Hong Kong Yearbook - Annual Report for the Year 1989





HONG KONG

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Series HM 200CL

Edition 14 1990

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Sea depth tint values in metres

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HONG

KONG

書館

NG KONG PUBLIC LIBRAR

市政局公共圖書館 UCPL

3 3288 02251107 7

-

REST

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1 MAY 1990

Acc. No. 939189

Class.

951-25

Author

How

HKCr

HONG KONG 1990

Editor:

David Roberts,

Government Information Services

Designer:

Magdy Yiu,

Government Information Services

Photography: Augustine K. C. Chu

and other staff photographers, Government Information Services

Photograph of the Chief Secretary at the port and airport development press conference by courtesy of Sing Pao Newspapers and Publications Limited

Statistical Sources:

Census and Statistics Department

The Editor acknowledges all contributors and sources

Copyright reserved

Code No.: F30019000E0 (ISBN 962-02-0080-2)

Price: HK$45.00 US$9.00 UK £6.50

Cover: Kai Tak International Airport, one of Asia's busiest, will be replaced in the 1990s by the new airport at Chek Lap Kok, off the north coast of Lantau Island. Frontispiece: One of the large-scale rallies held in May, in support of the pro-democracy movement in China, gathers around the old Supreme Court, now the Legislative Council Building.

CONTENTS

Chapter

CALENDAR OF EVENTS IN 1989

Page.

1

123

A VISION OF THE FUTURE

4

CONSTITUTION AND ADMINISTRATION

23

THE LEGAL SYSTEM

41

4

IMPLEMENTATION OF THE SINO-BRITISH JOINT DECLARATION

49

5

THE ECONOMY

53

6

FINANCIAL AND MONETARY AFFAIRS

67

7

INDUSTRY AND TRADE

78

8

EMPLOYMENT

99

9

PRIMARY PRODUCTION

111

10

EDUCATION

117

11

HEALTH

147

12

SOCIAL WELFARE

165

13

HOUSING

176

14

LAND, PUBLIC WORKS AND UTILITIES

191

15

TRANSPORT

216

16

PUBLIC ORDER

236

17

TRAVEL AND TOURISM

267

18

THE ARMED SERVICES

271

19

COMMUNICATIONS AND THE MEDIA

274

20

RELIGION AND CUSTOM

290

21

RECREATION AND THE ARTS

295

22

23

24

THE ENVIRONMENT

POPULATION AND IMMIGRATION

HISTORY

APPENDICES

321

344

352

361

INDEX

425

Frontispiece

Events

Royal Visit

Transport

Industry

Youth

Culture

Religion

ILLUSTRATIONS

Vietnamese Boat People

Shopping

International Venue

END-PAPER MAPS

Front:

The Territory of Hong Kong

Back:

Hong Kong Port and Airport Development Strategy

Between pages

4-5

28-29

60-61

92-93

124-125

172-173

204-205

236-237

268-269

300-301

APPENDICES

1

2-5

6

Appendix

UNITS OF MEASUREMENT

CONSTITUTION AND ADMINISTRATION

OVERSEAS REPRESENTATION

Page

364

367

372

7-11

THE ECONOMY

376

12-14

FINANCIAL AND MONETARY AFFAIRS

385

15-16

INDUSTRY AND TRADE

389

17-20

EMPLOYMENT

394

21-23

PRIMARY PRODUCTION

399

24-27

EDUCATION

401

28-31

HEALTH

403

32

SOCIAL WELFARE

406

33

HOUSING

410

34-36

LAND, PUBLIC WORKS AND UTILITIES

411

37-38

TRANSPORT

414

39-42

PUBLIC ORDER

417

43

COMMUNICATIONS AND THE MEDIA

422

44

RECREATION AND THE ARTS

423

45

THE ENVIRONMENT

423

46

HISTORY

424

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 an 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.

CALENDAR OF EVENTS IN 1989

7.1.89

11.1.89

13.1.89

27.1.89

17.2.89

19.2.89

24.2.89

28.2.89

1.3.89

2.3.89

9.3.89

The Minister of State with special responsibility for Hong Kong, Lord Glenarthur, arrives for a five-day visit, during which he announces that Britain has embarked on a new initiative to resettle another 1 000 Vietnamese Refugees from Hong Kong.

Section 27 of the Public Order Ordinance regarding false news is repealed after widespread public concern regarding its possible use for repression of freedom of expression in the media.

A consultancy study recommends a $2.4 billion package of improvements and expansion for Kai Tak International Airport.

Retired High Court judge, Arthur Garcia, is appointed the first Commissioner for Administrative Complaints.

Environmental protection takes a further step forward with the implementation of the Noise Control (General) Regulations and the Noise Control (Appeal Board) Regulations.

Governor Sir David Wilson flies to London for regular consultations with United Kingdom Ministers and officials.

The Drug Trafficking (Recovery of Proceeds) Bill, which aims at confiscating the proceeds of drug trafficking and countering drug money laundering, is published.

Chinese Vice Foreign Minister Zhou Nan visits Hong Kong at the invitation of the Governor.

Financial Secretary Sir Piers Jacobs presents the budget in the Legislative Council, outlining proposals including a reduction in salaries tax, from 15.5 to 15.0 per cent and the introduction of separate taxation for married

women.

The first group of 75 Vietnamese boat people voluntarily returns to Vietnam.

The Urban and Regional Councils' elections are held.

2

CALENDAR OF EVENTS IN 1989

10.3.89

14.3.89

21.3.89

11.4.89

12.4.89

18.4.89

2.5.89

12.5.89

18.5.89

31.5.89

4.6.89

7.6.88

13.6.89

19.6.89

2.7.89

Secretary for Security Geoffrey Barnes returns from a three-day meeting on Vietnamese boat people in Kuala Lumpur.

The Sino-British Joint Liaison Group begins its 12th round of meetings in Beijing.

The Governor leaves for London to attend the House of Commons' Foreign Affairs Committee hearings.

The government announces its intention to award a second commercial radio broadcasting licence in early 1990.

A Central Policy Unit is set up to provide government with a source of alternative thinking and wider perspectives on major policy issues. The House of Commons' Foreign Affairs Committee commences hearings in Hong Kong, during which the Chief Secretary Sir David Ford asks for more flexible application of the British Nationality Act.

A consultative document on the future status of foreign lawyers and foreign law firms is published.

The government announces its decision to allow importation of 3 000 skilled foreign workers.

A second group of 68 Vietnamese boat people voluntarily returns to Vietnam.

The first of a series of mass rallies takes place, in support of the students' democratic movement in China.

A Green Paper on transport policy in the next decade is tabled in the Legislative Council, with proposals for major road and rail projects costing an estimated $29 billion.

Over a million Hong Kong people hold massive rallies to express their sorrow at the tragic events in Beijing.

The Governor departs for London to give evidence at the Commons' Foreign Affairs Committee hearing on June 12.

The Governor arrives at the Geneva Vietnamese refugee conference where he emphasises that only mandatory repatriation could really solve the boat people problem.

An OMELCO delegation leaves for London to press for the right of abode for Hong Kong people.

Foreign Secretary Sir Geoffrey Howe arrives for a three-day visit, during which he says that Britain cannot give the right of abode in the United Kingdom to the 3.25 million British Dependent Territory citizens in Hong Kong.

CALENDAR OF EVENTS IN 1989

26.7.89

5.8.89

17.9.89

21.9.89

27.9.89

11.10.89

15.10.89

31.10.89

7.11.89

8.11.89

29.11.89

1.12.89

5.12.89

11.12.89

12.12.89

21.12.89

29.12.89

A prime site at Garden Road is sold for $2.7 billion, boosting confidence in the future of the property market.

The Mass Transit Railway opens its new Eastern Harbour Crossing line between Quarry Bay and Kowloon.

The new Minister of State with special responsibility for Hong Kong, Francis Maude, arrives for a three-day visit.

The new Eastern Harbour Crossing opens to road traffic, four months ahead of schedule. Construction costs of the road and rail tunnel total about $3.4 billion.

The 13th Joint Liaison Group meeting begins in London.

The Governor delivers his annual policy speech in which he announces a massive port and airport development project, costing $127 billion. The Governor arrives in the United States for an eight-day visit, during which he meets members of the new administration.

Consultation on the second draft of the Basic Law ends.

The Prince and Princess of Wales arrive for a four-day visit, in which their programme includes the official opening of the new Cultural Centre and the Exhibition and Convention Centre.

The foundation stone for the new University of Science and Technology is laid by the Prince of Wales.

China Motor Bus drivers stage a four-hour strike over disagreement about the newly-proposed pension scheme.

Li Kwan-ha becomes the first local officer appointed as Commissioner of Police.

The 14th round of Joint Liaison Group meetings begins in Hong Kong. A meeting of the Basic Law Drafting Committee opened in Guangzhou. It was announced at the end of the meeting that members had agreed the number of directly-elected members in the first SAR legislature should not exceed 30 per cent.

The first mandatory repatriation to Hanoi of 51 Vietnamese boat people screened out as economic migrants.

The British Government announces that 225 000 people or 50 000 heads of households in Hong Kong will be granted full British passports.

A third crossing point between Hong Kong and China opened for traffic at Lok Ma Chau.

3

1

A VISION OF THE FUTURE

Annual Address by the Governor, Sir David Wilson, KCMG, to the Legislative Council on October 11, 1989

4

  SINCE I last addressed the Council at the beginning of a new session, we have been through difficult times together. We have all been forcefully reminded how vulnerable Hong Kong is to developments which occur outside our borders over which we have no control.

In May and June, confidence in Hong Kong was badly shaken by the tragic events in China. People became more nervous about their future. Investors have shown signs of being more cautious in assessing the territory's prospects. So we have a new challenge to meet and new problems to overcome. But this is not the first crisis that Hong Kong has had to confront. When we have faced difficulties in the past we have emerged with new confidence and strength. Already there are ample signs that Hong Kong is showing its usual resilience; that we are facing up to our problems and finding solutions to them.

Hong Kong Today

The Effect of Events in China

The tragic events in China had a traumatic effect on Hong Kong: an effect made all the more direct by the impact of television. Much has been written and said about those events, both at the time and since. I do not intend to add to it now. The important point for us is that what happened in China created increased concern about the arrangements for Hong Kong's future. A mark of this was the significant increase in applications for emigration and the widespread demands for the right of abode in the United Kingdom. We have also seen intensified discussion about the right pace of progress towards a directly-elected legislature and calls for the early introduction of a Bill of Rights. And the draft Basic Law has come under renewed scrutiny.

   Despite this uncertainty and worry on the political front, our economy showed itself to be robust. Once again, we have been reminded how much our survival depends on the resilience of our businessmen and our workforce. The tourist industry was affected, largely because of the wholesale cancellation of tours to China. But our manufacturing sector was relatively unscathed; and economic links with China, especially with Guangdong Province, have remained strong. Our newly re-organised financial institutions weathered the crisis and emerged with their reputations enhanced. Our linked exchange rate system proved its worth at a testing time.

The overall economic effect on Hong Kong of the events in China will probably be a slight check to the rate of our economic expansion. The Financial Secretary's earlier estimate was that our GDP would grow by six per cent this year, compared to seven per cent in 1988. This forecast has now been adjusted slightly downwards. But, even with this

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#

KONG

A VISION OF THE FUTURE

slightly lower forecast, Hong Kong should still enjoy a healthy level of growth by world standards.

      On July 1, 1997, Hong Kong will become a Special Administrative Region of the People's Republic of China. That is a fact that we must face, and face in a clear-headed way. Hong Kong is linked to China but, in another important sense, separate from it. That will continue to be the case in the future, under the concept of 'one country, two systems?. We have our own laws and freedoms which we cherish. They must not be eroded. Equally, we should use them with a sense of responsibility and self-restraint. For many years our community has recognised the importance of not becoming directly involved in China's often complicated domestic politics. At the same time, given both the economic and political realities, there is every reason to expand our already close economic links with the mainland. We can strengthen the basis of our special future political status by the contribution that we make to the modernisation of the Chinese economy and by the access to world markets, advanced technology and expertise that we can provide for China.

The Chinese Government has given repeated assurances that its policy towards Hong Kong has not changed. It has also stressed that economic reform and openness to the outside world remain fundamental priorities. Both of these are important and welcome messages for Hong Kong. We for our part have made it clear to the Chinese Government that action is needed to restore confidence in the arrangements for Hong Kong's future. We need to restore mutual trust as the necessary cornerstone for the unprecedented political experiment that will begin in 1997, the foundations for which must be laid securely in the next eight years.

Emigration

In the meantime, it is clear that more Hong Kong people now feel a need to hedge their bets or seek insurance policies overseas. The government predicted earlier this year that 42 000 people would leave Hong Kong in 1989. This estimate remains valid. But emigration levels are likely to be higher in the next few years. As always, precisely how many will leave depends not only on events here and in China but also on the immigration policies of the countries that people wish to go to.

I have said many times that the government will never prevent people from leaving Hong Kong. I repeat that now. I fully understand the dilemma that many families face in deciding whether to go or to stay, but I cannot pretend that I like seeing so many skilled and talented people leaving Hong Kong. Not only does Hong Kong need them, but I am also well aware that many of them do not really want to go. We all know of families who would prefer to stay in Hong Kong but who have been uprooted and even separated for long periods. I hope that many of them will return to Hong Kong and contribute to its future once they have obtained the security they are seeking.

No matter how many people emigrate, the bulk of the population of Hong Kong - by then some six million people - will still be here in 1997 and afterwards. These are the people for whom we must build a future. They are Hong Kong's future. Many of them will step readily into the gaps left by emigrants. Others will need more time, training or experience before they can do so. But, with an expanding and ever more sophisticated economy, it may prove difficult to fill all the gaps from within Hong Kong. Increased levels of emigra- tion will almost certainly mean that we will need to import more skills and experience from outside the territory, at least until our efforts to develop our own resources take effect.

The first potential source of these skills is of course our former residents, the people who already know Hong Kong. The government is already recruiting from the ethnic Chinese

5

A VISION OF THE FUTURE

6

communities in the United States, Canada and Australia. Many companies in the private sector are doing the same. But we do not only welcome those who have left and who wish to return. We also welcome anyone who wants to come and help us build the future of this territory, if they have the skills and experience that we need. Hong Kong is a city in which people of all nationalities can play a part. We must be ready, if the need arises, to find replacements for our home-grown talent in the international market-place. And we must ensure that our immigration policies are flexible enough to permit this.

Relations with the United Kingdom

Another feature of the past year has been the evolution of our relationship with the United Kingdom. Contrary to some popular myths, this government has for many years been left essentially free to get on with the job of running Hong Kong by itself. We have sole responsibility for our internal affairs, such as education, social welfare and medical services. For the past 20 years or so, we have made all our own policy decisions in other important areas such as the economy, trade and finance.

As a result, we have developed some interests which are separate from those of the United Kingdom. Sometimes we have found ourselves on opposite sides of the negotiating table. In the past year or two, for instance, we have had to negotiate about the relative shares of costs incurred by the British Garrison in Hong Kong and we have had discussions about the part the United Kingdom plays in resettling Vietnamese refugees from Hong Kong. When this happens, you can be sure that your government argues hard on Hong Kong's behalf.

We have also put forward a clear Hong Kong case on the nationality issue. I have said that I fully understand and sympathise with the widespread hope in Hong Kong that Britain would grant the right of abode in the United Kingdom to all Hong Kong British nationals. I have also said that, in my view, such a move, if it were possible, would have á very positive effect on confidence in Hong Kong, and that the number who would actually leave would be small.

   The British Government has said that it does not believe it is possible to grant the right of abode in Britain to all Hong Kong British nationals. Instead it has promised a scheme under which the right of abode in the UK will be granted to some people in Hong Kong in a way designed to encourage them to stay in the territory. We have been assured that work is going ahead as fast as it can on such a scheme. I hope that the details will be announced as soon as possible. To have the effect we all want on maintaining Hong Kong's economic growth and social stability, the scheme will need to cover three important points. It will need to be as generous as possible; it will need to minimise divisiveness, so far as possible; and it will need to ensure that those covered can acquire the right of abode in the UK without having to leave Hong Kong.

I very much hope that the scheme, when it is announced, will help to provide greater confidence and stability in our community. Meanwhile it cannot be right to say that we want either everything or nothing: a scheme that provides something must be better than no scheme at all.

Vietnamese Boat People

Another problem which has been much on the minds of all of us this year is the continuing inflow of boat people from Vietnam. Since my address to this Council last October, some 34 000 Vietnamese have arrived in this small and crowded territory. This is the highest

A VISION OF THE FUTURE

number in any year since 1979. The strain on our resources, and on our patience and compassion, has been enormous. But we have coped. We have housed, fed and cared for all those who have come. We have turned no-one away. This is something of which we can all be proud.

Many people outside Hong Kong do not seem to realise what a burden the continuing flow from Vietnam creates for us. I myself am only too conscious that it has severely strained the tolerance of our community. I sympathise with those who argue that we have now done enough. It is not by choice that the government spends increasing amounts of public funds, and uses increasing amounts of scarce land, on housing and looking after a seemingly endless stream of arrivals from Vietnam.

      Those who come here do not seek a home in Hong Kong. Their goal is elsewhere: in particular, the United States. But they have little prospect of ever getting there, or anywhere else. Over 80 per cent of the Vietnamese now arriving in Hong Kong do not meet United States resettlement criteria.

During the past year, the government has strongly and consistently argued that the only solution to this human tragedy is that those who are defined as refugees must be resettled overseas, and those who do not meet these criteria must go back to Vietnam. This is a view which is shared by a number of voluntary agencies which have worked most closely with the Vietnamese, including Oxfam, Save the Children Fund and the British Refugee Council. Hong Kong has taken the lead in introducing a screening policy as a first step towards putting this solution into effect. Our lead has been followed elsewhere in South-east Asia and now, most recently, by Japan.

The Geneva Conference in June endorsed our policy of screening and agreed on principles for the repatriation of non-refugees. But it did not take the essential next step of endorsing the repatriation of all those screened out as non-refugees. In effect it asked us to make further efforts to encourage these people to return home voluntarily. We have tried this and will continue to do so. The more people who return home voluntarily to Vietnam the better. But the number of people willing to volunteer is limited. Since November last year, only 264 Vietnamese have actually returned to their homeland. Further groups are due to go soon. But voluntary repatriation alone is clearly not the answer.

      At the international conference in June, I warned that if proper arrangements were not made to return home those found not to be refugees, Hong Kong could not continue indefinitely to play its part by providing first asylum. But we must not deceive ourselves into thinking that abandoning this principle is an easy, or cost free, option. We would have to face the hard choice of what to do if future arrivals sank their boats when they were refused permission to land here. Would we, as a community, be willing to let people drown? Surely not. We would also have to face an international outcry which would put at risk our prospects for resettling the 13 000 refugees now in Hong Kong, and which would also affect international attitudes towards Hong Kong in other areas, such as trade, where we have important interests.

I remain convinced that the policy we have adopted is the right one, and that it will eventually bear fruit. At the steering committee meeting in Geneva, we made very strongly the point that screening and repatriation are inseparable. It is only by introducing a scheme for orderly return that we will solve the problem of disorderly arrivals. The thousands that are being screened out as non-refugees must go back to their homes in Vietnam. It is only by finding a way to return non-refugees home that we can do anything for those who are genuine refugees. We are determined to put in place satisfactory arrangements for both resettlement and repatriation. In the meantime, I call upon all members of our community

7

A VISION OF THE FUTURE

8

to have patience, and to remember that the Vietnamese are fellow human beings. Many Hong Kong families, after all, know what it is like to uproot themselves from their homes and seek a better future elsewhere.

The Civil Service

The continuing influx of Vietnamese has imposed a great strain on the civil service as a whole, and not only the Correctional Services Department, the police and the garrison who have borne the main brunt. I doubt if many members of our community realise how many departments are involved in one way or another in receiving the arrivals, processing them, feeding them, looking after them and building, operating and guarding centres for them. Many civil servants have been working long hours in difficult circumstances and under great pressure for much of the past two years. They get little recognition for this, and a great deal of criticism, both in Hong Kong and overseas. They deserve better.

But this is by no means the only strain on our civil servants. They have for many years played the leading role in the government of Hong Kong. Inevitably this role has changed as our system of representative government has developed. Civil servants have had to adapt to this change at a time when, like the rest of the community, they have their own personal worries about the future. As a community we take our civil service for granted. But, from my personal experience of the workings of other governments, I can say without qualification that Hong Kong is well served. During the rapid constitutional changes that will take place in the next decade, we will depend on the civil service for continuity and stability. So now, more than ever, we must ensure that it remains as stable and efficient as it has always been.

Hong Kong's Place in the World

Hong Kong is now the world's 11th largest trading economy. In the past, as the territory developed, we were somewhat hesitant about involving ourselves in international affairs. But, within the limits of our autonomy, we have now begun to play a role in the world that reflects Hong Kong's economic importance. It is right that we should do so.

Hong Kong as a Regional Centre

The Asia-Pacific region contains the fastest-growing economies in the world. Ours is one of them. Sixty per cent of our total trade is now with Asia and Australasia and we play an important role in building up trade within the region. Goods going through Hong Kong from one part of the region to another, not counting China, have grown by 45 per cent in the past year.

Our financial services sector has also become increasingly important in regional terms. Because of the time difference, business can be done here when London and New York are closed. We now have 135 overseas incorporated banks in Hong Kong. Eleven of these were given new licences this year. Twelve overseas securities companies and commodities trading companies have also set up business here this year.

   Hong Kong has many advantages as a regional base - its location; good communica- tions; an efficient and apolitical administration; an impartial system of justice; a well- educated and efficient workforce, and all the conveniences of a modern city. Add to this the magnificent new Convention and Exhibition Centre - the largest in Asia - and one can see how Hong Kong is increasingly becoming a major regional centre for trade, finance and communications. So it is not surprising that many companies have chosen to base their regional offices here. For example, 10 of our overseas incorporated banks operate

A VISION OF THE FUTURE

     as regional headquarters. So do many other international companies. We welcome this. Indeed we hope that others will follow suit.

Hong Kong: the Gateway to China

I have already referred to Hong Kong's role as a gateway to China. Statistics can be dull; but in this area they are startling and revealing. Our re-exports increased by 51 per cent in value in the single year 1987 to 1988. Almost a half of these originated in China and over one-third went to China. China has used Hong Kong as a gateway for its exports for many years. But it is only relatively recently that we have played such an important role as a channel for its imports. Our Asia-Pacific neighbours have been especially quick to see Hong Kong's potential in this area. For example, in 1988 about one quarter of all Japanese exports to China were routed through Hong Kong.

Hong Kong also plays a key role in foreign investment in China. Up to 1988, some 70 per cent of all such investment was by companies incorporated or registered in Hong Kong. Not all of these were Hong Kong companies. Many were foreign ones which had chosen to use Hong Kong as their base for this investment; and why not? We are not only on China's doorstep. We also have unrivalled expertise in dealing with Chinese officials and enterprises, particularly in Guangdong Province, and the full range of back-up services that an investor needs.

For many years to come, China will continue to be an important market for foreign exporters and investors and Hong Kong will continue to be the best means of access to it. By playing an intermediary role, we can also continue to be of benefit to China. We can provide investment, foreign exchange and expertise to help the Chinese economy continue to expand and develop.

Participation in International Organisations

Hong Kong naturally wishes to play an active role in international organisations that help to shape the world we live in and that deal with issues that affect our own interests. In doing this, we have devoted most effort to economic and trade matters. Hong Kong became a separate contracting party to the General Agreement on Tariffs and Trade (GATT) in April 1986. We play our part in it vigorously and responsibly. Hong Kong officials serve as chairmen or members of a range of GATT bodies and dispute-settlement panels. Our role as a major trading economy; our determination to uphold the principles of free trade, and our willingness to act as a link between developed and developing nations have also enabled us to play a significant role in the important Uruguay round of multilateral trade negotiations.

Apart from the GATT, Hong Kong also takes part in some 40 international organisations at government level. We have made good progress in the Joint Liaison Group in making sure that Hong Kong will continue to be represented in these international organisations after 1997. In addition, Hong Kong is also represented by private individuals or community bodies in hundreds of non-governmental organisations in the business, sporting and cultural fields. Our voice is now being heard more often and to better effect.

Hong Kong's Image in the World

For many years, Hong Kong's international image was that of a producer of cheap, low quality goods. We fought very hard to overcome that image, with considerable success. People began to see Hong Kong for what it is a bustling, modern city of successful entrepreneurs.

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But images are often created by events beyond our control. When the name of Hong Kong is mentioned nowadays, far too many people probably think either of 1997 or of Vietnamese boat people. We must do what we can to project a more balanced and more positive image of this exciting city. We must emphasise the progress we have made, in every field from the economy to housing. We must draw attention to the attractions of Hong Kong today, for its own people and for those from overseas. We must, above all, tell the world what we are doing ourselves to build for our future.

   This is not just a job for the government. All of us can act as ambassadors for Hong Kong. The Trade Development Council, the Hong Kong Tourist Association and our Chambers of Commerce play an important part in making Hong Kong's attractions known to a wider audience. This message has particular force when it comes from foreign businessmen who themselves live and work in Hong Kong. Many have been willing to help in this way. I welcome their efforts. We also want to draw on their experience to involve them more in the life of our community. As part of this, I have approved the setting up of an International Business Committee, to be chaired by the Chief Secretary, on which all the main overseas Chambers of Commerce will be represented. This will provide a valuable means of tapping the talents of overseas businessmen for the benefit of the whole community.

