower block, houses 36 courtrooms and ancillary accommodation. A complex system of circulation around and between floors was required in order to keep judges, jury, defendants, lawyers and members of the public separate from one another. They have no other meeting point than the courtrooms.

The court building will be linked by a pedestrian walkway to the Queensway Govern- ment Offices now being built alongside. This office complex, comprising one seven-storey block and one 49-storey tower above a four-level carpark podium, is the tallest building project ever undertaken by the government. Work on the first phase began in mid-1983 and is expected to be completed by the end of 1985. The target date for completion of the entire project is late 1986.

Steady progress was made in completing foundation and basement work for a govern- ment complex near the Wan Chai waterfront. This will include two 49-storey office towers, a 30-storey building housing District and Magistrates' Courts and offices for other departments. The complex will also house a fire station. Construction of the superstructure for the offices, and the District and Magistrates' Courts, began late in the year and is expected to be completed in 1986.

The conversion of the old Supreme Court Building was one of the more unusual projects to get underway. This building dates from the first decade of the twentieth century. From the latter part of 1985 it will be the home of the Legislative Council, and the Office of the Unofficial Members of the Executive and Legislative Councils (UMELCO). As the exterior of the building has been declared of historical interest, works are primarily of restorative nature, although the interior treatment and servicing of the building are to be extensively modified.

Hong Kong's medical facilities were expanded by the completion of the Prince of Wales Hospital and Li Ka Shing Polyclinic, situated on 10.5 hectares of reclaimed land in Sha Tin New Town. The 1 600-bed Tuen Mun Hospital, to serve the northwestern part of the New Territories, is under construction and due to be completed in 1988. Work is in progress on two tower blocks providing 840 additional beds at the Queen Mary Hospital. Plans for a new hospital in Chai Wan were approved and site formation for the polyclinic and staff quarters there began at the end of the year.

Various projects for the disciplined services were also completed. These included divi- sional police stations in Tsim Sha Tsui and Sau Mau Ping and at Hong Kong Interna- tional Airport. Divisional stations for Sha Tin, Tai Lam Chung, Chai Wan and Aberdeen were in the planning stage. To alleviate overcrowding at Stanley Prison, a maximum security prison to accommodate 480 inmates was completed at Shek Pik on Lantau Island. Site formation work for a new army camp on Clear Water Bay peninsula was completed. Military projects completed included an Education Centre Complex at Perowne Barracks near Tuen Mun and some 60 married quarters for Gurkha soldiers at various camps in the New Territories.

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       The new Fire Services Headquarters and Tsim Sha Tsui East Sub-divisional Fire Station complex was finished at the end of the year. Fire stations were also built in Sai Wan Ho and Tai O.

      Planning for the stage five extensions to Hong Kong International Airport reached an advanced stage. A start was made on the associated reprovisioning work and on a transport terminus. Completion of these facilities is scheduled for mid-1987.

Two cultural complexes in the New Territories, in Sha Tin and Tuen Mun, are under construction with both due to be completed in early 1986. These schemes are based on the same design as that of Tsuen Wan Town Hall but with improvements in the staging and ancillary facilities. Work on the Tsim Sha Tsui Cultural Centre, an extensive waterfront development, began late in the year and is scheduled for completion in late 1987. The centre's facilities will include a 2 300-seat concert hall and a 1 900-seat theatre. A Museum of Art will be built adjacent to the cultural centre.

      Construction of the Ngau Chi Wan Urban Council Complex is underway, with the market part of the project due for completion in mid-1985. The rest of the project housing community facilities is expected to be ready a year later.

      To mark the Urban Council's 100th anniversary in 1983, a Centenary Garden was built in the heart of Tsim Sha Tsui East. This garden is part of the landscaping of 10 adjoining sites, which form a network of pedestrian plazas, malls, parks and playgrounds.

      A standard swimming pool complex in Lai Chi Kok was completed in May. An Olympic size pool for competitive training was provided at the Wan Chai Reclamation Recreation. Centre, marking the end of phase one of that project. Work then began on phase two, which includes an indoor games hall with squash courts below it.

      Conversion work on Flagstaff House in Victoria Barracks, the former residence of the Commander British Forces, was completed in February. The building now houses a Tea Ware Museum managed by the Urban Council.

Private Building

     Private building development continued to be depressed as a result of socio-economic conditions. The general lack of interest in property investment was evidenced by a steady decline in building plan submissions.

During the year, 540 proposals for private building development were submitted to the Buildings Ordinance Office for approval. The usable floor area of building projects for which consent to start work was given totalled 2 259 692 square metres, which represented a decrease of 47 per cent compared with 1983. New buildings projected or approved included the proposed Bank of China Building on the old Murray Barracks site in Central, multi-storey extensions to the Yan Chai Hospital in Tsuen Wan and the Caritas Medical Centre in Lai Chi Kok, the Kornhill development opposite Tai Koo Shing and the comprehensive redevelopment of Whampoa Dockyard. Construction works on other major projects, including the Hongkong and Shanghai Banking Corporation's new headquarters and the second grandstand at Sha Tin Racecourse for the Royal Hong Kong Jockey Club, proceeded at a rapid pace.

      Building projects completed during the year were valued at $6,942 million, excluding land values, and 485 occupation permits were issued. These provided a total usable floor area of 1 926 898 square metres, a decrease of 37 per cent on the previous year. Projects nearing completion by the end of the year were Exchange Square, which will house the new unified stock exchange, and the Hong Kong Academy for Performing Arts. Projects completed included the redevelopment of Ocean Park, the Hong Kong Club building, the

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Kai Tak Air Cargo Terminal extension, stage one of the Lamma Power Station, and the Castle Peak 'A' Power Station at Tap Shek Kok.

A refuse storage chamber in all new building projects was, with certain exceptions, made mandatory by the Building (Refuse Storage Chambers and Chutes) Regulations 1984. The review of other parts of the Buildings Ordinance and Regulations continued. During the year, appeals to the Appeal Tribunal against the decisions of the Building Authority declined, but there was an increase in actions in the courts relating to earlier decisions taken by the Building Authority.

To deal more effectively with the problem of illegal structures and unauthorised building works, a separate Control and Enforcement Branch was created in the Buildings Ordinance Office in January. In its first year, the branch made 11 046 inspections, resulting in 3 836 orders being served to remove illegal structures and to reinstate the buildings to their original approved condition.

Having been empowered to deal with dangerous building works as well as dangerous buildings, the Building Authority closed 44 dangerous buildings in 1984; 36 of these were emergency cases. In addition, it served 518 orders requiring the demolition or repair of dangerous buildings/dangerous building works, 14 orders requiring remedial work to be done to dangerous slopes and 64 orders requiring repairs to defective drainage.

In addition to administering the Buildings Ordinance and Regulations, the Buildings Ordinance Office performed a number of other related functions such as assessing the suitability of licensed premises. For this, 2 718 food businesses, 230 schools, 95 child care centres, 711 places of public entertainment, and 24 oil storage installations were examined. The office also dealt with 162 applications for permitted work permits in respect of construction noise control.

Geotechnical Control

Much of Hong Kong's development is on steep and difficult terrain and the Geotechnical Control Office of the Engineering Development Department continued to publish reference material with the aim of improving the general standard of geotechnical expertise in Hong Kong. Publications during the year included the second edition of the Geotechnical Manual for Slopes, the Model Specification for Ground Anchors and the Bibliography on the Geology and Geotechnical Engineering of Hong Kong. Three Geoguides on soil and rock description, site investigation and the geology of Hong Kong were being prepared to expand and amplify information in the Geotechnical Manual for Slopes. These will be available for sale in 1985.

In May, the Geotechnical Information Unit (GIU) was opened to the public. The GIU contains over 12 000 volumes of information including geotechnical books and journals, site investigation and laboratory testing reports, a catalogue of slopes and retaining walls, old maps and plans of Hong Kong, landslip records as well as piezometric and rainfall records. This is the first comprehensive geotechnical engineering reference library to be opened to the public in Hong Kong and a reading area and photocopying service are provided.

Terrain classification mapping of the entire territory at the scale of 1:20 000 was nearing completion. Geological mapping of about 40 per cent of the territory was in progress and will eventually provide 1:20 000 geological maps with explanatory notes.

The routine work of the Geotechnical Control Office continued and, in all, 4 350 geotechnical submissions for private and public construction projects were processed. In a continuing and comprehensive programme of landslip preventive measures, work was

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     completed on 16 slopes and retaining walls at a cost of $53 million and preventive works commenced at 18 other locations.

Compared with the very heavy rainfall in 1982 and 1983, 1984 was relatively dry and, fortunately, there were no major failures or widespread landslips. Remedial works were completed on some of the previous year's major landslips, notably the failures at Peak Road, Pun Shan Tsuen and Tin Wan Hill Road.

Quarrying

The total consumption of crushed rock aggregates in the territory amounted to approxi- mately 16 million tonnes. Sixty per cent of this total was obtained from six local contract quarries and a further 20 per cent was provided by the two government-operated quarries and a number of rock crushing plants associated with site development works. The remaining 20 per cent was imported from China, and consisted of both coarse aggregates and natural sand.

Land Development

In the urban areas, land formation and reclamation are the responsibility of the Civil Engineering Office of the Engineering Development Department. During the year, 22 hectares of land were reclaimed along the northeastern coast of Hong Kong Island for the Mass Transit Railway Island Line, the Island Eastern Corridor, other roads and general urban development. Public dumping began at Telegraph Bay on the south side of Hong Kong Island to form 20 hectares of land for residential use.

       In Kowloon, reclamation continued at Cheung Sha Wan where 4.5 hectares were formed for the construction of a fish market, an abattoir and the Western Kowloon Corridor. To the north of Stonecutters Island, six hectares of land were formed for a sewage treatment plant. On the north shore of Tolo harbour, about 10 hectares of land were formed for an industrial estate and an open public area along the waterfront.

Port Works

The demand for marine facilities continued to increase and work by the Civil Engineering Office of the Engineering Development Department progressed on seawalls, breakwaters and piers at various locations throughout the territory. Six kilometres of seawall and breakwater were completed during the year and eight piers were at various stages of construction and due for completion in 1985-6.

Water Supplies

Full supply was maintained throughout the year. At the beginning of 1984, there were 529 million cubic metres of water in storage, compared with 434 million cubic metres at the start of 1983. Rainfall for the year was 2017 millimetres compared with the average of 2 225 millimetres. Water piped from China during the year totalled 285 million cubic metres. The Lok On Pai desalting plant was not operated and continued to remain as a 'stand-by resource'.

       On January 1, 1984, the combined storage of Hong Kong's largest reservoirs, High Island and Plover Cove, was 469 million cubic metres. The salinity of water in High Island remained at about 12 milligrams per litre, while at Plover Cove the salinity varied from 68 milligrams per litre at the beginning of the year to 66 milligrams per litre at the end of the year.

A peak consumption of 1.99 million cubic metres per day was experienced compared with the 1983 peak of 1.90 million cubic metres per day. The average daily consumption

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throughout the year was 1.71 million cubic metres, an increase of 5.6 per cent over the 1983 average of 1.62 million cubic metres. The consumption of potable water totalled 627 million cubic metres compared with 592 million cubic metres. In addition, 90 million cubic metres of salt water for flushing were supplied compared with 87 million cubic metres.

      Planning studies were completed for the improvement of water supplies to developments in Quarry Bay, Central Mid-levels, Tsuen Wan, Kwai Chung, Sha Tin East high-level areas and the improvement of salt water supply to Kwun Tong. Other studies in hand covered the improvement of supplies to developments in eastern Hong Kong high-level areas, Sheung Shui, Fanling and Yuen Long including Tin Shui Wai, and permanent supply to Ma On Shan and Junk Bay and its hinterland.

During the year, construction of the reception and distribution systems for future increases in the supply from China continued with the main pumping station at the border completed and water taken through the new system on May 1. Design work on the project to supply raw water from Plover Cove Reservoir to the future treatment works at Pak Kong was well advanced. Tenders were called for construction of two pumping stations at Plover Cove Reservoir and the tunnel between Sai O and Pak Kong. Design of the Tolo Channel submarine pipeline was in hand and construction of treatment works and facilities at Yau Kom Tau continued. Design of a treatment plant at Pak Kong and ancillary facilities for the supply of water to the Junk Bay development and to augment supplies to Kowloon East and Hong Kong East began. Design and construction work on projects for extending the supply systems in the Sha Tin, Tai Po, Fanling, Yuen Long, Tuen Mun and Tsuen Wan new towns continued to progress satisfactorily. Works to improve the supply to Sheung Shui and to Sai Kung also continued.

In the urban area, design work on improving supply systems in western areas of Hong Kong Island, Pok Fu Lam and Aberdeen was progressing satisfactorily. Similar work also began on improving the supply system to eastern areas of Kowloon. The laying of the new cross-harbour mains from Kowloon to Hong Kong Island was completed.

       Distribution systems were extended and enlarged to meet urban and rural demands in such areas as Cheung Chau, Sha Tin, Yuen Long, Tuen Mun, Tsuen Wan, Junk Bay, Fanling and Tai Po. Salt water for flushing was supplied to Tuen Mun and Tsing Yi from March and August respectively. In addition, several new pumping stations were put into service including those at Wong Chuk Hang, Cheung Sha Wan, Muk Wu, Pai Tau Hang, Tsuen Wan Central and Tuen Mun. Additional pumping equipment was installed at pumping stations at Eastern, Mount Parker, Magazine Gap, North Point Ultra High Level, Shum Wan Shan, Tai Wo Tsuen, Sha Tin North, Tai Po Tau 'A' and Tsing Yi. To meet increasing operational needs, telemetry and remote control equipment was installed at Eastern, Aberdeen, and Red Hill treatment works, Shouson Hill, Wong Chuk Hang and Tong Hang service reservoirs and at pumping stations at Stanley Mound and Kau Wah Keng.

      Two new consumer enquiry centres were opened in Tsuen Wan and Sha Tin, joining the existing centres in Causeway Bay, Mong Kok and Tai Po. The network has proved to be successful and plans are in hand to extend it throughout the territory.

Electricity

Kowloon and the New Territories including Lantau and a number of other outlying islands are supplied with electricity by the China Light and Power Company Limited (CLP), while Hong Kong Island and the neighbouring islands of Ap Lei Chau and Lamma receive supplies from the Hongkong Electric Company Limited (HEC). In January, CLP

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took over from the former Cheung Chau Electric Company the supply of electricity to Cheung Chau, thus allowing the islanders to benefit from the electricity tariffs applying elsewhere in the New Territories.

      The two supply companies are investor-owned and do not operate under franchise. The government monitors the financial arrangements of the companies through the published Schemes of Control. Under these schemes, the long-term financing plans of the companies and any proposed tariff changes require the approval of the Governor in Council.

Towards the end of the year, international consultants commissioned by the government completed a report giving an independent assessment of the government's arrangements for monitoring the supply companies as well as recommending various means to further enhance the government's monitoring capabilities. The report was due to be submitted to the Executive Council early in 1985.

Generation of electricity in Kowloon and the New Territories is carried out by CLP in conjunction with two associated companies, Peninsula Electric Power Company Limited (PEPCO) and Kowloon Electricity Supply Company Limited (KESCO). The combined capacity of the three companies at the end of 1984 was 3 664 MW. Both PEPCO and KESCO are financed 60 per cent by Esso and 40 per cent by CLP.

PEPCO owns the power stations at Tsing Yi 'A' (762 MW), Tsing Yi 'B' (800 MW) and Hok Un 'C' (240 MW). KESCO owns 504 MW of gas turbine capacity and is constructing the Castle Peak 'A' power station. The first dual coal or oil-fired 350 MW unit at Castle Peak 'A' was commissioned during 1982 and the second and third in 1983 and 1984, respectively; the remaining 350 MW unit at this station will be commissioned in 1985. Operation of the plants owned by PEPCO and KESCO is in the hands of CLP, which also has its own stations - Hok Un 'A' and 'B' (total 350 MW).

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. Castle Peak Power Company Limited (CAPCO), under the same financial arrangements as those adopted for PEPCO and KESCO, has been incorporated to own the station. The Castle Peak 'A' and 'B' power 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 directly benefit consumers.

       Transmission of electricity in the CLP system 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. When completed in 1986, the network, at 400 kV, will comprise 87 kilometres of double-circuit overhead line encircling the New Territories, 14 kilometres of cables and six extra high voltage sub-stations. The 41 kilometres of overhead line from Yuen Long to Tai Po have been completed and work is in progress on the Sha Tin to Tsz Wan Shan section. The 12 kilometre section linking Tai Po and Sha Tin is temporarily operating at 132 kV. The two sub-stations at Tsz Wan Shan and Tai Wan are energised and site formation works have commenced at the other four 400 kV sub-station sites at Tai Po, Yuen Long, Lei Muk Shue and Lai Chi Kok.

       HEC's Ap Lei Chau Power Station, which started commercial operation in 1968, has an installed capacity of 935 MW, consisting of two 60 MW and six 125 MW oil-fired generating units together with two gas turbines rated at a total capacity of 65 MW.

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       In 1978, the company was granted a site on Lamma Island for a new dual coal or oil-fired power station. Phase one of this station was completed in March with the commissioning of its third dual coal/oil fired 250 MW unit, making a total phase one capacity of 750 MW. Phase two will consist of two 350 MW units and will ensure that the company can meet rising electricity demand in the future - a demand that has grown over the last decade from 442 MW in 1974 to 1 221 MW in 1984, an increase of 176 per cent.

       HEC's transmission system operates at 275 kV, 132 kV and 66 kV. 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 or by submarine cable. The electricity supply is 50 hertz, 200 volts (single phase) and 346 volts (three phase). For larger consumers, supplies at high voltage are also available.

The transmission systems of CLP and HEC are interconnected by a cross-harbour link. This interconnector, which was commissioned in 1981, now has a capacity of 480 MVA; when completed, it will have a total capacity of 720 MVA. The interconnection brings cost savings to consumers through economic energy transfers between the two systems and a reduction in spinning reserve requirements.

CLP's system 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. This interconnection results in better utilisation of the company's generating plant during off-peak demand periods and allows power to be fed from Guangdong to the company's system when necessary.

As a future means of providing additional electricity for the territory, the Hong Kong Government has indicated its willingness, in principle, for Hong Kong to purchase power from a nuclear power plant to be built at Daya Bay in Guangdong Province. It is intended that the nuclear power station will be built and operated by the Guangdong Nuclear Power Joint Venture Company in which the Guangdong Nuclear Investment Company (GNIC) will have a 75 per cent interest and the Hong Kong Nuclear Investment Company (HKNIC) will have a 25 per cent interest.

Negotiations between GNIC and HKNIC on the contractual arrangements which will provide for the formation of the joint venture company reached their final stages in December and it was expected that the company would be formed early in 1985.

The nuclear power station will comprise two 900 MW nuclear reactors. The first unit is expected to enter commercial operation in mid-1991 with the second unit entering service a year later.

Main electricity statistics and sales figures are at Appendix 30.

Gas

Gas is supplied for domestic, commercial and industrial use as conventional Towngas by Hong Kong and China Gas Company (HKCG) and in the form of liquefied petroleum gas (LPG) by most of the major oil companies in Hong Kong. Towngas accounts for approximately 45 per cent of the total gas sold and LPG for 55 per cent. The customer split, however, is approximately 300 000 for Towngas and 900 000 for LPG.

About 80 per cent of the total LPG sold is distributed through a dealer network in portable 15-kilogram cylinders. This is the most widely used form of gas supply in Hong Kong at present but as a result of recent government action to improve gas safety, all LPG supplied in future to new housing developments will be in the form of piped gas from bulk storage/vaporiser installations. The proportion of LPG supplied from these bulk

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installations will soon increase significantly from the present level of 20 per cent. Overall, sales of LPG are increasing by approximately six per cent per annum, mainly in the form of piped gas to meet new housing demands but also partly to replace kerosene in existing markets.

      HKCG supplies Towngas to Hong Kong Island, Kowloon and many towns in the New Territories. Supply is available throughout the urban areas - including Aberdeen, Repulse Bay and Stanley on Hong Kong Island, Ap Lei Chau, Sha Tin and the industrial towns of Kwun Tong, Yau Tong, Kwai Chung, Tsuen Wan and neighbouring Tsing Yi Island.

      Towngas production is centred on Ma Tau Kok in Kowloon. The capacity of the Ma Tau Kok plant was increased during the year to 2 973 377 cubic metres per day by the addition of two naptha reforming units, making 12 in all. To meet peak demand, there are five gasholders with a total capacity of 113 282 cubic metres.

      Hong Kong Island is supplied with Towngas by four submarine gas mains across the harbour and Tsing Yi is supplied by one gas main along the Tsing Yi Bridge. The New Territories region north of Kowloon is at present supplied by a pipeline through the second Lion Rock Tunnel. A new 750 mm diameter pipeline through the old Beacon Hill Railway Tunnel is nearly completed.

To ensure that the rising demand for piped gas can continue to be met, a site in Tai Po in the New Territories was granted to HKCG in September for the construction of a second gas production plant. The plant is scheduled to come into operation by October 1986 and will enable the supply of Towngas to be progressively extended, via a planned 58-kilometre transmission pipeline, to all major towns in the New Territories.

      Towngas is distributed at a heat value of 17.27 MJ/m3 and a specific gravity of approximately 0.56. Gas is sold on the basis of a megajoule. Towngas sales are increasing at a rate of more than 20 per cent per annum due mainly to increased sales to new and existing housing estates. Sales in 1984 amounted to 6.91 million gigajoules compared with 5.92 million in 1983. Consumption and distribution statistics are at Appendix 30.

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HOCR

Transport

A WELL-RUN internal transport system is essential to sustain Hong Kong's economic activity by moving people and goods quickly and efficiently. In 1984, there were some 311 850 vehicles of all descriptions in the territory and the daily average of passenger trips on public transport was 8.8 million.

       Careful co-ordination and management are necessary to ensure that the road network is improved and public transport services, especially off-road modes, are expanded to meet demand. Optimum use of Hong Kong's limited road capacity is also essential. The Trans- port Branch and Lands and Works Branch of the Government Secretariat are charged with this responsibility, with the Highways Office of the Engineering Development Department, the Transport Department, the Traffic Branch of the Royal Hong Kong Police Force and the individual transport operators playing their part at the operational level.

The year saw continued progress on a number of projects to enhance Hong Kong's internal transport system. On June 7, the first 3.7 kilometre section of the Island Eastern Corridor was opened between Causeway Bay and Tai Koo Shing, enabling a journey to be made between these two points in only four minutes. In turn, it has helped ease the congestion along King's Road, reducing travelling time on King's Road between Shau Kei Wan and Causeway Bay by as much as 40 per cent.

       The construction of other major road networks, such as the New Territories Trunk Road and Circular Road, continued, as did the building of the Mass Transit Railway Island Line, the major portion of which is expected to be operational by mid-1985. Detailed planning of the Junk Bay and Route 5 (Sha Tin to Tsuen Wan) tunnels was far advanced by the end of

the year.

In July, the Kowloon-Canton Railway Corporation accepted in principle the govern- ment's invitation to build a 34-kilometre Light Rail Transit (LRT) System in Tuen Mun and Yuen Long, which is scheduled to become operational in 1988, to provide the core transport system in the western New Territories.

During the year, a final decision was reached not to proceed with the construction of a bridge across the harbour at Lei Yue Mun. The Executive Council gave the green light to an alternative submerged crossing between Tai Koo Shing and Cha Kwo Ling. A number of international consortia have expressed interest in financing the construction and operation of the facility which will provide at least a four-lane road crossing and perhaps also a rail link. It will take four to five years from the award of the contract for the tunnel to be completed.

       Additional maxicab services were implemented in Kowloon and the New Territories. New Territories taxis were permitted to extend their area of operation to include the Mass Transit Railway Station in Tsuen Wan, Shun Lee Estate in East Kowloon, the Chinese University, the Sha Tin Racecourse and the Prince of Wales Hospital.

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Efforts to combat road congestion continued. A passage tax, from June 1, on motor vehicles other than buses passing through the Cross-Harbour Tunnel led to a drop of nine per cent in the monthly total of motor vehicles using the tunnel by the end of the year. Good progress was made on the pilot study of an Electronic Road Pricing System aimed at controlling the use of road space rather than car ownership. A final decision on whether to proceed with a full-scale system will be made in 1985. The report on the study of Hong Kong's trucking industry, undertaken by consultants on the government's behalf, has suggested measures to alleviate congestion.

      A new franchise was granted to the Hong Kong and Yaumati Ferry Company and a two-year extension of franchise was also granted to the Kowloon Motor Bus Company.

Administration

The Transport Branch of the Government Secretariat, whose head is the Secretary for Transport, is responsible for overall policy formulation and the direction and co-ordination of all transport matters. In discharging this responsibility, the Secretary for Transport is joined on major transport issues by the Transport Advisory Committee (TAC), which advises the Governor in Council on transport policies. The TAC is chaired by an unofficial and has 11 unofficial and six official members. The Transport Policy Co-ordinating Committee, with a wholly official membership and chaired by the Secretary for Transport himself, advises on the co-ordination of policies.

The Transport Department is responsible for executing policy and regulating much of the internal transport system. The Commissioner for Transport, who heads the depart- ment, is the administering authority for the Road Traffic Ordinance and other legislation affecting public transport operations other than railways. His responsibility covers road traffic management, including government road tunnels, carparks and metered parking spaces, 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 responsible for the licensing of drivers and the licensing and inspection of vehicles.

      A Transport Tribunal, chaired by an unofficial and set up under the Road Traffic Ordinance, provides members of the public with a forum for the review of certain decisions made by the Commissioner for Transport; for instance, refusals to licence vehicles, decisions to cancel hire car permits and decisions to vary passenger service licences.

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.

Legislation

The new Road Traffic Ordinance and seven sets of regulations made under the ordinance were brought into effect on August 25, 1984. The Road Traffic (Driving-Offence Points) Ordinance was implemented on the same day.

      In amending several other pieces of transport-related legislation to accord with provi- sions of the new road traffic laws, the opportunity was taken to metricate the former. The two Fixed Penalty Ordinances, dealing with parking and moving offences, were reviewed and amended in line with the new road traffic laws, to take effect at the same time.

Amendments to the Public Omnibus Services Ordinance took effect in June and the Public Bus Services Regulations were introduced in August largely to replace regulations under the old Road Traffic Ordinance that were not repeated under the new road traffic legislation.

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Long-term planning studies are periodically carried out to chart broad directions for detailed studies to meet transport needs in the short and medium term. Earlier studies have proposed new transport infrastructure or modifications to existing administrative and operational transport policies. Recently, it has been recognised that in a place of rapid urban growth such as Hong Kong, transport problems can be eased by the development of a coherent urban growth strategy. The Land Use Transport Optimisation Study, completed in 1984 by an inter-departmental specialist team, has developed a computer model and used it to integrate the strategic planning of land development and transport infrastructure. The results formed the basis of the government's decision on long-term development strategy announced in July. In addition, two regional studies, a study of the transportation requirements of the Mid-levels and Central District and the traffic study for North Kowloon, were completed. Their results formed the basis for the provision of transport infrastructure in these regions. Studies are also underway to review and update travel demand forecasts in Tai Po and Junk Bay New Towns.

      The Transport Department is responsible for carrying out traffic and transport studies and for conducting transport-related economic and statistical analyses. During the year, a study to forecast public transport requirements in the Kowloon-Canton Railway corridor areas of the New Territories was completed. Its main purpose was to integrate the services provided by the buses and the railway in the corridor, taking into account the capacity of the modern- ised railway. A major update of the traffic demand forecasts for the Tuen Mun Transport Plan was also completed, and the updating of travel forecasts produced by the Hong Kong Comprehensive Transport Study and the East Kowloon Traffic Study was in progress.

During the year, an inter-departmental group completed further studies on cross- harbour tunnel facilities and made recommendations to the Governor in Council on a second fixed harbour crossing.

New Town Development

      To ensure that an efficient and integrated public transport system is provided for each of the new towns in the New Territories, comprehensive transport studies are carried out. Most of the new town transport plans reflect the twin policy objectives of economical use of roads and priority development of off-road systems.

Accessibility to Sha Tin, Tai Po and Fanling New Towns has been substantially improved by the full electrification of the Kowloon-Canton Railway to Lo Wu. Tsuen Wan New Town continued to be well served by the Mass Transit Railway, while detailed planning of the proposed LRT system for the western New Territories is proceeding following the Kowloon- Canton Railway Corporation's agreement in principle to construct and operate the system.

Although a large volume of traffic in the new towns is served by railway systems, bus services will continue to play an important role throughout the territory by complementing the rail systems, providing feeder services and catering for demand outside the railway corridors. The significant role of ferry services in the further development of Tsuen Wan, Tuen Mun and Junk Bay will continue. A new permanent ferry pier with associated interchange facilities on the Tsuen Wan Bay reclamation was opened in late 1984. A similar facility in Tuen Mun will open in 1986.

Improvement and Expansion of Public Transport

The expansion and improvement of public transport is one of the principal elements in the government's policy of enhancing the mobility of the population.

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The demands placed on public transport systems have steadily increased with the growing affluence of the community, the large populations now dispersed in the new towns, and the policy of discouraging the use of private cars. Demands for more and higher quality public transport services are being met largely through the continued development of urban and inter-urban railways which are now at the heart of the transport system.

Despite these developments buses will continue to cater for the bulk of passenger journeys in the territory. Their productivity continues to be enhanced by reduced traffic congestion and an influx of modern high-capacity buses, the largest of which can carry 170 passengers. Their efficiency is reflected in comparatively low fares, with operators maintaining reasonable profit margins.

The integration of rail and bus services is being improved by a growing network of feeder bus services to railway stations.

Growing competition from the railways has reduced cross-harbour ferry patronage, to which the larger ferry operators have responded by developing high-speed hoverferry services, and by improving the quality of outlying district services with faster, more comfortable vessels.

Despite the continued improvement in road services provided by the principal operators, there remain other local, low-volume demands which can best be met by maxicab and coach operators who are generally responsive to local needs. These modes are continuing to expand as opportunities arise.

Kowloon-Canton Railway

     The electrification and modernisation of the Kowloon-Canton Railway (KCR) was completed in July 1983 following the inauguration of the inner section services between Hung Hom and Sha Tin in May 1982. Growth in traffic levels increased dramatically from 20 000 passengers per day in April 1982 to 212 000 per day in September 1984 as a result of the diversion of passengers from public light bus services and franchised buses, and the growth of population in the new towns of Sha Tin, Tai Po and Fanling.

     This growth in demand has been met by progressive increases in train frequency, the most recent being on July 1. Trains now operate from 5.48 a.m. to midnight, and during morning and evening peak periods they run at three-minute intervals between Kowloon and Tai Po Market, with five-minute intervals to Sheung Shui and 15 minutes to Lo Wu. Corresponding off-peak frequencies are six, 10 and 20 minutes. There have been extensive complementary changes to the franchised bus network in the KCR corridor, with a view to building up a network of feeder services to KCR stations from the rural hinterland and new housing estates, and to avoid over-provision of services. Accordingly, a total of 24 bus feeder routes are now operational in the KCR corridor, identified by the suffix 'K' after the route number. Corresponding reductions have been made to certain parallel bus routes, the most significant being to Route 70 (Sheung Shui-Jordan Road Ferry). The vehicle allocation for this route was reduced from 27 to 18 buses following a decline in daily passengers from 30 000 to 15 000. A network of new maxicab routes has also been introduced to provide feeders to the railway, with 10 routes currently operating in the KCR corridor.

Mass Transit Railway

At year-end, the Mass Transit Railway (MTR) was carrying about 1.2 million passengers each weekday, making it the heaviest carrier per route kilometre in the world. It now operates on 26 route kilometres, with 25 stations. Excluding finance costs, over $10,000

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      million has been spent on the construction of the Modified Initial System and the Tsuen Wan Extension. Two distinct lines are now in operation: the Kwun Tong to Waterloo and Tsuen Wan to Central lines. Interchange facilities operate at the Prince Edward and Argyle Stations.

       A record number of passengers, 1.5 million, was carried on December 24. Trains run at two-minute intervals during the morning peak and at 2.5-minute intervals during the evening peak. The arrival of trains at destinations within two minutes of the scheduled time was maintained at 99.85 per cent during the year.

      An overall fare increase of 15 per cent was made in May, resulting in a new adult fare range of $2 to $4.50. Discounts continued to be offered to purchasers of stored value tickets, which include a last-ride bonus and an off-peak fare reduction. Half price child/ student single journey tickets and child/student stored value tickets also continued to be offered.

During the year, the facilities provided within stations for the convenience of passengers were further expanded.

Branches of a leading bank now operate on all concourses, meeting the normal banking needs of passengers and also selling stored value tickets and giving change.

       A variety of kiosks operate on the concourses. A 'tourist ticket' valued at $15 was introduced. These tickets are sold at the Hong Kong Tourist Association information counters, a number of hotels and the bank branches at six MTR stations located in the tourist belt.

A number of promotional activities were devised throughout the year in order to attract additional passengers and to increase awareness of the benefits of stored value tickets.

       Construction work on the corporation's third line, the Island Line, reached a peak during the year. All major civil engineering contracts for work associated with this line had been awarded and let at fixed prices in Hong Kong dollars. The cost of the Island Line in 1986 dollar terms will be under $11,000 million.

The Island Line, along Hong Kong Island's northern shore, will link Chai Wan and Sheung Wan and comprise 14 stations. The greater part of the line, Chai Wan to Admiralty, will be completed in May 1985, and the remainder from Admiralty to Sheung Wan about a year later. Close liaison is maintained between the corporation and government departments to solve problems and handle complaints resulting from construction work.

       The Island Line is being 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, property development profits and commercial borrowings. Various financing instruments, including syndicated loans, floating rate notes, and commercial paper facili- ties, were employed to maximise interest cost savings. Three residential and commercial developments associated with the Tsuen Wan Extension were completed during the year.

       By the end of the year, the MTR network was served by 34 feeder bus services terminating at stations. To encourage motorists to make use of the system, multi-storey carparks are provided at MTR stations in Kwai Fong and Tsuen Wan.

Buses

More than 300 bus routes are operated by three private bus companies under franchises granted by the government on a route basis. Together, they carry 3.9 million passen- gers a day.

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      The largest, the Kowloon Motor Bus Company (1933) Limited (KMB), operates 178 daily bus routes in Kowloon and the New Territories, and 20 cross-harbour routes jointly with the China Motor Bus Company Limited (CMB). During the year, 179 double-deck buses were added to the fleet, which at year-end totalled 2441 buses comprising 2 254 double-deckers, 124 single-deckers and 63 coaches.

       Bus services continued to be reorganised in several areas to cope with electrified train services of the KCR with a view to further strengthening feeder services to KCR stations. The increase in KCR capacity significantly improved bus services along the KCR corridor as well as bus services as a whole. The main improvements are reduced overcrowding and shorter passenger waiting times.

With the exception of cross-harbour routes, bus fares for KMB have remained unchanged since the last revision in April 1983. Fares on urban routes range from 60 cents to $1.20 whereas fares on rural routes range from 60 cents to $3.50. Higher fares are charged on the express bus and coach services. During the year, a total of 1 070 million passengers were carried by KMB and 170 million kilometres were travelled increases of nine per cent and nine per cent respectively over the previous year.

The China Motor Bus Company Limited (CMB) operates 84 daily bus routes on Hong Kong Island and 20 joint cross-harbour routes. In 1984, its fleet of 1 076 double- deckers, including 48 triple-axle buses having a capacity of around 170 passengers, carried 363 million passengers and travelled 55 million kilometres.

      Following the completion of the Island Eastern Corridor between Causeway Bay and Tai Koo Shing in June, five new express routes were introduced on a temporary basis. These routes provide passengers with a faster link between the Eastern and Central districts at premium fares, initially set at $2 and $2.50 for journeys to and from Shau Kei Wan and Chai Wan respectively.

      Bus fares for CMB and for cross-harbour services operated jointly by CMB and KMB were revised in January. CMB fares range from 80 cents to $1.50 on urban routes, and from 80 cents to $2.50 on suburban routes. Other than the cross-harbour airport coach services, all night services, recreational routes to Sha Tin Racecourse and the longest route linking Sha Tin and Wah Fu Estate, all the routes between Hong Kong and Kowloon have a flat fare of $2.20 with a section fare of $1 after crossing the harbour.

During the year, a further review of CMB's maintenance programmes and its inspection procedures began. This followed a serious bus accident in January.

      On Lantau Island, the New Lantau Bus Company (1973) Limited (NLB) operates a fleet of 57 buses, nine of which are double-deckers, over eight routes. In 1984, NLB buses carried an average of 7 000 passengers each weekday. Recreational demand increased this figure to an average of 16 000 on Sundays and public holidays. The year also saw the extension of the one-man-operation system to the whole of NLB's network, completing the programme of progressive conversion aimed at improving the cost-efficiency of the company's operations.

       Franchised bus services are supplemented by a fleet of 2 210 non-franchised public buses which are operated for hire on a contract basis, as well as 186 private buses operated by private housing developments and factories to meet their own needs. The Transport Department has licensed a network of residential coach services to serve residents of outlying areas whose needs cannot fully be met by franchised transport. In 1984, these services carried a total of 2.4 million passengers.

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The size of the public light bus (PLB) fleet has been fixed at 4 350 since May 1976. PLBs are 14-seater minibuses authorised under the Road Traffic Ordinance to carry passengers at separate fares. Some PLBs are used on scheduled services (green maxicab services) and others on non-scheduled services (red PLB services).

       In 1984, red PLBs carried an estimated one million passengers a day. There is no control on fares and routes for red PLBs, which are popular with passengers prepared to pay higher fares for a quick, direct and comfortable service with the added advantage of being able to board or alight anywhere along the route, assuming no restrictions are in force. These PLBs, however, contribute to congestion as they tend to concentrate in the main bus and tram corridors, delaying high capacity carriers and other traffic by their frequent stops.

Expansion of the 'maxicab' scheme continued in 1984 with PLBs being converted to fixed routes and fares under the control of the Transport Department to serve areas of particular need. At year-end, 130 maxicab routes utilising 930 PLBs were in operation throughout the territory, with about 370 000 passengers being carried daily. Concessionary fares for handicapped passengers are offered on some maxicab routes.

       A fleet of 1 886 private light buses is also maintained by schools, private residential developments and commercial enterprises for their own needs.

       PLB policy was reviewed during the year in the light of changing transport and traffic developments.

Residential Coach Services

In order to serve the peak hour transport needs of outlying residential areas, particularly those private developments with inadequate franchised bus services which cannot be served satisfactorily by maxicab services, a new category of bus service called a residential coach service was introduced in 1982. The service is intended to complement rather than compete with franchised bus services. Under the scheme, a coach service operates by the grant of a non-exclusive residential coach service licence under certain conditions, the main ones being that the service can only be operated according to the route, timetable and stopping places approved by the Commissioner for Transport. This licence is usually valid for two years and consideration may be given to renewal upon expiry. In assessing whether a licence should be renewed, account is taken of the continued need for the service and any effect it might have had on parallel franchised services.

To date, 20 licences have been issued for the operation of residential coach services, one on Hong Kong Island and 19 for residential developments in the New Territories.

Trams

The tram service in Hong Kong dates back to 1904, when Hong Kong Tramways Limited began service on five overlapping routes over 30 kilometres of track along the densely populated north shore of Hong Kong Island. During 1984, the fleet of 163 double-deck tramcars carried a daily average of 340 000 passengers. Fares were last revised in 1983 and remain at 60 cents for adults, 20 cents for children under 12 years and 30 cents for student travel card holders.

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 inter- mediate 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

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for Peak residents. In 1984, the service carried 5 600 passengers a day, an increase of 16 per cent compared with 1983.

Aerial Ropeways

An aerial ropeway operating at Ocean Park carries visitors between the park's lowland and headland sites. There are 246 cars on the system with a total carrying capacity of 1 476 persons. In 1984, the system carried an average of 4 000 passengers a day.

Ferries

      Ferry services in Hong Kong are mainly provided by two principal companies - the Hong Kong and Yaumati Ferry Company Limited (HYF) and the Star Ferry Company Limited. 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 41 million passengers on its two routes. HYF operates a varied fleet of vessels on 17 cross-harbour services (four of which carry vehicles), 10 outlying district services, two excursion services and one coastal service along the northern shore of Hong Kong Island. The company has a fleet of 86 vessels, some of which are air-conditioned, comprising double and triple-deck ferries, water buses and high-speed hovercraft. Fares on 28 HYF services were increased on January 1. During the year, the company carried 91 million passengers and 4.5 million vehicles.

      HYF services operating within the MTR catchment area continued to lose patronage. Decreases in passengers, from five per cent to 22 per cent compared with 1983, were recorded on these routes. This trend is expected to continue with the opening of the MTR Island Line in 1985. On the other hand, HYF's cross-harbour vehicular ferry services enjoyed a rise in traffic following the imposition on June 1 of the passage tax on use of the Cross-Harbour Tunnel. The number of vehicles using the four HYF vehicular ferry services during June to December was 60 per cent higher than that recorded for the corresponding period in 1983. On April 1, a new vehicular ferry service was introduced between Sai Wan Ho and Kwun Tong.

       In addition to the services operated by the two major ferry companies, 11 minor ferry services are run to isolated communities by seven operators. Supplementary services known as 'kaitos' are also available, mostly in the New Territories, to cater for local rural demand. Both types of services are controlled by licences issued by the Transport Department under the Ferry Services Ordinance. In Victoria Harbour, fleets of motor boats known as 'walla-wallas' are available for hire at public piers, although demand for this service is decreasing due to the introduction of more all-night cross-harbour bus services.

Taxis

Hong Kong is served by three types of taxi: Hong Kong and Kowloon taxis which may operate anywhere in the territory (but primarily serve the urban areas); New Territories. taxis which operate only in permitted areas in the New Territories; and Lantau taxis which operate only on Lantau Island. In 1984, the NT taxi operation boundary was twice extended, allowing New Territories taxis to take passengers to newly developed interchange points on the periphery of urban areas.

      At year-end, 13 534 Hong Kong and Kowloon taxis were registered. New licences. continued to be tendered at the rate of 200 per year up to a limit of 14 000. The number of New Territories taxis was fixed at 2 638 in July. The limit for Lantau taxis was 40; at the end of the year 30 Lantau taxis were registered.

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For Hong Kong and Kowloon, fares are $5 for the first two kilometres and 70 cents for each subsequent 267 metres; for the New Territories and Lantau, the fare is $3.30 for the first two kilometres and 70 cents for each subsequent 400 metres. A double charge of $20 is applicable for the Cross-Harbour Tunnel toll.

      A comprehensive review of taxi policy was completed in 1984. Following this review, it was decided that the annual licence fee for taxis should be increased from $1,600 to $2,000 from January 1, 1985. New limits on the number of Hong Kong and Kowloon and New Territories taxis would also come into effect on the same date.

More Economic Use of the Roads

Traffic management measures were introduced to improve conditions at the MTR Admiralty Station, the Gloucester Road area and the approach to the Sai Wan Ho vehicular ferry pier.

      In Kowloon, extensive traffic management was introduced in Wang Tau Hom and Tsim Sha Tsui East to relieve congestion caused by new developments. Traffic generated by increased commercial and industrial activities in the older parts of Mong Kok, east of Nathan Road and in the Wai Yip Street area in Kwun Tong also required a traffic management scheme. In Tsuen Wan, the introduction of a one-way circulatory system in the industrial area bounded by Texaco Road, Yeung Uk Road and Ma Tau Pa Road was successful in relieving congestion.

During the year, the installation of traffic lights at road intersections continued and the number of pedestrian crossings increased; 570 traffic light sets were in operation. However, more emphasis is now given to the grade-separation of pedestrian traffic by providing more footbridges and subways so as to improve pedestrian safety and increase junction capacity. The Area Traffic Control System using computers and television monitors is steadily expanding with 230 junctions in Kowloon and 90 junctions in the northeastern part of Hong Kong Island between Wan Chai and Shau Kei Wan under control. A contract was awarded for the Hong Kong Island final Area Traffic Control System covering over 200 junctions along the northern corridor of Hong Kong Island between Kennedy Town and Shau Kei Wan.

Road Tunnels

Hong Kong's road infrastructure includes four twin-tube tunnels. The Lion Rock, Aberdeen and Airport Tunnels are managed by the Transport Department but the Cross-Harbour Tunnel is owned and operated by a private company, the Cross-Harbour Tunnel Company Limited.

         The Lion Rock Tunnel links urban Kowloon to Sha Tin and thence to the northeastern areas of the New Territories. It opened in 1967 as a single tube facility. By 1978, a second tube had been provided, using a computerised system of surveillance and toll collection. On April 1, 1984, the toll structure was revised to $2 for all classes of vehicles and average daily traffic at mid-year was 63 000.

       The Aberdeen Tunnel runs between Happy Valley and Wong Chuk Hang, providing increased road capacity between the north and south sides of Hong Kong Island. Constructed as a two-tube facility, it was opened to one-tube operation in March 1982 and a year later the second tube was opened. The $2 flat toll originally imposed remains in force and utilisation has grown to 32 500 vehicles per day.

      The toll-free Airport Tunnel serves to provide a more direct road access from the central area of Kowloon to Hong Kong International Airport and, by crossing beneath the airport

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runway, to Kwun Tong. Since the tunnel opened in June 1982, the volume of traffic using it has been increasing steadily and now averages about 46 000 vehicles per day.

The Cross-Harbour Tunnel runs beneath the harbour and links Hong Kong Island to the Kowloon peninsula. It was opened in 1972 and traffic volumes have increased over the years to such an extent that, with an average of 110 000 vehicles per day in 1983, it has become the world's busiest four-lane facility. The eight-class toll structure with charges varying from $2 for motorcycles to $20 for vehicles in excess of five tonnes has remained unaltered. In order to reduce congestion, the government on June 1 introduced a tax of $2 to $5 on all tunnel users except disabled drivers and franchised buses. The tax is paid at the toll booths and, after an initial drop of 18 per cent in vehicles using the tunnel, has caused the number to settle around 100 000 per day, considerably easing congestion.

Parking

At the beginning of the year, a total of 10 multi-storey carparks and five open-air carparks, comprising 6 267 and 856 parking spaces respectively, were operated by the Transport Department. As the result of a tendering exercise, an agreement was entered into with Wilson Parking (Hong Kong) Pty Limited for the management of the multi-storey carparks. The company took over in three stages and the agreement commenced for a three-year period on May 1, 1984. The company introduced new hourly parking fees on August 1 - $6 for peak and $2 for off-peak, depending on the time of day and location of the carpark. Monthly passes are available for 70 per cent of the spaces at charges varying from $400 to $1,800. The Transport Department continues to operate five open-air carparks which, because they are situated on areas destined for other uses, cannot be contracted out. The hourly charges vary from 50 cents to $3, depending on the time of day, and monthly passes at prices ranging from $100 to $400 (depending on location) are available for 50 per cent of spaces.

Other off-street public parking is provided by the Civil Aviation Department at Hong Kong International Airport and by the Kowloon-Canton Railway Corporation at Kowloon Station. More than 80 other multi-storey carparks comprising a total of about 30 000 spaces are owned and operated by the private sector. The charges in these facilities range from $3 to $7 per hour, usually with a minimum charge of two hours.