Building for the Future: Political

In the next decade, Hong Kong faces a period of unprecedented political and constitutional change. We must manage this without endangering our stability. We must continue steadily to develop our own institutions in which our community has confidence.

The Development of Representative Government

During the past few years there has been vigorous debate in Hong Kong about how quickly we should develop our system of representative government. Your government has always believed that political development should be based on the widest possible support in the community. We have indeed sometimes been criticised by those who would like to go faster than this principle allows.

This year a number of models for the future composition of this Council have been put forward. One of these was the result of lengthy discussion by the non-official Members of this Council and the Executive Council. These models have stimulated a great deal of debate in the community. This is a good thing. The issues involved are vital for the future of Hong Kong. Out of this debate I hope that a broadly-held Hong Kong view will emerge. This would help the drafters of the Basic Law, when they meet later this year and early in 1990, to carry out the important task of formulating the structure of Hong Kong's political system in and after 1997. The government would also wish to respond positively to such a view when we take decisions on what further changes should be made to the composition of this Council in 1991.

   Before taking these decisions, we will consider all aspects of the composition of this Council: the number of official and appointed members, whether there should be a further increase in the number of members elected by functional constituencies and the number of directly-elected seats. We shall have in mind the widely-held view in the community that there should be a somewhat faster rate of development in 1991 than previously envisaged; and also the fact that by 1995 all members of the Council will be elected by one means or another. We must prepare for that situation well in advance.

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The Basic Law

    The second draft of the Basic Law was published in February. It was generally seen as a considerable improvement on its predecessor. Careful note had clearly been taken of points made in Hong Kong during the consultation period in 1988. Recent events in China have re-focused public attention on some parts of the Basic Law. I have already referred to the various models that have been put forward with regard to the composition of the legislature. Another area which has been the subject of much debate is the relationship between the central authorities and the SAR Government. I hope that the people of Hong Kong will use this final period of consultation to put forward their views on the draft of a document which will be of great importance to their future.

The Chinese Government have made it clear that they intend to publish the Basic Law next spring. Its contents will have a significant impact on how people, both locally and overseas, view the future of Hong Kong. A Basic Law that meets the main points of concern in Hong Kong can go a long way to restoring confidence in the future of the territory. I therefore urge the Basic Law drafters to be receptive to the views expressed on the draft in Hong Kong during the current consultation period and to take them carefully into account. There is a great deal at stake.

Bill of Rights

In Hong Kong we have always taken for granted the basic social and political freedoms that we enjoy. These are backed up by many different provisions of statutory and common law. In addition, the International Covenants on Civil and Political Rights and on Economic, Social and Cultural Rights have been extended to Hong Kong since 1976, and their continued application beyond 1997 is guaranteed in the Joint Declaration.

It is clear that there is now strong support in the community for these freedoms to be entrenched through the enactment of a Bill of Rights. The government has been considering what form such a bill might take. We propose that it should give effect in local law to the relevant provisions of the International Covenant on Civil and Political Rights. This means that if anyone believes that their civil or political rights, as defined in the covenant, have been violated, they will be able to seek redress in the courts. We aim to publish a White Bill for public consultation by the end of this year and to introduce draft legislation into this Council by July 1990. Within this timescale there will not be time for a comprehensive review of all our existing laws to remove any areas of doubt about their full compatibility with the Bill of Rights. To avoid any unnecessary uncertainties the draft bill will provide for a limited period after its enactment during which existing laws cannot be challenged against the standard of the new bill.

The provisions of the other international covenant, the Covenant on Economic, Social and Cultural Rights, are different in nature. They are in the form of objectives to be achieved progressively and, generally speaking, are not rights which individuals could easily enforce in the courts. For these reasons they are not well suited for inclusion in a Bill of Rights designed to give people the right of direct action in the courts. We are of course fully committed to the objectives of the covenant and seek to implement them through our existing legislation and policies.

The Joint Liaison Group

Much of the detailed work on implementing the Joint Declaration takes place in the Joint Liaison Group (JLG). The achievements of the JLG during the past four years have contributed significantly to the maintenance of confidence in Hong Kong. They have been possible only because of the close contacts and co-operation between the two sides. Inevit-

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  ably, these contacts were temporarily suspended in June. The group has recently resumed its activities and will now meet again in December. I hope that it will then, as previously, produce a steady stream of solid work. Much still remains to be done before 1997.

   The confidentiality of proceedings in the JLG has often led to misunderstandings in Hong Kong about its role and activities. From time to time it has been suggested that the British and Chinese Governments take decisions in the JLG in which Hong Kong plays no part. I can assure you that this is not the case. Two members of the Hong Kong administration sit as members of the British side of the JLG and many more attend its meetings. All subjects on the agenda of JLG meetings are thoroughly discussed beforehand between the British and Hong Kong Governments. And the Executive Council is kept fully informed of all proceedings and is consulted on all major issues of policy. Hong Kong makes a full contribution to the work of the JLG. We will continue to do so.

Building for the Future: Social

In the final analysis, the future of Hong Kong rests with its people. Your government attaches a great deal of importance to ensuring that Hong Kong remains an attractive place to live in, with social services that meet the needs of our society. We do not intend to provide a western-style welfare state. To do so risks encouraging a mentality of dependency that is alien to the Hong Kong way of life. Instead, we concentrate much of our efforts, and of our available resources, on the young people of Hong Kong, who represent our future, and on those who cannot fend for themselves.

Education

During the past 20 years, as Hong Kong has prospered, the demand and need for better education has grown with enormous speed. In our community, the first goal that parents set themselves, as their living standards improve, is to give their children the best possible educational opportunities. In the 1960s, most parents were keen simply to provide some sort of schooling for their children. In 1971, the government was able to provide free primary education for all. In the 1970s expectations increased; and in 1979 free, compulsory education was extended to include secondary forms one to three.

   The ambition of ordinary families today is that their children should do well enough in examinations to be able to go on to some kind of post-secondary education. At the same time, the development of our economy means that we need an increasing number of young people trained beyond secondary school level. It is clear that we are not at present able to meet the full extent of this demand. As many Hong Kong students now go abroad for tertiary education as stay in Hong Kong. Another factor is emigration. We must now plan on the assumption that we will lose a proportion of our future graduates abroad.

The government therefore proposes to upgrade substantially the targets that we set ourselves only last year. These would have meant that in the year 1995, for example, there would be first-year, first-degree places for nearly 13 per cent of the relevant age group, compared with about seven per cent now. This was an ambitious target. But it is now clear that we must be even more ambitious. I have asked the University and Polytechnic Grants Committee (UPGC) to increase the planned provision of first-year, first-degree places from about 7 000 next year to about 15 000 in 1995. That means places for over 18 per cent of the relevant age group. This will not be at the expense of sub-degree places. These will be maintained at the previous planning level of 5 000.

This increase would give a total of 67 000 tertiary places in 1995. That would provide places for nearly 25 per cent of the relevant age group, compared with under 14 per cent

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now. The UPGC is now working out how to meet these new targets. Among other things, we will probably have to bring forward plans for expanding our existing universities and increase the percentage of degree places offered at our polytechnics.

At the school level, there has been a great deal of concern in the community that the introduction of mass education has been at the expense of standards. There is some truth in this. In future we shall aim to concentrate on improving quality rather than giving top priority to increasing numbers. Major measures over the next few years which have already been announced include providing Secondary 7 classes in all types of secondary school and bringing in 'A' level examinations in Chinese. In my address to this Council last year, I mentioned the desirability of working towards whole-day schooling for all primary classes. This remains our long-term objective. But, given our other educational priorities, resource constraints and demographic trends, we need to be realistic about how quickly we can achieve it. Our first priority will therefore be a phased programme of converting senior primary classes to whole-day operation.

We are an international trading centre where the ability to use language well is a key ingredient of success. One important objective of our school system must therefore be to improve the standards of both English and Chinese. The government has already taken several significant initiatives. These have included sending large numbers of local teachers overseas for immersion courses in the English language and introducing a scheme to enable schools to employ expatriate teachers of English. But these measures are not enough. We need urgently to devise a strategy that will deal with the difficult problems of the medium of instruction and the quality of language teaching. The Education Department will soon publish for public consultation the report of a working group which has looked into these issues. After members of the public have had an opportunity to comment, proposals will be put to the Board of Education and the Education Commission early next year.

In Hong Kong, private secondary schools have generally not had the resources to compete with the public sector. This has meant a lack of variety and flexibility in the educational system. Good private schools can give special emphasis to specific areas such as languages or art. They also provide for the possibility of greater choice within the educational system. The government believes it important to increase parental choice by encouraging the development of a healthy private school sector in Hong Kong. To help achieve this, we will introduce a new Direct Subsidy Scheme. Schools which meet certain criteria will be eligible to join the scheme, and will receive government assistance at a rate which will depend on their fee income, with more going to those which charge less. They will, at the same time, be able to retain a great deal of freedom in deciding on curriculum, fees, management and the selection of pupils. The government will phase out bought places in private schools by the end of the 1990s. In the meantime, we will improve the standards of these schools so that, when the time comes, they will have a good chance of joining the new subsidy scheme.

We agree with the Education Commission that pre-primary education must be seen as a desirable rather than an essential part of our education system. But we see a clear need to improve standards of teaching in kindergartens. We therefore propose to improve the basic training course for kindergarten teachers and introduce a new fee remission scheme. This will replace the existing scheme of fee assistance and allow additional help to be given to less well-off parents who have children in kindergartens.

      In laying down broad programmes for improvements to our educational system we must not overlook the special difficulties that individual schools face. Some for instance have severe problems of noise. We have already sound-proofed and air-conditioned 37 schools

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affected by aircraft. This year, we are starting a new programme that will cover a total of 117 aided and government schools affected by unacceptable levels of traffic noise. We aim to complete it during the early 1990s.

   Education is expensive and heavily subsidised by the community. The proposals I have outlined, especially for the further expansion of the tertiary sector, inevitably mean that some other sectors will, for the time being, have to take a lower priority. In practical terms, this means slower progress in some other areas which, however desirable in themselves, have to take their place in the queue. Decisions on the right allocation of public money are never easy. But I hope that the community as a whole will agree that the proposals I have outlined are the right mix for meeting our more pressing needs within the resources available.

   Some 80 per cent of those who will make up Hong Kong's workforce in the year 2000 have already completed their education. So the provision of training for those already at work is also an important priority. Many potentially useful technologies are not yet being applied in our industries. The government proposes to establish a training fund to encour- age employers to give managers the opportunity to learn about these new technologies. This fund will include contributions from various sources, including the private sector. It will provide loans to cover the cost of local extension training and overseas working attachments. I hope employers will make good use of it.

Medical and Health Services

  The medical and health field is another area where, in the past, we concentrated on meeting basic needs. We achieved remarkable successes. Life expectancy in Hong Kong for both men and women is now higher than in many advanced countries, including the United States and the United Kingdom. Our infant mortality rates are lower than in either. Now we should raise our sights. Our new priority must be to improve the quality of service. Our public health service is heavily subsidised, and our professional medical staff are dedicated and hard-working. But our hospitals are overcrowded, and there are long queues at our clinics. We do not always provide our community with the range of services that they need. In important areas like mental health and geriatric care, our standards fall below our aspirations.

   The lesson of public health services all over the world is that increased expenditure does not necessarily translate into higher standards. What is really important is the way the money is used and how well the facilities are managed. It makes no sense to have some publicly-funded hospitals overflowing and others with spare capacity. Or to have hospitals where there are camp beds in some wards and empty beds in others. The Hospital Authority, which we aim to establish by April next year, will be well placed to ensure that the money we spend on our public hospitals - $5 billion this year is used in the most effective way. By bringing government and subvented hospitals together within a single integrated system, the authority will be able to make sure that the best possible use is made of the facilities that each hospital can offer. Quality of management will be particularly important because of the size of the hospital service. By the end of next year, the authority will be responsible for more than 22 000 beds, including almost 1 000 in the first two phases of the new Tuen Mun Hospital and the Queen Mary Hospital extension.

   Two other current projects should help to improve the quality of our medical services. First, a working party has been set up to review our primary health care services, and in particular to consider which of these is best carried out by the government and which by the private sector. It will report by the end of 1990. Second, the government has decided to

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establish a Hong Kong Academy of Medicine. This will be a statutory body with authority to set standards in post-graduate medical education; to decide the content and length of training courses, and to accredit those who have passed the required examinations. Hong Kong will then have its own system for ensuring that doctors are properly trained and locally qualified in the various clinical specialities.

Social Welfare

     Since the publication of the 1979 White Paper on Social Welfare, we have made good progress in developing our policies and services to meet the needs and expectations of our community. We have a comprehensive safety net to make sure that no-one in our community need fall below basic living standards. We have a wide range of services from day care centres to residential homes.

      It is now time to take stock of the progress we have made and to make sure that our policies and standards continue to meet the needs of Hong Kong into the 1990s and beyond. I have, therefore, asked the Secretary for Health and Welfare to launch a review of our social welfare services in conjunction with the subvented sector. The government will then in the second half of next year publish a White Paper setting out our proposals on the way ahead. In the meantime, additional funds will be available this year to reduce case loads in family service centres and social security field units operated by the Social Welfare Department.

One problem that we face is a shortage of trained social workers. A good many professional staff have emigrated. To fill the gaps, a number of measures are already being taken, for example substantially increasing the intake of social work students into our tertiary institutions. But, in planning improvements to our services, we must take care not to place impossible burdens on our existing staff, both in the government and subvented sectors. They already have very heavy workloads.

      Separately, we will continue to develop our rehabilitation services with the aim, where possible, of integrating the disabled into the community. The objective will be to steadily improve the quality of services while, at the same time, extending them to cover more of those in need. Particular emphasis is now being placed on employment for disabled people so that they can, to the greatest extent possible, earn their own living. Funds will be made available to provide additional teachers in schools for the disabled so as to expand the curriculum and include career counselling and civic education. In April 1990, we will also be extending the higher rate of disability allowance to those aged 15 and under who require constant care and attention. This will go some way to recognising the additional financial burdens faced by the parents of these young people.

Youth

One quarter of our population is under the age of 25. These young people will provide our future leadership and workforce. To help us meet their needs and respond to their aspirations, the government proposes to set up early next year a Commission on Youth. This will be chaired by a non-official and will include senior government officials and a wide range of other members from the community, including young people. The commission's terms of reference will be to advise the government on how best to implement our objectives for the development of youth services. We believe that we should develop what will amount to a charter for youth which will give our young people the best pos- sible educational opportunities; promote physical and mental fitness; give young people

URBAN COUNCIL PUBLIC LIBRARIES!

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  opportunities to gain international experience and thereby broaden their outlook on life; improve their civic awareness and encourage them to participate in community affairs, and promote youth leadership training.

   In the years ahead, I hope to see progress in another area: sports. Already some Hong Kong sportsmen and women are beginning to make their presence felt in international competitions. But so far our achievements in sport lag behind those in other areas. It is time we made an effort to raise our standards. A major step forward will be the creation of a Sports Development Board. Its Executive Director has already been appointed. So have the members of the Provisional Board. Its first priority will be to work out a territory-wide strategy for sport. The aim will be to get the right balance between the twin goals of excellence and mass participation.

Housing

The availability of good, reasonably-priced housing is a key factor in creating the stable yet dynamic society we want to see in Hong Kong. Our record of providing subsidised housing stands comparison with anywhere else in the world. The Housing Authority now manages 723 000 flats and is the landlord for 47 per cent of our population. In the last financial year, it completed over 50 000 flats, a record for a single year. This year, it is likely to set a new record yet again, with an estimated production of 53 000 flats. These are remarkable figures by any standard. They will be achieved without any sacrifice to the quality of accommodation and environment provided.

   In every community, ordinary families dream of owning their own home. Communities are healthier and more stable when home ownership is widespread. Helping Hong Kong families to become home owners is an important part of the Long Term Housing Strategy. At present, only 15 per cent of our stock of public housing is owned by the family living in it. But this figure is set to increase. This year, one-third of the new Housing Authority flats will be for sale rather than for rent. The authority has also decided recently to increase the scope of its Home Purchase Loan Scheme so that more of its tenants will receive larger interest-free loans to buy flats in the private sector. It is considering another bold initiative: the feasibility of selling some of its newer flats to the families who are now renting them. At present, 41 per cent of Hong Kong families own their homes. As a result of the authority's imaginative ideas, we can expect the number to rise steadily during the years ahead.

   The Housing Authority aims to produce 527 000 public housing flats for rental and sale between now and the year 2001. This is an ambitious target. The government will do its best to find the new land required and to provide the necessary infrastructure. Our planners and engineers are hard at work already. Maintaining our housing programme will remain an important priority for the government.

The Environment

Last October, I spoke at some length about the various pollution problems that we face and our determination to tackle them. A White Paper on Pollution, published in June, set out in detail proposals for a comprehensive programme of action over the next 10 years. We have already begun to implement these. The Planning, Environment and Lands Branch, which recently came into being, will give a fresh impetus to our efforts to improve the environment.

I would like to emphasise the importance that I personally, and the government as a whole, attach to dealing with the problem of pollution. It is not just a matter of keeping

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Hong Kong clean, important though that is. Pollution can, and often does, cause damage to our health and to that of our children. We must bring it under control. The fact that we propose to spend at least $20 billion in the next decade shows how important this objective is. Much of this money will be spent on the complete overhaul of our sewerage system and the construction of three massive landfill sites and associated refuse transfer stations.

       Money alone cannot solve our pollution problems. Nor can the government alone. Each individual member of this community has a vital contribution to make in creating an environment that is safe and pleasant. Until recently, far too many of us in Hong Kong were unaware of the threats to our environment. We placed far too little importance on protecting it. This attitude is already changing. It must change further. The government has given a lead. But the community must also play its part.

      On July 19, during the debate on the White Paper, several Members of this Council stressed the need to improve environmental education. The government has taken this advice to heart. This year, apart from pushing ahead vigorously with the 100 separate initiatives in the White Paper, we will give greater emphasis to environmental education. We must make everyone aware of the impact that pollution has on our community; we must make everyone recognise the importance of doing something about it, and we must make everyone realise that they have a part to play in making Hong Kong a cleaner and greener place.

Building for the Future: Physical Infrastructure

In the next few years, we will also need to put a great deal of effort into building up the physical infrastructure needed for a modern city which is not only home to almost six million people but also an important regional and international centre. In doing this, we will take account both of the requirements of Hong Kong itself and of those areas of Southern China with which we now have such close economic links.

The Airport

Last October, I said that a range of studies was being carried out to devise a strategy for the long term development of our port and airport. These have now been completed. They show that there is a clear case on economic grounds for building a new airport as soon as possible.

After an exhaustive study of the various options, the government has decided to build a new Hong Kong International Airport at Chek Lap Kok. It will be a two-runway airport built to the most exacting modern standards and able to operate 24 hours a day. When completed, it will be able to handle 80 million passengers a year over three times the maximum capacity of Kai Tak. Our aim will be to open the first of the two runways by the early part of 1997.

       Building the airport itself, enormous though that project will be, is only part of the story. We have to make sure that people can get to it easily and quickly. To do this we plan to build a high-speed rail system and a six-lane highway which will join North Lantau to Tsing Yi Island and go from there along the new West Kowloon Reclamation to a Western Harbour Crossing and then to Hong Kong Island. We will also have to provide all the facilities needed for servicing a new airport. This means building a new town for at least 150 000 people, plus industrial and commercial facilities, in the Tung Chung valley.

      Building the new airport, and the road and rail links associated with it, will be the largest project ever undertaken in Hong Kong. It will require an immense amount of effort from both the public and the private sector. To have the new airport in operation in early 1997

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means setting to work as soon as possible. The planning, construction and ultimately the management of it will be put in the hands of a new Airport Authority. Early next year, I will be appointing members of a Provisional Authority which will do the preliminary work before the authority itself is set up.

Once the first runway of the new airport is open we can close Kai Tak, which is likely to be operating at full capacity by 1996. Besides the need for a modern airport to meet Hong Kong's requirements in the 21st century, closing Kai Tak will bring its own benefits. The whole of the area now used by the airport will be available for redevelopment. We will be able to lift height restrictions in parts of Kowloon. And the problem of excessive aircraft noise, which now affects some 350 000 people, will be eliminated.

The Port

The new airport will be a dramatic symbol of our determination to create an infrastructure to the highest international standards. We propose to transform our port in an equally dramatic way. The major projects we are planning will create what amounts to a completely new port on the western side of the territory. The need to create this additional capacity comes from our sustained economic growth in recent years. The port now handles 80 million tonnes of cargo a year, an increase of almost 90 per cent in the past five years. Further substantial growth is expected. The point has now been reached where our existing facilities are coming under severe strain.

   In planning for the expansion of our port we have looked ahead to 2006. By that time we will need:

to increase our container throughput by five times;

- additional land for lorry parking and container storage;

-on-shore facilities to replace the unloading which is now done in the harbour itself;

- space to cater for larger numbers of river trade vessels; and

- space for the various industrial activities which a modern port requires.

Our first priority is to build the next container terminal, Terminal 8. This will go on reclaimed land at Stonecutters Island. We plan to make the site available for development in 1991, so that the first berth can be in operation by mid-1993. Terminal 9 and its support facilities will be built on reclaimed land at the south east of Tsing Yi Island. At that point, there will be little room for further development in the area of the present container port. We then plan to move the focus of the port westward. One area for development will be North Lantau, making use of the road facilities being built for the new airport. Another will be the coastal strip west of Tuen Mun. Two more major developments will be the construction of a large breakwater between Lantau and Lamma to increase the amount of sheltered anchorage in the western harbour; and the dredging of a new shipping channel to the west of Lamma.

   All this development work in the port means that we must make sure that we co-ordinate the needs and interests of all its many different users. To do this, we propose to set up a Port Development Board, which will give advice on the detailed planning and management of the port as we carry out the plans for expansion I have outlined.

Financing the Development of the Port and Airport

The ambitious programme of works I have described will give Hong Kong a new modern airport and a larger port, plus all the necessary transport links and supporting industrial and commercial facilities. The cost will be some $127 billion at current prices over the period up to 2006. This is an enormous financial commitment. But, after very careful

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     study, the government is convinced that this commitment is one we can afford. Indeed we believe that we cannot afford not to make it. We must make sure that Hong Kong continues to have the facilities to meet the needs of our growing economy. We must also be realistic, and make sure that we phase the construction of these new projects in a way that does not place too great a strain on our economy.

      We have already seen how successful the private sector has been in developing our container port and in building our cross-harbour tunnels. The government believes that many of the individual projects connected with the new airport, and the expansion of the port, will be commercially viable. I am sure there will be many local and international developers who will be keen to co-operate with us in these enormous and exciting projects that are so important to Hong Kong's future.

The plans we have for building a new airport and developing the port will create new opportunities for the construction industry. But they will also make huge demands on its resources. It may well be necessary to consider exceptional arrangements to ensure that we have an adequate supply of labour so that they are completed on time and without causing unacceptable inflationary pressures.

Land Resources

The new airport and the massive expansion of our port will transform Hong Kong's development potential. Large new areas in the western part of the territory, particularly Lantau Island, will be opened up for industrial and commercial use. These activities are now concentrated in a fairly narrow band on both sides of the harbour. But in future it will be possible to escape the restrictions and congestion imposed by the existing urban areas and to plan further development on the basis of large-scale modern port and airport facilities coming into being in the western part of the territory. This will provide a new and very welcome opportunity to bring about a great improvement in working and living conditions for the community as a whole.

Looking at the details, the new airport at Chek Lap Kok, and the bridges and roads that go with it, will open up for potential development the whole of Lantau's northern coastline. This can be achieved without damage to the outstanding recreational facilities on the hills and southern coast of the island. Expanding the port westwards will make available further land, mainly for industrial use, west of Tuen Mun.

The port and airport developments also mean that the West Kowloon reclamation will need to be completed in the mid-1990s to provide the necessary transport links to the urban area. This reclamation will provide a major source of land in the urban area for commercial and residential development. More badly needed land will be provided by the Central and Wan Chai reclamation, where sites will start to be available during 1993. Looking further ahead, we have the possibility of reclaiming the channel between Green Island and Hong Kong Island and the immense opportunities provided by the removal of the airport from Kai Tak. These urban reclamations will give us the opportunity to replan our older urban areas, as envisaged in the Metroplan. In doing this, an important point will be to make sure the planning of land use is properly co-ordinated with the provision of new transport facilities.

Transport

I have already referred to the new road and rail links which will be needed for new port and airport developments. Preliminary planning and feasibility studies for many of these projects have either begun or will soon start. In the meantime, the government is

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  continuing to develop our transport infrastructure in other areas. The railway section of the Eastern Harbour Crossing opened in August, and the road section in September, four months ahead of schedule. This magnificent achievement by the private sector has brought some much-needed relief both to the Cross-Harbour Tunnel and the Mass Transit Railway (MTR) Nathan Road corridor. Other major projects to improve our transport links are on schedule. Route 5 between Sha Tin and Tsuen Wan will open early next year, followed by the tunnel linking Junk Bay (or, as it will be called in future, Tseung Kwan O) to Kwun Tong and the final stages of the New Territories Circular Road. In 1991, the Tate's Cairn Tunnel (already well advanced) and the Kwun Tong Bypass will be completed, to bring comfort and greatly-improved transport connections for the travel-weary inhabitants of Sha Tin and the New Territories.

   The Green Paper on Transport Policy published in May gave details of a large number of other road and rail projects which will be launched during the next 10 years. I will not go into all the details. They include a new Western Harbour Crossing; the Hung Hom Bypass; the upgrading of major east-west links in the Kowloon peninsula; Route 7 from the Western Harbour Crossing to Aberdeen, and Route 16 from Sha Tin to West Kowloon. And early next year, a development study will begin of the various rail proposals in the Green Paper.