      On-street parking is charged by meter and is provided at locations where traffic conditions permit. There are 13 300 metered spaces throughout the territory operating during the period 8 a.m. to midnight from Monday to Saturday. In such areas as Causeway Bay, Happy Valley and Tsim Sha Tsui, where parking demand is high, the meter operation has been extended to include Sundays and public holidays from 10 a.m. to 10 p.m. Surveys of these areas have shown that the extended operation has proven most successful in regulating supply and demand and the scheme was scheduled to be introduced into parts of Yau Ma Tei and Mong Kok by the end of 1984.

      Law enforcement in respect of parking offences is carried out by traffic wardens and officers of the Traffic Branch of the Royal Hong Kong Police Force. Fixed penalty tickets are issued in respect of parking offences, the current fine being $140.

Licensing

The decline in numbers of new driving licences issued and new private cars registered, caused by the large increases in taxes and fees in 1982-3, and further increases in 1983-4, continued throughout the year. The total number of private cars registered continued to

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The disciplined services in Hong Kong have kept abreast of modern technological developments. The Royal Hong Kong Police Force, in the forefront in adapting computer technology to its varied needs, moved a further step forward in 1984 with the establishment of a $40 million Joint Maritime Communications System - based at Marine Police regional headquarters in Tsim Sha Tsui - by which joint police- military operations on land, at sea and in the air can be fully co-ordinated. The Fire Services Department has partially com- puterised its communications centre which receives around 900 emergency calls every 24 hours. When the department moves to new headquarters now being built in Tsim Sha Tsui East the communications centre will be fully computerised. The Correctional Services Department has made good use of the latest technology in the new maximum security Shek Pik Prison on Lantau Island. A comprehen- sive closed circuit television system of over 160 cameras is set up throughout the institution and there are 36 monitor screens in the control room. With all people aged 11 and over required by law to obtain identity cards, the Immigration Department has found that computers make the filing of large amounts of personal data a relatively simple task. As part of its work to combat smuggling, the Customs and Excise Service of the Customs and Excise Department uses X-ray equipment in checking luggage and cargo for contraband.

Previous page: Fire drill at Hong Kong International Airport at Kai Tak. Left: Staff on duty at the new Joint Maritime Communications Centre at Marine Police regional headquarters; a fire alarm panel at the Fire Services Communications Centre; the control room at Shek Pik Prison.

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   The carpentry workshop of Shek Pik Prison makes a variety of wooden products, ranging from caution signs to furniture for government offices.

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fall. The revised Road Traffic Ordinance and its Regulations, which came into effect in August, introduced a number of new measures including compulsory medical examinations for drivers aged over 70, driving tests for heavy and articulated goods vehicles and a new system of Passenger Services Licences for public light buses and non-franchised buses. A new style of driving licence was also introduced.

Goods Vehicles

       Goods vehicles increased from 69 057 in December 1983 to 72 060 at the end of 1984. The movement of goods within Hong Kong is almost exclusively accomplished by goods vehicles. The vital role of these vehicles in providing freight transport movement is recognised and many service functions of business firms and utilities depend on them.

       During the year, a study of the economic and transport aspects of the trucking industry in Hong Kong was carried out by consultants. The study was completed in July and a report was published examining the general structure and economics of the industry and the likely effects of various suggested policies. The recommendations contained in the report are being studied.

In the interest of general safety, new measures affecting the construction and main- tenance of goods vehicles were introduced under the new road traffic legislation.

Vehicle Examination

The Transport Department operates four vehicle examination centres, at Kowloon Bay, To Kwa Wan, Sheung Kwai Chung and So Kon Po, providing facilities for the annual inspection of all taxis, private and public light buses, private and public omnibuses and vehicles licensed to carry dangerous goods. The programme was extended in 1984 to include goods vehicles manufactured before 1976. Vehicles involved in accidents are examined at police pounds at Ho Man Tin, Kwai Shing Circuit and Hung Hing Road. Airport vehicles are inspected in situ at the airport, while franchised buses are inspected at the depots of bus companies. All new taxis, light buses, goods vehicles, trailers and the first make and model of private cars and motorcycles were inspected upon first registration. More than 70 000 inspections were carried out in 1984. Planning is in hand to authorise private garages to inspect private cars which are six years old or more.

Road Safety

Traffic accidents involving injury decreased by 10.3 per cent in 1984. During the year, 15 100 accidents were recorded; 4 650 were serious and 290 fatal. This compares with 16 838 in the previous year (5 992 serious, 322 fatal). Investigations to identify the factors contributing to traffic accidents were carried out by the Transport Department at 93 locations and remedial measures were recommended at 53 of these locations.

       Road safety campaigns continued to play an important role in the reduction of traffic accidents. Traffic education teaching kits were also produced for use in schools. Road safety features significantly in the new road traffic legislation, where two of the most notable features are the compulsory use of seat belts by front seat private car occupants, and the fitting of reflective registration number plates on all vehicles.

By the end of 1984, there were 249 Road Safety School Patrols comprising over 7 000 members, whose main function is to ensure the safety of school children on their way to and from school. The Road Safety Council, an advisory body, continued to co-ordinate all road safety matters in the territory. A paper on road safety strategy was completed.

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Tackling Congestion on the Roads The 1979 White Paper on Internal Transport Policy predicted that given limitations on the expansion of the urban road system, measures would be necessary to restrain the rate of growth of the vehicles fleet, in order to limit congestion. Transport policy measures introduced in May 1982 doubled the first registration tax for private vehicles, broadly tripled the annual licence fees and raised duty on petrol. The 1983 Budget increased vehicle licence fees and the duty on petrol and diesel oil for fiscal reasons. From May 1982 to the end of 1984 the number of private cars registered dropped by 16 per cent. The number of private cars licensed during 1983 fell by six per cent compared with a growth of 11 per cent and two per cent in 1981 and 1982 respectively. The number of private cars licensed during 1984 fell by nine per cent compared with the number licensed in 1983. The number of private cars licensed at the end of 1984 was 182 985, compared with 201 000 at the end of 1983. For motorcycles, the figures were 22 417 and 26 000 respectively.

      The objective of the May 1982 measures was to restrict the rate of growth in private vehicles to five per cent, but the economic recession accentuated their effect. The lesson of past experience is, however, that as the economy revives, the effect of increased taxes and licences will diminish and vehicle growth will resume. Details are at Appendix 32. The government believes that such fiscal measures, although necessary and effective, are not the most equitable means to combat congestion, and during 1982 and 1983 there was a thorough examination of alternatives which would tackle the problem more directly by reducing vehicle usage in congested areas, particularly at peak periods. In 1983, the government approved a pilot stage of an Electronic Road Pricing (ERP) System. Consult- ants were commissioned to estimate transport benefits, to develop and test the main technological components on Hong Kong's roads, and to make a full report.

      The pilot stage is proceeding on schedule and the electronic equipment has performed well in factory tests. The testing of the system on-street in Hong Kong will begin in early 1985, involving some 2 600 vehicles of all types, and employing 18 electronic loop sites forming a zone around Central District. The data information will be collated at a computerised control centre to produce specimen accounts for the vehicles' road use at peak periods. The testing of the pilot scheme will be completed in June 1985. A full assessment of the reliability and efficiency of equipment and of the forecast benefits for all road users will be carried out, including extensive public consultation, so that the government will be in a position to decide whether to introduce a full system.

Port Development and Shipping Services

As one of the world's major ports, Hong Kong has earned a world-wide reputation for efficiency in continuing to meet the increasing demands of modern shipping requirements. The tonnage of shipping visiting the port, the volume of cargo handled and the passenger numbers reflect the optimum utilisation of all port facilities. 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 5 000 hectares, and varies in width from 1.2 to 9.6 kilometres.

      The administration of the port is the responsibility of the Director of Marine. He is advised by various committees 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 ships using the port.

In 1984, some 11 800 ocean-going vessels and 71 200 river-trade vessels called at Hong Kong and loaded and discharged more than 47 million tonnes of cargo. This included 31

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      million tonnes of general goods from ocean-going vessels; 58 per cent of this 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. About 2000 of these were operating at the end of 1984, and 27 per cent were mechanised. Break-bulk cargo is normally handled using ships' gear, but floating heavy-lift cranes are available when required.

       On average, ships working cargo at harbour moorings are in port for two-and-a-half to three days and container ships at the Kwai Chung terminals remain for about 13 hours. These are probably the fastest turn-round times for ships at any port in the Far East.

       Other 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 cargo working areas at Wan Chai, Yau Ma Tei, Tsuen Wan, Kwun Tong, Western District, Rambler Channel and Chai Wan. These areas are administered by the Marine Department. Government policy calls for the provision of public cargo working areas throughout Hong Kong to maintain swift and efficient internal cargo movement.

       The port of Hong Kong handled a total of 2.10 million TEUs (20-foot equivalent units) in 1984. The container terminals at Kwai Chung at present provide six berths with more than 2 300 metres of quay backed by about 88 hectares of cargo handling area. This area 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 simul- taneously at the container terminals. 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. A six-storey cargo distribution and handling centre, one of the largest of its kind in the world, is being constructed in Kwai Chung and will more than double the operator's present container capacity.

       The demands of modern shipping necessitate a continuous review of existing port facilities and during the year the Marine Department, with co-operation from other government departments, commenced a Port Development Strategy Study to examine the needs of the port to the year 2001. The views of the shipping industry in general are being sought during the study, which is expected to be completed in August 1985.

       Although Hong Kong already ranks as the leading container port in Asia and among the top three in the world, further expansion has become necessary in order to cope with the continuing increase in throughput. Work began in July on the reclamation of some 26 hectares of land at Kwai Chung Creek. This is the first in a series of projects designed to increase the capacity of the container terminals at Kwai Chung.

        During the year, 8.6 million passengers were carried between Hong Kong and Macau. The vessels plying this route include jetfoils, hydrofoils, jetcats, hoverferries and conven- tional ferries operating from either of two ferry terminals: the temporary Hong Kong- Macau Ferry Terminal on Hong Kong Island and the Sham Shui Po-Macau Ferry Terminal in Kowloon.

        The construction of a permanent Hong Kong-Macau Ferry Terminal in Central District will be completed in mid-1985. The new terminal will be capable of handling up to 15 million passengers annually.

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      About 1.6 million passengers passed through the temporary Tai Kok Tsui-China Ferry Terminal. Hoverferries, jetcats, catamarans and conventional ferries operate between Hong Kong and various Chinese ports.

      The government is considering the construction of a permanent Hong Kong-China Ferry Terminal in Tsim Sha Tsui on the site of the existing Kowloon Public Pier Number 54. It is planned that both ocean-going passenger vessels and smaller high-speed vessels will be able to berth there.

The New Sha Tin-Meisha Ferry Terminal came into operation in August. This serves ferries plying between Sha Tin in the New Territories and the Dai Meisha and Xiao Meisha holiday resorts situated in China at the northern head of Mirs Bay. The service is at present operated by the Hong Kong and Yaumati Ferry Company Limited.

       Within the port of Hong Kong, 72 mooring buoys for ocean-going vessels are provided and maintained by the Marine Department. Of these, 43 are suitable for vessels up to 183 metres in length and the remainder for ships up to 135 metres. The moorings include 58 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, immigration facilities are available on a 24-hour basis at the Western Quarantine Anchorage and from 6.30 a.m. to 6 p.m. at the Eastern Quarantine Anchorage. Quarantine facilities are available continuously at the Western Quarantine Anchorage and between 6.30 a.m. and 1 p.m. daily at the Eastern Quarantine Anchorage. Between 1 p.m. and 6 p.m. quarantine service is available at the Eastern Quarantine Anchorage only on request through the Port Communications Centre. Vessels may, on application, obtain advance clearance, advance immigration processing and advance free pratique by radio.

      While continuing to provide the infrastructure for ship-owners and management activi- ties expected of a major shipping centre, Hong Kong also experienced unprecedented growth in its registered fleet during the year. The registered tonnage increased from five million to 6.5 million tonnes at a time when the world generally was facing a severe shipping recession.

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 travel world-wide to undertake statutory surveys of vessels intended for British registry in Hong Kong. Locally, surveyors are made available to any British or foreign ships for the issue of certificates under the International Convention for the Safety of Life at Sea (SOLAS) 1974 and other international maritime conventions. With some exceptions, vessels plying within the waters of Hong Kong need to be licensed under the Shipping and Port Control Ordinance. These, too, are inspected and issued with appropriate certificates. The 1981 amendments to SOLAS 1974 came into force internationally on September 1, 1984. The amendments improve several safety aspects of the convention, which is generally regarded as the most important of all international treaties relating to maritime safety. As a result, Hong Kong registered ships built after that date have to comply with new SOLAS requirements, thus ensuring that Hong Kong registered ships maintain the highest level of safety.

      A convention of particular significance which came into force internationally on Octo- ber 2, 1983, is the International Convention for the Prevention of Pollution from Ships (MARPOL) 1973 as modified by its 1978 protocol. Hong Kong registered vessels comply

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with the requirements of the convention and in the course of the year legislation was enacted to provide for the issue of International Oil Pollution Prevention (IOPP) certifi- cates. As a result, Hong Kong ships are now able to produce authoritative evidence of compliance with MARPOL, thereby avoiding delays or difficulties in foreign ports. Moreover, with visiting ships being required to comply with MARPOL standards, the risk of pollution to Hong Kong waters has been reduced.

Pilotage in Hong Kong is not compulsory, but is considered advisable because of the density of traffic and the scale of harbour works being continually undertaken.

New and amending legislation is under preparation and it is expected that compulsory pilotage will be introduced on a phased basis beginning with phase one in 1985. It is hoped that phase two will be introduced in 1987 followed finally by phase three in 1989, after which all ships of 1 000 gross registered tons and above will be required to engage the services of a Hong Kong licensed pilot.

The Director of Marine is the Pilotage Authority in Hong Kong. All licensed pilots are members of the Hong Kong Pilots' Association, which organises the provision of pilotage services on a commercial basis, 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 Maritime Buoyage System 'A' and all fairway buoys are lit and fitted with radar reflectors. Other aids to navigation in the harbour and its approaches are constantly being improved to ensure greater safety and the programmed conversion to solar power of a number of light beacons is proving very successful.

The Port Communications Centre is linked by teleprinter, telephone and VHF radio to Green Island Signal Station and by telephone and VHF radio to Waglan Island Signal Station. 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 and 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 Department 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 can activate the Maritime Rescue Co-ordination Centre in liaison with other Rescue Co-ordination Centres in the region.

A joint study with the Canadian Government for a vessel traffic management system for the waters of Hong Kong was completed in August. Following detailed consideration of the report on the study, the government decided in principle, in December, to proceed to the implementation stage of the project.

Marine Department patrol launches keep a watch on shipping, fairways, typhoon shelters and cargo working areas. 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 with units 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.

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      There are extensive facilities for repairing, maintaining and dry-docking or slipping all types of vessels, including oil rigs, up to about 230 metres in length and 27 metres beam. Five floating dry-docks are located off Tsing Yi Island; the largest is capable of lifting vessels 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 approximately 12 000 active seamen on board some 950 ships of many flags. Considerable attention has been given to providing more comprehensive training for Hong Kong seamen. In this respect, a temporary seamen's training centre was established in early 1984 at Little Sai Wan to provide additional in-service training to comply with the requirements of the International Convention on Training and Certification of Seafarers 1978 under the auspices of the International Maritime Organisation. This convention was extended to Hong Kong in November 1984, in addition to the International Labour Organisation Convention No 147 which was extended in July 1983. Both these conventions led to the enactment of several new sets of regulations.

       The Examination Centre conducts a wide range of examinations for candidates wishing to prove their competency in the operation of various sizes and types of vessels sailing world-wide or plying within local waters. In addition, the centre inspects, supervises, and monitors all aspects of training at approved establishments for the acquisition of various maritime qualifications recognised by the Hong Kong Government.

      The Mariners' Clubs in Kowloon and Kwai Chung provide recreation and welfare facilities of a high standard to visiting seamen of all nationalities.

       During the year, a Marine Court of Inquiry reported on the sinking with the loss of eight crew members of the barquentine Osprey during the passage of Typhoon Ellen in September 1983. The court made a number of specific recommendations covering, inter alia, improvements to existing arrangements for assisting vessels in distress in the waters around Hong Kong. The recommendations were being actively considered by the govern- ment at the close of 1984.

Civil Aviation

Air travel gathered momentum once again following the general recovery from a world- wide economic recession. Passenger traffic increased by about 7.6 per cent compared with the preceding year's growth of only 2.37 per cent. Air cargo carriage remained buoyant, recording further significant growth of 14.1 per cent over 1983.

      A total of 9.5 million passengers passed through Hong Kong International Airport, about 672 000 more than in 1983. General cargo including manufactured products imported, exported and re-exported by air totalled 420 000 tonnes, an increase of 14.1 per cent over 1983.

The value of goods transported by air rose by 26.7 per cent to $109,000 million. Compared with Hong Kong's total trade in import, export and re-export in terms of value, imports by air accounted for about 21 per cent, exports for about 29 per cent and re-exports for about 22 per cent. As in previous years, the United States continued to be the major market for Hong Kong's exports and re-exports by air, taking about 51 per cent and 20 per cent of the trade respectively. About 25 per cent of Hong Kong's imports by air came from Japan.

       The number of airlines using Hong Kong International Airport and the frequencies of flights operated to and from Hong Kong remained steady throughout the year. At the end

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of the year, 32 airlines were operating 1 000 scheduled services a week to and from Hong Kong, linking it directly to 68 major world cities, with non-stop services to 40 of these. The air services network covered the United Kingdom, Europe, the United States, Canada, China, South Africa, India, the Middle East, Australasia and Asia. Nine other airlines operated an average of 22 non-scheduled services in and out of Hong Kong each week.

There was an increase of five per cent in international aircraft movements, bringing the total to 57 000. About 80 per cent of the aircraft calling at Hong Kong International Airport were of the wide-bodied type.

       At the beginning of the year, British Airways, which was operating a once-weekly service on the London/Peking route with only own-passenger stopover rights between Hong Kong and Peking, secured approval to exercise normal traffic rights on this sector. In April, Cathay Pacific Airways opened a new route between Hong Kong and Frankfurt, via Dhahran, operating at a frequency of three flights per week. Gulf Air resumed its scheduled services in June with its route changed to Hong Kong/Dhaka/Bahrain/Abu Dhabi, and in July, Continental Airlines started a thrice-weekly scheduled service between Guam and Hong Kong, via Taipei.

       The programme of improving and upgrading the facilities at Hong Kong International Airport continued throughout the year.

A new computer-based automatic message switching system for increasing the efficiency of telecommunication services related to aircraft movements was commissioned in March. The system forms part of the world-wide Aeronautical Fixed Telecommunication Network. Work on a further extension of the Passenger Terminal Building began towards the end of the year. The project consists mainly of an eastward extension of the terminal building at both the arrival and departure levels. Additional facilities such as check-in desks, a departure baggage handling system, 'commercially important passenger' rooms, cafeteria and baggage reclaim loops will be installed. These, when combined with the existing facilities, will provide a passenger handling capacity of 18 million per year, or 5 300 inbound or outbound passengers per hour. The development, costing around $270 million, is scheduled to be completed in mid-1987. Other facilities, as well as surface access roads, will be improved significantly as part of this project.

       The open-air carpark at the western end of Passenger Terminal Building is being converted into a transport terminus. This terminus, which will be ready in mid-1985, will provide a covered loading area for taxis, hire cars, buses and public light buses.

       A major extension programme of the cargo apron and taxiway facilities began and this project will complement the recently completed extension of the air cargo complex.

       The proposal to construct an international heliport on a site adjacent to the Wan Chai Ferry Pier was abandoned as the prospective developer, British Airways Helicopters, decided not to proceed with its plan to operate a scheduled passenger service between Hong Kong and Macau. Other work carried out in connection with helicopter operations included studies to identify an alternative site for a heliport to serve Hong Kong, and sites for a network of domestic helipads for the new towns in the New Territories.

14

Public Order

THE maintenance of law and order in the streets is primarily the duty of the Royal Hong Kong Police Force which was tested in January by the disturbances in Kowloon which broke out during a territory-wide demonstration by taxi operators. The high level of training and state of readiness of the force in its emergency role was reflected in the speed and efficiency with which an ugly incident was brought under control.

The Fire Services Department also proved its worth when tested during the year when, in September, it was called upon to deal with one of the worst ever fifth-alarm fires which broke out in a factory building in Aberdeen. The operations to contain the fire were undertaken in conditions of intense heat and toxic smoke caused by inflammable plastic materials and involved more than 1 000 firemen during a period of 68 hours. Fifty-five firemen and four workers were injured during the fire.

An important law enforcement role continued to be played by the Independent Com- mission Against Corruption, by the Customs and Excise Department against smuggling, in particular in respect of drug trafficking, and by the Immigration Department. The Correctional Services Department administers the penal system and is actively expanding and improving its wide-ranging rehabilitation and correctional programmes.

Fight Crime Committee

The Fight Crime Committee (FCC) continued to monitor the crime situation closely and to focus the government's efforts on areas of public concern. Through the work of sub- committees and working groups, the committee in 1984 carried out detailed studies of many problems including those associated with the use of firearms in crime, gang and triad activities, goldsmith and bank robberies, robberies in high-rise residential buildings, young offenders and nuisances caused by vice establishments.

The committee responded to the results of these studies by recommending changes in the law, the introduction of new or amended administrative measures, and publicity to resolve the problems identified. A legislative change initiated by the committee concerned increased penalties for the possession and use of firearms. This was enacted on July 25. Other changes proposed included the banning of high-quality imitation firearms, improvements to legislation controlling watchmen, and legislation to make it easier for those who suffer from nuisances caused by vice establishments to gain redress through the courts. These were likely to be submitted to the Legislative Council during its 1984-5 session. Administrative measures included the issue of guidelines to developers to improve the design of security features in multi-storey buildings and obtaining the co-operation of goldsmiths and jewellery trade associations in improving the level of their security measures and studying with them possible registration procedures for recording the purchases and sales of high-value items. Publicity was targetted on crime prevention for the year's major fight

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crime campaign which was launched on July 20 by the FCC, at a reception attended by all District Fight Crime Committee members, who continued to play a vital part in taking the campaign messages to the public. During the year, efforts were made to improve liaison between the FCC and its district counterparts with FCC members regularly attending district committee meetings. It was hoped to develop this relationship further in the coming year.

Police Force

While there was a marginal decrease in overall reported crime during the year, there was a disturbing rise in the level of triad and gang related activities. This was first brought to the attention of the Fight Crime Committee in late 1983 through a confidential report initiated by the Commissioner of Police. As a result, a Working Group on Gangs was formed by the FCC to examine the problem in depth, with the aim of formulating strategy to co-ordinate government action to combat this menace.

       In July, the Commissioner of Police ordered immediate action to counter an upsurge in what he considered to be blatant triad-type crime - mainly gang fights and attacks on individuals and members of rival groups. This involved mounting a series of territory-wide operations against areas and premises frequented by triads and other gangs. A total of five such operations led to 157 people, including 46 who were already wanted by the police, being charged with 182 offences ranging from robbery, serious assault, wounding and membership of triad societies to illegal immigration.

The use of firearms by criminals was a cause for major concern in the early part of the year. But there was a significant reversal of position following a series of successful police operations. One example of outrage was a cash-in-transit armed robbery in Central District involying foreign currency. Shots were exchanged during a police chase and a passer-by, a young woman, was shot and killed by the robbers and another seriously injured. A few days later, the gang was arrested after a shoot-out in a flat, and all of the money and an arsenal of 23 firearms were recovered. The manner in which the incident was handled said much for the training, skill and courage of the individual police officers who conducted the operation.