   A transport policy is not simply a matter of building more roads and railways. The Green Paper also set out strategies for improving and expanding public transport and for managing the use of roads to make it possible to keep both people and goods moving. Road use management is never popular. But we have to be realistic. Hong Kong is a small, densely-crowded territory with only limited space for new roads and railways. We cannot cope with the same levels of private vehicle ownership that are found in other prosperous communities without the city grinding to a halt. The goods vehicle fleet has to be used efficiently to minimise its impact on congestion and the environment. Most of our population travel by public transport. We must do what we can to ensure that they remain willing and able to do so. When all the comments on the Green Paper have been absorbed, the important question of how to do this will be tackled in a transport White Paper to be published early next year.

Technology

  Making full use of modern technology is another important priority for an increasingly sophisticated economy like ours. Indeed, we have done a great deal through adopting advanced technology. Our banking and financial services have achieved standards of excellence second to none. Our telecommunications industry is already highly advanced, and the construction of a second network will create new opportunities for competition. The Mass Transit Railway Corporation and Kowloon Canton Railway Corporation have been notable for introducing the best available transport technology.

   Other sectors of the economy, in particular the manufacturing industry, are exploring what they need to do to remain technologically competitive in world markets. The government recognises the importance of these efforts. As part of our overall strategy to upgrade the economy, we plan to establish a new Hong Kong Technology Centre. This will provide facilities for new and small high technology companies to share certain common services until they are ready to set up on their own. To emphasise the contribution which we hope our growing academic community can make to our technological progress, we are considering locating the centre close to the City Polytechnic as well as to the new Hong Kong Productivity Council Building.

A VISION OF THE FUTURE

A Vision of the Future

My aim has been to show clearly how, despite the shocks we have experienced during the year, your government is continuing to plan for the long-term future of Hong Kong. We have a clear vision of what we are trying to achieve. It is a vision that I hope will sustain Hong Kong during the present period of uncertainty and give us all confidence in our ability to overcome whatever problems confront us.

       As a community we tend to take for granted what we have achieved. But we have only to look back 10 years to see just how much has been done. Hong Kong in 1979 was a very different place. Let me take a few examples:

- our relations with China were still very limited. Our domestic exports to the mainland were only worth $600 million (compared to $38 billion last year). We had only recently opened air links in December 1978, and direct train services from Guangzhou restarted only on April 4;

- there was no universal franchise at any level. Only about 32 000 people had the right to vote in Urban Council elections. The only District Boards (those in the New Territories) were wholly appointed;

- only that year, junior secondary education was for the first time made free and

compulsory for children below the age of 15;

- the first section of the MTR (from Shek Kip Mei to Kwun Tong) had just opened on

September 30;

we had 2.2 million tourists, about 40 per cent of the figure last year;

- we had no bank building higher than 20 stories, no Exchange Square (but four Stock Exchanges), no Academy for the Performing Arts, no Tsim Sha Tsui East, no Aberdeen Tunnel and no airport tunnel.

      Let us now use our imagination to look ahead slightly more than 10 years. In the year 2000, Hong Kong will be a Special Administrative Region (SAR) of the People's Republic of China. It will have a wholly-elected legislature. The Chief Executive, and all the most senior government officials, will be Hong Kong Chinese. They will exercise a high degree of autonomy in the administration of Hong Kong. The SAR will be a leading regional and international commercial and financial centre in which foreign nationals will play an important part, and it will be playing a full role in a wide variety of international organisations.

       Physically, Hong Kong will have changed almost beyond recognition. It will take about 25 minutes to travel by rail from central Kowloon to the new airport at Chek Lap Kok. On the way, you will go along the new West Kowloon reclamation and pass new port facilities at Stonecutters Island and Tsing Yi. Alternatively, you could travel from Central to the Chinese border via the new Western Harbour Crossing, Tsing Yi, the Route 3 tunnel to Yuen Long and the Lok Ma Chau bridge. Redevelopment will be beginning on the present site of Kai Tak airport. Our Convention and Exhibition Centre, by then doubled in size, will be some 300 metres inland. So will Exchange Square. The central business district will have expanded greatly onto a new reclamation with a variety of new civic, cultural and commercial buildings and with a continuous walkway beside the harbour linking open park areas.

Striking social changes will also have taken place. Our ambitious housing programme means that about half our households will be living in subsidised housing, almost 40 per cent of them in flats which they own themselves. Our revised educational targets mean that as many as 20 per cent of our 19-year olds may be studying in Hong Kong for first degrees and another seven per cent for other tertiary level qualifications. Our strategy for fighting

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A VISION OF THE FUTURE

pollution means that we will have significantly improved our environment, including the air that we breathe, and we will have completely overhauled our sewerage system. The establishment of our Hospital Authority will have led to more efficient management, and greatly reduced overcrowding, in our public hospitals. There will be 20 000 places in old people's homes, and a further 6 000 places in sheltered housing provided by the Housing Authority. Ninety per cent of all homes will have access to up to 20 television channels. Forty six per cent of the population will be living in the New Territories. And so on.

Conclusion

The plans that I have outlined today demonstrate your government's commitment to the future of Hong Kong. They are a major investment for our future prosperity. They will be very expensive. We can afford them. But only if we are prepared to exercise prudence and restraint in other areas of public expenditure. It will be more necessary than ever to assess our priorities carefully. In particular, we must keep a tight control on the growth of the civil service.

   The amount of money we are proposing to spend on building for Hong Kong's future may seem daunting. But it represents a necessary investment in human resources and in our physical infrastructure. By pressing ahead with such ambitious programmes despite the special pressures which our community has so recently faced, the government is demonstrating its commitment to Hong Kong's future. To carry out these programmes, we will need all our enterprise, resourcefulness and efficiency. We will have to accept that we can achieve our goals only by continuing to give priority to the overall growth of our

economy.

   It has been a difficult year for Hong Kong. But we have had difficult years before. We have survived them. We have emerged from them stronger and more confident in our own ability. We must have confidence in ourselves. Without this, we cannot expect other people to have confidence in us. Your government will continue to face resolutely the challenges that lie ahead. To do so, we need the support of Members of this Council and of the whole community. We need more than that. We need leadership from within the community. In 1997, Hong Kong will be run by Hong Kong people. They must have confidence in themselves, and in the leaders they choose, if they are to enjoy the stability and progress, for themselves and their families, for which this whole community works so hard.

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CONSTITUTION AND ADMINISTRATION

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. Under the terms of the Joint Declaration of the British and Chinese Governments on the Question of Hong Kong which entered into force on May 27, 1985, Hong Kong will become, with effect from July 1, 1997, a Special Administrative Region of the People's Republic of China.

      The Governor has the ultimate direction of the administration of Hong Kong. He is advised on the development of policy and other matters by an Executive Council. Legislation is enacted and funds provided by the Legislative Council, the members of which also debate policy and question the administration. There are two municipal councils, the Urban Council and the Regional Council, which have a statutory respon- sibility to provide public health, cultural and recreational services in the areas for which they are responsible. In addition, 19 District Boards cover the territory. They advise on the implementation of policies at district level and provide an effective forum for public consultation.

In 1987, the government published a Green Paper which sought the views of the community on whether the system of representative government should be further developed and, if so, in what manner. The White Paper, published in February 1988, charted the course of political development up to 1991 and contained a number of major decisions in relation to elections to the Legislative Council (including, in particular, the introduction for the first time of 10 directly-elected seats in 1991); the composition of the Legislative Council; the presidency of the Legislative Council; the role and composition of the two Municipal Councils and the District Boards; the links between the three tiers of representative government, and various practical electoral arrangements.

      Since publication of the White Paper, public opinion has changed and there is now a widely-held view in the community that there should be a somewhat faster rate of political development in 1991 than previously envisaged and, in particular, that the number of directly-elected seats in the Legislative Council should be increased. The government is currently reviewing the decisions of the 1988 White Paper on the composition of the Legislative Council. A number of models for the future composition of the Legislative Council prior to and beyond 1997 have been put forward and they have stimulated a great deal of debate in the community. When it takes decisions on what further changes should be made to the composition of the Legislative Council in 1991, the government would wish to respond positively to a broadly-held Hong Kong view which emerges during the course of the public debate.

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CONSTITUTION AND ADMINISTRATION

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 of the British Forces stationed in Hong Kong. As head of the government he presides at meetings of both the Executive Council and the Legislative Council. The Governor is in close touch with the administration of the territory and exerts a major influence over the direction of policy. The present Governor, Sir David Wilson, assumed office on April 9, 1987, and is the 27th incumbent.

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 written constitution of Hong Kong. However, there are various well-established practices which determine the way in which these constitutional arrangements are applied. For instance, although from the constitutional instruments described above Her Majesty's government would appear to exercise substantial control over the way in which Hong Kong is run, in practice the territory largely controls its own affairs and determines its own policies. Similarly the Governor, by convention, rarely exercises the full extent of his powers: Hong Kong is governed by consent and through consultation with the community.

The Letters Patent create the office of Governor and Commander-in-Chief of Hong Kong and require him to observe 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 Legisla- tive 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 against its advice (a right not exercised in recent times). They also deal with the membership of, and election to, 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.

24

Central Government

Executive Council

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 with the approval of the Secretary of State. As at November 30, 1989, there are 10 appointed members, including one official member. Appointed members hold office for fixed periods.

The Executive Council plays a role somewhat similar to that fulfilled by the Cabinet in a Westminster-style system. The council normally meets once a week, in camera, and its proceedings are confidential; although many of its decisions are made public. The Governor is required by the Royal Instructions to consult the council on all important matters of policy. Subject to certain procedures being followed, the Royal Instructions

CONSTITUTION AND ADMINISTRATION

     allow the Governor to act against the advice of the council and to refuse a member's request that a specific matter be put before the council. However, there is no instance in recent times of the Governor having done this. In practice, decisions are arrived at by consensus rather than by division. The depth of experience and the range of community interests represented by council members means that they are able to subject government policy to a rigorous examination before implementation. In this way potential problems can be identified and ironed-out, and legislation to enact policy tailored to reflect public aspirations and concerns before introduction to the legislature. The Governor in Council, that is the Governor acting in consultation with the Executive Council, is Hong Kong's central and most important executive authority.

In addition to policy matters, the Governor in Council decides appeals, petitions and objections under those ordinances which confer a statutory right of appeal. The council also considers all principal legislation before it is introduced into the Legislative Council, and is responsible for making subsidiary legislation under numerous ordinances. The 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.

Legislative Council

The Legislative Council is constituted by virtue of the Letters Patent. Its primary function is the enactment of legislation, including legislation for the appropriation of public funds. A bill passed by the Legislative Council does not become law until the Governor gives his assent to it. After the Governor's assent a bill becomes an ordinance without being subject to external approval, although the Queen has reserve powers to disallow an ordinance. The power of disallowance has not been used for many years.

The Legislative Council has a maximum membership of 57, comprising the Governor, who is the President; three ex-officio members, namely the Chief Secretary, the Financial Secretary and the Attorney General, seven official members, 20 appointed members and 26 elected members.

The official and appointed members are appointed by the Governor with the approval of the Secretary of State. Elected members are elected by nine functional constituencies and by an electoral college comprising the members of the district boards, the Urban Council and the Regional Council.

      Each functional constituency represents an occupational or professional group: commer- cial; industrial; labour; social services; medical and health care; finance and accountancy; teaching; legal, and engineering and associated professions. Of these, the commercial, industrial, finance and accountancy, labour and medical and health care functional constituencies elect two members each, while the other four elect one member each.

For the electoral college, the 19 district boards are grouped into 10 geographical constituencies, each consisting of one to four district boards. The members of the Urban Council and the Regional Council form two additional constituencies.

      Elections are normally held at three-year intervals. The Governor has power to dissolve the council; on dissolution all elected members vacate their seats and an election must be held within three months. A by-election is held should a casual vacancy arise.

The Legislative Council meets in public once a week, but takes a recess of about two months in August and September. Proceedings are bilingual; members may address the council in Chinese or English, and simultaneous interpretation is provided.

      Legislation is enacted in the form of bills, which go through three readings and a committee stage. Most business, including bills, is transacted by way of motions, which are

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26

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 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 April during the second reading of the annual Appropriation Bill.

   Members may also question the government on policy issues for which the government is responsible, either seeking information on such issues or asking for official action on them. Members may request either oral or written answers to the questions asked, 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 official member of the Council and all members other than official members. 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 pro- visions agreed by the Legislative Council in the estimates each year, or to note financial implications of new policies. Both the special and regular meetings are held in public. The Finance Committee has two sub-committees: the Establishment Sub-Committee and the Public Works Sub-Committee.

The Establishment Sub-Committee consists of 26 members of the Legislative Council, one of whom is the chairman, plus the Secretary for the Civil Service and the Secretary for the Treasury, who are the only public servants on the sub-committee. It examines in detail proposals for directorate posts, the creation of new ranks and changes in salary scales, and makes recommendations on them to the Finance Committee. It also considers reports on value-for-money studies which have staffing implications and reports to the Finance Committee on changes in departmental establishments and on the size and cost of the Public Service.

The Public Works Sub-Committee consists of 24 members of the Legislative Council, the Financial Secretary (Chairman), and the Secretary for Planning, Environment and Lands and the Secretary for Works. It examines the priority and reviews the progress of capital works projects in the Public Works Programme, and makes recommendations to the Finance Committee on the commencement of projects and changes to the scope and estimates of items in the programme.

CONSTITUTION AND ADMINISTRATION

Public Accounts Committee

The Public Accounts Committee, established by resolution of the Legislative Council in 1978, is a standing committee consisting of a chairman and six members, none of whom is an official member of the council. Their main function is to examine and report on the findings of the Director of Audit's Reports on the audit of the government's annual statements of account prepared by the Director of Accounting Services, on any matters relating to the performance of Director of Audit's duties and the exercise of his powers under the Audit Ordinance, and on any matters relating to value-for-money audits carried out by the Director of Audit. Value-for-money audits are carried out under a set of guidelines tabled in the Legislative Council by the chairman of the Public Accounts Committee in November 1986. These guidelines were agreed between the committee and the Director of Audit and have been accepted by the government. The committee's prime concern is to see that public expenditure has not been incurred for purposes other than those for which the funds were granted, that full value have been obtained for the sums expended, and that the government has not been faulty or negligent in its conduct of financial affairs.

The Director of Audit submits two reports to the Governor as President of the Legislative Council during the course of the year: the first, tabled in April, relates to value-for-money audits; the second, tabled in November, relates to the audit of govern- ment's annual statements of account and also value-for-money audits. Following the tabling of the report, the committee holds public hearings and controlling officers for different heads of public expenditure give evidence. The committee's reports based on these hearings are laid on the table of the Legislative Council within three months of the laying of the Director of Audit's report to which it relates. The government's response to the committee's reports is contained in the government minute, which describes the measures taken to give effect to the committee's recommendations or reasons why these recommendations cannot be accepted. The government minute is also laid on the table of the Legislative Council within three months of the laying of the Public Accounts Committee's reports each year.

Select Committees

The Legislative Council may appoint select committees to consider matters or bills in depth. The purpose is to enable small groups of members to examine complex problems, usually by the taking of evidence, and to report their findings and recommendations to the council. In the last three years, however, no select committee has been formed.

OMELCO

OMELCO stands for Office of the Members (other than official members) of the Executive and Legislative Councils. It is situated in the Legislative Council Building at Jackson Road, Hong Kong.

Members play a significant role in the administration of Hong Kong. They advise on formulation of and change to government policy; scrutinise, process and enact legislation; consider complaints from members of the public; control public expenditure, and monitor the effectiveness of public administration.

Through their work, members are involved in the major public issues. They study and comment on bills and major policy initiatives proposed by the government, taking into account the views of the public through members' contacts with various constituencies and district boards, as well as representations received from members of the community. Important issues which require the attention and endorsement of all members are discussed

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28

  at fortnightly in-house meetings. There are 16 standing panels formed by members, which regularly monitor the policy and progress of work in different areas of activity. These include: community and New Territories affairs; constitutional development; culture, recreation and sports (recreation and culture since October 1989); economic services and public utilities; education; environmental affairs; finance, taxation and monetary affairs; health services; housing; lands and works; manpower; public service; security; trade and industry; transport, and welfare services. Besides meeting among themselves, panel mem- bers hold sessions with senior government officials and interest groups to hear their views.

   In addition to these standing panels, a number of special groups were set up in 1989 after the June 4 events in China, with the aim of ensuring a safe and secure future for the people of Hong Kong and of boosting confidence in the territory. These include the Working Group on Nationality whose task is to urge Britain to restore to British subjects in Hong Kong the right of abode in the United Kingdom, the steering group to promote and strengthen Hong Kong as an international city, and the specialist group to study the second draft of the Basic Law with particular reference to the Sino-British Joint Declaration.

   In addition, members serve on more than 300 committees and boards dealing with matters of public concern.

   Members also maintain regular informal contact with district boards. They keep in close. touch with what is happening throughout the territory by frequent visits to government departments and places of public concern, such as Vietnamese refugee centres. They obtain the latest information on development plans and the problems people face, and it is as a result of these contacts that many of the questions in the Legislative Council are raised.

   OMELCO is also a channel through which the public may express grievances. Members deal with public representatives on government policy, appeals and complaints. Following the establishment of an ombudsman, formally known as the Commissioner for Adminis- trative Complaints, in February 1989, complaints against government departments alleging maladministration may be referred, if the complainant so requests, by a non-official member of the Legislative Council to the Commissioner for action.

Urban Council

The Urban Council is a statutory council with responsibilities for the provision of municipal services to almost 3.6 million people in the urban areas. As such, the Urban Council has considerable executive authority and is charged with full responsibility for a wide range of municipal functions. These functions include street cleansing, refuse collection, control of environmental hygiene, and ensuring the hygienic handling and preparation of food in restaurants, shops, abattoirs and other places. The Urban Council is also the authority for the control of hawkers and street-traders, although some of this devolves on the police as the council does not have the manpower or finance to shoulder the whole burden. An inter-departmental working party reviewing hawker control mea- sures has made some progress in resolving some of the major issues, and it is hoped that it will report to the government in the next few months.

   Within the urban area, the council also provides and manages all public recreation and sporting facilities such as swimming pools, parks, playgrounds, indoor and outdoor stadia, tennis courts, football grounds, squash courts and basketball courts, and promotes a large number of sports at district level. The council manages museums, public libraries and several major cultural venues and multi-purpose facilities, including the City Hall, Queen Elizabeth Stadium and the Hong Kong Coliseum. It is currently involved in the

прис

r

Previous page: Their Royal Highnesses the Prince and Princess of Wales were greeted with a traditional Chinese lion dance at the beginning of their three-day visit in November.

Above: The Prince pauses to chat with schoolchildren on his trip round the Tuen Mun District Festival. Overleaf: An exotic welcome for the Princess at HMS Tamar, where she visited the families of Service personnel.

NA

Left: Taking centre stage and all the limelight, the Royal couple opened the Hong Kong Cultural Centre beside Victoria Harbour.

Below: On the opposite side of the harbour, the Royal couple opened the Hong Kong Convention and Exhibition Centre.

Overleaf: Taking a special interest in Hong Kong's cultural heritage, the Prince visited the Tang Ching Lok Ancestral Hall in Kam Tin in the New Territories.

吉旦

Y

CONSTITUTION AND ADMINISTRATION

construction of a major Museum of Science and Technology, the superstructure of which is well underway. A new Museum of Art is also under construction. The Hong Kong Cultural Centre, which was opened in November 1989, contains a new 2 100-seat concert hall, a grand theatre seating 1 700 suitable for various kinds of performances and a studio theatre accommodating about 500 persons. The council promotes cultural performances and runs a comprehensive programme of public entertainment throughout the urban areas. The council consists of 40 members, 15 elected from district constituencies, 15 appointed by the Governor and 10 representative members from the urban district boards. The size of the Urban Council was increased from 30 to 40 members in 1989 with the addition of 10 representative members from the urban district boards. It meets in public once a month when it passes by-laws, deals with finances, formal motions and questions on its activities. The routine business of the Urban Council is conducted by the Standing Committee of the Whole Council, supported by 11 select committees and 19 working groups or sub- committees.

The Liquor Licensing Board and the Libraries Select Committee as well as the Keep Hong Kong Clean Committee have also opened their meetings to the public.

The council's chief executive is the Director of Urban Services, who controls the operations of the Urban Services Department with a staff of 17 700. The director is charged with carrying out the council's policies and implementing its decisions.

      The council is financially autonomous and during 1989-90 it spent about $3,000 million on council-controlled activities and projects. The council is financed by a share of the rates which forms the main part of its income, with the balance coming from various licence fees and other charges.

The council has individual or collective ward offices spread throughout the urban areas where councillors deal with and answer complaints from the public on a variety of matters. Although the majority of matters raised lie outside the council's jurisdiction, councillors are often able to assist and obtain redress for the public, where appropriate, from the various government departments and public bodies.

Regional Council

The Regional Council is the statutory municipal authority for the New Territories where more than two million people live. Like the Urban Council, the Regional Council is responsible for all matters concerning environmental hygiene, public health, sanitation, liquor licensing and the provision of recreational and cultural facilities and services within its jurisdiction.

The Regional Council consists of 36 members. Twelve of the members are elected directly, nine are elected as representatives of the nine district boards within the Regional Council area and 12 are appointed by the Governor. The remaining three are ex-officio members, being the Chairman and two Vice-Chairmen of the Heung Yee Kuk. The Chair- man and Vice-Chairman of the council are elected by members among themselves.

      The council's policies are implemented by its executive arm, the Regional Services Department, which has a staff of over 9 000.

      The council is financially autonomous. Its main source of revenue comes from rates collected in the council area which in 1988-9 provided about 86 per cent of the total revenue, with the remainder being fees and charges and interest on deposits. In 1988-9, total revenue amounted to $1,658.1 million while total recurrent and non-recurrent expenditure amounted to $1,041.6 million. Effective from April 1, 1988, the government started to provide the council a total grant of $820.8 million in three equal annual

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30

instalments of $273.6 million. The grant is to enable the council to carry out its own capital works programme in accordance to its own timetable.

   The council meets monthly to deal with policy issues, formal motions and members' questions on its activities. The council has set up four functional select committees, nine geographically-based district committees and a liquor licensing board. The four select committees deal with finance and administration, capital works, environmental hygiene, and recreation and culture, while the district committees deal with and monitor the provision of services and advise on the management of council facilities in individual districts. The select committees meet monthly, the district committees meet bi-monthly and the liquor licensing board meets quarterly. All meetings of the council, its select com- mittees, district committees, as well as the liquor licensing board, are open to the public.

The Regional Council maintains close liaison with the district boards in its area and the Heung Yee Kuk to ensure that local aspirations and views are taken into account in its deliberations. Four members from district boards as well as other personalities are co-opted to each of the district committees of the council, thus providing an opportunity for the views of district representatives to be taken into account in the planning and pro- vision of services and facilities.

   The council elects a member to the Legislative Council. In addition, it is represented on a number of organisations whose work is closely related to that of the council. These organisations include the Central Committee on Youth, the Council for the Performing Arts, the Council for Recreation and Sports, the Hong Kong Arts Centre, the Chung Ying Theatre and the Antiquities Advisory Board.

District Administration

District boards are statutory bodies established since 1982 to provide an effective forum for public consultation and participation in the administration of the districts.

   There are 19 district boards throughout the territory. Each board consists of appointed non-government members, elected members from the respective constituencies and, in the case of the New Territories, rural committee chairmen. The elected members are in the majority. For the present term of the district boards (1988-1991), there are altogether 264 elected, 141 appointed and 27 ex-officio members.

   The last district board elections were held on March 10, 1988, when 493 candidates contested the 264 seats. Thirty-four candidates were returned unopposed. Of the 1.4 million registered voters in constituencies where the seats were contested, 424 444 or 30.3 per cent - turned out to vote.

-

   The functions of the district boards are basically to advise the government on a wide range of matters affecting the well-being of the people living and working in the districts. Through the advice they make important contributions to the management of district affairs. They also help monitor the work of government departments at the district level. In addition, they are often invited to give views on important territory-wide issues, such as the further development of representative government, education reforms, youth policy and the long-term development of sports and recreation in Hong Kong. Where funds are available, they undertake minor environmental improvement projects and help organise and sponsor activities to promote recreation and culture. In 1989-90, $54.5 million was provided for these purposes.

Each district board operates a 'meet-the-public' scheme under which district residents may, through advance appointment, meet the board members face-to-face to express their views on any district problems and suggest ways for improvement. The scheme has been

CONSTITUTION AND ADMINISTRATION

well received by the general public and proved effective in providing a direct channel for collecting public views on local issues and reflecting them to the government.

In each district there is a district management committee. The committee, chaired by the district officer, comprises representatives of departments providing essential services in the district. It serves as a forum for inter-departmental consultation on district matters and co-ordinates the provision of public services and facilities to ensure that district needs are met promptly. The committee works closely with the district board and, as far as possible, follows the advice given by the board.

      The 67 Public Enquiry Centres in the 19 District Offices and their sub-offices handled 17.4 million cases during the year. These centres provide a wide range of free services to members of the public, including answering general enquiries on government services, distributing government forms and information materials, administering oaths and declarations, and referring cases under the Meet-the-Public Scheme, Free Legal Advice Scheme and Rent Officer Scheme.

Area committees and mutual aid committees have become an important component of the district administration scheme. They were set up throughout the territory in the early 1970s in support of the Keep Hong Kong Clean Campaign and Fight Violent Crime Campaign. Each area committee serves a population of about 40 000 to 50 000, and members are appointed from a wide spectrum of the community. Mutual aid committees are building-based resident organisations established to improve the security, cleanliness and general management of largely multi-storey buildings. At present, there are 125 area committees and 4 323 mutual aid committees. They provide an extensive and effective network of communication between the government and the people at the local grass- roots level.

Links Between the Representative Institutions

The Urban Council and the Regional Council are closely linked to the district boards. Each district board in the urban area has a representative member on the Urban Council. In addition to a similar arrangement between the Regional Council and the district boards in the New Territories, members of the latter are also included in the district committees under the Regional Council. Through these channels, the district boards are consulted on a wide range of council matters affecting their areas.

New Territories district boards maintain a close relationship with the Heung Yee Kuk (a statutory advisory body which represents the indigenous population of the New Territories). Seats are reserved on the district boards for rural committee chairmen who are also ex-officio members of the Heung Yee Kuk's executive committee.

      The Regional Council also has a formal link with the Heung Yee Kuk, through the ex-officio membership of the chairman and the two vice-chairmen on the council. Moreover, three of its appointed members have also been chosen from members of the Heung Yee Kuk to ensure a strong relationship with the traditional inhabitants of the New Territories.

The Urban Council and Regional Council, which cover much the same fields in their respective areas, have, during the year, set up liaison meetings between the two bodies and have also instituted joint ventures. In particular the Keep Hong Kong Clean Committee now encompasses both councils. The annual Flower Show is also a responsibility of both councils and is held in each council's areas in alternate years.

At present the district boards are grouped into 10 electoral college constituencies, each returning one member to the Legislative Council. The Urban Council and Regional

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Council separately form electoral college constituencies, each returning one member to the Legislative Council.

Electoral System for the Urban Council, Regional Council and District Boards Elections to the Urban Council, Regional Council and district boards are on a geo- graphical constituency basis and through a broad franchise. Practically everyone who is 21 years of age or over and who is a Hong Kong permanent resident, or has been resident in Hong Kong for the preceding seven years, is eligible to apply for registration as an elector in the constituency in which he lives. Registration is conducted on a voluntary basis. annually in August and September although applications for registration can be made at any time of the year. At the end of 1989, the electoral roll carried 1 597 567 names, representing 43.6 per cent of an estimated total potential electorate of 3.66 million. Of these electors, 1 013 759 are entitled to vote at Urban Council elections and at district board elections in the Urban Council area. The remaining 583 808 are entitled to vote at Regional Council elections and at district board elections in the Regional Council area.

   There are 157 constituencies for district board elections, comprising 87 in the 10 districts in the Urban Council area and 70 constituencies in the nine districts in the Regional Council area. For Urban Council elections, there are 15 constituencies, each being a single-seat constituency made up of a number of district board constituencies in the Urban Council area. The Regional Council has 12 single-seat constituencies, each made up of a number of district board constituencies in the Regional Council area. There are altogether 264 elected district board members, 15 elected Urban Councillors and 12 elected Regional Councillors.

   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 Regional Council or a district board in any constituency, provided he has been resident in Hong Kong for the preceding 10 or more years and his nomination is supported by 10 electors in that constituency. Voting is by simple majority.

   At the Urban Council elections held on March 9, 1989, 30 candidates stood for election in the 15 constituencies. Four were elected unopposed and the remaining 26 candidates contested the other 11 seats. Of the 747 005 electors in the contested constituencies, 105 826 cast their votes, giving a turnout of 14.2 per cent. The Regional Council elections were held concurrently with the Urban Council elections. A total of 23 candidates were nominated in the 12 constituencies. Three were elected unopposed and the other 20 candidates contested the remaining nine seats. Of the 464 104 electors in the contested constituencies, 107 526 cast their votes, giving a turnout of 23.2 per cent.

Electoral System for the Legislative Council

The system for indirect election to the Legislative Council, first introduced in 1985, involves an electoral college and nine functional constituencies. The electoral college comprises two special constituencies, that is, the Urban Council and the Regional Council, and 10 district board constituencies, each returning one member to the Legislative Council. The functional constituencies, covering the commercial, industrial, financial, labour, social services, accountancy, medical, health care, legal, teaching, and engineering and associated professions sectors, return a total of 14 members.

The franchise for Legislative Council elections is prescribed as follows: for the electoral college, an elector must be a member of the Urban Council, the Regional Council or a 32 district board making up the respective special constituencies and district board constit-

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uencies; for functional constituencies, an elector who is an individual must have been registered under the Electoral Provisions Ordinance for the Urban Council, Regional Council and district board elections and be a member of an organisation forming part of the relevant constituency. No person may be registered in more than one functional constituency. An elector who is not an individual must nominate a person not already an elector in his own right in the same constituency to be its authorised representative to vote at an election. That person may not be the authorised representative of another elector in the same or any other constituency. However, if eligible, a person may be registered to vote both in the electoral college and in the functional constituency to which he belongs apart from voting as an authorised representative. For 1989, the number of electors registered in the electoral college and the functional constituencies stands at 465 and 58 222 respectively, as compared to the corresponding potential electorate of 467 and 104 466 respectively.

      The qualifications for candidature are simple: for an electoral college constituency, any person who is an elector registered under the Electoral Provisions Ordinance (and not necessarily an elector in any electoral college constituency) and who has been resident in Hong Kong for the preceding 10 or more years, may be nominated if supported by five electors in that constituency; for a functional constituency, any person who is an elector registered under the Electoral Provisions Ordinance, has been resident in Hong Kong for the preceding 10 or more years and has a substantial connection with the relevant functional constituency may be nominated if supported by 10 electors in the constituency concerned.

A preferential elimination voting system is adopted for both electoral college constit- uencies and functional constituencies.

Planning for direct elections to the Legislative Council to be held in 1991 is now in hand. Details of the conduct of the elections are under active consideration.

Advisory Committees

The network of government boards and committees 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 decisions. Thus advisory bodies of one kind or another are found in nearly all government depart- ments and quasi-government bodies. In general, advisory bodies may be divided into five categories: statutory bodies which give advice to a head of department (such as the Endangered Species Advisory Board); statutory bodies which give advice to the govern- ment (such as the Board of Education); 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 Transport Advisory Committee), and committees which are executive in nature (such as the Hong Kong Examinations Authority).

Government officials and members of the public are represented on these committees. About 5 100 members of the public are appointed to serve on a total of 437 boards and committees, and some serve on more than one of these advisory bodies. These mem- bers are 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 they make to the formulation 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. Where appropriate, the government will broaden the cross-section of representation and encourage an inflow of new ideas through a reasonable turnover of membership.

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34

The Administration

Role of the Chief Secretary

The Chief Secretary advises the Governor on matters of policy, and is principally respon- sible for its implementation. He is head of the Public Service. The Chief Secretary, together with the Financial Secretary and the Attorney General, are the Governor's principal advisers.

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 Senior Official Member of the Executive and Legislative Councils and 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 Official 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 Com- mittee. 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, Works and Economic Services Branches of the Government Secretariat.

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 delivers a major 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 Central Policy Unit

  The Central Policy Unit (CPU) was established in April 1989. Although the CPU forms part of the Government Secretariat it is not a policy branch with responsibility for a defined programme area of its own. Its role is to undertake in-depth examinations of complex policy issues, to analyse options, and to recommend solutions. These issues are assigned to it by the Governor, Chief Secretary and Financial Secretary and are specified on a case-by-case basis. They are mostly issues of a long-term, strategic nature, or issues which cut across, or fall between, the boundaries of several policy branches of government departments. The CPU is not expected to be involved in the vast majority of policy issues which clearly should be dealt with by one or another of the policy branches.

Structure of the Administration

The Administration of the Hong Kong Government is organised into branches and departments. The branches, each headed by a secretary, collectively form the Government Secretariat. The structure of the Government Secretariat was re-organised in 1989 in order to rationalise and redistribute the portfolios of policy secretaries. The object is to achieve a reasonable balance between their workloads, reflect more closely the main policy objectives

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     of the government and to improve the policy formulation and resource management generally. Following the re-organisation, there are currently 13 policy branches, two resource branches concerned with finance and the Public Service, and a branch with special responsibility for co-ordinating measures to implement the terms of the Sino-British Joint Declaration on the Question of Hong Kong.

The policy branches whose secretaries report directly to the Chief Secretary are: City and New Territories Administration, Education and Manpower, Health and Welfare, Municipal Services, Security, Transport, Constitutional Affairs, Recreation and Culture, and Planning, Environmental and Lands. The Civil Service Branch, a resource branch, and the General Duties 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, Trade and Industry, and Works. The Finance Branch, a resource branch, is also responsible to the Financial Secretary. The head of the Finance Branch is the Secretary for the Treasury (previously known as the Deputy Financial Secretary).

      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 60 departments and agencies in this structure.

      To assist in the co-ordination of government policy, there have been established, under the umbrella of the Chief Secretary's Committee, seven policy groups which bring together branch secretaries in related programme areas. The five which are chaired by the Chief Secretary are Community Affairs; Constitutional Affairs; Lands, Works, Transport, Housing and Environmental Protection; Public Services, and Social Services Policy groups. The Legal Affairs Policy Group is chaired by the Attorney General and the Finance Group is chaired by the Financial Secretary.

Office of the Commissioner for Administrative Complaints

The Commissioner for Administrative Complaints is an independent authority established under the Commissioner for Administrative Complaints Ordinance to provide, for ordinary citizens, some means whereby an independent person outside the public service can investigate, and report on, grievances arising from administrative decisions, acts, recommendations or omissions. The commissioner has jurisdiction over all government departments except the Royal Hong Kong Police Force and the Independent Commission Against Corruption. However, he is an ex-officio member of both the Police Complaints Committee and the Independent Commission Against Corruption Complaints Committee, which oversee investigations into complaints made against members of the Royal Hong Kong Police Force and the Independent Commission Against Corruption.

       The establishment of the commissioner is designed to supplement and strengthen existing channels for the redress of grievances, but not to replace them.

      The commissioner's office became operational on March 1, 1989, and began receiving complaints from that date. As required by law, the commissioner submitted his first Annual Report to the Governor at the end of June 1989. The report was tabled in the Legislative Council on July 19, 1989, and received considerable media coverage.

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36

Between the period March 1 to December 31, 1989, a total of 162 complaints were received by the office. Of these, 110 cases were completed. 73 of the total complaints received were found to be wholly or partly within the commissioner's jurisdiction and were investigated. In 42 cases the complaints were found to be justified to some extent. Recommendations for remedial action were made in 50 instances and accepted by departments in all cases. During the same period, a total of 205 enquiries were also received, some of which could lead to formal complaints being lodged to the office at a later date.

In September 1989, a staffing review of the office was carried out to determine both the staffing levels and the method of filling the posts in the longer term. Subject to funds being available, the review recommendations, if approved, are expected to be implemented by mid-1990.

Office of the Director of Audit

The necessity for an audit presence was recognised in the very early days of Hong Kong and the Audit Department is in fact one of the oldest departments, an Auditor-General having been first appointed in 1844, only three years after the cession of the territory.

   Presently, the audit of the accounts of the Hong Kong Government is carried out under the terms of the Audit Ordinance enacted in 1971, which provides for the appointment, security of tenure, duties and powers of the Director of Audit, for the submission of annual statements by the Director of Accounting Services, for the examination and audit of those statements by the Director of Audit, and for the submission of his report thereon to the Governor as President of the Legislative Council. Certain specific duties relating to the examination, audit, reporting and certification of the government's accounts, are prescribed in the ordinance and wide powers are given to the director regarding his access to books, documents and records, and the explanations which he may require: Moreover, as in the performance of his duties and the exercise of his powers the director is not subject to the direction or control of any other person or authority, considerable discretion is given to him in the conduct of his inquiries and he is free to report publicly as he sees fit. Therefore, the director functions independently of the Administration.

The audit of all the government's accounts is carried out by the Director of Audit and his staff. He also audits the accounts of the Urban Council, the Regional Council, the Vocational Training 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.

Government auditing practised in Hong Kong falls into two main categories, respectively termed 'regularity' audit and 'value-for-money' audit. The regularity audit, which is intended to provide an overall assurance of the general accuracy and propriety of the government's financial and accounting transactions, is carried out by means of selective test checks and reviews designed to indicate possible areas of weakness. The audit is designed to ensure as far as reasonably possible that the accounts are accurate and correct, although, with the considerable volume and variety of government revenue and expenditure, it cannot hope to disclose every accounting error or financial irregularity. Value-for-money audit is carried out according to guidelines tabled in the Legislative Council by the chairman of the Public Accounts Committee on November 19, 1986. The audit is intended to ascertain that prudence and economy have been exercised in the management of public funds and that good value has been obtained for expenditure

CONSTITUTION AND ADMINISTRATION

which has been incurred. This involves going beyond the normal accounting records. In line with contemporary developments in both government and commercial auditing elsewhere, it is also becoming increasingly relevant to ascertain whether efficient and economical practices are being followed in pursuing prescribed goals and whether these goals are being achieved.

The Director of Audit's report, after it has been submitted to the Governor as the President of the Legislative Council and laid before the Council, is considered by the Public Accounts Committee. Since 1988, in response to a recommendation made by the Public Accounts Committee, the director submits two reports a year. In 1989, the first report was submitted on April 6, covering the results of value-for-money audits completed, and the second report was submitted on October 27, covering the audit certification of the government's accounts for the preceding financial year as well as the results of value- for-money audits completed.

      The director's reports on the accounts of other public bodies are submitted to the relevant authority in accordance with the legislation governing the operation of these bodies.

Foreign Relations

The Role of the British Government

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 and he has authority to give directions to the Governor of Hong Kong. In practice, however, such formal directions have not been issued in living memory, and Hong Kong conducts its affairs with a high degree of autonomy in all domestic matters.

      The relationship between London and Hong Kong is also essentially one of co-operation. For example, one important task regularly 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 conventions 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 enjoys a considerable degree of autonomy, and full autonomy regarding trade matters. It is a contracting party to the General Agreement on Tariffs and Trade in its own right.

The Role of the Political Adviser

The Political Adviser is a senior member of the British Diplomatic Service, seconded to the Hong Kong Government principally to advise the Governor and the Chief Secretary on matters concerning Hong Kong's relations with China. His office is part of the Hong Kong Government. Following extensive involvement in the Sino-British negotiations which culminated in the Joint Declaration, the Political Adviser's office, in conjunction with the General Duties Branch, is closely involved in the work of implementing the Joint Dec- laration. In addition, 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

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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. The Political Adviser's office is also one of the channels of communication between the Hong Kong Government and Foreign and Commonwealth missions in Hong Kong. These missions do, however, deal directly with the relevant departments of the Hong Kong Government over most day-to-day matters.

Public Service

The Public Service provides the staff for all government departments and other units of the Administration. With Hong Kong's centralised form of government, the Public Service operates a wide range of services which in many countries would be administered by other public authorities. These include medical services, public works and utilities, urban cleansing and public health, education, fire services and the police force. The departments in charge of these areas - namely, the Hospital Services Department and Department of Health (with an establishment of 22 520 and 5 302 respectively), the Lands and Works group of departments (23 900), the Municipal Services group of departments (27 693), the Education Department (6 841), the Fire Services Department (7 563), and the Royal Hong Kong Police Force (33 604) account for 64 per cent of the establishment of the entire Public Service. To meet the demands for new and improved services, the size of the Public Service in 1988-9 was increased by three per cent over the previous financial year. At April 1, 1989, the total strength of the service was 186 642, over 98 per cent of this number being local officers. It is structured into some 436 grades or job categories in administrative, professional, technical and manual fields, with 1 197 ranks or job levels.

   Responsibility for the management of the Public Service lies with the Civil Service Branch of the Government Secretariat. The branch deals with such matters as appoint- ments, pay and conditions of service, staff management, manpower planning, train- ing and discipline. It is also the focal point for consultation with the principal staff associations.

   Recruitment and promotions to the middle and senior ranks of the Public 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 serving as members.

   The government is advised on matters relating to pay and conditions of service by four independent bodies. The Standing Committee on Directorate Salaries and Conditions of Service advises on matters affecting directorate officers (the 1 000 or so most senior public servants). The committee published its 10th report in June 1989. The government accepted the main recommendations of the report concerning the grouping of departments, the ranking of individual posts and conditions of service, but deferred a decision on proposals for a restructuring of the directorate pay scale.

   The Standing Committee on Judicial Salaries and Conditions of Service advises on matters affecting judicial officers. In November 1988, the government implemented the committee's recommendation to establish a separate pay scale for judicial officers.

Arising from the report of an independent review committee, a Standing Committee on Disciplined Services Salaries and Conditions of Service was appointed in February 1989 to advise on the salaries and conditions of service of the disciplined services.

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The Standing Commission on Civil Service Salaries and Conditions of Service advises on matters affecting all other public servants. The commission is currently conducting an overall review of the salary structure of non-directorate staff, excluding members of the disciplined services.

The government fully recognises the value of good staff relations in the Public Service. Apart from providing a wide range of welfare and recreational facilities to staff, much effort is devoted to the promotion of effective staff consultation. The formal consultative machinery comprises two service-wide central consultative councils (the Senior Civil Service Council and the Model Scale 1 Staff Consultative Council), a Police Force Council for members of the Police Force, and departmental consultative committees for staff in all other departments. Outside these councils and committees, individual members of the Public Service or staff associations have ready access to their heads of department or grade as well as the Civil Service Branch. The Standing Commission on Civil Service Salaries and Conditions of Service submitted a report to the Governor in February 1989 which contained recommendations on how the consultative machinery in the Civil Service could be further improved.

      Continued efforts were made in 1989 to increase productivity and to improve the quality of service to the public. To this end, value-for-money studies and work improvement studies were carried out in various departments. These studies brought about not only improvements in the quality of service, but also more effective deployment of staff and significant savings in resources.

The quality of service is also maintained by way of a disciplinary code which applies to all public servants. It provides sanctions against misconduct and sub-standard performance where other staff management measures fail, while safeguarding the interests and rights of individual public servants.

The government is developing its use of manpower planning techniques and practices in order to ensure that the public service possesses the right mix of officers in terms of numbers, experience, qualifications and skills to achieve its objectives and goals. Particular care and attention is paid to the selection and grooming of senior government officials.

Civil Service Training

The government attaches great importance to the training of civil servants in a bid to increase efficiency and effectiveness and to help them meet new challenges. Induction and refresher training is provided by many departments to equip staff with the skills to carry out their duties properly. To meet common departmental needs, the Civil Service Training Centre conducts a wide range of management, language and computer courses and co-ordinates the training undertaken by public servants at local and overseas institutes. As the central training agency, it also provides advice and assistance to departments on all training matters.

       The Senior Staff Course Centre, first established on an experimental basis in 1984, is now a permanent feature of the management training offered to senior public servants. The centre is primarily concerned with the running of two three-month senior management development programmes and a number of short workshops and seminars each year. Participation by private sector executives is encouraged.

Language

The official languages of Hong Kong are English and Chinese. They are used with equal status in all manner of communications between the government and the public. Major

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government reports and publications of public interest are available in both languages. Cantonese (the Guangzhou dialect) is commonly spoken by the majority of the local Chinese population while interest in learning to speak Putonghua (Mandarin) is gaining momentum as closer ties with China are being developed. Simultaneous interpretation is provided at meetings of the Legislative Council, Urban Council, Regional Council, District Boards and other government boards and committees where English and Cantonese are used. A Bilingual Laws Advisory Committee was set up in October 1988 and the first bilingual legislation enacted in April 1989.

3

THE LEGAL SYSTEM

Law in Hong Kong

Generally, 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, the ordinance applies some English Acts to Hong Kong, such as the Justices of the Peace Act of 1361 and the Distress for Rent Act of 1689.

On occasions, English laws are applied to Hong Kong either directly or 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 Tokyo Convention Act 1967 (Overseas Territories) Order 1968 is an Order in Council implementing in Hong Kong a treaty to which the United Kingdom is a party.

In order to ensure that by 1997 Hong Kong possesses a comprehensive body of law which owes its authority to the Legislature of Hong Kong, it will be necessary to replace such English laws by local legislation on the same topics. A legislative programme has therefore been adopted by the Hong Kong Government to disapply English laws applying to Hong Kong and replace them by Hong Kong ordinances. The Hong Kong Act 1985 provides for the Hong Kong legislature to exercise the necessary powers to replace English laws in specified fields with Hong Kong ordinances, and the Hong Kong (Legislative Powers) Order 1986 specified the fields of civil aviation, merchant shipping and admiralty jurisdiction. It is anticipated that further orders will be made in future conferring similar powers in other fields.

      The Governor, acting with the advice and consent of the Legislative Council, has plenary powers to enact ordinances for the peace, order and good government of Hong Kong and most of the legislation applicable in Hong Kong is, and has been since its earliest days, enacted in this form or as subsidiary legislation made under an ordinance. Such legislation is usually initiated by one of the branches of the Government Secretariat.

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 Government formulating drafting instructions for the Drafting Division of the Attorney General's Chambers. The instructions are prepared after consultation with the relevant

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42

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.

The laws of Hong Kong are published in a 31-volume loose-leaf compilation known as The Laws of Hong Kong. This is brought up to date annually.

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 Kindgom Acts where applicable. 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 1973 that 'any relevant decision of the Privy Council' was binding on the Hong Kong courts.

The Attorney General's Chambers has assumed responsibility for drafting new laws in both Chinese and English and translating existing laws into Chinese. The Chinese text will be an authentic version of the laws that the courts can look to, with the English text, in ascertaining the meaning of an enactment. The first piece of bilingual new legislation was enacted on April 13, 1989. Thereafter, all new prinicipal legislation is to be enacted bilingually. On the translation of existing laws, a committee known as the Bilingual Laws Advisory Committee was set up by government in October 1988 to advise on the publication of Chinese texts of existing ordinances. The committee examines the Chinese texts prepared by the Law Drafting Division of the Attorney General's Chambers and recommends the Governor in Council to declare these texts an authentic version of the laws. Some 520 public ordinances will have to be translated in the years to come.

Bill of Rights

In Hong Kong the basic social and political freedoms that people enjoy have always been taken for granted. These are backed up by many different provisions of statutory and common law. In addition, the International Covenants on Civil and Political Rights and on Economic, Social and Cultural Rights have been extended to Hong Kong since 1976. And their continued application beyond 1997 is guaranteed in the Joint Declaration.

In view of the strong support in the community for these freedoms to be embodied in a Bill of Rights, the government has been considering what form such a bill might take. A draft bill will be published for public consultation early in 1990. The government's intention is that the bill should give effect in local law to the relevant provisions of the International Covenant on Civil and Political Rights, as applied to Hong Kong. This means that if anyone believes that their civil or political rights, as defined in the covenant, have been violated they will be able to seek redress in the courts. The current plan is to introduce draft legislation into the Legislative Council by July 1990. Within this timescale there will not be time for a comprehensive review of all the existing laws to remove any areas of doubt about their full compatibility with the Bill of Rights. To avoid any unnecessary uncertainties the draft bill provides for a limited period after its enactment during which existing laws cannot be challenged against the standard of the new bill.

The provisions of the other International Covenant, on Economic, Social and Cultural Rights, are different in nature. They are in the form of objectives to be achieved pro- gressively and, generally speaking, are not rights which individuals could easily enforce

THE LEGAL SYSTEM

in the courts. For these reasons they are not well suited for inclusion in a Bill of Rights designed to give people the right of direct action in the courts. The government is fully committed to the objectives of the covenant and seeks to implement them through existing legislation and policies.

Judiciary

The Chief Justice is head of the Judiciary. He is assisted in his administrative duties by the Registrar, two Deputy Registrars and four Assistant Registrars of the Supreme Court.

The Judiciary operates on the principle, fundamental to the common law system, of complete independence from the executive and legislative branches of government. This applies equally whether a dispute is between the government and an individual, or whether it involves only private citizens or corporate bodies.

      The most senior court in Hong Kong is the Supreme Court, comprising the Court of Appeal and the High Court. Sitting in the Supreme Court in addition to the Chief Justice are nine Justices of Appeal and 20 High Court Judges. The Registrar, Deputy Registrars and Assistant Registrars also have jurisdiction as Masters of the Supreme Court in civil trials in the High Court. The jurisdiction of the High Court is unlimited in both civil and criminal matters, and the Court of Appeal is the highest court in Hong Kong. The Court of Appeal hears both civil and criminal appeals from the High Court and from the District Court. Further appeal lies to the Judicial Committee of the Privy Council in London; however this is infrequent as leave to appeal is granted only on stringent conditions of public interest.

High Court Judges usually sit alone when trying civil matters, although there is a rarely-used provision for jury trials in certain cases including defamation. For criminal trials they sit with a jury of seven, or nine on special direction of the judge. The issue of guilt is determined by the jury, which must have a majority of at least five to two, except with charges attracting a death sentence when unanimity is required.

The District Court has both civil and criminal jurisdiction. Its civil jurisdiction is limited to disputes of a value up to $120,000, and its criminal jurisdiction up to seven years' imprisonment. Its judges sit without a jury and may try the more serious cases, save principally for murder, manslaughter and rape, which are reserved to the High Court. There are 32 Judges of the District Court; the majority sit in a large central court, with three smaller courts serving the outlying districts of the territory.

The Magistrates' Courts try annually some 90 per cent of all the cases heard in the territory. There are 60 professional magistrates sitting in 10 magistracies, two of which are on Hong Kong Island, four in Kowloon and four in the New Territories.