The recommendations of the Uniform Branch review of resource deployment were implemented in June. The changes have enhanced supervision of administrative and patrol functions in police formations, given greater flexibility to commanders in deploying their patrols and strengthened police links with the community through the appointment of 75 neighbourhood police co-ordinators - all experienced senior non-commissioned officers.

The Inspection Services Wing completed its first cycle of inspections of police forma- tions. The programme took 32 months to complete, and involved the inspection of 59 separate formations, resulting in 3 390 recommendations.

A Force Planning Group was set up to co-ordinate all planning activities with particular reference to manpower, buildings and equipment. The group keeps the government informed of current and anticipated force problems and resource requirements.

Crime

During 1984, 83 532 crimes were reported, compared with 86 000 in 1983. There were 7 245 robberies, a decrease of 12.8 per cent compared with 8 308 the previous year. Burglaries increased, from 11 308 in 1983 to 12 663. The overall detection rate was 42.8 per cent, compared with 42.9 per cent the previous year.

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A total of 35 538 people were arrested and prosecuted, compared with 34 773 in 1983. Adults prosecuted totalled 32 629 and juveniles (under 16 years) numbered 2 909, an increase of 2.7 per cent and a decrease of 2.6 per cent respectively compared with the previous year.

Organised and Serious Crime

The early part of the year saw an unprecedented upsurge in organised and serious crimes, many of which entailed the use of firearms. A total of 304 robberies involving the use of real or imitation firearms were recorded; 48 of these were committed against goldsmith and jewellery shops, accounting for the loss of property valued at $65 million.

A total of 95 firearms were seized during police operations, and 97 persons were charged with various offences, including murder and armed robbery.

Commercial Crime

Although there was a slight decrease in reports of fraud, compared with 1983, criminals used greater ingenuity and sophistication. For the police, this involved an increased commitment in manpower and time spent on complex investigations. The main areas of fraud were those involving banks, shipping of goods, letters of credit, and defrauding of third parties by consenting intermediaries. There was also an increase in requests for assistance from overseas law enforcement agencies. Changes in the Evidence Ordinance assisted in the detection and prosecution of commercial crime.

The Commercial Crime Bureau was also heavily committed to the complex task involved in the investigation into the activities of the collapsed Carrian Group of Companies. A number of persons were charged with conspiracy to defraud and warrants were issued for others who were no longer in Hong Kong.

      Counterfeit currency continued to pose a problem, though not to the same extent as in 1983. Six persons were prosecuted for involvement in the distribution of counterfeit currency and action was taken against one syndicate engaged in counterfeiting coins.

Public Order

     For the first time since 1967, police were called upon to deal with disturbances in Kowloon in the aftermath of a territory-wide demonstration by taxi operators protesting against proposed increases in registration fees.

The demonstration, which took the form of slow moving convoys and the blockage of main thoroughfares, disrupted traffic over a period of three days but remained peaceful, largely due to police adopting a temperate approach to the problem. On the third day, January 13, on the assurance that the level of fees would be given further consideration, drivers began to move their taxis and this in itself caused considerable traffic congestion.

      In Nathan Road, Kowloon, some 5 000 persons, most of them young and some of them criminals, took advantage of the situation to set fires, to loot shops and go on the rampage. Police reacted quickly by the deployment of plainclothes and uniformed officers in strength, including three companies from the Police Tactical Unit, to deal with the disturbances which by then had spread.

      Police action on the streets, backed by the unprecedented issue of stern warnings on all television and radio channels, resulted in order being restored in a matter of hours. Thirty-two people, including four police officers, were slightly injured and police made 178 arrests.

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In June, clearance of illegal stalls and wooden huts was carried out in a rear lane of Lung Kwong Road, Kowloon City. The operation met with strong resistance from the occupants who attacked demolition workers and police with metal rods, sticks and boiling water. Seven people, including four police officers, were slightly injured. Nine occupants of the illegal structures were arrested and eight were charged with criminal offences.

Narcotics

A fourth successive bumper crop of the opium poppy in the 'Golden Triangle' resulted in increased drug trafficking in Southeast Asia and an influx of opiates into Hong Kong. But substantial and record seizures by police and customs officers meant there was a dearth in supply and a corresponding substantial rise in price at street level.

Some 1 340 kilograms of opiates, including heroin base, No. 3 heroin and opium, were seized, compared with 730 kilograms the previous year.

Crime Prevention

The Crime Prevention Bureau opened its new equipment display rooms, conducted a series of seminars for senior security officers from major hotels and provided enhanced training for police officers engaged in crime prevention. A visual aids section was established to produce short video training films and specific surveys of high-risk premises were conducted to increase security measures, both at the design stage and during occupation.

Criminal Information

The Police Operational Nominal Index Computer System (PONICS) - operational for more than a year - proved to be extremely useful in allowing immediate access to and feed back of information essential to effective day-to-day policing.

The main fingerprint collection contains 524 436 sets and, during the year, 72 027 arrest fingerprints were processed and identified 37 963 people as having previous convictions. The section also carried out vetting searches on 35 372 sets of fingerprints and dealt with 23 002 applications for a Certificate of No Criminal Conviction.

Illegal Immigration

      Illegal immigration remained one of the serious problems facing security forces and necessitated the regular daily deployment of some 700 police officers. The introduction of the new-style identity card further proved to be a significant deterrent against illegal immigration. It is much more difficult to forge and contains information which police can quickly check, in the field, by using a system of computer-assisted verification. This, together with the improved border fence and protection system and the modernisation of the Marine Police fleet and communications, enabled the force to take effective measures against illegal immigration.

A total of 12 743 illegal immigrants from China were apprehended, 9 653 of them being arrested upon entry. Some 3 090 evaders, who had successfully slipped through the security net, surfaced. During the year, 13 090 were repatriated to China, representing a 44 per cent increase compared with the 9 067 repatriated the previous year. Some 529 illegal immigrants surrendered to the police and 149 were arrested in possession of forged identity cards, a decrease of 76 per cent compared with 1983.

The Illegal Immigration Intelligence Bureau continued to take action against organised syndicates bringing in illegal immigrants and those involved in providing forged identity documents. Persons prosecuted in this connection totalled 304.

Urban Council Public Libraries

City Hall, Hong Kong.

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      The smuggling of children into the territory remained a cause for concern. A total of 180 child illegal immigrants were discovered in 1984, representing a 40 per cent decrease compared with 1983. Most children were brought in by syndicates, some without the knowledge or connivance of their relatives in Hong Kong.

Traffic

     New road traffic laws, which were the first major revision since 1959, came into force on August 25 and required considerable effort from the police in explaining to the people the laws' implications and educating them to conform to the new provisions. The changes necessitated retraining on matters of enforcement all Uniform Branch officers, including auxiliary police officers.

Overall traffic conditions improved due to the government's fiscal measures directed at reducing the number of motor vehicles, the opening of new roads such as the Island Eastern Corridor and the effect of other systematic planning measures. However, congestion continued in various areas at peak periods.

      Road traffic accidents and casualties continued to decrease, although at a slower rate than in 1983. The total number dropped to 15 098, with 317 fatalities and 19 786 persons injured.

Community and Media Relations

The 1984-5 Prevent Crime Campaign, launched in July, was targetted to reach out and, literally, touch as many people as possible and convince them that the government and the police do care about their safety and security and do value the part they can play in help- ing to curb crime by taking simple, sensible and inexpensive measures to better protect themselves, their families, their homes, their businesses and their motor cars.

'Police and the People Fight Crime Together' was the theme chosen by the FCC to mount the largest crime prevention campaign ever undertaken in Hong Kong. Among several innovations was the production of 10 000 attractively designed kits, each containing samples of crime prevention publicity material and advice (of which there are some five million pieces), and one-million-plus crime prevention wallet cards, more than half of which were handed out to the public by beat police officers to emphasise the force's commitment to the campaign. The rest were given to district community organisations for distribution.

      The launching ceremony brought together, for the first time, some 300 District Fight Crime Committee members, over 100 police officers with special responsibilities for community relations and representatives from the Fight Crime Committee, government departments and the security industry.

The campaign, one of only two to be accorded full community involvement status during 1984, was supported at both regional and district level by the City and New Territories Administration and the police.

      Junior Police Call (JPC), the world's largest police-youth organisation, celebrated its 10th anniversary. Highlights of the celebrations included a joint production with Radio Television Hong Kong of a new eight-part, drama-documentary On the Beat television series which dealt with youth crime and attracted audiences of over 2.3 million on the two Chinese channels; a five-day Fight Youth Crime Seminar Camp for 900 full-time and 1 000 day campers, a Fight Youth Crime Mini-Olympics and a 'JPC and the Community' day at Victoria Park.

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      One of the most gratifying aspects of the Junior Police Call has been its continuing attraction for young people and their parents. During 1984, an average of 3 000 new members and 250 new JPC leaders joined each month, bringing total registered member- ship since the scheme started in 1974 to 384 400 members and 17 098 leaders.

       The 'Help the Police' Fight Youth Crime Competition, launched in January, attracted an exceptionally large number of entries and, for the first time, featured an English speaking section. The entry age limits were raised to 14-20. During the summer the six winners, all girls, visited Holland and the United Kingdom and the runners-up, five girls and a boy, visited Thailand.

The Good Citizen Award Scheme, jointly operated by the Hong Kong General Chamber of Commerce and the police, was expanded to include a Good Citizen of the Year Award to honour people who had shown exceptional bravery, or initiative, in arresting criminals or helping in the fight against crime. During the year, a further 68 good citizens received a total of $117,000. A total of 1 557 good citizens have received $1,859,400 since the scheme began in 1973.

Response to the telephone 'hotline' supporting the weekly television programmes Police 15 and Police Report continued to grow. In May, police announced the 2 500th arrest directly attributable to information received on the hotline and, six months later, were able to broadcast that 3 000 criminals had been arrested.

       Staff of the Police Public Relations Branch newsroom handled 100 388 press enquiries. In addition, newsroom staff dealt with 11 724 enquiries from the public, and issued 3 186 traffic bulletins and 1 688 press releases covering all aspects of police work.

Recruitment and Personnel

At the end of 1984, the overall complement of the police force, excluding the auxiliary police force, was 30 273, an increase of 2.8 per cent over 1983. Civilian staff, at 5 439, constituted 20 per cent of the overall establishment.

       There was a slight drop in the number of local applications to join the force; a total number of 11 640 were received compared with 12 049 in 1983. Of these, 1 277, including 59 women, were accepted.

Of the 193 officers appointed to the inspectorate, 71 were direct local enlistments, 70 were promoted from the junior ranks, and 52 were recruited from overseas.

Training

Facilities at the Police Training School were being expanded and improved to meet increasing needs. Recruit inspectors undergo a 36-week course and recruit constables a 22-week course which covers criminal law, social studies, police and court procedures, drill and musketry, first aid and, for overseas inspectors, an eight-week course in colloquial Cantonese. Recruit traffic wardens undergo a six-week course covering traffic legislation and procedures.

The school provides training for junior police officers to refresh and update their pro- fessional knowledge, for traffic personnel in their specialised field, and for newly promoted non-commissioned officers to prepare them for the responsibilities of higher rank.

The Regional Continuation Training Scheme operates from centres in each of the four police regions. It provides supplementary training for some 3 000 constables each year, during their first two years' of service. In addition, a scheme of continuation training for inspectors with less than one year's operational service has proved to be most effective.

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      The Detective Training Wing holds 12-week standard training courses with about 25 inspectors, 20 sergeants and station sergeants and 90 constables attending each course. A continuation training course for junior CID officers, who have served in the rank for at least four years, has been introduced. The academic year provides for 17 two-week courses for detective police constables and one course each for detective sergeants and detective station sergeants.

During the year, 590 junior police officers attended full-time English language courses; eight local inspectorate officers attended a course at Lancaster University, England; 28 officers of various ranks attended professional and technical training courses in the United Kingdom and elsewhere in Europe, Canada, the United States and New Zealand; five officers were taking a diploma course in Japanese; and five were taking a diploma in business studies. An enhanced training programme has been designed to train personnel at the Marine Police Training School to handle the more sophisticated vessels being acquired by the fleet. Junior police officers and inspectors receive seamanship, navigation, engineering, and wireless telegraphy training at the school and advanced radar training and ship fire- fighting courses.

Police Cadet School

Since its formation, the establishment of the Police Cadet School has been increased from 150 to the present 750. During its 11 years of operation, 2 426 cadets have graduated and, of this number, 2 206 joined the police, 36 entered the Fire Services Department, 69 the Customs and Excise Department and 35 the Correctional Services Department.

Research Projects

The Management Services Wing Research Branch carried out a study of policing to keep pace with the increase in population in the New Territories arising from new town development. The plan sets out requirements for personnel, buildings, transport and communications during the next five years. Similar plans for Hong Kong Island, Kowloon and Marine regions should be completed by the middle of 1985.

Buildings and Development

During the year, a decision was taken to build a new Police Headquarters, within the existing headquarters complex in Arsenal Yard, Wan Chai. Detailed planning for the project is proceeding and the first phase of the new development should be completed in 1988.

      Construction of new police stations at Tsim Sha Tsui, Sau Mau Ping and Hong Kong International Airport was completed. Construction of additional police stations at Tsing Yi Island and Tai Po began.

      Work is in progress at Aberdeen to develop the first of the new Marine Police bases, which is scheduled for completion by June 1986. Planning for a New Territories Regional Headquarters at Tai Po is well advanced. Preliminary design has been completed for reprovisioning the Police Tactical Unit on the existing site in Fanling.

      The programme to modernise older police stations continues, and plans for the renovation and improvement of a further eight stations are in hand.

Communications

A new $40 million Joint Maritime Communications System was inaugurated. This greatly improves communications between Marine Police, the security forces, the Marine

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Department and other government agencies. In addition to normal radio telephonic speech, the system permits the use of secure speech and visual data transmission and reception.

The Communications Branch maintains a large range of sophisticated telecommunica- tion equipment, as well as improving existing facilities and introducing new telecom- munication systems. Work to provide a communications system for policing the Hong Kong Island extension to the Mass Transit Railway continues. Replacement of the force teleprinter system with a more sophisticated network is in hand. The computer equipment used in the Force Command and Control System is being refurbished to ensure its continued performance until it is replaced by a new system in 1990.

Transport

The Police Force transport fleet now consists of 1 828 vehicles, including 644 motorcycles. Diesel-engined heavy general purpose vehicles have been introduced to replace ageing petrol-engined equipment, and an examination is being undertaken to identify a suitable replacement motorcycle for traffic patrols.

Computer Development

The force has used computer facilities for many years to assist administration and operational policing - such as the Computer Assisted Command and Control System, the computerised processing of fixed penalty tickets and maintenance of personnel records. The Computer Development Branch has continued work on the Criminal Records Bureau Nominal Index Computer System to extend terminal access to more formations. Other projects have included the provision of a computerised examination marking system for police recruits, and the introduction of word processors.

Two other projects being developed are a second generation Computer Assisted Command and Control System, and a Personnel and Training Computer System.

Complaints Against Police

During the year, 4 177 complaints were received by the Complaints Against Police Office (CAPO), an increase of 1.5 per cent over 1983. They resulted in 171 officers being dis- ciplined or prosecuted in court for criminal offences. A positive factor was that the number of complaints made directly to the police, and in particular to CAPO, continued to rise, and this was seen as a reflection of public confidence in the internal investigative process.

       A review by a working party into the methods by which complaints are received, investigated and monitored, is underway with a view to improving existing procedures.

Royal Hong Kong Auxiliary Police Force

The year marked the 25th anniversary of the Royal Hong Kong Auxiliary Police Force. The present strength of the force is 4 937; approximately 10 per cent are women officers. The role of the force is to assist the regular police force in day-to-day constabulary duties and to provide additional manpower in times of emergency. The average daily turnout of auxiliaries for constabulary duties in 1984 was in the region of 700.

Customs and Excise Service

The Customs and Excise Service enforces Hong Kong's laws on dutiable commodities, dangerous drugs, import and export controls and copyright protection. Other responsibili- ties include the prevention and detection of illegally imported goods which are prohibited or restricted for public health or safety reasons, or to meet international obligations.

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The service, a disciplined force of 2 549 officers, comprises a major part of the Customs and Excise Department. It has three regions - Hong Kong Island, Kowloon and the New Territories - and three specialist/support branches: Command Headquarters, an Investiga- tion Bureau and a Technical Bureau.

Revenue Protection

There are four dutiable commodities in Hong Kong - alcoholic liquors, tobacco, methyl alcohol, and hydrocarbon oils used as fuel for motor vehicles and aircraft. The Customs and Excise Service is responsible for collecting and protecting revenue from dutiable commodities. The Dutiable Commodities Ordinance imposes controls on the import, export, manufacture, sale and storage of these commodities throughout Hong Kong. In 1983-4, $2,583.60 million was collected on dutiable commodities, compared with $1,245.69 million in 1982-3.

Anti-Narcotics Operations

The service has a responsibility for the prevention and suppression of illicit trafficking in narcotics and other dangerous drugs. It intercepts illegal imports and takes action against drug manufacturing, trafficking and abuse in Hong Kong. The service co-operates closely with the Royal Hong Kong Police Force, overseas customs authorities and other law enforcement agencies.

      During the year, 284 kilograms of dangerous drugs were seized, including 99 kilograms of heroin, 151 kilograms of heroin base, four kilograms of opium and 29 kilograms of cannabis. Altogether, 1 437 people were charged with narcotics offences.

Copyright Protection

The service is responsible for protecting the copyright of literary, dramatic and musical works. While the problem of pirated sound recordings has largely been contained, illicit copying of motion pictures and television programmes remains a major concern. In 1984, the Copyright Division made 63 copyright investigations, which resulted in 122 people being charged and the seizure of 1 480 pirated video tapes and 92 video recorders. In addition, as an offshoot of the division's activities in this field, 1053 pornographic video tapes were seized, and 41 people charged with offences under the Objectionable Publications Ordinance.

Independent Commission Against Corruption

The ICAC has now been in existence for 10 years. Sustained effort in its work of investigation, prevention and education combined with excellent public support, have produced two major results: the widespread and syndicated corruption of the 1960s and early 1970s has been eradicated and not permitted to re-emerge; and the commission is now fully accepted as an integral part of Hong Kong's social structure. The commission has also gained increasing international esteem which can best be exemplified by the growing number of distinguished visitors from overseas and the study tours made by anti- corruption officers of other countries, as well as by the leading role played by the com- mission at high-level conferences and consultations overseas.

However, in 1984, corruption complaints directed at individual civil servants and the private sector continued to be received, and, in the mood of public uncertainty concerning Hong Kong's future, large-scale fraud facilitated by corruption in commercial and banking circles increasingly became the subject of complaints.

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The ICAC is independent of the Civil Service, and the commissioner is directly responsible to the Governor. An Advisory Committee on Corruption, consisting of leading citizens and senior government officials, provides guidance for the commission on policy matters affecting staffing, financial estimates, administration and other aspects of its work. Each of the three functional departments of the commission is also guided by an advisory body with members drawn from various sectors of the community and public service. All complaints against the commission and its staff are handled by an ICAC Complaints Committee, which comprises seven Unofficial Members of the Executive and Legislative Councils and a law officer. In 1984, 19 complaints were received. They were thoroughly investigated and advice was given by the committee on the action considered necessary.

Operations

The investigation of reports of alleged or suspected offences under the Prevention of Bribery Ordinance, the ICAC Ordinance and the Corrupt and Illegal Practices Ordinance is the responsibility of the Operations Department.

In 1984, the department received 2 365 corruption complaints. Of these, 592 were made by members of the public in person, 946 by telephone and 482 by letter; 203 reports were received from other government departments. Some 63 per cent of the complaints were made by persons prepared to identify themselves, a continuing indication of the confidence placed in the ICAC by the public.

       During the year, 410 people were taken to court for corruption and related offences and 329 prosecutions were completed with 209 convictions. The conviction rate on completed cases stood at 64 per cent. At the end of the year, 94 cases were pending trial and 466 investigations were in progress.

On the advice of the Operations Review Committee, reports concerning 240 serving or former government officers were referred to the heads of departments and the Civil Service Branch for consideration of disciplinary or administrative action.

Corruption Prevention

The Corruption Prevention Department reviews and recommends changes to procedures in government departments and public bodies that may give rise to corruption. Its advisory service is also extended to any private organisation or individuals on request.

       During 1984, 113 assignment studies were completed, bringing the total since 1974 to 917. These studies are detailed examinations of specific areas of a department's activities, covering policy, law, instructions, work methods and management. Reviewing previous studies and monitoring corruption prevention measures already put into effect continued to be an important aspect of the department's work.

The year also saw the formation of a large number of Corruption Prevention Groups in government departments. Through liaison and discussion at directorate level, these groups provide a co-ordinated approach to corruption prevention studies, with the individual departments actively participating in the identification of corruption-prone areas in their own organisations. By the end of the year, 20 such groups had been established.

Training programmes organised for supervisors in the government and in the private sector continued in 1984. The programmes covered the concept of supervisory account- ability, management's role in corruption prevention, and delegation of responsibility and authority. Training for senior and junior supervisors in the government helped to build corruption prevention measures into government policies and procedures as they evolved.

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During the year, 279 seminars were held for 4 993 government officers in 17 departments, while 29 seminars were attended by 543 people from public bodies and the private sector.

The Corruption Prevention Department maintained a close working relationship with a large number of government departments, offering advice on draft legislation, new pro- cedures and instructions. The department also played an active part in departmental and inter-departmental working groups, being represented on 35 working groups or committees. Reports to the ICAC which indicated deviation from established policy or procedures were followed up by the department. These provided useful information for the evaluation of policy and the effectiveness of corruption prevention measures and helped to pinpoint areas requiring study.

Community Relations

The responsibility for educating the public about the evils of corruption, and fostering community support for the commission's efforts falls on the Community Relations Department. In implementing these duties, an attempt is also made to promote sound civic awareness and higher ethical standards. The department works on two fronts - reaching the public through the mass media and through direct contact with individuals.

With the assistance of the 11 ICAC local offices, liaison meetings and community involvement programmes were organised to explain to the public the anti-corruption laws and the evils of corruption, as well as to enlist support for the anti-corruption movement. During the year, the department held 26 537 liaison activities and reached 356 000 people, including 27 000 civil servants. A special programme was launched to involve volunteers in community relations work. Two hundred young people, including university students and people in full-time employment, were recruited and trained to undertake anti-corruption projects.

There was an increase in efforts directed at liaison with the business sector. A conference on business ethics stimulated much interest among leading businessmen, underlining the importance of ethical considerations in business practices.

To promote moral education among students, a teaching programme for matriculation classes was prepared in 1984 and tried out experimentally in the 1984-5 school year. Two additional teaching programmes, for junior students, were prepared during the year. They will be ready for use in 1985.

      On the media side, television continued to be the main channel for anti-corruption messages. These television messages were reinforced by radio messages, posters and newspaper advertisements. By the end of the year, the production of a seven-hour drama series depicting the challenges and achievements of ICAC investigations was almost completed. Another television programme was a 13-part series Money Isn't Everything, aimed at promoting positive social values and morality among the younger generation. It was televised between September and December, and a considerable number of secondary schools took up the programme as a moral education teaching aid. During the year, the media continued to take an active interest in the work of the ICAC.

Government Laboratory

The Government Laboratory is responsible for providing a wide range of scientific support services for law enforcement authorities, including the police, Customs and Excise Service, the Immigration Department and the Independent Commission Against Corruption.

      The laboratory was again heavily involved in the scientific investigation of a wide variety of crimes. The general forensic science section of the laboratory examined exhibits taken

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from crime scenes, and this work also involved visits by scientists to the scenes. Forensic bloodgrouping, document examination and arson investigation featured prominently in this work. Other sections were involved in the examination of narcotics, scheduled poisons, and organs and body fluids in cases where the cause of death was unknown.

Correctional Services

The Commissioner of Correctional Services is responsible for the overall administration of 21 correctional institutions, three half-way houses, a staff training institute and an escort unit, with an establishment of 5 863 uniformed and 528 non-uniformed staff. During 1984, the average daily penal population was 7 895, compared with 7 894 in 1983 and 7 328 in 1982.

In addition, the department is responsible for running three closed centres housing Vietnamese refugees. The number of refugees detained in these centres was 5 654 by the end of 1984.

The year saw the completion and official opening of a number of development projects: Lai Sun Correctional Institution, a medium security prison for young offenders on Hei Ling Chau; Shek Pik Prison, a maximum security prison on Lantau Island; Stanley Prison workshop complex and hospital extension; and Bauhinia House in Central, a half-way house for girls. The $135 million Shek Pik Prison is equipped with high technology electronic security aids including an infra-red perimeter alarm, sophisticated radio net- work, and a comprehensive closed circuit television system which consists of over 160 cameras sited at strategic locations throughout the prison with 36 television monitors in the control room. There is also a solar energy water heating system providing hot water for the kitchen and laundry as well as for bathing. With a solar panel area of 480 square metres, it is the government's largest solar energy system.

Adult Male Offenders

All institutions are assigned a security rating designating them as maximum, medium or minimum institutions depending upon the degree of security available. There are 12 prisons for adult males including a psychiatric centre. Shek Pik Prison has maximum security facilities for 466 prisoners and has relieved Stanley Prison, the largest maximum security institution, of some of the burden of housing prisoners serving very long sentences. Siu Lam Psychiatric Centre, also a maximum security institution, provides accommodation for the criminally insane and those requiring psychiatric treatment, while Lai Chi Kok Recep- tion Centre provides secure conditions for persons awaiting trial or remanded in custody during court hearings. Civil debtors are also detained at Lai Chi Kok although these are now few in number.

       There are three medium security prisons for adult males, namely, Ma Po Ping Prison on Lantau Island, Victoria Prison in Central District and Tung Tau Correctional Institution on the Stanley peninsula. Minimum security prisons include Ma Hang Prison, Pik Uk Prison, Tai Lam Correctional Institution, Tong Fuk Centre and Chi Ma Wan Prison. Many of the prisoners in these institutions are employed on community projects or on other work outside the institutions.

       Special arrangements are made for geriatric prisoners who are housed at Ma Hang Prison and Ma Po Ping Prison. These elderly men are not able to keep up with the brisk pace of normal institutional life but in these units the tempo is slower and the routine less demanding and although they are still required to work, if medically fit, they are employed on only light industrial tasks or gardening.

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      Prisoners are allocated to the various prisons depending upon the risk they present to the community and whether or not they are serving a prison sentence for the first time or have been in prison previously. Even within an institution great care is taken to provide the necessary separation of the recidivist from the less sophisticated offender.

Young Male Offenders

Prisons, training centres, a detention centre and a drug addiction treatment centre operate comprehensive and distinctly different programmes for the corrective training of young male offenders. The daily average number of young men in custody was 1 203 in 1984, compared with 1 251 in 1983.

Pik Uk Correctional Institution, housing 394, is a maximum security institution which operates as a reception centre, training centre and prison for young offenders. It also holds young adults under 25 who have been convicted by the courts but remanded for reports as to their suitability for detention centre training.

Cape Collinson Correctional Institution is a training centre with facilities for 205 inmates, catering for offenders aged between 18 and 21, while Lai King Training Centre accommodates those in the 14 to 18 age group and has certified accommodation for 276.

      Nei Kwu Chau Drug Addiction Treatment Centre, capable of housing 146, provides treatment for drug addicts aged between 14 and 20.

The very effective detention centre programme is conducted at Sha Tsui Detention Centre, with accommodation for 226. This medium security institution has two sections: one for detainees aged between 14 and 20 years and the other for those between 21 and 24. Lai Sun Correctional Institution, which became fully operational in March, is a medium security institution on Hei Ling Chau Island, with accommodation for 360. It caters for young prisoners aged between 14 and 20.

Female Offenders

Women sentenced to imprisonment follow routines and programmes specially designed for their needs. Adults are housed at Tai Lam Centre for Women in the New Territories, where the majority are employed in a large industrial laundry which provides a service for government hospitals and other government departments. This centre also has a separate section for the treatment of women sentenced under the Drug Addiction Treatment Centres Ordinance.

      Young female prisoners under 21 years of age and young women sentenced under the Training Centres Ordinance are accommodated in separate sections at Tai Tam Gap Correctional Institution.

Drug Addiction Treatment

A compulsory placement programme for the treatment of convicted male drug addicts is administered on Hei Ling Chau. This centre provides treatment within the institution for a maximum period of 12 months followed by compulsory supervision for a further year after release. In the latter part of 1983, there was a marked increase in young addicts which made it necessary to convert Nei Kwu Chau Correctional Institution into an addiction treatment centre for young men. This accommodated 1 002 male inmates by year-end.

After many years' experience the department has refined treatment techniques to the extent that 'in centre' treatment has been reduced to an average period of between four and five months while the strict after-care supervision which follows ensures that the majority of those released after treatment remain drug-free. The shorter period of treatment also enables the department to treat more drug dependents within this facility without increasing the cost.

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All persons sentenced under the Training, Detention and Drug Addiction Treatment Centres Ordinances and certain young prisoners are subject to statutory after-care supervision on discharge. As an integral part of the correctional programme, the after-care service plays an important role in facilitating the successful reintegration of ex-inmates into the community and has achieved most encouraging results. At the end of 1984, the success rate was: detention centre, 94 per cent; training centres, 63 per cent (male), 92 per cent (female); drug addiction treatment centres, 68 per cent (male), 72 per cent (female). Altogether, 3 493 males and 176 females were under active supervision.

Psychological Services

     Psychological services are provided by qualified psychologists and a wide range of counselling services is available to inmates. Assessments are also provided for the guid- ance of the courts and for departmental use in deciding the suitability of offenders for participation in the various corrective treatment programmes.

Education

All convicted men and women under the custody of the Correctional Services Department have access to appropriate educational facilities. Educational programmes conducted by qualified full-time teachers are provided for all young offenders under 21 years of age. Remedial education is available for adult prisoners on a voluntary basis and is usually conducted by part-time teaching staff in the evenings. Correspondence courses, special courses and self-study courses are also arranged on request.

Correctional Services Industries

     Correctional services industries serve the dual purpose of providing full and purposeful employment for inmates and of supplying as economically as possible goods and services to the government. The year saw an expansion in the scope of the industries to meet the demands of various departments and new industries introduced included knitting, leather work and dry cleaning.

      New workshops have been opened in Stanley Prison, Shek Pik Prison and Lai Sun Correc- tional Institution. In addition, a project to upgrade plant and equipment for shoemaking and the construction of a new workshop complex at Pik Uk Prison were progressing well.

      Plumbing/pipe-fitting, and air-conditioning/refrigeration courses were added to the vocational training available for young inmates with the aim of eventually obtaining external accreditation for those who successfully complete the training.

The total commercial value of goods and services for the year was estimated to be $99 million, representing an increase of 48 per cent over the previous year.

Visiting Justices

     Regular visits are made to each institution by Justices of the Peace either bi-weekly or monthly depending upon the type of institution. The JPs are appointed by the Governor to carry out statutory duties including investigating complaints made by prisoners, checking meals and reporting on standards of accommodation and buildings. They are also required to advise the Commissioner of Correctional Services on the employment of prisoners in prisons and on opportunities for employment after release. Visits take place without prior notice within a specified period. In 1984, 502 visits were made to institutions including those accommodating Vietnamese refugees.

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Medical Services in Penal Institutions and Closed Centres

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All institutions are provided with centre hospitals or sick bays to offer treatment and health care for inmates including chest X-rays, blood tests, vaccinations and inoculations. All persons are given a thorough examination by the medical officer on admission and, where required, appropriate treatment. Persons requiring intensive medical care or surgery are referred to visiting consultants or transferred to government hospitals. Offenders who are suffering from drug withdrawal symptoms on admission are detoxified either in an institutional sick bay or as out-patients.

      Two psychiatrists from Castle Peak Hospital visit Siu Lam Psychiatric Centre and the psychiatric observation unit at Lai Chi Kok Reception Centre daily to provide psychiatric consultation and assessment of inmates referred from other institutions. Ante-natal and post-natal care is provided at institutions for women and closed centres for refugees, and arrangements are made for babies to be born in government hospitals.

Staff Training

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All recruits are required to undergo one year of basic training which is divided into three stages initial, intermediate and final - with brief field placements between each stage.

The training programme covers an extensive syllabus which includes regulations and procedures governing the administration and management of penal institutions, technical training in foot-drill, self-defence, weaponry, riot control, first aid, criminology, basic psychology and social work. These all assist trainees to develop an understanding of crime, the dynamics of human behaviour and the treatment of offenders. Field placements in the different types of institutions afford trainees the opportunity to learn about the practical aspects of their work.

      Development training is also conducted to provide more experienced staff with the means to refresh and update their knowledge, promote personal development and increase effectiveness and efficiency.

Discharged Prisoners' Aid Society

The Discharged Prisoners' Aid Society, a voluntary organisation, has been providing tangible assistance and counselling services to discharged prisoners since 1957. The service rendered by the society includes counselling, job placement and the provision of employ- ment rehabilitation centres, hostel accommodation and recreational facilities for discharged prisoners. One of its recent developments that merits special recognition is the establish- ment of separate services and hostel facilities for prisoners with a history of mental illness.

Closed Centres for Vietnamese Refugees

The number of Vietnamese refugees detained in closed centres managed by the department rose to 5 654 at the end of 1984 compared with 5 410 the previous year.

      Following factional unrest in February, northern Vietnamese were separated from their southern compatriots, and the main closed centres at Hei Ling Chau and Chi Ma Wan then became centres for northern and southern Vietnamese respectively. A smaller closed centre at Cape Collinson Correctional Institution accommodated a stable population of refugee families from northern and southern Vietnam.

       Concentration of the northern Vietnamese at Hei Ling Chau Closed Centre forestalled further factional trouble, but the new situation gradually brought home the reality of their slower resettlement rate compared with that of the southern Vietnamese. They drew attention to their frustration by refusing food for three days from July 2. The protest ended

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on July 5 after the refugees had been assured by the local representative of the United Nations High Commissioner for Refugees that they were not forgotten and that everything possible was being done to expedite their resettlement.

The Save the Children Fund joined the Salvation Army and World Relief in providing social services in closed centres and the United Nations High Commissioner for Refugees continued to meet the considerable cost of food, medical supplies, utilities and relief items.

Fire Services

In 1984, the Fire Services Department responded to 244 778 emergencies, involving 14 280 fire calls, 8992 special service calls and 221 506 emergency ambulance calls. Fires caused 49 deaths, and left a further 715 people injured, including 82 firemen. Some 1 176 persons were rescued by the Fire Services. There were 4 189 false alarms: 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 government's policy of providing an emergency response to all areas within minimum set times according to the category of risk, two new fire stations were commissioned during the year. These were at Tai O on Lantau Island and Sai Wan Ho on Hong Kong Island. The existing fire station at Sai Kung was reprovisioned. To meet the increasing demand for ambulance services, three new ambulance depots were commis- sioned. These were at Fanling and Tsing Yi in the New Territories and at Sai Wan Ho on Hong Kong Island. There are now 46 fire stations, 18 ambulance depots and five fireboat stations in the territory.

       At the end of the year, more than 1 996 staff quarters were occupied or available for occupation. Planning was in hand for 50 officers' married quarters and 1 726 additional married quarters for firemen and ambulancemen at five selected sites.

Fire Prevention

The department is responsible for enforcing fire safety regulations. It also advises and assists all sections of the community concerning fire protection measures generally and in the abatement and elimination of fire hazards. The Fire Protection Bureau plays an important role in educating the public on fire prevention. Publicity campaigns launched during the year increased the community's awareness of fire safety, resulting in requests for more fire prevention lectures, exhibitions and demonstrations from kaifong associations, rural com- mittees, schools and community groups. The 8 323 complaints received from members of the public were an indication of the level of public concern over potential fire hazards and of a growing awareness of the services provided by the department. Fire Services personnel made 205 883 inspections of all types of premises and, where fire hazards were found, abatement notices were issued. In 1984, there were 2 954 prosecutions for non-compliance with abate- ment notices, resulting in fines amounting to $1.28 million. All new building plans are vetted by the department, which specifies the requirements for built-in fire protection and advises on related matters. More than 7 435 new building plans were processed. The department is also responsible for carrying out research into matters associated with fire safety.

Ambulance Service

The Fire Services Department operates the government's ambulance service with a strength of 1 681 in all ranks of uniformed staff, and 129 civilian employees. The service operates 198

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ambulances from 18 ambulance depots or stations throughout the territory and from many fire stations. During the year, a total of 314 017 calls, involving 419 420 people, were handled an average of 860 calls every 24 hours. This represented an increase of 3.5 per cent in the number of calls compared with the total for 1983.

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Appliances and Workshops

To enable fire-fighting and rescue operations to be conducted in an efficient manner, the Fire Services Department is equipped with nearly 700 operational fire appliances, ambu- lances and vehicles fitted with modern fire-fighting and rescue equipment.

     In 1984, 21 new or replacement appliances and vehicles of various kinds were put into service. To maintain its fleet of fire appliances and rescue equipment, the department operates three workshops located on Hong Kong Island, in Kowloon and in the New Territories.

Staff Training

All recruits except those in the specialist communications ranks of senior firemen (control) and senior 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 training of senior firemen (control) and senior firewomen (control) is conducted at the Fire Services Communication Centre in Kowloon by instructors from the Training School. During the year, 183 recruits successfully completed initial training.

The school also conducted fire protection courses for senior station officers and station officers; refresher courses for ambulance personnel; and basic courses on fire fighting, fighting fires on ships and on the use of breathing apparatus for government departments and private organisations in Hong Kong and for the Macau Fire Brigade. Some 2073 people attended these courses during the year. The Driving Training School conducted courses for 750 officers and other ranks.

Establishment and Recruitment

The uniformed establishment of the Fire Services Department at the end of 1984 totalled 5 874. The number of civilian staff employed by the department increased to 575. A number of recruitment exercises were held, resulting in the appointment of 29 officers and 295 firemen and ambulancemen. Standards are high and on average only about five per cent of all applicants are accepted for appointment.

15

事入

Immigration and Tourism

旅務境

游和

     THE main aim of immigration control in Hong Kong is to contain increases in population from immigration to acceptable levels. During 1984, about 27 700 legal immigrants from China settled in Hong Kong. In past years, illegal immigration has been the greatest threat to limiting growth to a reasonable level. In September 1980, the rate of illegal immigration had reached 450 each day. Measures taken since then have greatly improved the situation. These include the abolition of the 'reached base' policy (which allowed illegal immigrants from China who had successfully entered Hong Kong to stay), the enactment of legislation requiring all residents over the age of 15 to carry legal documents of identity at all times, and the gradual introduction of a more secure identity card, backed up by an efficient computer-based record system. In addition, continued efforts have been made by the security forces at the border and in Hong Kong waters, to detect and intercept illegal immigration. During 1984, an average of 26 illegal immigrants a day were arrested while entering. A further eight illegal immigrants who evaded detection on entry were arrested each day during the year.

      The illegal immigration of children, often under conditions of great danger and hardship, continued. The numbers reporting to the Immigration Department for permission to stay averaged two per day throughout the greater part of 1984, but rose to nine in the remaining three months. Such illegal immigration poses special problems because children under 11 years of age are not required to register for identity cards and many illegal immigrant children may therefore remain undetected in Hong Kong for long periods. Measures to stamp out this despicable and dangerous practice continue and some of the racketeers have been arrested and punished. There were signs of an improvement towards the close of the year, and every effort will be made to prevent a resurgence.

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. The work embraces such diverse fields as the issue of travel documents, visas and identity cards, the processing of applications for naturalisa- tion, and the registration of births, deaths and marriages. Much effort also goes into the detection and prosecution of those who breach the immigration laws and the repatriation of those who are in Hong Kong illegally. Immigration policies are framed to limit permanent population growth, while immigration procedures for Hong Kong residents, tourists and businessmen are streamlined to the maximum extent possible.

Immigration Control

The number of passengers moving into and out of Hong Kong has continued to increase, reaching record levels. Passenger traffic in 1984 totalled some 33.7 million, an increase of 22.1 per cent compared with 27.6 million in 1983. The most dramatic increases were in

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movements to and from China, up 5.1 million from 12.1 million in 1983, but the figures for other categories of travellers also showed increases. As a result, all immigration control points had a very busy year. The bulk of the China traffic was carried by rail via Lo Wu which remained under heavy pressure. Conditions at Lo Wu were uncomfortable for both passengers and staff because of severe overcrowding in the present temporary terminal building. Considerable improvement was made in July following the installation of a $2 million air-conditioning system in the terminal building. A permanent modern terminal is under construction and it is expected to be completed by 1987. In the meantime, to reduce crowding, the opening hours of the control point have been extended and special arrangements are made for passengers on some trains to receive immigration clearance at Kowloon Station. A third 'through train' from Hong Kong to Guangzhou began operating in July. A new traffic link with China was established when the control point at Sha Tin was opened to service people travelling by ferry to a resort area at Meisha. Work is proceeding on a new road link and control point at Sha Tau Kok, and additional border crossing facilities at Man Kam To will also be provided. Computerisation of immigration procedures at control points is being studied with a view to streamlining the system.

Arrangements for residents of China to visit Hong Kong were further extended. In addition to individual visitors coming to see relatives in Hong Kong, there are now group tours arriving from Guangdong and other parts of China. In 1984, there were 45 900 individual visitors and 28 000 visitors who travelled in groups. The arrangements have worked satisfactorily.

Personal Documentation

During the year, 1.2 million travel documents were issued to Hong Kong residents, slightly more than the figure for 1983. Re-entry permits for travel to China and Macau accounted for some 75 per cent of all issues.

The scheme for replacing all existing Hong Kong identity cards with a new type of card continued to make good progress. By the end of 1984, most men under 37 years of age and women under 30 had obtained new cards. Over two million cards have now been issued and the exercise will be completed in 1987.

Vietnamese Refugees

The size of the Vietnamese refugee population remained fairly steady throughout 1984, being 12 770 at the start of the year and 11 896 at the end. Only 3 694 had been resettled overseas, while an additional 2 230 had arrived, and 553 had been born in Hong Kong. Despite this apparent stagnation in the overall situation, there were several developments during the year, some encouraging and some less so.

The closed centre policy, which was first adopted in July 1982 in an effort to discourage further arrivals from Vietnam, was maintained in 1984 in the face of a continuing flow of small boats across the South China Sea and diminishing resettlement opportunities. The rate of resettlement fell from 37 000 in 1980 to 18 000 in 1981, 9 000 in 1982, 4 200 in 1983 and 3 694 in 1984. Under the closed centre policy, new arrivals continue to be detained in the closed centres pending their resettlement overseas. Those in the closed centres are not allowed to seek outside employment, visits are regulated, and, for their own protection and common benefit, refugees have to abide by rules governing the daily running of the centres.

A new closed centre, the Bowring Closed Centre, is due to open around April 1985 on the site of a former army camp in the western New Territories, bringing to 6 800 the total

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      capacity of the four main closed centres. The existing centres at Hei Ling Chau, Chi Ma Wan and Cape Collinson continued to be fully used, and accommodated 5 575 refugees at the year's end.

       At 2 230, the number of arrivals from Vietnam was just over half the figure for 1983. This encouraging reduction remained consistent with the fall in the rate of arrivals since the introduction of the closed centre policy. In addition, the growth of the Orderly Departure Programme from Vietnam, the general decline in resettlement prospects, and the efforts of the Vietnamese Government to discourage illegal departures, appear also to have played a part in this trend.

During the year, the only countries which continued to provide resettlement quotas for Vietnamese boat people in Hong Kong were the United States, Canada and Australia. Other countries continued to accept refugees only for family reunion or because they had been rescued at sea by a ship bearing that country's flag. As a consequence, only 3 694 refugees were resettled from Hong Kong in 1984, compared with 4 200 in 1983.

The falling resettlement rate, and consequently the large number of refugees detained in closed centres, created certain management problems for the Correctional Services Depart- ment, whose staff run the closed centres. In February, during the Lunar New Year, disturbances broke out in both the Chi Ma Wan and the Hei Ling Chau Closed Centres because of differences between the northern and southern Vietnamese. As a result, the two groups have since been accommodated separately - northerners at Hei Ling Chau and southerners at Chi Ma Wan. Nevertheless, the lack of resettlement opportunities continued to cause discontent among the refugees. On July 2, a hunger strike was organised by the northern Vietnamese refugees at Hei Ling Chau. The refugees were protesting against the slow pace of their resettlement, and the strike, which lasted four days, was brought to a peaceful conclusion following the intervention of the local representative of the United Nations High Commissioner for Refugees.

Accommodating Vietnamese refugees in closed centres continued to place its own financial burden on Hong Kong, costing the government some $84 million in 1984. The United Nations High Commissioner for Refugees contributed $20 million to the cost of maintaining refugees in these centres.

For those 5 895 who had arrived in Hong Kong before the change in policy in July 1982 and were still stranded here two years later, life continued in the two open centres much as before. Refugees in these centres are not confined, and adults are allowed to take up temporary employment with which to support themselves and their families, with few restrictions upon their movements within or without the centres. Resettlement from the open centres continues, but at a very slow rate. At the end of the year, there were still 3 388 refugees in the Kai Tak Transit Centre run by the Hong Kong Red Cross, and 2 483 in the Jubilee Transit Centre run by Caritas-Hong Kong. More than 2 184 had been living in these temporary transit centres for over five years.

Tourism

      During the year, Hong Kong earned an estimated $13,700 million (up 26.6 per cent over the 1983 figure) from the 3 132 000 visitors staying in the territory (also up by 12.9 per cent over 1983).

Hong Kong Tourist Association

The Hong Kong Tourist Association (HKTA) is responsible for developing tourism. A statutory body set up by the government, the HKTA co-ordinates the activities of the

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industry and advises the government and the industry itself 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 the government's general revenue to which visitors contribute directly through a five per cent tax on hotel room charges. Membership dues and a variety of largely co-operative activities also help finance the association.

      The HKTA has its headquarters in the Connaught Centre on the waterfront of Hong Kong Island. Information offices for visitors are maintained at two other locations: Hong Kong International Airport and the Star Ferry Concourse in Kowloon. These offices play an important role in ensuring that visitors can obtain up-to-date information about Hong Kong. Analysis of the information requested and a continuous visitor survey programme provide valuable insights into visitors' spending patterns, as well as their needs and interests.

      The HKTA has its own representative offices in London, Paris, Rome, Frankfurt, New York, Chicago, San Francisco, Sydney, Tokyo, Osaka and Singapore (details are given at Appendix 2). Additionally, the association is represented by Hong Kong-based Cathay Pacific Airways in Southeast Asia, Japan, Western Australia, the United States, Bahrain, Dubai and Bombay.

      There are two categories of HKTA members, 'travel industry' and 'ordinary' members (the latter category representing retail and other service organisations).

      The marketing policy of the HKTA continues to be concentrated on high yield market segments and increased length of stay, resulting in higher visitor spending. The increased value of foreign currencies against the Hong Kong dollar has also produced a significant increase, in Hong Kong dollar terms, in per capita spending by visitors. Research projects continue to be conducted in Malaysia, the Philippines, Singapore, Thailand, Japan, Australia, the United Kingdom and the United States. These projects provide useful information on the potential of tourism from these countries, as well as travel motivations and perceptions of Hong Kong as a destination.