Magistrates have a purely criminal jurisdiction covering a wide range of offences. Professional magistrates are generally restricted in sentence to two years' imprisonment and $10,000 fine, however a number of statutes allow increased sentences. Professional magistrates also try cases in the Juvenile Court, which has jurisdiction in charges against children and young persons up to 16 years, except in cases involving homicide.

In addition to the professional magistrates, there are 10 special magistrates who are not legally qualified. They handle routine cases, such as littering and minor traffic offences, and their powers of sentence are limited to fining up to $20,000. They are all Cantonese speaking and conduct their cases in that language.

In addition to the principal courts of civil and criminal jurisdiction, there are five specialised tribunals. The Coroner's Court handles enquiries into unusual circumstances causing death; the Small Claims Tribunal hears civil claims up to a limit of $15,000; the

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THE LEGAL SYSTEM

44

  Labour Tribunal hears individual civil claims arising from contracts of employment, and the Lands Tribunal has jurisdiction in matters of rating and valuation and in assessing compensation when land is resumed by government or reduced in value by development. Finally, the Obscene Articles Tribunal has jurisdiction to determine whether or not an article is obscene and to classify it into statutory categories of acceptability or otherwise.

   The Small Claims and Labour Tribunals provide the public with inexpensive recourse to litigation, as their proceedings are informally conducted and professional representation is not permitted.

The Official language of the court is English in the Court of Appeal, the High Court and the District Court; in the other courts and tribunals the court may use Chinese. Whichever language is used, a party or witness in any court in Hong Kong may use Chinese or English or any other language permitted by the court.

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 both the Law Reform Commission of Hong Kong and a member of both the Judicial Services Commission and Operations Review and Complaints Committee of the Independent Commission Against Corruption.

   The Attorney General is chairman of the Legal Affairs Policy Group, one of several policy bodies established under the umbrella of the Chief Secretary's Committee to bring together branch secretaries in related programme areas. The group plays an important co-ordinating role in legal policy matters and decision-making, including allocation of responsibility for further legislative initiatives which have a substantial legal policy content. Often, the group will call upon the Attorney General to take responsibility as sponsor and spokesman for legislative proposals to be submitted to the Executive and Legislative Councils.

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 responsible for the drafting of all legislation and for the conduct of all prosecutions.

   The Attorney General's Chambers are divided into five divisions, each headed by a law officer to whom the Attorney General delegates certain of his powers and responsibilities. The Civil 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 the investigation and conduct of criminal proceedings. 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 Policy and Administration Division, which includes the Law Reform Commission Secretariat. The International Law Division is headed by the Law Officer (International Law) and deals with all external legal matters arising out of the Sino-British Joint Declaration.

During the past year a new unit has been established in the Attorney General's Chambers to speed up the localisation of United Kingdom legislation which now applies to Hong Kong. In conjunction with the General Duties Branch and the International Law and Civil Divisions of the Attorney General's Chambers, the new unit will study all United Kingdom laws which apply to Hong Kong and consult with policy branches on whether the law in question will be needed in future. Where appropriate, instructions will be prepared for local legislation to reproduce that law in a form in which it can

THE LEGAL SYSTEM

     survive after 1997. The target date for completion of the localisation of laws programme is 1994.

Legislation has already been enacted to localise laws in the fields of admiralty juris- diction, marine pollution and international financial organisations.

The past year also saw the making of the Hong Kong (Legislative Powers) Order 1989 under the Hong Kong Act 1985. The order facilitates localisation of laws required to give effect to international agreements which apply to Hong Kong.

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.

The Attorney General 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 proceedings.

Most 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, or give rise to difficult points of law, advice is sought from the Prosecutions Division. The advice of the Attorney General's Chambers must be sought in the case of serious offences which are to be heard in the District Court or the Supreme Court.

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 prominent members of the community.

      The commission's reports on Commercial Arbitration, Bills of Exchange, Community Services Orders, Contribution between Joint Wrongdoers, Control of Exemption Clauses and Damages for Personal Injuries and Death have been implemented by the government. The commission has published reports on the Laws Governing Homosexual Conduct, Confessions in Criminal Cases, Insurance, Young Persons - Effects of Age in Civil Law, Control of Exemption Clauses, Contempt of Court, the Model Law of Arbitration, Coroners, and Competence and Compellability of Spouses in criminal proceedings.

It is considering Evidence in Civil Actions, Breach of Confidence Actions, Wills and Intestate Succession, Bail, Interest on Debt and Damages, Arrest and Detention, Sales of Goods and Supply of Services, Copyright, Loitering and Fraud.

Registrar General

The Registrar General, a statutory office established by the Registrar General (Establishment) Ordinance, combines the statutory offices of Land Officer, Registrar of Companies, Registrar of Trade Marks and Patents, Insurance Authority, Official Receiver, Official Trustee and Official Solicitor. The Registrar General's Department is divided into four main divisions. The Land Division operates the Land Registry under the provisions of the Land Registration Ordinance and also provides a conveyancing and legal advisory service to the government in all of its land transactions. The Commercial Division comprises the Companies Registry, the Trade Marks and Patents Registries and the Money Lenders Registry. The Companies Registry administers the provisions of the Companies Ordinance, while the Trade Marks and Patents Registries provide and administer a system of trade marks and patents registration and protection under the provisions of the Trade

45

THE LEGAL SYSTEM

46

  Marks Ordinance and the Registration of Patents Ordinance. The Insurance Division provides prudential supervision, under the provisions of the Insurance Companies Ordin- ance, over insurance companies carrying on insurance business in, or from, Hong Kong, and the Insolvency Division provides an insolvency service to the private sector as trustee in bankruptcy and liquidator in companies winding-up.

   The Registrar General is also an ex-officio member of the Insurance Advisory Committee and the Standing Committee on Company Law Reform, and represents the Financial Secre- tary as an ex-officio member of the Council of the Hong Kong Society of Accountants.

Legal Aid

  Hong Kong has developed over the years a very comprehensive system of legal aid, emphasising the government's continuing desire and effort to promote social justice. Legal aid is provided by the government through two organisations. The Legal Aid Department administers highly sophisticated and extensive legal aid schemes for legal representation in both civil and criminal cases heard in District Courts and the High Court. Such aid is available to any person in Hong Kong, resident or non-resident, who satisfies the Director of Legal Aid on financial eligibility and justification for legal action. The Law Society of Hong Kong, through an executive committee which includes representatives from the Bar Association, provides free legal advice and free legal representation to defendants in certain criminal cases heard in the Magistrates' Courts and Juvenile Courts of Hong Kong.

Civil Legal Aid

  The financial limits in both civil and criminal cases undertaken by the Legal Aid Department are the same. At present, persons who have a disposable monthly income of not more than $2,200, and a disposable capital of not more $15,000, are financially eligible. Disposable income and capital are arrived at after 'allowances', including rent, have been deducted from actual earnings and capital of applicants. Legal aid is provided either free or on payment of a contribution, depending on the amount of the disposable income and capital. In addition to financial eligibility, the applicant must satisfy the Director of Legal Aid in civil cases that he has a reasonable chance of succeeding in the litigation for which he seeks aid and in recovering the judgement debt thereafter. Legal aid is available for a wide range of civil proceedings in the District Courts, High Court, Court of Appeal and appeals to the Judicial Committee of the Privy Council in London. Traffic accident claims, landlord and tenant disputes, claims in respect of industrial accidents and employees compensation, immigration matters, breach of contract, professional negligence and every branch of family law are included in the civil aid scheme. Other cases such as admiralty, bankruptcy and companies winding-up proceedings are also undertaken, the majority of which deal among other things with employees' wages and severance pay. An applicant who is refused legal aid may appeal against such refusal to the Registrar of the Supreme Court or in Privy Council cases to a committee of review.

   The total estimated expenditure for 1989-90 was $47 million in civil cases. In 1989, 15 205 applications were received and 4 607 granted. A sum of $159 million was recovered for the aided clients in these cases. If a legally-aided person in civil litigation is successful and legal costs are recovered in the proceedings, any contribution he may have paid may be refunded to him. In unsuccessful litigation, the liability for costs of a legally-aided person is limited to the amount of contribution, if any, paid by him.

   There is a spiralling divorce rate in Hong Kong and an independent counselling agency is provided by the Hong Kong Catholic Marriage Advisory Council whereby applicants

THE LEGAL SYSTEM

for legal aid in matrimonial cases may have counselling with a view to reconciliation or conciliation. This scheme, funded by the Royal Hong Kong Jockey Club, is in operation in the Legal Aid Department's Kowloon branch office.

In October 1984, the Supplementary Legal Aid Scheme was established to provide legal assistance to those persons whose resources exceeded the financial limits under the existing civil aid scheme, but were not sufficient to meet the high costs of conducting litigation on a private basis. This scheme is available for claims in the High Court and for certain claims in the District Court for damages for death and personal injuries.

      In place of the limit of financial eligibility under the existing civil aid criteria, the supplementary scheme enables an applicant with a gross monthly income not exceeding $15,000 and disposable assets not exceeding $100,000 to apply. A successful litigant under the supplementary scheme pays back a proportion of the damages he recovers into the scheme's fund to assist litigants in future litigation. This scheme was initially funded with an interest-bearing loan from the Government Lotteries Fund and is administered by the Director of Legal Aid. The percentage deducted from damages ranges from 10 per cent to 12.5 per cent depending on the amount recovered and on whether the case is settled prior to the trial of the action.

The total estimated expenditure in 1989-90 was $2 million. During 1989, 131 applica- tions were received of which 64 were granted.

Legal Aid in Criminal Cases

     Legal aid as provided by the Legal Aid Department is also available for criminal proceedings in the District Courts, High Court, Court of Appeal and the Judicial Committee of the Privy Council, for representation at proceedings in the Magistrates' Courts where the prosecution is seeking committal of a defendant to the High Court for trial and for assistance in preparing petitions for clemency to the Governor in Council. The majority of accused persons in proceedings in these courts are legally-aided.

      For High Court criminal trials, legal aid is invariably given, subject to financial eligibility, because of the costs involved, the severity of the charge and the gravity of possible sentence. Legal aid can also be given to conduct pleas in mitigation of sentence. For appeals against conviction for murder, irrespective of whether there are grounds of appeal, the granting of legal aid is mandatory so as to ensure that all relevant matters are placed before the court by the appellant's legal representative. For all other criminal appeals, including appeals from the decisions of the magistrates, legal aid will be given subject to financial eligibility if the Director of Legal Aid is satisfied that there are arguable grounds of appeal. A person who is refused legal aid in a criminal matter may nevertheless be granted legal aid subject to financial eligibility by a trial judge or by the Court of Appeal or, in relation to appeal to the Judicial Committee of the Privy Council, by a committee of review.

The total estimated expenditure for 1989-90 was $37 million in criminal cases. During 1989, 4785 applications were received for legal aid in criminal cases and a total of 2 926 were granted.

      If a person is granted legal aid in a civil case, the Director of Legal Aid will assign the case either to a private solicitor and a barrister, where necessary, or to one of his own professional officers. The department maintains its own litigation units undertaking personal injury litigation, family law and workers' wage claims. The department also has various sections specialising in enforcement of judgements for damages and legal costs, application for the grant of letters of administration in fatal cases and preparation of

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THE LEGAL SYSTEM

itemised Bills of Costs, all of which provide a support service for cases assigned to private practitioners and in-house lawyers.

The department has its headquarters at Queensway Government Offices on Hong Kong Island and a branch office in Kowloon. The establishment comprises 380 persons of whom 54 are professional lawyers and 119 are law clerks who are para-legal personnel. Training for law clerks is provided by the professional officers. From time to time, officers at all levels attend job-related training courses provided by the Civil Service Training Division. The department also participates in the training programme for articled clerks whose articles are with members of the other legal service departments.

Legal Advice and Duty Lawyer Schemes

The Law Society Legal Advice and Duty Lawyer Schemes administered by the Law Society with the full support of the Bar Association comprise three schemes providing free legal representation, legal advice and legal information for people in Hong Kong. The day to day operation of the schemes is overseen by a management and administration committee, the members of which are representatives nominated by both the Law Society and the Bar Association. The committee meets once a month. The government funds the entire operation of the schemes and the subvention in 1989-90 was over $22 million.

   The Duty Lawyer Scheme provides free legal representation to those charged with one of nine specified offences and are brought before the magistrates' courts. The nine specified offences are 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. In addition, the Duty Lawyer service is available to all juvenile offenders, whether they are appearing before a Juvenile or Magistrates' Court, except those charged with extremely minor offences. There are 526 remunerated lawyers (barristers and solicitors) on the Duty Lawyer Panel. In 1989, 15 570 defendants facing 19 616 charges received preliminary advice and representation at trial.

The Legal Advice Scheme provides free advice to people who cannot afford to consult private lawyers. The scheme operates eight advice centres at Sha Tin, Tsuen Wan, Wan Chai, Eastern, Yau Ma Tei, Kwun Tong, Mong Kok and Wong Tai Sin District Offices. Each centre opens once a week in the evening. Members of the public can make appointments to see the volunteer lawyers through one of the 120 referral agencies which include all District Offices, Caritas Services Centres and many other volunteer agencies. Generally, clients can see a lawyer within 14 days. However, in genuinely urgent cases, early appointments can be arranged. There are 343 lawyers (barristers and solicitors) on the Advice Lawyer Panel. Some 3 500 people are advised each year.

The Tel-law Scheme was introduced in March 1984. It provides taped legal information by telephone. Each taped message lasts 2.5 minutes and is available in both English and Chinese. There are over 65 tapes available. The main purpose of the service is to provide basic information on the legal aspects of everyday problems, and to encourage people who have such problems to use the Free Legal Advice Scheme. The tapes are updated as necessary, and cover matrimonial, landlord and tenant, criminal, financial, employment and some administrative law. Tapes are added when a new subject is identified as being of interest to the public. During the year, Tel-law handled 48 269 calls.

4

IMPLEMENTATION

OF THE SINO-BRITISH JOINT DECLARATION:

THE events which occurred in China in the middle of the year inevitably disrupted the work of the Sino-British Joint Liaison Group (JLG) and the Sino-British Land Commission. The 13th meeting of the JLG originally scheduled for July was postponed. Normal business between the two JLG offices in Hong Kong and in the Land Commission was also temporarily suspended to allow time for reflection by both sides.

      Following a meeting between the then British Foreign Secretary, Mr John Major and the Chinese Foreign Minister, Mr Qian Qichen in Paris at the end of July, it was agreed that the 13th meeting of the JLG should be held in September. The September meeting established the basis for a return to productive work. Resumption of the Land Commission meeting followed in December. Both governments reaffirmed their full commitment to the successful implementation of the Joint Declaration. The British Government also reaffirmed its commitment to administer Hong Kong effectively until 1997.

Meanwhile, the deadline for the solicitation of opinions on the second draft of the Basic Law published in February was extended until the end of October to give Hong Kong people more time to forward their views to the Basic Law Consultative Committee.

The Sino-British Joint Liaison Group

The Sino-British Joint Liaison Group was established in accordance with the provisions of Annex II to the Joint Declaration. Its functions are to conduct consultations on the implementation of the Joint Declaration, to discuss matters relating to the smooth transfer of government in 1997, and to exchange information and conduct consultations on such subjects as may be agreed by the two sides. As the JLG is an organ for liaison, and not an organ of power, it plays no part in the administration of Hong Kong.

      The JLG comprises a senior representative and four other members on each side. Supporting staff and experts also attend meetings as appropriate. In accordance with the provisions in Annex II to the Joint Declaration, the JLG has taken Hong Kong as its principal base since July 1, 1988. Both sides have established their offices here and their respective senior representatives are now resident in Hong Kong. This has facilitated closer liaison which has led to more rapid progress on many issues. The JLG will, nevertheless, continue to hold plenary sessions at least once every year in Beijing and London, as well as in Hong Kong.

      Despite the temporary disruption to the work of the JLG, three meetings were held during the year and progress was made in a number of important areas. The two sides continue to work closely together to find solutions which are in the best overall interests of Hong Kong and its future.

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IMPLEMENTATION OF THE SINO-BRITISH JOINT DECLARATION

50

Defence and Public Order

The two sides continued discussions on the implementation of the Joint Declaration in respect of defence and the maintenance of public order. These discussions included the practical arrangements for the transfer of defence responsibilities in 1997.

Court of Final Appeal

The Joint Declaration provides for the establishment of a court of final appeal in the Hong Kong Special Administrative Region (HKSAR). During 1989, the two sides continued their discussions on the establishment of a court of this nature in Hong Kong before 1997.

Localisation of Laws

A large number of United Kingdom enactments currently apply to Hong Kong. These will cease to have legal effect in Hong Kong after 1997. It will, therefore, be necessary to 'localise' them before 1997, that is, replace them by legislation enacted in Hong Kong which will survive 1997. At the eighth meeting of the JLG held in November 1987, the two sides agreed on the general principles for consultation on the localisation of United Kingdom enactments, since when considerable progress has been made. The first piece of localised legislation, the Supreme Court (Amendment) Ordinance dealing with Admiralty jurisdiction in respect of civil proceedings, was enacted in February 1989. Four sets of Merchant Shipping (Safety) Regulations were localised in May 1989 and two bills relating to merchant shipping were introduced into the Legislative Council in June 1989.

Air Service Agreements

In 1988, Hong Kong signed new Air Service Agreements (ASA), separate from those of the United Kingdom, with Switzerland and with Canada. An ASA with Brunei was signed and entered into force on January 9, 1989, and negotiations with a number of other aviation partners are at an advanced stage.

Sub-group on International Rights and Obligations

The Sub-group on International Rights and Obligations, set up by the Joint Liaison Group, was formally established in July 1986 to examine and discuss matters relating to the continued application of international rights and obligations affecting Hong Kong and to report its conclusions to the JLG. The sub-group, which is based in Hong Kong, consists of three experts on each side, supplemented as necessary by other experts and supporting staff.

   The considerable number of treaties and international obligations relevant to Hong Kong which the sub-group will have to examine individually indicates that its work will take a number of years to complete. So far the sub-group has held eight meetings and has made good progress. In 1989, expert exchanges in the sub-group led to agreement between the two sides at the JLG on Hong Kong's continued participation after 1997 in the International Monetary Fund (IMF), the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC) and the International Development Association (IDA). It was agreed that after 1997, Hong Kong would continue its present participation in these organisations, and that the IBRD, the IFC and the IDA could conduct operations in Hong Kong or in Hong Kong dollars in accordance with their relevant articles of agreement when the need arose. The JLG has now reached agreement on Hong Kong's continued participation in a total of 24 international organisations.

IMPLEMENTATION OF THE SINO-BRITISH JOINT DECLARATION

Land Commission

The Sino-British Land Commission was established in 1985 in accordance with Annex III to the Joint Declaration. Its function is to conduct consultations on the implementation of the provisions of Annex III on land leases and other related matters. The commission is composed of three officials on each side and meetings are held in Hong Kong.

During 1989, the Land Commission held two formal meetings. Agreement was reached at the meeting held in March on the 1989-90 Land Disposal Programme to make available about 78 hectares of land during the financial year. In addition, the commission agreed that a further five hectares of land could be released for commercial, residential and industrial development in the course of the year, if there was a demand for it.

       Under the terms of paragraph 6 of Annex III to the Joint Declaration, premium income obtained by the Hong Kong Government from land transactions is, after deduction of the cost of land production, to be shared equally between the Hong Kong Government and the future Hong Kong Special Administrative Region Government. The average cost of land production is adjusted by the commission annually, and for the 1989-90 financial year the agreed figure was $2,390 per square metre. The Hong Kong Government's share of premium income is put into the Capital Works Reserve Fund for financing public works and land development. The future SAR Government's share is held in a trust fund, called the Hong Kong Special Administrative Region Government Land Fund, established by the Chinese side of the Land Commission. The fund is managed under the direction and advice of an investment committee, which includes among its members prominent bankers in Hong Kong, as well as a monetary expert from the Hong Kong Government. Over $16,485 million, representing the future SAR Government's share of premium income for the period May 27, 1985 to September 30, 1989, has been transferred to the fund.

The Basic Law

The Joint Declaration provides that the basic policies of the People's Republic of China (PRC) regarding Hong Kong will be stipulated in a Basic Law of the Hong Kong Special Administrative Region by the National People's Congress (NPC) of the PRC, and these policies will remain unchanged for 50 years. The Chinese Government appointed in 1985 the Basic Law Drafting Committee (BLDC), which comprises both mainland and Hong Kong members, to undertake the drafting of the document. The Basic Law Consultative Committee (BLCC), consisting exclusively of Hong Kong members of broad repre- sentation, was also established to canvass the views of Hong Kong people on the draft Basic Law.

      The first complete draft of the Basic Law was published in April 1988, followed by a five-month consultation exercise conducted by the BLCC. Many of the views expressed during the consultation exercise were reflected in a revised draft, which the BLDC submitted in February 1989 to the Standing Committee of the NPC. The Standing Committee then endorsed the 'Basic Law for the Hong Kong Special Administrative Region of the People's Republic of China (Draft)' for further consultation.

       Consultation on the second draft of the Basic Law was originally scheduled to last until July. As in the first consultation round, a delegation of mainland BLDC members visited Hong Kong in April to receive public opinions on the draft at first hand.

       The work of both the BLDC and BLCC was, however, interrupted by the events in China early in June. Consultation on the second draft was not resumed until late July, when the consultation period was extended by three months to the end of October.

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IMPLEMENTATION OF THE SINO-BRITISH JOINT DECLARATION

  In December, the five BLDC Special Groups met again to discuss how the second draft should be revised in the light of the outcome of the second consultation exercise. It was agreed that the Special Group on Political Systems would meet again in January 1990. The BLDC will meet in plenary session, in February 1990, to consider the final draft. This will then be submitted to the NPC, which is expected to promulgate the Basic Law in the spring of 1990.

5

THE ECONOMY

THE growth rate of the Hong Kong economy slowed down further in 1989. This was brought about partly by reduced overseas demand for Hong Kong's products and partly by the economy adjusting itself to capacity constraints following several years of rapid growth.

      The year-on-year growth rate of domestic exports showed a marked deceleration during the year, from an increase of four per cent in real terms in the first half to a decline of three per cent in real terms in the second half. The corresponding growth rate for 1988 as a whole was nine per cent. The year-on-year growth rate of re-exports also moderated, with increases in real terms of 29 per cent in the first half and 11 per cent in the second half. The increase for 1988 as a whole was 46 per cent. Domestic demand, including consumption and investment, was sluggish in the latter part of the year. Reflecting these developments, the gross domestic product (GDP) grew by only 2.5 per cent in real terms in 1989, compared with increases of 14 per cent in 1987 and seven per cent in 1988.

Repercussions of the events in China in mid-1989 reinforced the cyclical downturn of the economy. While certain sectors like property and tourism suffered more than others, the economy at large weathered the short-term impact well. There was little disruption in manufacturing and trading activities, including outward processing arrangements across the border.

As the economy was still operating close to capacity, the labour market remained generally tight. The seasonally-adjusted unemployment rate and the underemployment rate stayed at a low level throughout the year, moving between 1.3 and 1.4 per cent and 0.6 and 0.8 per cent respectively. The employment situation varied between major sectors. While employment in the manufacturing sector declined, employment in the service sectors generally increased.

       Labour incomes were boosted by the sustained demand for labour. Earnings in the manufacturing sector and in most service sectors increased significantly, both in money terms and in real terms. However, as economic activity continued to slow down, the pressure of demand for labour tended to ease. The number of vacancies in most sectors, such as manufacturing, building and construction, wholesale/retail and import/export trades, and restaurants and hotels, declined in the latter part of 1989 compared with a year earlier.

The Consumer Price Index (A), as one of the major indicators of inflation, averaged 10.1 per cent higher in 1989 compared with a year earlier. The corresponding rate of increase in this Index was 5.5 per cent in 1987 and 7.5 per cent in 1988. However, the rate of inflation had shown a tendency to ease towards the end of the year, in line with the moderation in economic growth.

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THE ECONOMY

54

Structure and Development of the Economy

Because of limited natural resources, Hong Kong has to depend on imports for virtually all its requirements, including food and other consumer goods, raw materials, capital goods, fuel and even water. It must, therefore, export on a sufficient scale to generate foreign exchange earnings to pay for these imports, and the volume of exports must continue to grow if the population is to enjoy a rising standard of living.

The externally-oriented nature of the economy can be seen from the fact that in 1989 the total value of visible trade (comprising domestic exports, re-exports and imports) amounted to 231 per cent of the GDP. If the value of imports and exports of services is also included, this ratio becomes 263 per cent. Between 1979 and 1989, Hong Kong's domestic exports grew at an average annual rate of about nine per cent in real terms, which was roughly twice the growth rate of world trade. The corresponding average annual increase was 25 per cent for re-exports and 14 per cent for imports. With a gross value of $1,136 billion in overall visible trade in 1989, Hong Kong ranks high among the world's trading economies.

Contributions of the Various Economic Sectors

The relative importance of the various economic sectors can be assessed in terms of their contributions to the GDP and to total employment.

Primary production (comprising agriculture and fishery, mining and quarrying) is small in terms of its contributions to employment and to the GDP.

Within secondary production (comprising manufacturing; the supply of electricity, gas and water; and construction), manufacturing accounts for the largest share in terms of both the GDP and employment. The contribution of the manufacturing sector to the GDP declined steadily from 31 per cent in 1970 to 21 per cent in 1982. It was 23 per cent in 1983, 24 per cent in 1984, and stabilised at around 22 per cent during the period 1985 to 1987, before decreasing to 20 per cent in 1988. The share of the construction sector in the GDP increased from four per cent in 1970 to eight per cent in 1981. It then declined to seven per cent in 1982 and six per cent in 1983, before settling at about five per cent during the period 1984 to 1988.