      During the year, trade and consumer promotions were organised in major markets. These promotions emphasised the variety of Hong Kong's attractions, such as shopping, food, nightlife and resort facilities. Twenty-four overseas travel agents were specially selected to take part in an International Seminar on Special Interest Tours, which coincided with the 1984 International Dragon Boat Races. It was the first time such a seminar had been organised. Altogether, 4 760 travel trade members from around the world were briefed and brought up-to-date with the territory's tourism product. Hong Kong has also become the venue for a growing number of international meetings and incentive move- ments by business groups and professional organisations. An International Seminar for Incentive Travel Users the first of its kind in the world was staged in Hong Kong, bringing together major end-users and members of the local tourism industry. In 1984, more than 600 international conferences and incentive programmes brought about 100 000 delegates and visitors to Hong Kong.

      The HKTA, through its Product Development and Tour Development Department, aims at preserving and improving existing visitor facilities and at encouraging the development of new projects and tours. These serve both to increase Hong Kong's attraction as a destination and to encourage visitors to stay longer. The association also encourages investment and development in hotels, resorts, restaurants and similar facilities, and promotes festivals, special interest tours and the revival of Chinese culture and heritage. Two new museums were opened in 1984: the Flagstaff House Museum of Tea Ware in Central District, and the Sheung Yiu Folk Museum in Sai Kung. Among the tours

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233

     offered, the association's 'Land Between' tour of the more scenic and peaceful side of the New Territories has received good support from local agents and hotel members, attracting some 10 000 visitors since its introduction at the end of 1982.

-

      The International Dragon Boat Races, held off the Tsim Sha Tsui waterfront for the seventh year, were more successful than ever with a record number of 14 overseas and 83 local teams taking part. Broadcast live on television, the event attracted much local and international publicity. The Row for Charity Race - an integral part of the event - in which crews from local hotels and banks took part, raised $540,000 for the Community Chest.

During 1984, the HKTA and the Society for the Advancement of Chinese Folklore again organised a Lantern Festival in Central District. The HKTA also initiated a weekly cultural show at the Cityplaza in Tai Koo Shing.

      Extensive consumer and travel trade advertising campaigns were mounted world-wide and during 1984 more than five million printed items were produced in eight languages for distribution in Hong Kong and overseas. These included a wide range of information leaflets, guidebooks, specialist travel publications and display material.

The association continued to be involved in the travel industry's training schemes. During the year, an experimental retail sales workshop and six courses for tour co- ordinators three in English and three in Chinese - were organised.

      Efforts continued to improve standards of service and courtesy. The fourth phase of the HKTA's Courtesy Programme and the introduction of a telephone hotline, the Visitor Open Courtesy Answering Line (VOCAL), through which visitors were able to nominate candidates for awards for courteous or professional service experienced in Hong Kong came to a successful conclusion. In addition to courtesy presentations to the industry itself, the campaign included training courses, on-the-spot presentations, and distribution of courtesy kits and a card in English, Japanese and Chinese for use by taxi drivers to overcome language problems with visitors from overseas.

16

The Armed Services

and Auxiliary Services

歌和三 |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 in the territory 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. 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 Air Corps helicopter squadron with 10 Scout helicopters and one Royal Air Force squadron with 10 Wessex helicopters.

The size and composition of the garrison, and Hong Kong's contribution towards its cost, are determined by a Defence Costs Agreement between the Hong Kong and United Kingdom Governments. The increase in local population, together with its redistribution within Hong Kong, was such that the resident garrison was considered too small to ensure security and stability in the 1980s. A new agreement was therefore negotiated - replacing a 1976 agreement to run for seven years from April 1, 1981, and to allow for the present- sized garrison. Additionally, reinforcements will be available when appropriate and necessary. With the ending of the 'touch-base' policy in October 1980, and the introduction of a requirement to carry identity cards, the flow of illegal immigrants has been reduced, although it continues to be necessary for all three services to concentrate a significant part of their effort on the task of preventing illegal immigration by land and sea.

Hong Kong also has a number of voluntary organisations making up a strong force of auxiliary services to assist the government and the Armed Services.

      Throughout the year, there was increasing emphasis on training for internal security operations and 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) - helped to improve proficiency in such operations.

Royal Navy

     The Royal Navy, based at HMS Tamar in Central District, continued to patrol the waters of Hong Kong. Its force of five patrol craft, and Seariders of the Third Raiding Squadron, Royal Marines, acted in close support of the Royal Hong Kong Police Force in deterring and apprehending illegal immigrants from China, intercepting Vietnamese refugees and conducting operations against smugglers and others who illegally infringe territorial waters.

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The Captain-in-Charge Hong Kong has responsibility for the operational control of the Hong Kong Sea Defence Area which extends to 91 kilometres. He has responsibility for all Royal Naval forces deployed on search and rescue operations in the South China Sea and works closely with the Director of Marine and the Director of Civil Aviation. The naval base of HMS Tamar maintains a recompression chamber for use in diving emergencies and a small clearance diving team assists the police in the recovery of drugs and smuggled goods and is trained in the techniques of searching for and neutralising underwater explosives. The Captain-in-Charge also administers the naval staff in Singapore, where the Royal Navy maintains berths and an oil fuel depot.

      HM Ships Rothesay and Aurora and Royal Fleet Auxiliaries Regent, Appleleaf and Sir Percivale visited Hong Kong during 1984. Warships from the United States, Malaysia, India, Canada and Australia visited the base and ships of the Hong Kong Squadron called at ports in Thailand, the Philippines, Japan, Malaysia and Singapore during ocean training deployments.

Under the direction of the Captain-in-Charge, a team is training 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 Royal Naval Reserve, United States Naval Reserve and the Canadian Armed Forces Reserve who are resident in Hong Kong and can be ready at short notice. The team enjoys a close liaison with the Marine Department and the shipping companies.

      The strength of the Royal Navy, including reinforcements, is about 670, supported by about 70 locally employed civilians. The patrol craft are jointly manned by Chinese ratings and UK naval personnel serving in Hong Kong. Altogether, about 370 locally entered personnel are employed ashore and afloat in the seaman, engineering, supply and medical branches. A further 300 locally recruited merchant seamen serve world-wide on board ships of the Royal Fleet Auxiliary Service. Manning laundries on ships of the Royal Navy is another task traditionally undertaken by Hong Kong men.

      The Royal Navy plays an active part in the community and during the year personnel provided sea training for the Sea Cadet Corps and the Hong Kong Sea School, and gave assistance to the Home of Loving Faithfulness, the Cheshire Home at Chung Hom Kok and the Chong Hing Water Sports Centre.

      The first two of the new patrol craft for the Hong Kong Squadron arrived in Hong Kong in November. This class of five ships will replace the present ageing 'Ton' class. The 'Peacocks', as they are known, have been specially designed for service in Hong Kong waters and have several innovations in patrol craft design.

The Army

The Army represents the bulk of the forces in Hong Kong under the direct command of the Commander Land Forces. Command of operational units is exercised on behalf of the Commander Land Forces by the Commander Gurkha Field Force, while logistic units, grouped as support troops, come under the Commander Support Troops.

      During 1984, the 1st Battalion the Scots Guards was replaced by the 1st Battalion the 22nd (Cheshire) Regiment, and the 1st Battalion 2nd King Edward VII's Own Gurkha Rifles (The Sirmoor Rifles) was replaced by the 6th Queen Elizabeth's Own Gurkha Rifles. Resident throughout the year were the 2nd Battalion 2nd King Edward VII's Own Gurkha Rifles and the 1st and 2nd Battalions 7th Duke of Edinburgh's Gurkha Rifles.

      Support is provided by a number of units permanently based in Hong Kong. These include the Queen's Gurkha Engineers, the Queen's Gurkha Signals, the Gurkha Transport

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     Regiment, 660 Squadron Army Air Corps, the Composite Ordnance Depot, the British Military Hospital and 50 Hong Kong Workshops, Royal Electrical and Mechanical Engineers.

      Hong Kong people 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. The latter corps is staffed by full-time regular soldiers and numbers 1 252 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 has 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, its major task has been to help with the control of illegal immigration, with individual battalions spending an average of three months a year on border duties. A high level of border vigilance was 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.

With

space and training resources limited in Hong Kong, overseas exercises for units are essential in maintaining high standards, and 1984 saw exercises take place in Australia, New Zealand, Fiji, Papua New Guinea, Brunei, Malaysia, Singapore and Hawaii. In addition, a command and control exercise in Hong Kong involved the government and the police, as well as the British Forces. The high standard of individual training of Hong Kong-based units was again demonstrated in competition with the rest of the British Army at the 1984 shooting tournament at Bisley in England. The depot of the Hong Kong Military Service Corps entered a team for the first time and was rewarded by a third place in its particular competition.

Royal Air Force

The main element of the Royal Air Force in Hong Kong is based at Sek Kong in the New Territories. The No. 28 (Army Co-operation) Squadron operates 10 Wessex helicopters from Sek Kong airfield 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, in the Joint Air Tasking Cell, and in the Joint Services Movements Centre.

      The Wessex helicopters are employed in direct support of the Army and can each carry up to 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 quickly to outlying areas, and its speed and flexibility have been significant factors in the success of the security forces' operations.

      Although illegal immigration has been substantially reduced across the land border many still attempt to enter Hong Kong in speedboats. 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 Nightsun

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Excellent communications have been an important factor in Hong Kong's rise into the top rank of international financial and manufacturing centres. These have enabled the territory constantly to keep a finger on the world's pulse in finance and trade, by day and by night. This efficiency in the age of the computer and video display terminal is not confined to the business community. It applies to the public as a whole, ranging from rapid delivery of mail to the facsimile service by which a family may send birthday greetings to a relative living in the United Kingdom. The Post Office plays a central role. handling daily an average of 1.35 million letters and parcels. The Speedpost service now covers more than 250 cities, and Intelpost, introduced in 1982, is proving equally popular. The territory has over two million telephones, or around 38 sets for every 100 people, and calls by direct dialling can be made to many countries. For the Hong Kong Telephone Company Limited it represents a big advance since 1965 when telephones numbered only 250 000. International telecommunications are provided by land and submarine cables, radio systems and satellite links through the earth station at Stanley. These services are heavily used: Cable and Wireless (HK) Limited handled 36.4 million minutes of outward telex in 1983.

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THE ARMED SERVICES AND AUXILIARY SERVICES

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to illuminate the area, assisting in the capture of the speedboat and occupants by surface vessels. The flying is demanding and involves considerable time on stand-by at night, waiting for call out.

During the year, one helicopter was available for search and rescue duties throughout the normal working day and, on a rotational basis with the Royal Hong Kong Auxiliary Air Force, one helicopter was on permanent stand-by for territory-wide aeromedical evacua- tion. During the dry season, the RAF provided assistance in fighting fires in areas inaccessible to normal fire appliances: the Wessex can carry a suspended bucket containing 1 000 kilograms of water for release over the fire.

In addition to its operational tasks, No. 28 (AC) Squadron provides training and support for the Royal Hong Kong Police Force and has assisted with a number of community projects including the removal of abandoned vehicles from remote areas, transporting young people to camps in the New Territories on government sponsored holidays, and the provision of air experience flights for a large proportion of the Air Scouts and Air Cadet Corps of Hong Kong.

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 nine 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 and financed by the Hong Kong Government, but if called out it is commanded by the Commander British Forces.

       The regiment was expanded in 1984 and has an establishment of 946 volunteers who come from all walks of life and are of many nationalities. They form four reconnaissance squadrons, a home guard squadron and a headquarters squadron. In addition, a women's troop was established in 1983 and expanded to 52 members in 1984 to provide supporting services in internal security and anti-illegal immigrant operations as searchers and interpreters. There is also a junior leaders' corps of 300 boys, aged from 14 to 17, trained in youth activities and leadership. Among many youth activities geared to the Duke of Edinburgh Award Scheme, a junior leaders' band was formed in 1984 to give performances at youth functions. The response to recruiting campaigns remains en- thusiastic, allowing a highly selective intake: 82 recruits, including 31 female members, completed the six-month training and passed out in May as a result of a successful campaign the previous year with over 1 400 applications.

The training commitment is two evenings and one weekend each month as well as regimental camps and exercises and centrally organised regimental training. The regimental camp, the highlight of the year's training, takes place over eight days in April and October. For the October camp, the regiment is deployed on the border to relieve a regular battalion of its anti-illegal immigration duties. In 1984, three officer cadets attended a two-week training course at the Royal Military Academy, Sandhurst, while nine volunteer officers and 12 non-commissioned officers were attached to other military establishments in the United Kingdom and also West Germany for training.

Royal Hong Kong Auxiliary Air Force

The Royal Hong Kong Auxiliary Air Force, based at Hong Kong International Airport, provides a variety of flying services for the government. It operates a fleet of seven aircraft:

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a twin-engined Cessna Titan, a Britten-Norman Islander, two Scottish Aviation Bulldog trainers and three Aerospatiale Dauphin twin-engined helicopters. With an establishment of 83 permanent staff and 140 volunteers, including a self-sufficient engineering squadron, the force is able to operate round-the-clock for seven days a week during an emergency.

Helicopter crews, which are on stand-by day and night, responded to 227 requests for emergency medical evacuations and rescues during 1984. Some of these requests originated from the local fishing fleet of about 5 000 vessels, many of which now have equipment enabling them to call for assistance when necessary. Several search and rescue operations were successfully completed, involving both helicopters and fixed-wing aircraft. During the dry season, helicopters dropped over 600 tonnes of water on bush and forest fires and areas inaccessible to conventional appliances.

The Royal Hong Kong Police Force and the Correctional Services Department made frequent use of helicopters for training and operational purposes. Helicopter flights were routinely provided to transport engineering staff to carry out maintenance and repair work at communications repeater stations on hilltops. About 5 500 government officers were flown to remote areas in the course of their work and there was a considerable increase in the number of official visitors from overseas who were shown the territory from the air.

The Cessna Titan and Britten-Norman Islander maintained regular offshore patrols to spot illegal immigrants and were also heavily employed in support of the Lands Depart- ment's continuing need for aerial survey, photography and map-making. The Bulldogs provided pilot training for the squadron's own volunteers and student air traffic controllers.

Civil Aid Services

The Civil Aid Services is a uniformed and disciplined volunteer organisation with an establishment of 3 671 adults and 2 626 cadets. The population movement from the urban areas to the new towns has placed a demand on the service for additional units of adults and cadets to be established in the New Territories. New units have been formed in Sheung Shui, Tsing Yi and Sai Kung.

The duties of the service are numerous and diverse, helping to relieve the pressure on Hong Kong's full-time emergency services. They range from augmenting the regular services in coping with emergencies and disasters to assisting the police in crowd control at public events. With the setting up of the tactical force unit - a rapid mobilisation team of volunteers trained in heavy rescue - the service is able to respond effectively, at short notice, to emergencies and disasters anywhere in the territory.

Two volunteers are sent to Australia every year for further training in counter disaster and mass rescue operations. This type of training proved its worth when Typhoon Ellen struck Hong Kong with devastating force in September 1983. During the passage of this typhoon, 850 members of the Civil Aid Services were called out on a wide range of emergency duties including the rescue of trapped people, road clearances and taking care of typhoon victims in temporary shelters.

      The aim of the Cadet Corps is to foster a sense of civic responsibility and community aware- ness in youths aged over 12 but below 18, and to train them to act in a responsible and dis- ciplined manner and become good citizens in the future. Training courses organised for cadet members include rock climbing, orienteering, expeditions, basic mechanical and electrical engineering, first aid and light rescue. Courses on countryside preservation, basic fire-fighting, crowd control and road safety are also conducted for cadets in order to equip them with the requisite knowledge to perform community services. They are also encouraged to take part in the Duke of Edinburgh Award Scheme. Seven cadets qualified for Gold Awards in 1984.

THE ARMED SERVICES AND AUXILIARY SERVICES

Auxiliary Medical Services

239

The Auxiliary Medical Services is a volunteer medical organisation with members trained and equipped to provide an essential service to the public, especially in times of emergency. It has a strength of about 5 800 volunteers of whom 1 200 are professionally qualified in medical, nursing, pharmaceutical or hospital administration services. The remainder, who come from various walks of life, are trained to a high level of proficiency in first aid, nursing, ambulance work and casualty handling.

Founded in 1950, the service's main role is to augment the Medical and Health Services and the ambulance service of the Fire Services Department in any emergency. Other than in emergencies, the Auxiliary Medical Services performs various regular duties such as providing first aid coverage for major public functions, assisting the full-time ambulance service on Sundays and public holidays, manning methadone treatment clinics, staffing first aid posts in country parks, setting up medical posts in refugee centres and reinforcing the regular lifeguard service at public beaches and swimming pools during the summer. The AMS also provides canoe lifeguards and surf lifesavers at several beaches. Permanent staff continue to give first aid training to government officers, especially those in the disciplined services. Sub-units have been established in nearly all urban districts, new towns and populated outlying islands.

17

Communications and The Media

潘勿舖 事霸孔 業健

     THE major issue for Hong Kong's news media in 1984 centred on the continuing negotiations between Britain and China on the territory's future. The many news organisations - spanning the press, radio and television - reported in great detail on all aspects surrounding the confidential talks held in Peking that led to the initialling, on September 26, of a draft agreement. Reporters and photographers travelled regularly between Hong Kong and the Chinese capital for the many rounds of talks. Some members of the media also travelled to London to report on the parliamentary debates on Hong Kong's future.

      Throughout the year, the media also provided wide coverage of local views on the future, whether expressed by individuals, groups or organisations. Debates held by the Legislative and Urban Councils were fully reported as were statements made by members of the numerous local groups which had visited Peking for private talks on the territory's future with Chinese officials.

Another issue that received extensive media coverage was the Green Paper on the Further Development of Representative Government in Hong Kong, which was published in July.

      In Hong Kong, the processes of communications and public information play a more important role 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 telecommunication equipment is geared to the community's international needs. 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, the extensive news media is made up of many daily newspapers, a range of weekly magazines, two private television companies, one govern- ment radio/television station, one commercial radio station and one radio service for the British Forces. 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.

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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.

The Press

Hong Kong's flourishing free press consists of 66 newspapers and 473 periodicals, which have a high readership. The newspapers include 44 Chinese-language dailies and two English dailies, two English papers that publish six days a week and three that publish five days a week. There is one bilingual paper. In addition, a number of news agency bulletins -- Chinese, English and Japanese are also registered as newspapers. During the year, an English tabloid, the Star, and its sister paper, the Chinese Star, ceased publication. The former had first appeared in 1965 and the latter in 1969. Late in the year, two Chinese dailies, the Kung Sheung Daily News and its sister paper the Kung Sheung Evening News, also ceased publication. The Daily News had first appeared in 1925 and the Evening News in 1930.

Of the Chinese-language dailies, 37 cover mainly general news, both local and overseas, while others solely cover entertainment, especially television and cinema news. The larger papers

           also include Chinese communities overseas in their distribution networks, and some even have editions printed outside Hong Kong, in particular in Britain and the United States. Included in the English press are international papers with locally printed editions - the Asian Wall Street Journal and the International Herald Tribune.

Hong Kong is the Southeast Asia 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. Newsweek and Time magazines have editions printed in Hong Kong which is also the base for the regional magazines Asiaweek and the Far Eastern Economic Review.

Several organisations represent and cater for people working in the news media in Hong Kong. The Newspaper Society of Hong Kong represents Chinese and English newspapers. It is empowered to act in matters affecting the interests of its members. The Hong Kong Journalists Association 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 Foreign Correspondents' Club offers its members social facilities and a range of professional activities, including news conferences, briefings and films. The Hong Kong Press Club provides an opportunity for journalists to meet socially.

       Major steps have been taken to expand and improve training in journalism, with the Journalism Training Board of the Vocational Training Council playing an important role. The board received an allocation of $136,000 from the council in 1984 towards running in-service training courses for journalists. Six courses were held and one, involving a workshop and seminars conducted by two overseas experts, attracted 181 participants. The board also published the results of a major survey of manpower in the mass media.

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

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COMMUNICATIONS AND THE MEDIA

     popularly known as Commercial Radio (CR), and two by the British Forces Broadcasting Service (BFBS).

Policy guidelines for RTHK require the publicly financed station to provide balanced and objective broadcasting services to inform, educate and entertain the people of Hong Kong. Its aim is to serve the best interests of the community by providing impartial and balanced news and public affairs programmes reflecting accurately the views of both the government and the public. The Director of Broadcasting is its editor-in-chief.

RTHK now broadcasts a total of 700 hours a week and has a 24-hour service in both Chinese and English. The most recent independent survey showed that the total number of radio listeners was 85 per cent of the population aged nine and above. The station has developed the individual identity of each of its five channels.

Radio 1 of the Chinese service provides news bulletins and summaries on a half-hourly basis between 6 a.m. and 11 p.m., and hourly throughout the night. It also broadcasts financial reports every hour during the day and traffic reports during rush hours. During the year, major political and social events in the territory were covered extensively.

      Radio 2 has acquired popularity as a channel mainly for young people. Although popu- lar music is the salient feature, more magazine programmes have been introduced. During the year, the channel strengthened both its early morning and late evening magazines in an attempt to attract an even broader audience. The channel has a lively approach to community service, and has helped promote major publicity campaigns including Fight Crime, Anti-Narcotics, Road Safety and Anti-Smoking. In addition, a territory-wide sing- ing contest in 1984 provided a good publicity base for the 1985 district board elections.

Radio 3, the station's news and information channel for the English-speaking popula- tion, proved the value of 'live' broadcasting by arranging two 'firsts', coverage of the House of Commons debate on the future of Hong Kong and the later House of Lords debate in which the former Governor of Hong Kong, Lord MacLehose, spoke. The speech content of the channel was further strengthened by the regular use of stories, comedies, and quiz programmes from overseas as well as local recordings.

Radio 4 continues to develop as a channel for fine music and arts. During 1984, bilingual introductions were given to 60 per cent of the channel's programmes. In support of music and musicians in Hong Kong, the channel announced in June the Hong Kong Young String Player of the Year Competition, an event sponsored by a major bank.

Radio 5 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 Chinese programmes such as Cantonese opera, provincial music, as well as programmes in Putonghua (Mandarin) and the Chiu Chow dialect. During the year, it strengthened its educational and cultural programme content.

Commercial Radio operates two services in Cantonese and one in English primarily in the AM wave band but simulcasting both Chinese services on FM to Sha Tin, Sheung Shui, Tai Po and Fanling in the New Territories and the north side of Hong Kong Island. The Chinese services operate round the clock and the English service for 19 hours each day. Commercial Radio celebrated 25 years of broadcasting on August 26 and special programmes were produced for the occasion.

      With increasing interest in current affairs, the station strengthened its Chinese and English news departments and provided detailed coverage concerning the Sino-British talks on Hong Kong's future.

      During the year, shows were also produced in support of the district boards, the Urban Council, the Action Committee Against Narcotics, and in keeping Hong Kong clean. In addition, the station's services played an active role in supporting charitable and welfare

COMMUNICATIONS AND THE MEDIA

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organisations and again raised considerable amounts of money for worthy causes, in- cluding the Community Chest.

        Commercial Radio was elected to the administrative council of the Asia-Pacific Broad- casting Union (ABU) for the first time and one of its services (CRI) took part in a children's story writing competition organised by the ABU in conjunction with the European Broadcasting Union.

The British Forces Broadcasting Service is part of the Radio Division of the Services Sound and Vision Corporation, a world-wide organisation which exists to provide entertainment, information and training films, video, radio and television for the British Forces, under the sponsorship of the Ministry of Defence. BFBS provides two radio services to cater for the special needs of the Gurkha and British Forces serving in Hong Kong. The Nepali service is broadcast for over 76 hours per week and caters specifically for the Brigade of Gurkhas, providing a link with the homeland by way of music, news, features, drama and educational programmes. The English service is on the air for about 130 hours each week. Again, the emphasis is on a link with the homeland and this is most strongly evidenced in the use of a telex feed from London, of the General News Service of the BBC, as used by the domestic service and BBC local radio stations in the UK.

Television

Television viewing continues to be Hong Kong's prime leisure activity with more than 94 per cent of households owning one television set or more. Two franchised commercial wireless broadcasting stations, Television Broadcasts Limited (TVB) and Asia Television Limited (ATV), transmit an average of 495 hours of programming each week and together provide two English and two Chinese-language services for the community. The UHF 625-line PAL colour system is standard and virtually all transmission is in colour. Both TVB and ATV maintain large well-equipped studios and office complexes.

The television stations are licensed to operate under the provisions of the Television Ordinance which is administered by the Television Authority. The Commissioner for Television and Entertainment Licensing 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 the Television and Entertainment Licensing Authority (TELA) is to monitor regularly the performance of the television stations to ensure that the terms and conditions of their licence requirements are being met.

The quality and range of programmes on the four channels continue to improve and expand under the stimulus of the stations' competitiveness. Several local productions have won international awards. Both stations in 1984 experimented with new programme ideas; these included high-standard travelogues and documentaries on the Chinese cultural heritage, music shows, contemporary youth series, police dramas, shows involving the supernatural, light urban dramas, kung-fu productions injected with sophisticated special effects, and programmes with 3-D effects. In the main, station-produced serialised con- temporary dramas and period martial arts epics remain the major attractions during peak viewing hours on the Chinese services.

Increased coverage was given to informative and educational programmes, as well as current affairs, women's and children's programmes and sports events. The 1984 Olympic Games were covered in broadcasts totalling more than 200 hours on one station. New enrichment/educational featurettes on Chinese etymology and aphorisms were also intro- duced. For deaf viewers, a special weekly programme produced by RTHK and daily

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five-minute news bulletins with captions continued to be broadcast on both commercial stations.

Television Home Viewing Groups appointed by the TELA have been in operation since 1982 in each of Hong Kong's 18 districts. The scheme was set up with the assistance of district offices and membership of the groups has been expanded to 500. They provide the authority with a continuing flow of public opinion on television programming and advertising across a broad spectrum of the population. To keep the authority and members of the Television Advisory Board in closer contact with these groups, Regional Advisory Panels one each for Hong Kong Island, Kowloon and the New Territories, with representative members drawn from each group - were established in 1983.

-

      In February 1984, the Governor in Council set up the Hong Kong Broadcasting Review Board to conduct an overall review of television and radio broadcasting in Hong Kong, and also the long-term needs of the population after 1988, when the licences of the two television stations are due to expire. The review covers subjects ranging from the needs of Hong Kong, the role of government, commercial television and radio, advertising control, the handling of complaints, censorship and monitoring requirements, technical develop- ments and tender procedures for broadcasting licences. The board is expected to submit its recommendations to the Governor in Council in mid-1985.

      Radio Television Hong Kong, which uses the transmission services of the two com- mercial stations, produced over 13 hours of public affairs programme each week including the highly acclaimed dramas On the Beat and Places and Faces, while Commonsense and Police Call, in their eighth and ninth year respectively, were still among the top

programmes.

      Policy guidelines for RTHK require its programmes to provide a communicating channel between the government and the public which promotes civic responsibility and identity, serves minority interests, and educates and informs. Material produced falls basically into five areas of interest: current affairs, drama, information and community service, variety and games shows, and programmes for children and young people.

      RTHK productions are generally popular and have won international awards for their high standards. During the year, RTHK produced a drama epic depicting the development of Hong Kong since the 1940s.

      In addition to its major function as a source of entertainment, television plays an important role in education. The Government Educational Television Service (ETV), which utilises the transmission facilities of the commercial stations for eight hours each. school day, is watched by 600 000 children in both primary and secondary schools. The programmes are devised and written by specialist Education Department staff, who provide schools with programme literature and follow-up work. The programmes are produced by RTHK and are made in colour using film animation, drama and documentary techniques.

Government Information Services

The Government Information Services (GIS) provides the link between the government and the information media and, through the latter, with the people of Hong Kong. Since both the media and the public were preoccupied with the question of Hong Kong's future, particularly in the months leading up to the initialling of the draft agreement in Peking, on September 26, this topic inevitably dominated the department's workload during 1984. The News and Public Relations Divisions took the brunt of this increased pressure on the department's services and underwent further restructuring to cope with the demand.

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The News Division disseminates a multiplicity of government information through teleprinter and facsimile networks which are directly linked with leading newspapers, radio and television stations, and news agencies. The facsimile system enables GIS to transmit to the media both photographs and typed or printed messages, which is especially important for communicating in the Chinese language. Telex and international facsimile services enable government offices overseas to receive messages without delay and to communicate directly to the department and, through it, to the rest of the government. The News Divi- sion's 24-hour media enquiry service handles more than 20 000 questions every month.

During an emergency such as a typhoon, the newsroom becomes a co-ordination centre to distribute up-to-date information to the media, particularly the radio and television stations, to keep the public informed of developments. Apart from this mobilisation of both manpower and equipment in the newsroom, other staff man various key positions within the government's organisation for managing emergencies, contributing to the minute by minute flow of information.

The Public Relations Division has three sub-divisions: media research, departmental units and overseas. The media research sub-division keeps the government fully informed of public opinion as expressed in the information media. It produces the Gist, a daily news sheet in English which summarises news and editorial comment in the major Chinese- language papers, and the TV Gist, its counterpart for radio and television. It also produces Opinion, a weekly review of Chinese editorial comment, a weekly publication titled What the Magazines Say and special reports on subjects of particular interest to the government. During the year, the sub-division continued to pay special attention to media coverage about the future of Hong Kong.

The departmental units sub-division co-ordinates the operation of the 23 information and public relations units in government departments, plus another in the Secretariat. These units issue press releases, arrange press conferences and site visits and answer many media enquiries concerning the activities and aims of their respective departments. Through these efforts they play a major role in maintaining the flow of information and helping to improve relations with the public. The sub-division is also responsible for producing the Hong Kong News Digest, a fortnightly newspaper in Chinese which helps Hong Kong Chinese overseas to maintain contact with Hong Kong.

The overseas public relations sub-division (OPRS) co-ordinates the government's publicity efforts overseas and produces and distributes feature articles and newsclips for radio and television. Assistance is provided for visiting journalists requiring information and interviews with government officers, and a close liaison is maintained with news agencies and overseas journalists based in Hong Kong. In 1984, the unit assisted 420 overseas journalists and 140 other visitors, and distributed 60 features, 40 taped stories for radio, and 80 video items for TV.

The Publicity Division embraces the creative, publishing and promotional resources of the department. Its ambit includes photography and film-making, an extensive photo- graphic library, the staging of exhibitions, the design of books, leaflets and posters, publishing activities, the design and placement of all government advertising and in-service training for GIS staff.

GIS produces a wide variety of publications ranging from leaflets and fact sheets to the Hong Kong Annual Report - which is the best-selling hardback book in the territory - and other full-colour books. But the publication most in demand in 1984 was the White Paper setting out the Draft Agreement on the Future of Hong Kong. More than two million copies were distributed within the first 10 days. Sales of government publications rose by

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7.5 per cent to more than $18.7 million in 1984, compared with $17.4 million in 1983. The division plans and carries out all government publicity campaigns. In addition to continuing major campaigns on Anti-Narcotics, Crime Prevention, Industrial Safety, Road Safety, Fire Prevention, Gas Safety and the issue of new identity cards, two new ones were launched in 1984, one of which encouraged electoral registration for district boards while the other explained the new Road Traffic Legislation. About 30 smaller campaigns were conducted, such as those concerned with Country Parks, Police Recruitment and Safety in Outdoor Pursuits. In support of these campaigns, numerous promotional events were organised (both at territory-wide and district levels) through live shows, a mobile street theatre and film shows.

The News and Public Affairs Division of the Hong Kong Government Office in London works closely with GIS to provide a press service on Hong Kong matters for the British media, and enquiry and information services for the public about events and developments in Hong Kong. There was heightened interest in Hong Kong affairs during the year, resulting in an increased number of enquiries from the media and the public.

The news section monitors British parliamentary proceedings and media coverage of Hong Kong affairs, and keeps the Hong Kong Government informed on a daily basis by telex and facsimile transmission. It also publishes a fortnightly newsletter, Dateline Hong Kong, which is distributed among organisations and individuals with a close interest in Hong Kong. The public relations section organised Hong Kong 'Gala Evenings' at the Guildhall, London, the City Hall, Cardiff, the Civic Centre, Newcastle-upon-Tyne, and a leading hotel in Glasgow. About 500 people attended each event, which included a new multi-screen audio-visual presentation and entertainment by the Hong Kong Dance Company and soloists from the Hong Kong Chinese Music Orchestra, by courtesy of the Urban Council. The public relations section also made arrangements in the United Kingdom for a tour by the Jing Ying Dance Troupe which took part in international folklore festivals at Billingham, Sidmouth and Maidstone. Assistance was given to other visiting Hong Kong groups including the team which represented the territory at the Seventh World Wheelchair Games at Stoke Mandeville.

      In common with the London Office, the Hong Kong Government Offices in New York and Brussels were kept busy catering to media interest in Hong Kong's future.

Information Policy

The Secretary for Home Affairs has overall policy responsibility for the government's relations with the media. The main aim is to keep the media informed of the government's policies and thinking, as well as forthcoming events and proposed legislation, thus providing a valuable means of communication with the general public. On this front, the Home Affairs Branch is responsible for co-ordinating the work of the Government Infor- mation Services, Radio Television Hong Kong and much of the work of the Television and Entertainment Licensing Authority. Apart from formulating policy on a wide range of information and broadcasting matters, the Secretary for Home Affairs advises the government on the presentation of its policies and on public relations matters generally.

Film Industry

By the end of 1984, the number of cinemas in Hong Kong, Kowloon and the New Territories stood at 95, compared with 90 in the previous year. As the figure illustrates, the number of cinemas has been increasing over the last few years; however, the new cinemas are smaller and located mainly in the New Territories where there has been a rapid growth in population.

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       The annual cinema attendance totalled about 61 million, the same as the figure for 1983. Related to the population, the high attendance figures demonstrate that cinema- going remains a popular leisure activity, second only to watching television. The price of admission to the majority of the cinemas was increased during the year by about 18 per cent, the same percentage as the increase in 1983.

      The number of locally produced films was 109 (including five co-productions), compared with 118 in 1983. While imported films continued to be popular, good-quality local films remained the favourites with the majority of the audience. The biggest box-office successes for the year were Aces Go Places III, Our Man From Bond Street which grossed $29.2 million, Kid From Shaolin ($22.2 million), A Family Affair ($22.1 million), and Wheels On Meals ($21.4 million). The trend of making locally produced films in Cantonese rather than Mandarin continued during 1984. Although action films and comedies dominated the scene, a number of films concerned with local problems also proved popular.

All films intended for public exhibition in Hong Kong must be submitted to the Panel of Film Censors which is part of the Television and Entertainment Licensing Authority. Censorship standards are drawn from ascertained community views and a panel compris- ing 90 members of the public assists the film censors in reflecting community views. During the year, 728 films were submitted for censorship (including films intended for cine clubs and cultural organisations). Of the total number submitted, 525 were approved without excisions, 191 were approved after excisions and 12 were banned. These figures do not include films intended for television use.

Printing and Publishing

      The international status of Hong Kong's printing industry has grown steadily in recent years, and expansion of the industry continued during 1984. There are now over 3 000 printing companies employing about 30 000 people, and over 200 publishing houses.

The territory's electronics industry is contributing to the plant and equipment not only of the more sophisticated printing companies but also of publishers who are becoming increasingly involved in data and word processing systems for editorial production and stock control. The sales and marketing of data and word processors is now handled by more than 100 companies which offer over 200 systems.

The quality and competitive price of Hong Kong printing has attracted many orders from overseas for such items as books, advertising materials, company annual reports and product catalogues. A number of overseas publishers have set up offices or regional headquarters in the territory, producing a wide range of publications which are sold both locally and overseas.

The majority of publications printed for export - mainly books and pamphlets - go to the United Kingdom, Australia and the United States. Hong Kong does not manufacture paper and has to import all its requirements.

Postal Services

Hong Kong maintains an efficient and reliable postal service even though there has been a substantial increase in the number of postal articles handled annually. This increase has averaged over eight per cent a year over the past 10 years. In most areas of Hong Kong, there are two mail deliveries each weekday. The Post Office aims to deliver most local mail not later than one working day after the date of posting and to despatch airmail overseas within 24 hours. In the case of airmail postings made at the four main

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offices General Post Office, Tsim Sha Tsui and Kowloon Central Post Offices, and the International Mail Centre the aim is to have the mail despatched on the same day if outgoing flights are available.

      During 1984, a total of 519 million letters and parcels - a daily average of 1.42 million - were handled, representing an increase of 8.7 per cent over 1983. Approximately 3 045 tonnes of letter mail and 3 487 tonnes of parcels were despatched abroad by air, an overall increase of 16.3 per cent over 1983.

      The Speedpost service has expanded rapidly and is now available to over 300 cities in 27 countries which include Australia, Bahrain, Belgium, Brazil, Canada, China, France, Ireland, Japan, Kuwait, Luxembourg, Malaysia, the Netherlands, Qatar, Singapore, South Africa, South Korea, Sweden, Switzerland, Thailand, the United Kingdom, the United States and West Germany. Taiwan and Macau are also served by Speedpost. Next day delivery is the norm for Speedpost items. The volume of traffic has grown significantly since the service began in 1973. During the year, 791 185 items were handled, representing an increase of 42.5 per cent over 1983.

      The Intelpost service, introduced in 1982 to the United Kingdom, is now available to other destinations including Australia, Belgium, France, Macau, Malaysia, the Nether- lands, Qatar, South Korea, Sweden, the United States and West Germany. It offers high speed facsimile transmission of high quality black and white reproductions of documents, handwritten material, drawings and personal messages up to A4 size (210 mm x 297 mm). These items are available within hours at the overseas destination. Since August 1983, the Intelpost service between Hong Kong and the United Kingdom has been extended to provide a special greeting facility. In March 1984, arrangements were also made to accept facsimile copies of documents transmitted from equipment at customers' premises direct to the Intelpost terminal in the General Post Office and then for re-transmission overseas.

A new A4 size official aerogramme was introduced in September. The aerogramme now has an attractive pale cloud outline and its $1 stamp features a new dragon design.

Sha Tin Post Office, Sai Kung Post Office and Ham Tin Street Post Office in Tsuen Wan were relocated in bigger premises during the year in order to cope with the rising postal demand in their districts. In addition, five new post offices were opened during the year, bringing the total number of post offices in the territory to 99.

      The Post Office issued four sets of special stamps in 1984. These touched on the history, traditions, and the modern way of life in the territory. The first of the four sets, which was issued in March, consisted of four stamps which depicted the stages in the development of aviation in Hong Kong. For the first time in the history of the Hong Kong Post Office, a set of four post-cards showing an enlargement of the stamps was released with this special stamp issue. A set depicting maps of Hong Kong was released in June. Four antique maps of Hong Kong, drawn in different years, were featured. Another set of four stamps issued in September was dedicated to the Mid-Autumn Festival. In November, four special stamps commemorating the centenary of the Royal Hong Kong Jockey Club were issued. A miniature sheet comprising a set of the four stamps was also released. There is a thriving philatelic business in the territory, and the Post Office has appointed a Philatelic Adviser to help increase the popularity and sale of Hong Kong stamps overseas.

Telecommunication 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.

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     Telecommunication services are provided by two franchised 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 and the Telephone Ordinance which govern the establishment and operation of all telecommunication services. He also acts as adviser to the government on matters concerning the provision and operation of public telecom- munication 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 conducts examinations leading to the issue of the Certificate of Competence in Radiotelephony or Radiotelegraphy to radio operating personnel in compliance with the International Radio Regulations. 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 of all radio communications sites. Radio networks planned in 1984 included a microwave network in the New Territories for the Water Supplies Department to carry telemetry and speech signals, and a mobile radio network for the Customs and Excise Department. Line communication networks planned included integrated services systems for the Royal Hong Kong Police Force and the Medical and Health Department, and a number of data communication networks for the City and New Territories Administration, the Labour Department and the Government Information Services.

      The basic public telecommunication services in Hong Kong - telephone, telex and telegram - are operated by the two franchised companies on an exclusive basis. Customer premises terminal equipment is provided on a competitive basis but 'permission to connect' is required in respect of each type of equipment. Other telecommunication services may be operated competitively, provided the service has been licensed under the Telecommunica- tion Ordinance.

      The internal telephone service is provided by the Hong Kong Telephone Company Limited. With over two million telephones served by more than 1.6 million lines, the territory has a density of around 38 telephones for every 100 people.

      Hong Kong's international telephone service is provided jointly by the Hong Kong Telephone Company Limited and Cable and Wireless (HK) Limited. A world-wide operator-connected service is available and International Direct Dialling can be made to more than 100 overseas administrations.

International telecommunication services which include public telegram, telex, telephone, television programmes transmission/reception, leased circuits, ship-shore and air-ground communications are provided by Cable and Wireless (HK) Limited under an exclusive licence granted under the Telecommunication Ordinance. The company also operates the local telex and telegram service. International facilities are provided through land and submarine cables, radio systems and satellite links from the Stanley earth station which operates via satellites over the Indian and Pacific Oceans.

      Other than the basic services provided by the two franchised companies, a number of telecommunication services are operated by private companies under appropriate non- exclusive licences granted by the Telecommunications Authority. Such services as radio

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paging, mobile radiotelephone, data/facsimile transmission, videotex and electronic mail are offered competitively by a number of organisations. Radio paging services are very popular. Around 170 000 pagers are in service, though many of these cover a limited area such as a hospital or a hotel.

In 1984, three public non-exclusive telecommunication service licences were granted to provide and operate public mobile radiotelephone services throughout the territory for vehicles, vessels and hand-held portable equipment. Communications Service Ltd, a subsidiary of Hong Kong Telephone, started its service in January and the other two licensees, China Telecom (Systems) Ltd and Hutchison Radio Telephone Ltd, began their services later in the year.

18

Religion and Custom

FOXX

     DESPITE a fast-paced commercial lifestyle, numerous spiritual beliefs and religious customs are interwoven with the fabric of daily existence in Hong Kong. Of the 17 statutory holidays in the territory, 12 involve religious worship.

      The majority of believers are followers of Buddhism and Taoism and although seven of the statutory holidays are related to renowned Chinese festivals, believers continue their worshipping throughout the year, especially during the numerous other festivals and on the first and 15th days of the lunar month.

      While devotees of Buddhism and Taoism are many, 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 for believers to profess their own faith.

Buddhism and Taoism

Hong Kong possesses more than 360 Buddhist and Taoist temples, some being centuries old and containing priceless antiques, while others are of 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 the management and maintenance of public temples and, through the ordinance, has helped to 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 practice 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.

       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.

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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 the island of Cheung Chau; Hung Shing, God of the South Seas and a weather prophet, and Wong Tai Sin, a revered Taoist saint and deity. 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. Dedi- cated 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 the same purposes.

      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 on 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 spring 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 dumplings 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 to 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 almost half a million people, comprising more than 50 Christian denominations and independent groups.

ARTS FESTIVAL

L

PE

PUP

書館

Previous page: A pipa serenade by Lee Ying-wai at the 1984 Hong Kong Arts Festival. Below: Members of the UK Actors Touring Company.

Above: Strains of the violin; the American

clown, Bob Berky.

     Below: Grace and artistry were displayed by the Wuhan Acrobatic Troupe of China.

Above: Ancient themes of Japan were recreated by KODO the Drummers and Dancers of Sado.

   The expressive sound of the sanxuan (a three-stringed instrument popular in northern China) filled the air during ballads presented by the Hong Kong Soochow Lyrics and Drama Society.

1.

IBRA

04

.

A contrast to traditional Chinese music came in the form of recitals by the US Beaux Arts Trio and its cellist, Bernard Greenhouse.

Final adjustments for an actress before taking the stage in The Merchant of Venice',

performed in Cantonese by the Hong Kong Repertory Theatre.

The Chung Ying Theatre Company presented two plays: 'Kids' for children, and 'Birthday Party' for adults.

The Mario Maya Gypsy Flamenco Theatre described the travails of Spain's gypsies.

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253

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.

During 1984, both churches gave consideration to their role in the future, especially after 1997. In August, the Roman Catholic Church in Hong Kong issued a document detailing its commitment to Hong Kong and its future, and more than 200 Protestant churches and 44 Christian organisations produced a manifesto on their role. Copies of both documents were sent to the Chinese Government.

Roman Catholic Community

The Roman Catholic Church has been present in Hong Kong since the territory's early days. The church was established as a Mission Prefecture in 1841 and as an Apostolic Vicariate in 1874. It became a diocese in 1946.

       In 1969, Francis Chen-peng Hsu was installed as the first Chinese bishop of the Hong Kong diocese, and he was succeeded in 1973 by Peter Wang-kei Lei. The present bishop, John Baptist Chen-chung Wu, was consecrated in 1975.

       About 274 000 people, or five per cent of the population, are Catholics. They are served by 349 priests (142 Chinese and 207 of other nationalities), 79 Brothers (39 Chinese and 40 of other nationalities), and 790 Sisters (474 Chinese and 316 of other nationalities). There are 57 parishes and 48 centres for Mass. The majority of the services and other religious activities are conducted in Chinese, with a few churches providing services in English.

The diocese has established its own administrative structure while maintaining tradi- tional links with the Pope and with other Catholic communities around the world. The secretary-general of the Federation of Asian Bishops' Conference has his office in Hong Kong. Along with its apostolic work, one of the prime concerns of the diocese has been for the well-being of all the people of Hong Kong. In education, there are 314 Catholic schools and kindergartens which have about 310 000 pupils. There is the Catholic Board of Education to assist in this area. The medical and social services include six hospitals, 17 clinics, 14 social centres, 14 hostels, 10 homes for the aged, three homes for the handicapped and many self-help clubs and associations. Caritas is the official social welfare arm of the church in Hong Kong.

These services are open to all people - indeed, 95 per cent of those who have benefitted from the wide range of services provided by the diocese are not Catholics.

       To reach people through the media, the diocese publishes two weekly newspapers, Kung Kao Po and The Sunday Examiner. In addition, the Diocesan Audio-Visual Centre produces tapes and films for use in schools and parishes and, overall, the Hong Kong Catholic Social Communication Office acts as an information and public relations channel for the diocese.

Protestant Community

      The Protestant community in Hong Kong comprises over 200 000 people. Major traditions represented are Adventist, Alliance, Anglican, Baptist, Church of Christ in China, Lutheran, Methodist, Pentecostal and the Salvation Army as well as many independent and indigenous congregations. For the Anglicans, 1984 marked the 135th anniversary of their diocese and it was also the centenary year of the Methodist Church in Hong Kong.

       The Protestants run 200 kindergartens, 175 primary schools, 120 secondary schools, three post-secondary colleges, three schools for the deaf, several for training the mentally

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handicapped, and 15 theological schools and Bible institutes. Health care is also an important field and the Protestant churches operate five major hospitals. These are augmented by many clinics, community health programmes and other health services including home visits by nurses.

      Co-operative work among the Protestant churches is facilitated by two ecumenical bodies. These are the Chinese Christian Churches Union and the Hong Kong Christian Council. The former is the oldest, comprising around 200 individual congregations. Its work is carried out through departments of evangelism, Christian education, charities, infor- mation and cemeteries. The Churches Union publishes the newspaper Christian Weekly.