The contribution of the tertiary services sectors as a whole (comprising the wholesale, retail and import/export trades, restaurants and hotels; transport, storage and commu- nications; finance, insurance, real estate and business services; and community, social and personal services) to the GDP increased from 60 per cent in 1970 to 65 per cent in 1982. It fell to around 62 to 64 per cent during the period 1983 to 1986, before rising to 67 per cent in 1988.

The tertiary services sectors are highly diversified. The contribution of the wholesale, retail and import/export trades, restaurants and hotels to the GDP varied between 19 and 21 per cent in 1970 to 1983, before rising to 25 per cent in 1988. The contribution of the transport, storage and communication sector to the GDP was stable at around seven to eight per cent, before rising to nine in 1987 and 1988. The contribution of the finance, insurance, real estate and business services sector to the GDP experienced considerable fluctuation, however. It rose from 15 per cent in 1970 to 24 per cent in 1981, but fell to 16 per cent in 1984, mainly reflecting the slump in the property market. The contribution of this sector to the GDP then rose steadily, to 19 per cent in 1988.

With regard to employment, the most notable change since the early 1970s is that, whereas the manufacturing sector still takes up the largest proportion of the employed workforce, its share has been on a continuous decline, from 47 per cent in 1971 to 41 per cent in 1981, and further to 31 per cent in 1989. On the other hand, the share of the tertiary

THE ECONOMY

service sectors as a whole in total employment increased from 41 per cent in 1971 to 47 per cent in 1981, and further to 58 per cent in 1989.

The Manufacturing Sector

Although Hong Kong's domestic exports are still concentrated in a number of major product groups, there has been considerable upgrading of quality and diversification of items within these groups. The pressure of protectionism and growing competition from other economies have resulted in local manufacturers intensifying their efforts to diversify, not only in respect of products but also of markets. It is estimated that about 80 per cent of Hong Kong's manufacturing output is eventually exported.

Manufacturing firms in Hong Kong must be flexible and adaptable in order to cope with the frequent changes in demand patterns and to maintain their external competitiveness. The existence of a large number of small establishments providing an extensive local sub-contracting system has greatly facilitated the necessary shifts in production and has helped to increase the flexibility of the economy. Moreover, increasing use has been made of the outward processing facilities in China for handling some of the production processes. Because of the limited amount of usable land, Hong Kong's manufacturing industries are generally those which can operate successfully in multi-storey factory build- ings. This, in practice, implies concentration in the production of light manufactures.

      Over the past 30 years, many industries have emerged and grown, the most notable being plastics and electronics. The textiles and clothing industries remain prominent, however. Other developing industries include fabricated metal products, electrical appliances, watches, clocks, toys, jewellery, printing and publishing.

      During the period 1973 to 1987, value of net output by the manufacturing sector grew at an average annual rate of 17 per cent, while manufacturing employment grew at a rate of only two per cent. Thus, a significant secular improvement in labour productivity was apparent, even though part of the increase in the value of net output was absorbed by increases in prices.

Within the manufacturing sector, the most significant change occurred in the textiles industry. The share of this industry in the net output of manufacturing declined from 27 per cent in 1973 to 17 per cent in 1987, and its share in manufacturing employment from 21 per cent to 14 per cent. Offsetting this decline was the expansion of the clothing, electrical appliances and electronics, and watches and clocks industries. Between 1973 and 1987, their shares in the net output of manufacturing increased from 20 per cent to 24 per cent, from nine per cent to 15 per cent, and from one per cent to three per cent respectively, while their shares in manufacturing employment increased from 26 per cent to 29 per cent, from 11 per cent to 14 per cent, and from one per cent to three per cent respectively.

Domestic exports in 1989 consisted principally of wearing apparel and clothing accessories (32 per cent of the total value), electronics (25 per cent), watches and clocks (seven per cent), textiles (seven per cent), plastic products (four per cent), metal products (three per cent) and electrical household appliances (two per cent). In terms of share in the total value of domestic exports, the most significant change over the past 10 years has been the decline in the relative importance of clothing, from 36 per cent in 1979 to 32 per cent in 1989. This decline was offset by increases in the relative importance of such commo- dities as telecommunications and sound recording and reproducing equipment, electrical machinery and appliances, and office machines and automatic data processing equipment. The combined share of these three commodity groups in the total value of domestic exports rose from 16 per cent in 1979 to 22 per cent in 1989.

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56

   Market diversification is the combined result of the initiatives taken by local manu- facturers and exporters, and the promotion efforts financed by the government. Since the late 1950s, the United States has been the largest market for Hong Kong's domestic exports, in place of the United Kingdom. Gradually, the share of domestic exports going to such countries as the Federal Republic of Germany, Japan, Canada and Australia, and to the South-east Asian economies has also increased. In recent years, China has become the second-largest market for Hong Kong's domestic exports. In addition, Hong Kong has diversified into other new markets, including countries in the Middle East, Eastern Europe, Latin America and Africa.

The Service Sectors

Over the past decades, the rapid growth in external trade has not only enabled Hong Kong to build up a strong manufacturing base, it has also provided the underlying conditions for the service sectors to flourish. Of particular note was the rapid growth and development in finance and business services, including banking, insurance, real estate, and a wide range of other professional supports.

The prominence of entrepôt trade re-emerged in the late 1970s as China adopted open-door economic policies to facilitate its modernisation drive. Hong Kong, as a strategic gateway to China, was well positioned to take advantage of these opportunities. Trading and other economic links between Hong Kong and China thus increased rapidly.

   Over the years, Hong Kong has developed an efficient wholesale and retail network to cater for the growing consumption needs of a more affluent population. Supermarkets, large department stores and modern shopping centres have become increasingly popular. The rapid growth in tourism since the 1970s has reinforced this development. Restaurants and hotels have also experienced a substantial increase in their volume of business. Furthermore, with increased household incomes, there was a growing demand for services of a better quality to meet the rising standard of living. Thus services in the community, social and recreational fields have also grown substantially.

   Given its strategic location in relation to China and the Asia-Pacific region as a whole, as well as between the East and the West, and given its excellent communications network, efficient infrastructure and well-established services, Hong Kong has developed into the hub for trade, finance and business services in the region.

   Between 1979 and 1989, exports of services rose at an average annual rate of nine per cent in real terms, while imports of services had a corresponding increase of 12 per cent. The major components of Hong Kong's invisible trade are shipping, civil aviation, tourism and various financial services.

Increasing Economic Links between Hong Kong and China

  China's adoption of open-door economic policies since 1979, in support of its modernisation programmes, has led to a rapid increase in economic links between Hong Kong and China, with a profound impact on the growth and development of the Hong Kong economy.

   China has been Hong Kong's largest trading partner since 1985. In 1989, the total value of merchanise trade between Hong Kong and China amounted to $343 billion, repre- senting an increase of 19 per cent over 1988. This growth rate was, however, significantly lower than the average annual increase of 39 per cent between 1978 and 1988. A setback in outward processing activities across the border, which was caused partly by supply bottlenecks in China and partly by slow growth in overseas demand, and the intensifica-

THE ECONOMY

     tion of China's austerity measures, have contributed to a slackening in Hong Kong's exports to China. Despite this slow-down, China remained the largest market for Hong Kong's re-exports and the second largest market for Hong Kong's domestic exports. About 50 per cent of Hong Kong's total exports to China was related to outward processing trade. China was also the largest supplier of goods to Hong Kong, although a predominant proportion of these goods were re-exported. In 1989, China accounted for 30 per cent of Hong Kong's overall external trade (19 per cent of its domestic exports, 30 per cent of its re-exports, and 35 per cent of its imports). Reciprocally, Hong Kong overtook Japan to become China's largest trading partner in 1987. In 1988, Hong Kong accounted for 29 per cent of China's overall external trade (38 per cent of its exports and 22 per cent of its imports).

In entrepôt trade, China has been the largest re-exports market for Hong Kong since 1980. It has also long been the largest source of goods re-exported through Hong Kong. In 1989, 81 per cent of Hong Kong's re-exports were related to China, either as a market or as a source of supply.

      Besides merchandise trade, various forms of invisible trade between Hong Kong and China have also increased rapidly since the adoption of open-door policies in China. These included tourism and travel services, transport services, financial services, and professional and other business services.

Hong Kong has been providing a convenient gateway to China for business and tourism. In 1989, about 15 million trips to China were made by Hong Kong residents, and another 1 million trips to China were made by foreign visitors through Hong Kong. These were, however, eight per cent and 16 per cent respectively lower than in 1988, mainly because of the impact of the events in China in mid-1989.

      Given the slow-down in trade and in passenger movements, the rapid growth in transport services between Hong Kong and China since 1979 decelerated in 1989. On cargo transport, the volume of inward cargo from China showed little change, while China-bound cargo increased by nine per cent, in the first three quarters of 1989, compared with the same period in 1988. The corresponding increase in tonnage terms between 1979 and 1988 averaged about 11 per cent and 49 per cent per annum. Part of these cargo movements were transhipments. Most of the cargo was transported by water, although an increasing proportion was carried by road. With passenger traffic, there was an eight per cent decline in 1989 over 1988. The corresponding increase between 1979 and 1988 averaged 21 per cent per annum. An increasing proportion of the passenger trips were made by air in recent years.

Hong Kong's direct investment in China has been concentrated in light manufacturing industries such as electronics, plastics, textiles and wearing apparel. Investment in hotels and tourist-related facilities and in infrastructure has also been undertaken. Most investment is in joint ventures of various forms with China enterprises. Hong Kong is the most important source of external investment in China, accounting for about 70 per cent of the realised total. Moreover, many Hong Kong manufacturers have established compen- sation trade and outward processing arrangements with Chinese entities, located mainly in the Pearl River Delta region and the Shenzhen Special Economic Zone.

      China's investment in Hong Kong has increased greatly in recent years and has diversified into practically all major economic sectors. Besides the traditional banking, trade, and trade-related activities like transportation and warehousing, new areas of invest- ment include manufacturing, property development, infrastructural projects, supermarkets and hotels.

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58

The Economy in 1989

The growth rate of the economy continued to decelerate in 1989. While re-exports rose less rapidly, domestic exports showed a decline in real terms in the second half of 1989, over a year earlier. In the domestic sector, consumption and investment demand slackened in line with the consolidation in economic activity.

Events in China in June have also affected economic growth. The stock and property markets and tourist-related sectors were particularly hard-hit immediately after the events early in June. Since then, some recovery has been evident, although the pace of im- provement varied. The manufacturing and trading sectors had not been disrupted to any significant degree. On the whole, the economy weathered the short-term impact well.

Despite the slow-down in activity, the economy was still facing capacity constraints. The labour market remained generally tight throughout 1989 and the rate of inflation was relatively high. The vacancies situation in most sectors improved in the latter part of the year, while consumer price inflation showed a tendency to ease.

Preliminary estimates show that the growth rate in real terms of the GDP was only 2.5 per cent in 1989, following increases of 14 per cent in 1987 and seven per cent in 1988. Over the past five years, the GDP rose at an average annual rate of seven per cent in real terms, a highly satisfactory performance by world standards.

External Trade

In 1989, the value of domestic exports grew by three per cent over 1988. After allowing for an estimated three per cent increase in prices, domestic exports showed virtually zero growth in real terms. This represents a marked slow-down when compared with an increase of 11 per cent in value terms, or nine per cent in real terms, recorded in 1988. On a year-on-year comparison, domestic exports rose by six per cent and two per cent respec- tively, in real terms, in the first and second quarters, but fell by one per cent and four per cent respectively, in real terms, in the third and fourth quarters. This slow-down was largely attributable to a slackening in demand for Hong Kong's products in overseas markets. It was also affected by reduced price competitiveness due to the appreciation of the Hong Kong dollar, in line with the US dollar, against the currencies of many major markets during 1989.

Domestic exports to the various major markets showed a mixed performance in 1989. On a year-on-year comparison, domestic exports to Japan grew significantly, by about 16 per cent in real terms. The growth rate in real terms of domestic exports to China, as Hong Kong's second largest market, decelerated sharply from 27 per cent in the first half of 1989 to about one per cent in the second half. This was attributable partly to the intensification of China's austerity programme since June and partly to a setback in outward processing activities across the border. Domestic exports to the United States, the Federal Republic of Germany and the United Kingdom declined by about four per cent, four per cent and nine per cent respectively in real terms. Although the United States remained the largest market for Hong Kong's domestic exports, its share fell to 32 per cent in 1989, from 37 per cent in 1987 and 33 per cent in 1988. This reflects, in part, the continuous efforts of local manufacturers and exporters to diversify their markets.

In terms of major product categories, domestic exports of clothing and textiles grew in real terms by about four per cent and seven per cent respectively in 1989. Their shares in the total value of domestic exports in 1989 were 32 per cent and seven per cent respectively. Domestic exports of electronic components also increased, by about 22 per cent in real terms. While domestic exports of watches and clocks showed zero growth, significant

THE ECONOMY

     declines were recorded in domestic exports of radios (by about 41 per cent in real terms) and domestic electrical appliances (by about 26 per cent). Domestic exports of metal manufactures also decreased by about 12 per cent in real terms.

      At 26 per cent in value terms, or about 29 per cent in real terms, the growth rate of re-exports in 1989 was still substantial, although much lower than the increase of 51 per cent in value terms, or 46 per cent in real terms, recorded in 1988. A large proportion of the re-exports were related to conventional entrepôt trade with China in particular and with the Asia-Pacific region generally.

      China remained the largest source of, as well as the largest market for, Hong Kong's re-exports. The value of re-exports of China origin continued to grow rapidly in 1989, while the value of re-exports to China showed much slower growth during the year. Meanwhile, the value of re-exports not related to China also grew significantly. Besides China, the other major re-export markets were the United States, Japan, Taiwan, the Republic of Korea and the Federal Republic of Germany. The major suppliers of Hong Kong's re-exports, apart from China, were Japan, Taiwan, the United States and the Republic of Korea.

Analysed by end-use categories, Hong Kong's re-exports comprised mostly raw materials and semi-manufactures, and consumer goods, which represented 35 per cent and 48 per cent respectively of the total value of re-exports in 1989. Re-exports of footwear, textile fabrics, electrical machinery and appliances, clothing and radios showed more rapid increases than those of other commodity items.

Imports grew by 13 per cent in money terms or by about nine per cent in real terms in 1989, compared with corresponding increases of 32 per cent and 27 per cent in 1988. The major sources of Hong Kong's imports were China, Japan, Taiwan, the United States, the Republic of Korea and Singapore. A large part of this growth was attributable to the surge in re-export trade. As regards retained imports, there was virtually no increase in real terms in 1989. Retained imports of fuels, foodstuffs, and of raw materials and semi-manufactures grew by about 14 per cent, six per cent and five per cent respectively in real terms over 1988. However, reflecting a slackening in domestic demand, retained imports of consumer goods and capital goods fell by about 12 per cent and two per cent in real terms, respectively.

      As the value of total exports (domestic exports plus re-exports) was larger than that of imports, a visible trade surplus of $7,728 million, equivalent to 1.4 per cent of the total value of imports, was recorded in 1989. If an estimate of the imports of gold for industrial and commercial use is included, the surplus would have been $5,271 million. This compares with a deficit of $5,729 million (or a deficit of $8,105 million after a similar adjustment for gold imports) recorded in 1988. As the prices of imports increased at a slower rate than those of total exports in 1989, there was a small improvement in the terms of trade.

Domestic Demand

As the pace of economic growth moderated further, the growth rate in real terms of domestic demand slowed down from seven per cent in 1988 to one per cent in 1989. Private consumption expenditure grew by three per cent in real terms in 1989, having increased by six per cent in 1988, while government consumption expenditure grew by nine per cent in real terms, having increased by five per cent in 1988. Investment demand, measured in terms of gross domestic fixed capital formation, grew by only one per cent in real terms in 1989, slower than the corresponding increase of six per cent in 1988. Among its main components, expenditure on building and construction grew by five per cent in real terms in 1989, having increased by one per cent in 1988. Expenditure on plant, machinery and

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60

equipment grew by 1.5 per cent in real terms, compared with an increase of 15 per cent in the preceding year. Public sector expenditures on these two components recorded relatively faster growth than the corresponding private sector expenditures in 1989.

The Labour Market

Conditions in the labour market remained generally tight throughout 1989, with the unemployment and underemployment rates staying at very low levels. In the fourth quarter, the seasonally adjusted unemployment rate was 1.3 per cent and the under- employment rate was 0.8 per cent. The corresponding figures in the fourth quarter of 1988 were 1.3 per cent and 0.7 per cent.

Between September 1988 and September 1989, manufacturing employment decreased by five per cent to 803 000, while employment in the service sectors as a whole increased by eight per cent to 1 366 000. Thus labour resources continued to shift from manufacturing to services in 1989. Among the various service sectors, employment in water transport, air transport and services allied to transport rose by 13 per cent; that in the wholesale, retail and import/export trades by nine per cent; that in finance, insurance, real estate and business services by eight per cent, and that in restaurants and hotels by eight per cent in September 1989, over a year earlier. Employment on building and construction (including civil engineering) sites decreased by eight per cent over the same period. For the building and construction industry as a whole, employment (covering both site workers and non-site workers) decreased by two per cent. In line with the moderation in economic growth, vacancies in manufacturing decreased by 20 per cent from September 1988 to 44 000 in September 1989, and those in the service sectors as a whole by four per cent to 53 700.

Despite the decrease in manufacturing employment, local manufacturing output, as measured by the index of industrial production, was two per cent higher in the first three quarters of 1989 than in the same period in 1988. The increase in 1988 over 1987 was six per cent. At least part of these increases in output were derived from a general improvement in labour productivity, given the substantial investment in plant and machinery over the past few years. Relocation of the more labour-intensive production processes across the border has also helped to increase labour productivity in the local manufacturing sector.

Labour incomes were boosted by the sustained demand for manpower. Comparing September 1989 with September 1988, earnings in the manufacturing sector and in most service sectors, in terms of payroll per person engaged, showed significant gains in money terms and in real terms. Among the various sectors, earnings in the manufacturing sector were higher by 16 per cent in money terms or six per cent in real terms; those in financial institutions by 21 per cent in money terms or 10 per cent in real terms; those in restaurants and hotels by 13 per cent in money terms or three per cent in real terms; those in transport, storage and communications by 16 per cent in money terms or six per cent in real terms, and those in the wholesale, retail and import/export trades by 19 per cent in money terms or eight per cent in real terms. In the building and construction sector, wage rates continued to increase substantially in 1989, by an average of 23 per cent in money terms or 11 per cent in real terms, over a year earlier.

The Property Market

Continuing the trend in 1988, demand for most types of property remained strong and trading was active in the first few months of 1989. There were, however, signs of consoli- dation in the property market given the rapid increases in property prices and rentals

*AX

ES

Hong Kong's forward-looking Port and Airport Development Strategy includes the construction of a new International Airport and extensive new port facilities. Previous page: The single runway at Kai Tak International Airport, seen from the east. By 1997, Kai Tak will be replaced by a new airport at Chek Lap Kok, off the north coast of Lantau Island.

Below: Kwai Chung Container Port, in Victoria Harbour, has helped to establish Hong Kong as the world leader in terms of container throughput. More terminals are planned, to provide more capacity.

Right: The serenity of the north shore of Lantau island (right) is soon to be overtaken by 20th century development. The small island of Chek Lap Kok (centre) is the site chosen for Hong Kong's new International Airport. In the far distance (from left to right) are the Tsuen Wan/Kwai Chung complex, Kowloon peninsula and Hong Kong Island.

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.

}

35

i

Opposite: A new dual two-lane underpass, at the junction of Connaught Road and Pedder Street, enhances the free flow of traffic in Central.

Below: The Eastern Harbour Crossing, a vital new road and rail link between Hong Kong Island and eastern Kowloon, opened in September 1989. Shown here is the road complex at Quarry Bay on the Hong Kong side.

Below: The old, familiar green Peak Trams made their last haul up Victoria Peak this year. They were replaced during an extensive renovation of the century-old system.

Right: In elegant burgandy and gold livery, the new Peak Tram cars are bigger, faster and more comfortable than their predecessors.

Last page of colour section: As popular as ever, Hong Kong's picture-postcard trams are still going strong after 85 years. Replicas of the early models are on hire for tours and private parties.

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7

AT&T

KINCHING TRAMWAYS LIMITED

PRIVATE HRE

123

Established

in 1904

THE ECONOMY

     in recent years and the successive rises in mortgage rates since the latter part of 1988. The events in China in the middle of 1989 reinforced the consolidation. Immediately after these events, transactions were few and prices were reported to have fallen by an average of 15 to 20 per cent. Since late July there had been signs of revival, although the pace of recovery differed between sub-sectors. Support had largely re-emerged from end-users of small to medium-sized residential flats, and to some extent also from buyers of luxury flats. The demand for shopping space weakened in the latter part of the year, affected by a slackening in the tourist industry and in local consumption expenditure. As regards office space, the leasing market was generally stable in the latter part of the year, although prices had probably eased marginally. The demand for industrial premises remained moderate.

Developers became more cautious and selective in their investment after early June. Although land prices had softened compared with the levels that were attained earlier in the year, response to some of the more recent government land auctions was reasonably satisfactory, indicating that many developers maintained an optimistic outlook for the property market.

Inflation

The rate of consumer price inflation, as measured by the Consumer Price Index (A), averaged 10.1 per cent in 1989. This was the highest rate of increase since 1983, when it was 9.9 per cent. The corresponding rates of increase were 5.5 per cent in 1987 and 7.5 per cent in 1988. With the economy operating close to capacity, the inflationary pressures during the year were largely domestically generated. However, in the latter part of 1989, the inflation rate showed a tendency to ease, in line with the moderation in economic growth.

      Among the various component items of the CPI(A), those commodities which do not have direct substitutes from outside sources or which possess a substantial wage and rental component, such as foodstuffs (mainly meals bought away from home), transport and vehicles and various types of services showed the fastest increases in prices in 1989 over 1988. For these three components the rates of increase were 12.3 per cent, 12.1 per cent and 11.4 per cent respectively. Together they accounted for 75 per cent of the overall increase in the CPI(A).

Economic Policy and Public Finances Economic Policy

     Economic policy in Hong Kong is to a large extent dictated, and constrained, by the special circumstances of the economy. Owing to its small and open nature, the economy

is vulnerable to external factors, and government actions designed to offset unfavourable external influences are of limited effectiveness. Further, the government considers that, except where social considerations are over-riding, the allocation of resources in the economy is best left to market forces with minimal government intervention in the private sector.

       This basically free-enterprise, market-disciplined system has contributed to Hong Kong's economic success. The narrowly-based tax structure with relatively low tax rates provides an incentive for workers to work and for entrepreneurs to invest. Both workers and entrepreneurs are highly motivated, given that all individuals have an equal opportunity to better their lot. The primary role of the government is to provide the necessary infrastructure and a sound legal and administrative framework conducive to economic growth and prosperity.

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THE ECONOMY

Structure of Government Accounts

  In accounting terms, the public sector is taken to include the Hong Kong Government itself, the Housing Authority and Urban and Regional Councils. Government grants and subventions to institutions in the private or quasi-public sectors are included but expenditure by organisations in which the government has only equity, such as the Mass Transit Railway and Kowloon-Canton Railway Corporations, is not included.

   The government controls its finances through a series of fund accounts. The General Revenue Account is the main account for day-to-day departmental expenditure and revenue collection. Five other funds exist mainly to finance capital expenditure and to make loans. They are Capital Works Reserve, Development Loan, Lotteries, Mass Transit, and Student Loan Funds.

   The Capital Works Reserve Fund finances the Public Works Programme, land acqui- sitions, capital subventions, and major systems and equipment. On May 27, 1985, when the Sino-British Joint Declaration came into effect, the fund was restructured to enable the premium income obtained from land transactions to be accounted for in accordance with the arrangements in Annex III to the Joint Declaration. The income of the fund is derived mainly from premiums and transfers from the General Revenue Account.

The Development Loan Fund is used mainly to finance social and economic develop- ments. Its income is derived from interest payments, capital repayments and transfers from the General Revenue Account.

   The Lotteries Fund is used to finance 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 at the two universities, the two polytechnics, the 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 enable the fund to meet its commitments, the only other source of income being loan repayments.

Management of the Budget

The government manages its finances against the background of a rolling five-year Medium Range Forecast of expenditure and revenue. This models the consolidated financial position of the General Revenue Account and of all the funds except the Lotteries Fund. Expenditure projections are regularly updated to take account of expected increases in the demand for and supply of government services. Revenue projections are updated to reflect the government's fiscal policies, changes in fees and charges for government services, and the general economic outlook.

   A number of key principles underlie the government's management of public ex- penditure. The first is that the rate of growth of public sector expenditure should over a period be close to that of gross domestic product. The second is that there should be a broad balance of revenue and expenditure, erring on the side of surplus, to ensure that the government maintains adequate reserves. The third is that at least half the government's capital expenditure should be financed from operating surpluses the excess of recurrent revenue over recurrent expenditure. Other guiding principles concern taxation policy,

62 capital spending, and the rate of growth of the Civil Service.

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THE ECONOMY

      The Budget presented by the Financial Secretary to the Legislative Council each year is developed against the background of the Medium Range Forecast to ensure that full regard is given to these principles and to longer-term trends in the economy.

      In recent years, the administration has embarked on a programme of internal financial management reforms which are intended to help departments, and the government as a whole, to obtain progressively better value for money. The main emphasis of this programme is on ensuring that expenditure priorities are set at key points in the planning process, on focusing line managers' attention more directly on the results they intend to achieve with public funds and on clearly delegating the responsibility for value for money to line managers in departments, who are best placed to seek improvements.

Public Sector Expenditure

Consolidated public sector expenditure in 1988-9 was $64.8 billion. The government itself accounted for $53.4 billion, excluding contributions to other public sector bodies. The growth rate of consolidated public sector expenditure over the preceding year was 21 per cent in money terms, or 7.7 per cent in real terms.

      The growth rate of consolidated public sector expenditure is compared with the rate of economic growth at Appendix 9. Consolidated public sector expenditure has been around 15 to 16 per cent of the gross domestic product since 1984-5.

      Total government revenue in 1988-9 was $72.6 billion. The consolidated surplus of $18.8 billion, comprising $16.8 billion on the General Revenue Account and $2 billion in the other funds. The surplus reflected higher than anticipated yields from profits tax and stamp duty. Details of revenue by source and of expenditure by component for 1988-9 and the original estimates for 1989-90 are at Appendix 8. An analysis of expenditure by function is at Appendix 10.

      Some $18.5 billion (28 per cent) of consolidated public sector expenditure in 1988-9 was of a capital nature. There was no additional borrowing in 1988-9. The balance of the government's outstanding borrowings at the end of the year was $1 billion. This was repaid in full in 1989-90.

      The draft Estimates of Expenditure on the General Revenue Account are presented by the Financial Secretary to the Legislative Council when he delivers his annual Budget Speech. In the Appropriation Bill, introduced into the Legislative Council at the same time, the administration seeks appropriation of the total estimated expenditure on the General Revenue Account.

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

With the exception of only four years (1974-5, 1982-3, 1983-4 and 1984-5) in the past twenty years, the General Revenue Account has shown a surplus income over expenditure at the end of each year. The accumulated net surpluses on the General Revenue Account form the government's fiscal reserves. These secure the government's contingent liabilities and ensure that it is able to cope with any short-term fluctuations in expenditure relative to

revenue.

      The Urban Council and Regional Council, which operate through the Urban Services Department and Regional Services Department respectively, are financially autonomous. They draw up their own budgets and expenditure priorities. The expenditures of the two councils are financed mainly from a fixed percentage of the rates from property in the

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64

Urban Council area (Hong Kong, Kowloon and New Kowloon) and in the Regional Council area (New Territories). Additional income derives from fees and charges for the services the councils provide. The government has agreed to provide a grant of $273.6 million per annum to the Regional Council for three years from 1988-9 to 1990-1 to enable the council to finance all new projects in its capital works programme.

   The Housing Authority, operating through the Housing Department, is also financially autonomous. Its income is derived mainly from rents. If the authority's cash flow is inadequate to meet the construction costs of new estates, it may request an injection of capital by the government. The authority is provided with land on concessionary terms for the construction of rental housing. Part of the authority's recurrent expenditure, for such activities as clearances and squatter control, is financed from the General Revenue Account. The authority is also responsible for carrying out a programme of squatter area improvements which are funded from the Capital Works Reserve Fund.

Revenue Sources

Duties are levied on six groups of commodities - hydrocarbon oils, alcoholic liquor, methyl alcohol, tobacco, non-alcoholic beverages and cosmetics. The Customs and Excise Department is responsible for collecting and protecting duty revenue. The Dutiable Commodities Ordinance imposes controls on the import, export, manufacture, sale and storage of dutiable items. In 1988-9, $4,173 million was collected in duties, compared with $3,389 million in 1987-8.

   Specific duty rates on alcoholic liquors range from $1.45 a litre on cider and perry to $52 a litre on brandy. In addition, duty is payable at the rate of 30 per cent of the c.i.f. value of spirits and 20 per cent of the c.i.f. value of wines. On tobacco, duties range from $50 a kilogram on Chinese-prepared tobacco to $190 per 1 000 cigarettes. On motor and aircraft fuels the duty is $2.75 a litre, and on diesel oil for road vehicles it is $1.37 a litre. Duty is levied on methyl alcohol at a rate of $4.90 a litre, and on non-alcoholic beverages at $60 a hectolitre. On cosmetics there is a duty at 25 per cent of the c.i.f. price of imported products and the wholesale price of locally-manufactured products.

   Rates are a tax on the occupation of landed property. They are charged at a percentage of the rateable value of property, which is an estimate of the annual rent at which the property might reasonably be expected to let. The percentage charge is fixed annually by the Legislative Council. For 1989-90, the charge is six per cent.

In the Urban Council area, part of the rates charged is paid to the Urban Council, the remainder being credited to the General Revenue Account. All revenue from rates in the New Territories is paid to the Regional Council. In 1988-9 the total net revenue from rates amounted to $4,812 million, while the number of assessments increased from 0.97 million to over 1 million.

The current lists of rateable values, based on rental values as at October 1, 1986, came into force on April 1, 1988. With the commitment to conducting revaluations on three-year cycles, work has commenced on preparing new valuation lists which are scheduled to take effect on April 1, 1991. In between general revaluations, the lists are regularly updated as new premises are built and as existing premises are altered or demolished.

   Rates are payable quarterly, in advance. Exemptions are few, although the government generally provides financial assistance towards payment of rates to non-profit-making educational, charitable and welfare organisations if their premises are being run in accord- ance with approved guidelines. No refund of rates is allowed for vacant domestic properties but half the rates paid may be refunded in the case of unoccupied non-domestic properties.

THE ECONOMY

      The Inland Revenue Department is responsible for the collection of betting duty, entertainments tax, estate duty, hotel accommodation tax, stamp duty, and earnings and profits tax.

      Betting duty is imposed on bets and on the proceeds of Mark Six lotteries. The rate of duty is 9.5 per cent or 16 per cent of the amount of the bet, depending on the type of bet placed, and 30 per cent on the proceeds of lotteries.

Entertainments tax is imposed on prices of admission to cinemas and to race meetings at rates which vary with the admission prices. These average about nine per cent in the case of cinemas and 28 per cent in the case of race meetings.

      Estate duty is imposed on estates in Hong Kong. The rates of duty charged range from a minimum of six 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 $5 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 guests in hotels and guest-houses.

      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 are levied under the Inland Revenue Ordinance. In Hong Kong, persons liable to tax may be assessed on three separate and distinct sources of income, namely business profits, salaries, and income from property.

Profits tax is charged only on net profits arising in Hong Kong, or derived from a trade, profession or business carried on in Hong Kong. Profits of unincorporated businesses are currently taxed at 15 per cent and profits of corporations are taxed at 16.5 per cent. Tax is payable on the actual profits for the year of assessment. Tax is paid initially on the basis of profits made in the year preceding the year of assessment and is subsequently adjusted according to profits actually made in the assessment year. Generally, all expenses incurred in the production of assessable profits are deductible. There is no withholding tax on dividends paid by corporations and dividends received from corporations are exempt from profits tax.

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 progresses from three per cent to 21 per cent at multiples of three per cent on the first seven segments of net income (that is, income after deduction of allowances) of $10,000 each and then to 25 per cent on the remaining net income. No one, however, pays more than 15 per cent of their total income. As from April 1, 1990, a system of separate taxation for married couples will come into operation and will apply to final assessments for 1989-90 and thereafter. Under this system, married couples will be separately assessed for salaries tax. However, where either spouse has allowances that exceed his or her income, or when separate assessments result in an increase in salaries tax payable by the couple, they may elect to be assessed jointly.

The owner of land or buildings in Hong Kong is charged property tax at the standard rate of 15 per cent on the actual rent received, less an allowance of 20 per cent for repairs and maintenance. A system of provisional payment of tax similar to that under the profits tax and salaries tax applies. 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.

       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

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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 $630. Exemption from payment is granted where the business is small. 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, payable to the Protection of Wages on Insolvency Fund, is imposed on each business registration certificate issued to a business or its branch.

Science and Technology

As Hong Kong's industry, economy and society become more complex and sophisticated, there is a need to pay greater attention to the part that modern science and technology can play in furthering development. The government believes that the ability to adopt technological advances and new applications is critical to the prosperity of an international trading city such as Hong Kong.

To ensure that Hong Kong keeps up to date with rapid technological changes and that the best advice is obtained in this area, a Committee on Science and Technology has been appointed by the Governor. Its purpose is to seek out and develop new scientific and technological ideas which are of direct relevance or potential long-term benefit to Hong Kong. The committee's members are from the academic and business sectors as well as from government departments whose work involves a significant scientific and techno- logical content. Sub-committees and working groups enable it to draw from a wide range of expertise in science and technology.

The main emphasis of the committee's work has been on information technology and biotechnology. It has advised the government on the adoption of electronic data interchange (EDI) for trading purposes. It is commissioning consultancy studies on Hong Kong's need for supercomputing facilities and on the potential for a biotechnology industry in the territory. The committee plans to stage an International Technology Exchange Fair to strengthen Hong Kong's image in science and technology. The commit- tee is also concerned with the safe use of technology and is working towards instituting a voluntary code of practice for the manufacture and safe use of lasers in Hong Kong.

6

FINANCIAL AND MONETARY AFFAIRS

HONG KONG's financial sector comprises an integrated network of institutions and markets which, under various forms of regulation, provide a wide range of products and services to local and international customers and investors.

Financial Institutions

Since 1981, deposit-taking institutions in Hong Kong have been classified into three separate groups: licensed banks, licensed deposit-taking companies and registered deposit- taking companies.

Banking licences are granted at the discretion of the Governor in Council, in accordance with the provisions of the Banking Ordinance. At present, in order to be considered for a banking licence, a local company (that is, a company incorporated in Hong Kong and predominantly beneficially owned by Hong Kong interests) must have a paid-up capital of at least $100 million, must 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 at least $2,500 million of assets. A bank incorporated outside Hong Kong wishing to apply for a banking licence is required to satisfy a separate set of criteria: it must have total assets (net of contra items) of at least US$14,000 million (unless it is of exceptionally high standing and unless banks from its country of incorporation are under- represented in Hong Kong), and its country of incorporation must exercise an adequate form of prudential supervision on banks and offer some acceptable form of reciprocity to banks from Hong Kong.

At the end of 1989, there were 165 licensed banks in Hong Kong, 31 of which were locally incorporated. They maintained a total of 1 542 offices in Hong Kong. In addition, there were 158 representative offices of foreign banks. The total deposit liabilities of all the licensed banks to customers at the end of the year was $938 billion.

Only licensed banks may operate current or savings accounts. They may also accept deposits of any size and any maturity from the public. The interest rate rules of the Hong Kong Association of Banks (of which all licensed banks are required, under their licensing conditions, to be 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 with a term to maturity of less than three months, for which banks may compete freely.

Licensed deposit-taking company status is granted at the discretion of the Financial Secretary. Companies are required to have a minimum issued share capital of $100 million and paid-up capital of $75 million, and to meet certain criteria regarding size, ownership

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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 1989, there were 36 licensed deposit-taking companies, and their total deposit liabilities to customers was $37 billion.

The authority to register deposit-taking companies rests with the Commissioner of Banking. 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, are more than 50 per cent owned by banks in Hong Kong or elsewhere. Registered deposit-taking companies are required to have a minimum paid-up capital of $25 million. They are restricted to taking deposits of not less than $100,000 with a term to maturity of at least three months. At the end of 1989, there were 202 registered deposit-taking companies, and their total deposit liabilities to customers was $33 billion.

   Following a review of this three-tier system, in consultation with the industry, it has been decided that a number of changes will be introduced to overcome the problems identified and further the development of the system. To give effect to these changes, the Banking (Amendment) (No. 2) Bill 1989 was introduced into the Legislative Council in July for First Reading and Commencement of Second Reading debate.

Upon the enactment of the amendment ordinance, which is expected to be in January 1990, the existing categories of licensed deposit-taking company and registered deposit- taking company will be replaced by the categories of restricted licence bank and deposit- taking company respectively. The licensed banks' category will remain essentially unchanged. Restricted licence banks will have a greater scope in the use of business descriptions than the category of licensed deposit-taking companies which they will replace. They will be able to use the word 'bank' in describing their business in promotional literature and advertisements but this must be qualified by adjectives such as 'restricted', 'merchant', or 'investment'. To avoid confusion with licensed banks, descriptions such as 'retail' or 'commercial' will not be allowed. Overseas banks seeking authorisation as restricted licence banks may operate in branch or subsidiary form. If in branch form, they may use their registered name even if it includes the word 'bank' or a derivative, but in this case it must be qualified prominently by the words 'restricted licence bank' in immediate conjunction.

   To reflect the additional status and privileges of the restricted licence banks and inflation over the period since the establishment of the existing minimum capital requirement for licensed deposit-taking companies in 1981, the present minimum paid-up capital of $75 million for licensed deposit-taking companies will be increased to $100 million for restricted licence banks. The licensed deposit-taking companies, which will be deemed to be restricted licence banks upon the enactment of the amendment ordinance, will be provided with a grace period from March 10, 1989 (on which the minimum capital requirement for registered deposit-taking companies was raised from $10 million to the existing level of $25 million), in which to comply with the new standard. Consequent upon this, the minimum capital requirement for licensed banks will be increased from $100 million to $150 million to reflect the higher capital requirement appropriate to licensed banks.

Apart from deposit-taking, conventional lending and foreign exchange dealings, banks and deposit-taking companies in Hong Kong are increasingly diversifying into other financial services, including securities business, fund management and the provision of investment advice.

Dealers in securities, investment advisers, commodity dealers and commodity-trading advisers and their representatives are required to be registered with the Securities and

FINANCIAL AND MONETARY AFFAIRS

      Futures Commission. To obtain registration, they must comply with the requirements (including the 'fit and proper test') stipulated in the Securities Ordinance, the Commodities Trading Ordinance and the Securities and Futures Commission Ordinance. At the end of 1989, there were 7 568 registered persons. Of the 230 registered corporate securities dealers, 132 were from overseas. Of the 102 commodities dealers, 37 were from overseas.

Only members of the Stock Exchange of Hong Kong Limited are permitted to trade on the Stock Exchange. At the end of 1989, the exchange had 711 corporate and individual members. Only shareholders who have applied for and been granted membership of the Hong Kong Futures Exchange Limited can trade on the Futures Exchange. At the end of 1989, the Futures Exchange had 87 members.

Under the Insurance Companies Ordinance, insurance companies are authorised by the Insurance Authority to transact business in Hong Kong. At the end of 1989, there were 273 authorised insurance companies. Of these, 147 were overseas companies from 27 countries.

Financial Markets

Hong Kong has a mature and active foreign exchange market, which forms an integral part of the corresponding global market. The link with other major overseas centres enables foreign exchange dealing to continue 24 hours a day round the globe. With a total gross turnover of around US$49 billion per business day, Hong Kong is among the largest markets in Asia, along with Tokyo and Singapore. The major currencies traded on the local market against the US dollar as the reference currency include Deutschemark, Yen, the Hong Kong dollar, Sterling and Swiss franc. As a market in foreign exchange, Hong Kong is favoured by its time zone location, by its large volume of trade and other external transactions with the resulting demand for and supply of foreign currencies, by the presence of a large number of international banks with experience in foreign exchange transactions, by the absence of exchange controls and by a highly-advanced telecom- munications system.

       Equally well-established and active is the interbank money market, in which wholesale Hong Kong dollar deposits and foreign currency deposits (mainly in US dollars) are traded both between deposit-taking institutions in Hong Kong, and between local and overseas institutions. This market is mainly for short-term money - from maturities ranging from overnight to six months for Hong Kong dollars and to 12 months for US dollars. The traditional lenders of Hong Kong dollars in the market tend to be the locally-incorporated banks, while the major borrowers are those foreign banks without a strong Hong Kong dollar deposit base in Hong Kong. As an indication of the size of the market, at the end of 1989, interbank liabilities accounted for 39 per cent of the total Hong Kong dollar liabilities of the banking sector; the corresponding share for foreign currency interbank liabilities was 77 per cent.

The capital market is an important source of finance for corporate borrowers. The two main types of negotiable debt instrument traded in the market are certificates of deposit issued by authorised institutions and commercial paper issued by other private sector companies. This market experienced a rapid expansion in the mid-1980s, gaining momentum from the global trend of securitisation of debt, the importation of innovative financial products (particularly interest rate swaps), and declines in interest rates during most of that period. Although the market has been less active recently, the more relaxed attitude taken by the government towards the issue of Hong Kong dollar-denominated debt instruments by non-residents and the abolition of interest tax with effect from the

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year of assessment commencing April 1, 1989, are expected to help improve turnover in this market.

The stock market constitutes another important source of capital for local enterprises, attracting interest from both local and overseas investors. At the end of 1989, 298 public companies, with a total market capitalisation of $605 billion, were listed on the Hong Kong Stock Exchange. This made it the fourth-largest stock market in Asia, after Japan, Taiwan and South Korea. The average daily turnover in 1989 was $1,216 million.

The Hong Kong Futures Exchange offers contracts in sugar, soyabeans, gold and Hang Seng Index futures. A new contract in interest rate futures is being developed.

The Stock Exchange and Futures Exchange are making special efforts to establish themselves as effective self-regulatory organisations, the front-line regulators in a two-tier regulatory regime as recommended by the Securities Review Committee.

The Stock Exchange introduced new domestic listing rules in December 1989 to improve the regulation of listing activities and the supervision of listed companies in the discharge of their continuing duties to shareholders. The Hong Kong Securities Clearing Company was formed in May 1989 to implement and operate the proposed central clearing system for securities transactions.

   Following the reconstitution of the Stock Exchange in 1988, the Futures Exchange has also successfully reconstituted itself in accordance with the Securities Review Committee recommendations. A more broadly-based and representative Board was formed in June 1989. The Hong Kong Clearing Corporation, a wholly-owned subsidiary of the exchange, took over and strengthened the clearing and guaranteeing functions in March 1989.

The Chinese Gold and Silver Exchange Society operates one of the four largest gold bullion markets in the world. Gold traded through the society is of 99 per cent fineness, weighed in taels (one tael equals approximately 1.2 troy ounces) and quoted in Hong Kong dollars. After allowing for exchange rate fluctuations, prices follow closely those of the major markets in London, Zurich and New York.

   There is another active gold market in Hong Kong, in which the main participants are banks, major international bullion houses and gold-trading companies. It is commonly known as the loco-London gold market, with prices quoted in US dollars per troy ounce of gold of 99.95 per cent fineness and with delivery in London. Trading in this market has grown significantly in recent years.

Regulation of the Financial Sector

The authority for the prudential supervision of banks, and deposit-taking companies, collectively called authorised institutions, is vested in the Commissioner of Banking. His authority is derived from the present Banking Ordinance which was introduced in March 1986, replacing earlier Banking and Deposit-taking Companies Ordinances. The provisions of the ordinance relate to the regulation of banking business, particularly the business of taking deposits, and the supervision of authorised institutions, so as to provide a measure of protection to depositors and to promote the general stability and effective operation of the banking system.

The Commissioner's Office obtains regular returns from and sends examination teams to the authorised institutions, including the overseas branches of Hong Kong incorporated banks and deposit-taking companies. 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 worldwide supervision of banking groups based in Hong Kong, are accepted and practised.

FINANCIAL AND MONETARY AFFAIRS

       The Securities and Futures Commission, which was established in May 1989 in res- ponse to the difficulties encountered in Hong Kong's financial markets at the time of the October 1987 world stock market crash, exercises prudential supervision of the securities, financial investment and commodities futures industry in Hong Kong. It administers the Securities and Futures Commission Ordinance, the Securities Ordinance, the Protection of Investors Ordinance, the Commodities Trading Ordinance and the Securities (Disclosure of Interests) Ordinance.

      The Securities Ordinance and the Stock Exchanges (Unification) Ordinance, together with the Securities and Futures Commission Ordinance, provide a frámework within which dealings in securities are conducted and the Stock Exchange operates, enabling trading in securities to be regulated. They require the registration of dealers, dealing partnerships, investment advisers and other intermediaries and provide for the investigation of suspected malpractice and the maintenance of a compensation fund to compensate clients of de- faulting stockbrokers.

The Protection of Investors Ordinance prohibits the use of fraudulent or reckless means to induce investors to buy or sell securities, or to induce them to take part in any investment arrangement in respect of property other than securities (the latter being controlled by the Securities Ordinance). It regulates the issue of publications related to such investments by prohibiting any advertisement inviting investors to invest without the advertisement first being submitted to the commission for authorisation. The ordinance was amended in July 1989 and the procedures for authorising advertisements in respect of commercial paper and certificate of deposits issues were streamlined.

      The Commodities Trading Ordinance, together with the Securities and Futures Commis- sion Ordinance, provides a regulatory framework within which the Futures Exchange operates and dealers, commodity trading advisers and representatives conduct their business. It includes provisions for the registration of dealers and their representatives and the maintenance of a compensation fund to compensate clients of defaulting commodity dealers.

      Companies transacting insurance business in Hong Kong are subject to the Insurance Companies Ordinance. The ordinance brings all classes of insurance business under a comprehensive system of regulation and control by the Registrar General (Insurance Authority). Conducting insurance business in or from Hong Kong is restricted to author- ised companies, to Lloyd's, and to certain underwriters approved by the Governor in Council. All new applications for authorisation are subject to careful scrutiny by the Insurance Authority to ensure that only insurers of good repute who meet all the criteria of the ordinance are admitted. The ordinance stipulates minimum share capital and solvency requirements for all authorised insurers and requires them to submit financial statements and other relevant information to the authority on an annual basis. It provides that any person who is not considered by the authority to be a fit and proper person to be associated with an authorised insurance company cannot acquire a position of influence in relation to such company. It also empowers the authority to intervene in the conduct of the business of insurance companies in certain circumstances. Where the authority has cause for concern, it may take remedial or precautionary measures to safeguard the interests of policy holders and claimants, including the limitation of premium income, the restriction of new business, the placing of assets in custody and petitioning for winding-up the company involved.

      Proposals for introducing self-regulatory measures to strengthen discipline in the insurance market have been formulated by the insurance industry, in consultation with the

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government. Certain of these proposals are likely to be put into effect in 1990 and will benefit Hong Kong as a developing international insurance centre.

The Securities and Futures Commission

The enactment of the Securities and Futures Commission Ordinance on April 13, 1989, represents a first, important phase in the overhaul of securities legislation in Hong Kong. It also represents completion of the implementation of some of the major recommendations made by the Securities Review Committee in May 1988, following the stock market crash in October 1987.

   The ordinance transfers the functions of the former Securities Commission, the Commodities Trading Commission and the Office of the Commissioner for Securities and Commodities Trading to the new Securities and Futures Commission, upon its establish- ment on May 1, 1989. It provides a general regulatory framework for the Securities and Futures Commission, leaving the details to be provided by regulations, administrative procedures and guidelines now being developed by the commission in full consultation with the market and the government where appropriate.

The commission was established as an autonomous statutory body outside the civil service for the regulation of the securities, futures and financial investment industry. It is charged with the responsibility to ensure market integrity and protection of investors at a reasonable cost and at a level which is broadly comparable to that in other international financial centres, having regard to Hong Kong's own circumstances and needs.

The commission is governed by 10 directors, divided equally between executive and non-executive directors, the chairman being an executive director and having a casting vote. The non-executive directors provide independent advice to the commission's manage- ment and are actively involved in policy formation. The Governor appoints and has power to dismiss the chairman and directors. He is able to give policy directions to the commission and the Financial Secretary may require it to provide information relating to its activities.

It seeks advice on policy matters from its advisory committee, members of which are appointed by the Governor and are broadly representative of the market and relevant professions. Certain decisions of the commission are subject to appeal to the Securities and Futures Board of Appeal, which is also appointed by the Governor. These decisions relate to applications for, or suspension or revocation of, registration of persons, and to the intervention of registered persons' business.

Each year the commission is required to present to the Financial Secretary a report and audited statement of accounts, which are laid before the Legislative Council. Its annual budget must be approved by the Governor and the Director of Audit is able to examine its books.

The commission is funded largely by the market, but partly by the government. Excluding start-up costs, the annual budget of the commission is estimated at about $140 million at 1989 prices. Market contributions are in the form of fees and charges for specific services and activities performed by the commission on a broad cost-recovery basis and a statutory levy on transactions recorded on the Stock and Futures Exchanges. The total government contribution towards the commission in 1988-9 amounted to $220 million in the form of a start-up grant, an annually recurrent subvention and an interest-free advance.

   The commission plays a prominent role in the implementation of other recommenda- tions of the Securities Review Committee in conjunction with the government and the two

FINANCIAL AND MONETARY AFFAIRS

exchanges. It is taking a lead in the second phase of a review of securities legislation in an attempt to remove loopholes and consolidate similar provisions in relevant ordinances. The statutory listing rules have been revised to cater for the changing needs of the market. New applicants for registration as intermediaries in the securities and futures markets are now subject to more vigorous 'fit and proper' tests.

Hong Kong as an International Financial Centre

The favourable geographical position of Hong Kong, which provides a bridge in the time gap between North America and Europe, together with the economic links with China and other economies in the South-east Asian region as well as excellent communications with the rest of the world, has helped Hong Kong to develop into an important international financial centre.