      The Hong Kong Christian Council bases its membership on the major denominations plus ecumenical service bodies such as the Young Women's and Young Men's Christian Associations, the Hong Kong Bible Society and the Chinese Christian Literature Council. The Christian Council is committed to building closer relationships among all churches in Hong Kong as well as with churches overseas, and to stimulating local Christians to minister to the needs of the people. Its programmes are carried out through the Division of Mission, the Hong Kong Christian Service, the Communications Centre and the Christian Industrial Committee. Related service agencies include the United Christian Medical Service, the Alice Ho Miu Ling Nethersole Hospital and the Tao Fung Shan Ecumenical Centre. The council has continued the new Alternative Tours designed to give tourists and residents an opportunity to see the specific ways in which Christians serve the people.

      The Protestant community has continued to enjoy a good relationship with the churches in China through the China Christian Council and the Three Self Movement. Christian leaders from China visited local church leaders on two occasions early in the year. A delegation of 21 Protestant leaders from Hong Kong visited Peking in September, at the invitation of the Religious Affairs Bureau of the State Council. The exchange of publica- tions and the holding of informal meetings have continued and the Hong Kong Christian Council also organises visits by young Christians to Guangdong Province.

In the area of social concern, the Protestant community, through various committees, has played an active role in arousing public interest in matters relating to labour legislation, industrial safety, price increases and other similar subjects. For the 10th year, the Hong Kong Christian Council ran a campaign called Five Loaves and Two Fish which raised almost $1 million to provide emergency aid for the hungry in Asia and Africa.

Muslim Community

     There are an estimated 50 000 Muslims in Hong Kong. More than half of them are Chinese with the rest being either locally born non-Chinese or believers from Pakistan, India, Malaysia, Indonesia and Middle Eastern and African countries. Three principal mosques are used daily for prayers. The oldest is the Jamia Mosque in Shelley Street on Hong Kong Island which was built before the turn of the century and rebuilt in 1915. It can accommodate a congregation of 400.

      Also on Hong Kong Island is the Masjid Ammar and Osman Ramju Sadick Islamic Centre. Opened in 1981, this eight-storey centre in Wan Chai houses a mosque on two floors, a community hall, a library, a medical clinic, classrooms and offices. The mosque can accommodate 700 people but when necessary this number can be increased to about 1 500 by using other available space within the centre.

Situated on what is sometimes called the 'Golden Mile' in Nathan Road is the Kowloon Mosque and Islamic Centre which was opened in May 1984. This imposing building, with white marble finishing, is a new landmark in Tsim Sha Tsui. The mosque can accommodate

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a congregation of about 2 000 and in addition to the three prayer halls there is a community hall, a medical clinic and a library.

       There are two Muslim cemeteries and each has its own mosque. Both cemeteries are on Hong Kong Island, one at Happy Valley and the other at Cape Collinson, Chai Wan.

The co-ordinating body for all Islamic 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, medical facilities and assisted education, is conducted through various local Muslim organisations.

Hindu Community

The religious and social activities of the 10 000 members of Hong Kong's Hindu community are centred on 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. Naming, engagement and marriage ceremonies are performed at the temple according to Hindu customs. Religious music, lectures and recitals are conducted 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 among the Hindus organise additional festivals for other deities such as Hanuman, Devi and Ganesh, and conduct prayer meetings on auspicious occasions.

Sikh Community

The Sikhs - distinguished by their stylised turbans and unshorn hair - first came to Hong Kong from the Punjab in North India as part of the British Armed Forces in the 19th century. Because of their generally strong physique, they also comprised a large segment of the Royal Hong Kong Police Force before World War II.

Today, members of the community are engaged in a variety of occupations. The centre of their religious and cultural activities is the Sikh Temple in Wan Chai. A special feature of the temple, which was established in 1901, is the provision of free meals and short-term accommodation for overseas visitors of any faith. Religious services, which include hymn singing, readings from the Guru Granth (the Sikh Holy Book) and sermons by the priest, are held every Sunday morning. The temple also houses a library which contains a good selection of books on the Sikh religion and culture, and runs a 'starters' school for Indian children aged between four and six to prepare them for English primary schools in Hong Kong.

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, the temple prayer hall is being enlarged.

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. The synagogue was built in 1901 on land given by Sir Jacob Sassoon and his family. The site includes a rabbi's residence and a school as well as a recreation club for the 1 000 people in the congregation.

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Recreation and The Arts

HONG KONG people today are able to take part in a richer and more diverse range of recreational activities in their leisure time than ever before. Practically every sporting activity has its share of devotees with better opportunities for participation, while the exodus to the countryside and beaches at weekends and holiday times has been given greater impetus through shorter working hours and improved standards of living.

As a cultural leader in Southeast Asia, Hong Kong holds thousands of events throughout the year, ranging from traditional Cantonese opera and puppet shows to performances of ballet, theatre and orchestral music - often featuring internationally renowned performers. Funds and facilities for these pursuits, as well as further training and coaching opportunities for young sportsmen and women and students of the arts, have been made available largely by the government, the Urban Council, governing sports bodies, voluntary associations and many public and private organisations.

      During 1984, steady progress continued to be made on the Hong Kong Academy for Performing Arts building which will become a major force in cultural life when completed in September 1985. The vast structure, located near the waterfront in Wan Chai, is being financed by a $300 million donation from the Royal Hong Kong Jockey Club and a $70 million contribution from the government which will also meet annual running costs.

      Under a Bill passed by the Legislative Council in June, the academy has been established as an independent organisation whose objects are to foster and provide for training, education and research in the performing arts and related technical fields. It is already operating from temporary premises.

      Among the public entertainment highlights of 1984 was another spectacular harbour fireworks display held in February to mark the Lunar New Year. The display was presented by the Sun Hung Kai Bank and Securities Group in association with the Urban Council.

The Countryside

     Countryside recreation is now an accepted part of the way of life for many people in Hong Kong. Country parks and woodlands on the urban fringes are used extensively by city dwellers for morning walking, shadow boxing and jogging, and by students for nature study, while more remote parks are used for hiking, picnicking, barbecuing, cycling, kite flying and camping by those seeking a relaxing change of pace. In 1984, nine million visits were made to the country parks. Although the parks are used more in the drier and cooler months, with October to April accounting for 65 per cent of the total visitors, increasing numbers of people now visit the countryside during the summer.

      The country parks system, which covers 40 per cent of Hong Kong's total land area, is well established with a wide range of facilities to cater for the needs of all visitors.

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The Director of Agriculture and Fisheries is the Country Parks Authority and, advised by the Country Parks Board, is responsible for these facilities and for the provision of management and protection services for all lands designated as country parks and special areas. Greater attention is being paid to providing advisory and educational services for this valuable recreational resource through setting up more visitor centres and information posts, and arranging guided visits and talks.

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 for the management and planning 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, shows involving the performing arts and 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 1984 were the Wing On Plaza Garden and other leisure grounds at Tsim Sha Tsui East, Lai Chi Kok Park swimming pool complex, Wai Chi Street Playground, Carpenter Road Park Stage I, Yau Tong Playground and a training pool in the Wan Chai Reclamation Recreation Centre.

To maximise land use for recreational activities, particularly in built-up areas where space is limited, new or redeveloped Urban Council market buildings have one or more floors constructed specially for recreational or cultural use. The facilities provided include indoor games halls, libraries, auditoria, lecture and recital halls and exhibition space.

Four such multi-purpose Urban Council complexes have been completed, in Aberdeen (two), Ngau Tau Kok and To Kwa Wan. During the year, four other complexes were under construction in Western District and Lockhart Road on Hong Kong Island and in Ngau Chi Wan and Po On Road, Sham Shui Po, in Kowloon. Twenty similar projects in various districts are under planning. In addition, 18 new indoor games halls were at various stages of planning to supplement the network of indoor recreational facilities located in Aberdeen, Kai Tak East, Cheung Sha Wan, Morse Park, Boundary Street, Lai Chi Kok, Ngau Tau Kok, and Chun Wah Road in Kwun Tong, the last being completed in 1984 and leased from the Housing Authority.

The Urban Council works closely with various organisations and government depart- ments in carrying out its annual sports and recreation programme. With a provision of $9 million, the council organised and sponsored over 12 800 sports and recreational events for about 0.5 million people. It also organised 686 free outdoor entertainment programmes in the urban area, ranging from variety shows and Chinese operas to ballet and orchestral concerts. About one million people were entertained at these events.

An intensive 44-day 1984 Summer Fun Festival was held during the holidays. More than 43 596 young people and children took part in various outdoor events including launch picnics, family harbour cruises, disco parties, carnivals, camping, music and film shows.

In celebration of the annual Dragon Boat Festival, the Urban Council and the Hong Kong Tourist Association organised the 1984 International Dragon Boat Races, with 14 overseas teams and 83 local teams participating. For the Mid-Autumn Festival, the council organised lantern carnivals at Victoria Park on Hong Kong Island and at Ko Shan Theatre in Kowloon which attracted more than 360 000 people. Other large-scale

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programmes - the Spring Lantern Festival, Christmas Carnival - were organised to mark festive seasons and special occasions throughout the year. In the New Territories, the Cultural Services Department organised 350 similar entertainment programmes, attended by 170 000 people.

Recreation and Sports Service

     Since its inception in 1974, the Recreation and Sports Service (RSS) has done much to meet the growing demand for recreation and sports at community level, which has resulted from increasing affluence and leisure time. The RSS motto is 'Recreation and Sport for All', and the policy is to try to ensure that recreation and sports are as widely available as possible.

      In 1984, 773 763 people from all sections of the community took part in programmes organised by the RSS and the activities themselves are designed to meet their different needs. Each activity organised by the RSS has a specific purpose, whether it be to introduce a new sport to the public; to stimulate interest by offering, for example, special courses for housewives or factory workers; to improve the standard of a particular sport by organising a training course for instructors or officials; or to provide individuals with the basic skills to enable them to develop their interest by joining a local club. A further important aim of RSS courses is to bring people closer together within a particular neighbourhood, helping to foster a shared sense of 'community'.

In order to achieve these various objectives, projects are organised jointly with other government departments, and with outside organisations. The RSS and various district boards have jointly organised a variety of community events, which have helped to give local residents a greater sense of district identity. A total of 1 256 of these projects were organised in 1984. The RSS has also liaised closely with national sports bodies, jointly organising territory-wide sports development schemes; young people with talent discovered at the grass-roots level have been guided towards the relevant associations for more specialised training. Three members of the Hong Kong Olympic team in Los Angeles were previous participants on RSS courses - an example of those who have benefitted from this early encouragement and guidance.

The sports bodies themselves have continued to receive financial assistance from the govern- ment, enabling them to improve standards through competitions and training programmes. This assistance has been granted on the advice of the Council for Recreation and Sport, which was established in 1973 and is the government's advisory body on sports and recreation. A major part of the council's work is in advising on the disbursement of grants to sports associations. In 1984, $4 million was allocated to such associations, and an additional $900,000 was granted to enable the Hong Kong team to attend the Olympic Games.

      However, the Recreation and Sports Service's activities are not confined to the able- bodied. A Special Groups Unit was set up in 1983 to cater for the recreational needs of the handicapped and underprivileged. In its second year of operation, a wider range of activities was organised for various handicapped groups, which include the physically and mentally handicapped, and the maladjusted. The programme was also extended to help the more severely disabled. In 1984, 127 projects were organised for 9 000 handicapped people - an increase of about 20 per cent over the previous year.

      Outdoor pursuits still remain the most popular form of recreation. In 1984, a total of 60 372 day-campers and 145 364 overnight-campers took part in activities organised in the Lady MacLehose Holiday Village, the Sai Kung Outdoor Recreation Centre, the Tai Mei Tuk Water Sports Centre, and the Chong Hing Water Sports Centre.

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The general public is becoming increasingly aware of the importance of fitness. As evidence of this, to help to cope with the increasing demand for local recreation facilities, 1984 saw a new 'neighbourhood' fitness centre added to the existing five. This is the To Kwa Wan Sports Centre. In total, these centres provided 75 500 people with an opportunity to participate locally in various fitness and dance programmes.

In the field of dance, in 1984, the Jing Ying Dance Troupe, managed by the Recreation and Sports Service, put on 26 local performances. It also gave more than 20 performances in England at the Billingham International Folklore Festival, the Sidmouth International Folklore Festival and the Maidstone Folklore Festival.

Beaches and Swimming Pools

Swimming is Hong Kong's most popular form of summer recreation. During the year, an estimated 20 million people visited the bathing beaches and 5.9 million used the public swimming pools.

There are 38 gazetted bathing beaches: 12 are on Hong Kong Island and managed by the Urban Council and 26 are in the New Territories under the control of the New Territories Services Department. The beaches are supervised by lifeguards and have changing rooms, toilets, first aid posts, lookout towers and other facilities.

      A new swimming pool complex in Lai Chi Kok Park and a new training pool at the Wan Chai Reclamation Recreation Centre were completed. The Urban Council now manages 12 pool complexes in the urban areas six on Hong Kong Island and six in Kowloon. In the New Territories, in addition to four swimming pool complexes already under the control of the New Territories Services Department, two new swimming pools were commissioned one a complex at North Kwai Chung, the other a leisure pool in Tuen Mun. This leisure pool is the first of its kind to be managed by the New Territories Services Department and more are likely to be built. All competition pools in the complexes are built to international standards.

       There are 16 public swimming pool projects under planning, one on Hong Kong Island, five in Kowloon and 10 in the New Territories. A new swimming pool in Sham Shui Po is under construction and is expected to be completed by the end of 1985. The Urban Council regularly organises learn-to-swim classes to promote water safety. During the year, 307 swimming classes were held, attracting 8 958 participants.

Summer Youth Programme

The 1984 Summer Youth Programme adopted the theme of 'Health, Help, Happiness' and the large number of activities organised between June and September drew more than 1 000 000 participants. The events were well balanced to provide opportunities for young people and children to seek fun in recreational and entertainment programmes, to learn new skills, to participate in healthy competition and to engage in community service projects.

       More than $13 million was spent on the programme, with $5 million of this being donated by the Royal Hong Kong Jockey Club. The balance came from the government, Urban Council, private donations and fees from participants. The Royal Hong Kong Jockey Club also donated $1.7 million for setting up permanent recreation facilities for young people in various districts.

       With effect from 1984, responsibility for co-ordinating the Summer Youth Programme was transferred from the Central Co-ordinating Committee for Youth Recreation to the City and New Territories Administration. With this transfer, a policy committee chaired by

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the Secretary for District Administration was set up to provide policy and guidelines for the planning of activities and appropriation of funds for the Summer Youth Programme. The decisions of the policy committee were implemented by a new Central Co-ordinating Committee with representatives from the government departments concerned and the Hong Kong Council of Social Service. At the district level, a District Co-ordinating Committee was formed in each of Hong Kong's 18 districts, with membership comprising local leaders and representatives from government departments and voluntary social welfare agencies, to plan, implement and allocate funds for activities. The new arrangements enable the districts to play a more significant role in the organisation and co-ordination of summer youth activities.

Youth Hostels

The Hong Kong Youth Hostels Association is a charitable organisation providing outdoor leisure opportunities for young people. The number of people holding annual membership is now around 23 000, these members being mainly in the 17-to-24 age group.

      The association has eight hostels in operation, the newest being at Mong Tung Wan on Lantau Island which opened in late 1983. The Pak Sha O hostel in Sai Kung Country Park, which was once a village school house, is being redeveloped at a cost of about $2.4 million. It will provide accommodation for over 100 members in two new dormitory buildings.

Running costs are covered from membership fees and overnight charges for the use of hostels. Capital expenditure is met by the association's own fund raising activities and by grants from charitable institutions. However, it will soon be necessary to seek large sums to replace Wayfoong Hall at Plover Cove.

Outward Bound

The mission of the Outward Bound School is to provide challenging educational and character training programmes that will develop in an individual a respect for self, care for others, responsibility to the community and sensitivity to the environment. The school's direct and indirect involvement in community building is reflected by the strength of its alumni associa- tion which now has more than 1 000 members, many of whom actively serve the community. More than 2 500 people - including children, students and business executives - attended courses in 1984. Interest by corporations and business firms in using Outward Bound as a training option for managers and supervisors increased and several companies have developed specially tailored contract programmes with the school. Under a tuition subsidy administered by the Recreation and Culture Department, a number of places on selected courses were offered to deserving young people who would not have been able to afford the full fees. In addition, programmes for handicapped people continued to have an important place in the school's work.

Through a combined grant from the Royal Hong Kong Jockey Club and the Lotteries Fund, the school premises were renovated and a new administrative block built. Two 27-foot open sailing ketches were launched, complementing the brigantine Ji Fung and giving the land-based programme significant capability for extended expeditions. Also during the year, the school's first Executive Director, Mr Jack Tucker, retired after 15 years' service and was succeeded by Mr Derek Pritchard.

Adventure Ship

The Adventure Ship project began in 1977 with the acquisition of a large Chinese junk named the Huan. After conversion from its original design as a passenger vessel, it became

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     a sail training ship which could carry 60 young people. Adventure Ship Ltd was formed as a registered charity in 1978 with the aim of providing 'skill and character development with sea adventures' for underprivileged young people in Hong Kong. The various modifications made to the 90-foot Huan also enable handicapped groups to use the vessel. In 1984, the Huan carried around 4 000 young people on trips in Hong Kong waters.

Ocean Park

     Ocean Park, already the largest oceanarium in the world, extended its range of entertain- ment facilities with the completion in April of a vast redevelopment funded by the Royal Hong Kong Jockey Club at a cost of $240 million.

      The redeveloped park has a second entrance - by escalator at Tai Shue Wan, and the headland area now offers six major thrill rides including one of the world's longest and fastest roller coasters. These complement the headland's original features which include the Ocean Theatre and its killer whale, dolphins, sealions and high diving show, and the Atoll Reef and Water Cove.

      The lowland area is now the site of Asia's first water playpark, Water World, which has giant slides, a wave pool, a rapids ride, a toddlers' pool, and a splash pool. The playpark adds further variety to the lowland area's already extensive attractions, including a zoo, children's playground, goldfish exhibition, dolphin feeding pools and a garden theatre. In addition, there is a new Chinese restaurant.

      Ocean Park, which opened in 1977 and attracts large numbers of visitors, has a cable car system which links the lowland and headland areas.

Hong Kong Coliseum

The 12 500-seat Hong Kong Coliseum, opened in 1983, is one of the largest and best equipped multi-purpose indoor stadia in Asia. The Coliseum, managed by the Urban Council, is fully air-conditioned and fitted with the latest electronic sound and lighting systems. The arena can be over-laid with wooden flooring or a rubberised surface to cater for various sports events and can be converted into an ice-skating rink for ice shows or recreational skating. The stadium is also equipped with a large central television screen above the arena.

Presentations during the year included performances by top artists, family entertainment shows and sports events involving leading sportsmen and women. In total, around 687 000 people attended these presentations.

Queen Elizabeth Stadium

Since its opening in 1980, the Queen Elizabeth Stadium, managed by the Urban Council, has been an important venue for local and international sports events and musical, cultural and entertainment programmes. The stadium complex includes an air-conditioned arena with seating for 3 500, committee rooms, a multi-purpose hall, squash courts, table tennis play area and gymnasia.

       The top three floors of the stadium's tower block house the Amateur Sports Federation and Olympic Committee of Hong Kong and 23 national sports associations. This has facilitated the co-ordination and promotion of sports activities in the territory.

Jubilee Sports Centre

The Jubilee Sports Centre, a 16-hectare modern sports complex at Sha Tin, has become increasingly popular as a venue for international groups. Some have used it as a training

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     venue en route to major tournaments, while others have stayed at the centre specifically to work together with Hong Kong squads and the centre's coaches. It has had more than 380 000 visits by local and overseas sportsmen and women participating in different youth development schemes, intensive training courses, residential camps, seminars and competitions. The centre has played host to many international workshops and courses and accommodated a number of teams during the year. Major events and courses are organised in conjunction with the sports' governing bodies. The combination of world standard facilities and the centre's team of expert coaches has helped achieve many out- standing results. Assistance was also given in the preparation of Hong Kong athletes for the Olympic Games. A highlight of the year was the success of the Hong Kong swimming team in the Second Asian Championships in Korea.

Innovative facilities at the centre include Hong Kong's first covered track for all-weather sprint and hurdle training, the first 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, which provides residential accommodation for about 100 people, is managed by an independent board; its annual operating expenses are subvented by the Royal Hong Kong Jockey Club.

City Hall

     Opened in 1962, the City Hall occupies about 11 000 square metres in Central District and includes two separate blocks with a connecting garden. The low block houses a 1 488-seat concert hall, a 467-seat theatre, an exhibition hall and both Chinese and Western restaurants. The high block contains an exhibition gallery, a 116-seat recital hall, com- mittee rooms, a Marriage Registry, the Hong Kong Museum of Art and libraries operated by the Urban Council.

The City Hall is administered by the Urban Council. Its facilities are available for hire by the public and it is used by the council for various functions and performances. With increasing public interest in cultural activities, the City Hall continues to be the centre of cultural life in Hong Kong. In 1984, about 550 000 people attended 1 100 performances held in the concert hall, the theatre and the recital hall; and a total of 130 exhibitions were held at the exhibition hall and exhibition gallery.

      During the year, the Urban Council featured a total of 487 performances by both local and overseas artists and groups, with the visitors including the London Philharmonic Orchestra, New York Philharmonic Orchestra and cellist Mstislav Rostropovich. These performances comprised orchestral and vocal concerts, drama, ballet, folk and modern dances, Chinese and Western operas, mime, lecture demonstrations and master classes with a total attendance of 392 195. Some of the presentations took place with the assistance of other cultural organisations such as the British Council, the Goethe Institute, the Alliance Francaise and various consulates.

      To promote local artistic talent and cultivate public interest, the Urban Council staged 42 vocal and instrumental recitals, 38 operatic performances and 13 Chinese and Western dance performances by local groups.

With the introduction of a computerised ticketing system in May, the City Hall Box Office now has computer terminals at which patrons can buy tickets for performances held at any of the Urban Council's venues.

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      The Tsim Sha Tsui Cultural Centre, which will be situated partially on reclaimed land at the tip of the Kowloon peninsula, is a project jointly funded by the government and the Urban Council. The Cultural Centre will comprise a 2 250-seat concert hall, a 1 860-seat lyric theatre, a 400-seat studio theatre, an arts library, two restaurants and a rest garden. Piling work has been completed, and the contract for the superstructure was let in November. The project is scheduled for completion in late 1987.

Town Halls

There are three civic centres in the New Territories under the management of the Cultural Services Department. They are the Tsuen Wan Town Hall, Lut Sau Hall in Yuen Long and the North District Town Hall located south of Sheung Shui. The facilities of these civic centres can be hired by the public at reasonable rates. Non-profit making organisations may hire them at reduced rates. The Tsuen Wan Town Hall is the first multi-purpose cultural complex to be provided in the New Territories and includes a 1 424-seat auditorium, an exhibition gallery and a cultural activities hall. A total of 371 presentations, joint presenta- tions and exhibitions were organised by the Cultural Services Department at the three town halls and attracted 267 854 people.

Aberdeen Cultural Centre

The Aberdeen Cultural Centre, located on the fifth floor of the Urban Council Aberdeen Complex, is the first district cultural facility established by the Urban Council. The centre comprises a 200-seat cultural activities hall, an exhibition hall/rehearsal room, a conference room, two music practice rooms and ancillary facilities which are suitable for a wide variety of small scale cultural performances and community activities.

Hong Kong Arts Centre

Since its opening in October 1977, the Arts Centre has become well established as a major arts venue, enjoying great public support and participation. In 1984, seven corporations sponsored the monthly programmes at the Arts Centre. The three auditoria at the centre were used for 7 120 hours and