The foreign banks in Hong Kong tend to be the premier banks in their countries of incorporation and this is illustrated by the fact that 76 of the top 100 banks in the world in 1989 had operations in the territory. In addition, many of the most important merchant banks or investment banks operate in Hong Kong. A substantial proportion of the transactions in the banking sector are international in nature; over 50 per cent of the sector's aggregate assets and liabilities are external, spreading over more than 100 countries. The financial markets, particularly in foreign exchange and gold, form an integral part of the corresponding global markets. Moreover, Hong Kong serves as an important centre for the intermediation of international flows of savings and investment, particularly through the syndication of loans and international fund management. International investors play a significant and increasing role in Hong Kong, and Hong Kong's investment overseas is also believed to be considerable.

The Financial Scene

In 1989, the local financial scene was characterised by the following features. Firstly, the exchange rate of the Hong Kong dollar against the US dollar stayed close to the linked rate of HK$7.80 to US$1 throughout the year. Secondly, the uptrend in local interest rates, which began in 1988 and continued into the first quarter of 1989, was reversed in April, in line with movements in US dollar interest rates. Thirdly, the growth rate of Hong Kong dollar money supply showed some deceleration during the year, as did that of domestic loans and advances, against the background of a slow-down in overall economic growth.

      During 1989, the market exchange rate of the Hong Kong dollar against the US dollar moved within a narrow range of HK$7.774 and HK$7.815 to US$1. At the end of the year, it closed at HK$7.807 This remarkable stability in the exchange rate, maintained even in late May and early June when the unrest in China caused tremendous volatility in the Hong Kong stock and Hang Seng Index futures markets, was clear evidence of the confidence people have in the linked exchange rate system, and the government's resolve and ability to maintain the linked rate at HK$7.80. This exchange rate stability has been underpinned by the accounting arrangements implemented in July 1988, which enable the government more effectively to influence the level of interbank liquidity.

Because of the link, the overall exchange value of the Hong Kong dollar shared a common trend with that of the US dollar. The effective exchange rate index of the Hong Kong dollar rose from 100.6 at the end of 1988 to a high of 106.2 in mid-June 1989, when the US dollar strengthened in the light of improved US trade figures and the sub- stantial premium of US dollar interest rates over German and Japanese rates. However, as the US dollar subsequently weakened against other major currencies, the effective exchange

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  rate index fell to 102.9 on December 15. On December 16, the Renminbi was devalued by 21.21 per cent against the Hong Kong dollar (as well as other major currencies). Consequently, the effective exchange rate index closed the year at 109.3, 8.6 per cent higher than 1988.

Deposit rates administered by the Hong Kong Association of Banks were changed six times during the year, comprising three upward adjustments in the first quarter and three downward adjustments thereafter. At the end of 1989, the savings deposits rate was 5.25

    per cent and the three-month and 12-month deposit rates were 6.5 per cent and 7.5 per cent respectively, while the best lending rate stood at 10 per cent. The respective rates at the end of 1988 were also 5.25 per cent, 6.5 per cent, 7.5 per cent and 10 per cent.

Total deposits with authorised institutions in Hong Kong grew by 19 per cent during 1989, compared with 20 per cent in 1988. Analysed by currencies, Hong Kong dollar deposits rose by 12 per cent while foreign currency deposits increased by 24 per cent. Of the latter, the respective growth rates for US$ and non-US$ foreign currency deposits were 22 per cent and 27 per cent. The broadest definition of the money supply, HK$M3, grew by 15 per cent in 1989, compared with a growth rate of 19 per cent in 1988. This was broadly in line with the increase in nominal gross domestic product, estimated at 14 per cent.

   Loans for use in Hong Kong (including those to finance trade) grew by 25 per cent in 1989, following an increase of 30 per cent in 1988. However, reflecting the deceleration in economic growth, these loans increased less rapidly in the second half than in the first half of the year. At the end of 1989, domestic loans accounted for 52 per cent of the total amount of loans and advances outstanding.

In the capital market, the most notable development was the six-year Hong Kong dollar-denominated bond launched by the World Bank in May. This was the first Hong Kong dollar paper issued by a supra-national borrower in Hong Kong since the public announcement by the government of its more relaxed attitude towards Hong Kong dollar borrowings by non-residents. The bonds carry a nominal value of HK$500 million and will mature in May 1995. The six-year maturity is in line with recent World Bank bond issues, the bulk of which have a maturity of five to seven years. The bonds were well received by both domestic and international investors. Since mid-June, they have been listed on the Hong Kong Stock Exchange. At the end of December 1989, the six-year bond was bid at 103.8, implying a yield to maturity of 9.2 per cent.

The market for fixed-rate negotiable certificates of deposit remained relatively quiet, notwithstanding the easing in local interest rates since April. For 1989 as a whole, there were altogether 52 issues of negotiable certificates of deposit reported to the Securities and Futures Commission. Of the 45 issues which were denominated in Hong Kong dollars, 35 were on fixed-rate terms. At the end of 1989, the total value of negotiable certificates of deposit outstanding amounted to $34 billion, roughly the same as at end-1988.

As with major overseas stock markets, stock prices on the Hong Kong stock exchange were generally on an uptrend in the first five months of 1989. From a figure of 2 687 at the end of December 1988, the Hang Seng Index rose almost continuously to 3 310 on May 15, its highest level since October 1987. Political events in China then sent the index down to 2 094 early in June. As the political situation in China became clearer, the index gradually climbed to 2 844 on October 10. The resilience of the local economy after the events in June, the declines in local interest rates and the good performance of major bourses overseas supported this recovery. However, following a substantial fall in the US stock market on October 13, the Hang Seng Index dropped by 181 points (or 6.5 per cent) on October 16, to 2 602. But, along with the quick recovery in overseas markets, the Hang

FINANCIAL AND MONETARY AFFAIRS

Seng Index rebounded and ended the year at 2 837. For 1989 as a whole, the turnover was $299 billion, as compared to $200 billion in 1988.

Events in China caused several companies to defer plans to raise funds through the issue of shares. Total funds raised on the stock market for 1989 as a whole, at $8.5 billion, was thus lower than the $17.0 billion in 1988. During the year, there were seven new share issues amounting to $1.1 billion. Also 18 companies raised $4.6 billion through rights issues and 32 companies raised $2.8 billion through private placements.

The Hang Seng Index futures market experienced the same degree of volatility as the stock market. Turnover amounted to 235 979 contracts, compared with 140 155 in 1988. Trading in commodity futures remained moderate in 1989. Turnover in soyabean, sugar and gold futures amounted to 154 696 lots (30 000 kg each), 143 989 lots (112 000 lb each) and 1 172 lots (100 troy ounces each) respectively.

The price of loco-London gold fluctuated between US$358 and US$410 a troy ounce during the year, while the gold price on the Chinese Gold and Silver Exchange Society ranged between $3,335 and $3,805 per tael. Turnover on the latter exchange totalled 51 million taels in 1989, compared with 59 million taels in 1988.

Monetary Policy

The government has consistently worked towards providing a favourable environment in the financial sector, with sufficient regulation to ensure, as far as possible, sound business standards and confidence in the institutional framework, but without unnecessary im- pediments of a bureaucractic or fiscal nature.

      Unlike most major economies, Hong Kong has no central bank. Most of the functions which might be performed by one - such as prudential supervision of financial institutions, managing official foreign exchange reserves, undertaking certain types of market opera- tions, holding the backing to the note issue and providing central banking services to the government - are carried out by different government offices under the Monetary Affairs Branch of the Government Secretariat.

On October 17, 1983, after a period of much instability in the exchange rate of the Hong Kong dollar, a revised exchange rate system was introduced. Under the new arrangement, certificates of indebtedness (CIs) issued by the Exchange Fund, which the two note-issuing banks are required to hold as cover for the issue of Hong Kong dollar notes, are issued and redeemed against payments in US dollars at a fixed exchange rate of HK$7.80 = US$1. In practice, therefore, any increase in note circulation is matched by a US dollar payment to the Exchange Fund, and any decrease in note circulation is matched by a US dollar payment from the Exchange Fund. The two note-issuing banks in turn extend this fixed exchange rate to their note transactions with all other banks in Hong Kong. In the foreign exchange market, the rate of the Hong Kong dollar continues to be determined by forces of supply and demand. However, the interplay of arbitrage and competition between banks ensures that the market exchange rate stays close to the rate of HK$7.80 to US$1 fixed for the CIS.

      With adoption of the linked rate system, the exchange rate is no longer a variable in the economy's adjustment process. Under this system, interest rates, the money supply and the level of economic activity adjust automatically to balance of payments pressures.

The Hong Kong Association of Banks, which sets the maximum rates of interest payable on deposits of original maturities up to 15 months (except those of $500,000 or above with a term to maturity of less than three months) with licensed banks, has a statutory

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obligation to consult the government on the determination of these interest rates. This procedure is designed to ensure that the association takes the wider public interest into account in making its decisions, including their effect on the exchange rate.

To deter persistent speculation on a revaluation of the Hong Kong dollar which emerged late in 1987 and continued in early 1988, the Hong Kong Association of Banks, after consultation with the Financial Secretary, introduced revised Interest Rates Rules whereby banks may impose deposit charges ('negative interest rates') on large Hong Kong dollar credit balances maintained by their customers, if the need arises. In practice, however, there has been no need to impose the deposit charges, as the mere threat of their imposition has been effective in deterring speculation.

To enable the government, through the use of the Exchange Fund, to exercise more effective influence over liquidity and interest rates in the interbank market and thus to assist it better to maintain exchange rate stability within the framework of the linked exchange rate system, new accounting arrangements were entered into in mid-July 1988 between the Exchange Fund and The Hongkong and Shanghai Banking Corporation Limited (HSBC) as the Management Bank of the Clearing House of the Hong Kong Association of Banks. Under these arrangements, HSBC is required to maintain, in an account created with the Exchange Fund, a Hong Kong dollar balance which is no less than the net clearing balance (NCB) of the rest of the banking system. HSBC has to ensure that either its own balance in the account does not fall short of the NCB, or the NCB is not in debit. Otherwise it will have to pay interest to the Exchange Fund. The fund uses the account, at its discretion, to effect settlement of its Hong Kong dollar transactions with HSBC or with other banks.

Consequent upon these accounting arrangements, the Exchange Fund effectively became the ultimate provider of liquidity in the interbank market, a role which until mid-July 1988 was performed by the HSBC. Through its borrowing Hong Kong dollars in the interbank market, or selling foreign currencies for Hong Kong dollars in the foreign exchange market, the fund is now able to reduce the supply of Hong Kong dollars and hence raise interest rates in the interbank market, thereby offsetting a weakening of the exchange rate of the Hong Kong dollar against the US dollar. Similarly, it may also increase interbank liquidity and lower interest rates by taking such actions in the opposite direction, thereby offsetting a strengthening of the exchange rate.

As well as these accounting arrangements between the fund and HSBC, the Treasury maintains a Hong Kong dollar account with the fund where money transferred from the General Revenue to the fund in return for interest-bearing debt certificates is accounted for. Through the issuance and redemption of debt certificates, the Exchange Fund has an additional tool to affect interbank liquidity.

Under the new accounting arrangements, the government could also influence monetary conditions in the interbank market through its buying or selling of Hong Kong dollar financial assets of acceptable quality. Although in other financial centres these are usually in the form of debt instruments issued by the government, there is no such instrument available in Hong Kong. In the latter part of 1988, the Monetary Affairs Branch initiated a study which concluded that a programme of issue of short-term government bills should be developed in Hong Kong, both for monetary policy reasons and for further development of the local capital market. This was announced by the Financial Secretary in his Budget Speech in March 1989. In consultation with the Hong Kong Capital Markets Association and other interested parties, a detailed examination was subsequently made of the technical and system requirements for the issue of such short-term government paper (to be called

FINANCIAL AND MONETARY AFFAIRS

     Exchange Fund Bills). The first weekly tranche of Exchange Fund Bills worth $200-$300 million was expected to be launched early in 1990.

The Exchange Fund

The Hong Kong Government's Exchange Fund was established by the Currency Ordinance of 1935 (later renamed the Exchange Fund Ordinance). Since its inception, the fund has held the backing to the note issue. In 1976, its role 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 foreign currency assets held in the government's General Revenue Account, being transferred to the fund. In both cases, the transfer was 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 debt certificates held by the Coinage Security Fund redeemed.

The fund was further expanded in 1978 when the government began to transfer the Hong Kong dollar balances of its General Revenue Account (apart from the working balances) to the fund, against the issue of interest-bearing debt certificates. Thus, the bulk of the government's financial assets are now held in the fund, mainly in the form of bank deposits in certain foreign currencies and in Hong Kong dollars, and of interest-bearing instruments in foreign currencies. The principal activity for the fund is the day-to-day management of these assets. Its statutory role as defined in the Exchange Fund Ordinance is to influence the exchange value of the Hong Kong dollar. The fund is managed by the Monetary Affairs Branch of the Government Secretariat under the direction of the Financial Secretary, who is advised by a committee comprising prominent members of the banking and financial community.

Another function related to the Exchange Fund is the supply of notes and coins to the banking system. Apart from a very small fiduciary issue, which is backed by gilt-edge securities, currency notes in everyday circulation (currently of $10, $20, $50, $100, $500 and $1,000 denominations) may only be issued by The Hongkong and Shanghai Banking Corporation Limited (formerly The Hongkong and Shanghai Banking Corporation) and the Standard Chartered Bank, against holdings of certificates of indebtedness issued by the fund.

These non-interest-bearing liabilities of the fund are issued or redeemed as the amount of notes in circulation rises or falls. Since October 17, 1983, when the Hong Kong dollar was linked to the US dollar, certificates of indebtedness have been issued to and redeemed from the two note-issuing banks against payments in US dollars at a fixed exchange rate of HK$7.80 = US$1. The fund bears the costs of maintaining the note issue (apart from the proportion of the costs relating to the fiduciary issue), and the net profits of the note issue accrue to the fund. Coins of $5, $2, $1, 50 cents, 20 cents and 10 cents denominations, and currency notes of one-cent denomination, are issued by the government. The total currency in circulation at the end of 1989, with details of its composition, is shown at Appendix 13.

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SLACKENING demand in some of Hong Kong's major markets, notably the United States, slowed growth in domestic exports (up three per cent in 1989), but Hong Kong's rapid development as a service and sourcing centre for the region was evidenced by a 25.8 per cent growth in re-exports.

   The manufacturing sector still has a vital role to play in Hong Kong's growth. The value of manufactured exports rose by three per cent to $224,104 million during the year, dem- onstrating that Hong Kong's economy remains basically sound and that its manufactured products remain as competitive as ever in major overseas markets.

   The ingredients of Hong Kong's success as a leading manufacturing centre are well known: a versatile and industrious workforce; an aggressive and innovative managerial class; a simple tax structure and low taxation rate; efficient transport facilities; a fine har- bour and good international communications, and the government's firm commitment to free trade and free enterprise.

   In 1989, manufacturing remained the largest economic sector in terms of employment, employing 811 800 persons or 30 per cent of total employment. It also accounted for 20.4 per cent of the gross domestic product.

   It is estimated that up to 90 per cent of Hong Kong's manufacturing output is eventually exported. The lack of natural resources and the limited supply of land for industrial use have generally constrained diversification into capital and land-intensive industries. Light manufacturing industries, producing mainly consumer goods, predominate. Textiles, clothing, electronics, watches and clocks, and plastics are the major industries. These industries together accounted for 66 per cent of Hong Kong's total manufacturing employment and 71 per cent of total domestic exports in 1989.

Clothing

Hong Kong has been either the world's largest or second largest exporter of clothing since 1973, and the clothing industry is the largest export-earner in the manufacturing sector. Domestic exports of clothing in 1989 amounted to $71,874 million, or 32 per cent of Hong Kong's total domestic exports. Clothing is also the largest manufacturing industry of Hong Kong, employing 274 379 persons or 34 per cent of total manufacturing employment.

   Clothing exports to many developed countries are subject to quota restraint. The cloth- ing industry has responded by moving up-market to increase the value-added content of its products and explore new markets. Computer-aided design and computer-aided manu- facturing technology in pattern grading, marker making and automatic cutting are increasingly being used in the clothing industry, resulting in higher productivity.

INDUSTRY AND TRADE

Textiles

The textiles industry employed 73 857 persons, or nine per cent of total manufacturing employment, and exported $16,814 million worth of goods in 1989.

With some 414 000 spindles and 16 000 looms, the spinning and weaving sectors produce mainly cotton yarn and fabrics for local and overseas markets. Modern machinery, in- cluding open-end rotor spinning machines and shuttleless looms, is widely used. In 1989, output of yarns and fabrics of various fibres and blends totalled 229 million kilograms and 836 million square metres respectively. Most of this was used locally..

      The knitting sector exported 83 million kilograms of knitted fabrics in 1989 - of which 21 per cent consisted of man-made fibres or blended cotton man-made fibres, and 74 per cent of cotton - compared with 66 million kilograms in 1988. A large quantity of knitted fabric of all fibres was also used by local clothing manufacturers. In recent years the knit- ting sector has invested heavily in modern machinery, including flat-bed and circular knit- ting machines, which is often used in conjunction with computer-aided design equipment.

      The textiles-finishing sector provides valuable support to the spinning, weaving and knitting sectors. Finishing processes include bleaching, dyeing, yarn texturising, multi- colour rolling, rotary and screen printing, sanforising, stone-wash, acid-wash, permanent press, polymerising, shearing, napping, glazing and schreinering. Hong Kong's bleaching, dyeing, printing and finishing factories are able to meet about 70 per cent of the local clothing industry's requirements for textile fabrics.

Electronics

The electronics industry is the second largest export-earner. Domestic exports of electronics products were valued at $55,818 million in 1989, an increase of 0.46 per cent over 1988. The industry employed 99 455 persons, accounting for 12 per cent of total manufacturing employment.

Hong Kong's electronics industry is well known for its adaptability to changes in external demand, which enables it to move rapidly into the production of many fashion products invented elsewhere. The industry produces a wide range of high-quality products and components, including compact disc players, radios, cassette recorders, hi-fi systems, television sets, calculators, electronic watches and clocks, electronic toys and games, multi-function telephones and cellular telephones, modems, photocopying machines, micro-computers and computer peripherals, computer-aided design and testing equipment, switching power supplies, printed circuit boards, liquid crystal displays, quartz crystals, semi-conductor devices and facsimile machines.

Watches and Clocks

     Hong Kong is the world's largest exporter of watches, and is also an important clock producer. Domestic exports of watches and clocks were valued at $17,075 million in 1989, compared with $17,346 million in 1988. The industry employed 30 091 persons and produced mainly electronic watches and clocks. As watches and clocks have become fashion items, local manufacturers are paying more attention to attractive designs and better quality models. Some larger manufacturers are investing in associated research and development.

Plastics

The plastics industry produces mainly toys and household products, which together accounted for 44 per cent of the industry's exports in 1989. Other items produced include

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travel goods and handbags, footwear and flowers, packaging materials and plastic parts, and components for electronic and electrical products. Domestic exports of plastic products amounted to $9,911 million in 1989, compared with $11,847 million in 1988. The plastics industry employed 63 557 persons or eight per cent of total manufacturing employment.

Other Industries

Other important light industries produce metal products, electrical appliances, jewellery, photographic and optical goods, travel goods and handbags.

   The manufacture of industrial machinery provides support to many other local manu- facturing industries and, at the same time, contributes to Hong Kong's export trade. Of particular importance are blow-moulding, injection-moulding and extrusion machines; metal-processing machinery such as power presses, lathes, shapers, drilling machines and polishing machines; printing presses; textile knitting and warping machines, and electro- plating equipment. About 75 per cent of industrial machinery produced in Hong Kong is sold for local use.

   Hong Kong has also proved its ability to produce sophisticated parts and components and other semi-manufactures of high quality. This development is beneficial to its manu- facturing industries as the quality of finished products depends heavily on the capability of the linkage industries that service them.

Hong Kong's 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 and service oil rigs.

The aircraft engineering industry has a high international reputation and provides ex- tensive maintenance and repair services. Facilities are available for the complete overhaul of airframes and engines for many types of aircraft.

Industry Development Board

The Industry Development Board, chaired by the Financial Secretary, is the government's advisory body on all major industry-related matters. Members of the board include prom- inent industrialists, government officials and representatives from the tertiary education sector and other trade and industry organisations.

Industry Policies

The government's industrial policies aim at maintaining an infrastructure which enables manufacturing businesses to function efficiently, and providing services which enable in- dustry to become more competitive through productivity growth, quality improvement and product innovation. The government encourages technology transfer through an inward investment promotion programme.

Industry Department

The Industry Department is responsible for the implementation of the government's in- dustrial policies. It aims at improving the competitiveness of Hong Kong's manufacturing industries by providing developmental and infrastructural support and promoting inward investment where this introduces new or improved products, designs, processes and management techniques into Hong Kong.

The department carries out techno-economic and market research studies on the major industries, and smaller-scale studies of other selected industries, to enable the government

INDUSTRY AND TRADE

to assess where its support is needed. It also monitors the adequacy of Hong Kong's infra- structure, particularly the availability of land and trained manpower.

An increasingly-important part of the department's work is to promote the wider appli- cation of quality assurance in the manufacturing sector. Its Standards and Calibration Laboratory, which has been accredited by the National Measurement Accreditation Service (NAMAS) of the United Kingdom, acts as the repository of Hong Kong's official measurement standards and provides a calibration service to manufacturers to enable them to meet measurement standards required for their products. The laboratory presently has measurement capabilities for a wide range of electrical frequencies, temperature and mechanical measurements and has begun to extend its coverage to include force, pressure, humidity and volume standards.

The department will implement a quality improvement programme early in 1990. The programme provides for the strengthening of the existing range of quality support services, the development of a quality management accreditation scheme and a campaign to raise the level of quality awareness among manufacturers. Preparations for the quality- awareness campaign were made during the year and a new Quality Assurance Unit was set within the Quality Services Division to advise on technical aspects of the campaign and to plan and implement the quality management accreditation scheme, for which a Hong Kong Quality Assurance Agency will be established with a government subvention.

up

        The Product Standards Information Bureau advises manufacturers on national and in- ternational documented standards, product regulations and legislation in Hong Kong's major overseas markets. To improve the storage and retrieval of product standards information, a computer-based system linked to overseas data bases has recently been developed.

The department also operates the Hong Kong Laboratory Accreditation Scheme (HOKLAS), to upgrade the standard of testing and management of Hong Kong laboratories. HOKLAS identifies and accredits competent testing laboratories. The scheme continued to expand its scope of accreditation activities to include chemical testing in 1989 and, by the end of the year, had accredited 20 laboratories in various fields of testing. In March 1989, HOKLAS concluded a mutual recognition agreement with NAMAS, whereby Hong Kong exports accompanied by HOKLAS-endorsed test certificates would be accepted in the United Kingdom without further testing. Goods accompanied by NAMAS-endorsed certificates would be similarly accepted in Hong Kong.

A number of industrial support initiatives were pursued during the year. A Clothing Technology Demonstration Centre was established by the Hong Kong Productivity Council and the Clothing Industry Training Authority to demonstrate modern production systems to clothing manufacturers. Arrangements were made for the Hong Kong Design Innovation Company, which was set up with public funds in 1985, to form a partnership with the Hong Kong Productivity Council to deliver a more integrated product design and innovation service to manufacturers. On the advice of the Industry Development Board, the government commissioned consultants to undertake a planning study for the establishment of a technology centre in Hong Kong to encourage the growth of technology-based firms.

On March 23, 1989, a technical co-operation agreement was signed between the governments of Hong Kong and Japan, which will improve Hong Kong's capability in high-precision sheet metal processing. Japan will contribute equipment to the Precision Tooling Training Centre of the Vocational Training Council (VTC) and provide in- structors to train council staff in tool design, die manufacture and machine operation. The

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  VTC will, in turn, be able to increase its output of technicians and craftsmen skilled in the design and manufacture of the tools and dies needed to produce the high-precision components increasingly sought by manufacturing industries.

   Progress was also made with a wider scheme of training in new technologies. A working party, led by the department, developed proposals for a loan scheme to enable technol- ogists to be trained locally or overseas in the practical application of the latest industrial technologies. The scheme will be administered by the Vocational Training Council and will begin in 1990.

Additional land and accommodation was made available for industry. The government put up for sale by auction or tender 15 pieces of industrial land with a total area of 44 442 square metres, and 864 000 square metres of flatted factory space were completed by private developers. To assist those industries needing access to deep-water frontage, con- sultants have been appointed to study the feasibility of developing a site at Tuen Mun West. The study will be completed early in 1990.

   In April 1989, a permanent industrial extension service was launched by the department to publicise the range of industrial support services available in Hong Kong and to en- courage manufacturers to use them. A total of 285 manufacturers were visited during the period April 1989 to December 1989, resulting in 134 referrals being made to a variety of agencies and government departments.

   A new award scheme, The Governor's Award for Industry, was introduced by the department in 1989, in co-operation with the Federation of Hong Kong Industries and the Chinese Manufacturers' Association. The scheme aims to encourage industrial upgrading by recognising achievements in various aspects of industrial performance. In June 1989, the first awards were presented for consumer product design and machinery and equipment design. The scheme will be expanded in 1990 to cover productivity and good quality management.

   Through the Hong Kong economic and trade offices in New York, San Francisco, Tokyo, London and Brussels, and its own 'One-Stop' unit in Hong Kong, the Inward Investment Division of the department assisted overseas investors in setting up manufac- turing businesses in the territory. At the end of 1988, total overseas investment amounted to $26,172 million, compared with $21,122 million in the preceding year.

   Many of these investments are from world leaders in their respective fields and have contributed significantly to upgrading the level of technology and expertise of the local manufacturing sector. More than half the projects completed during the year were of a technology level comparable with or superior to that of the best Hong Kong companies. Notable examples included the assembly of portable oscilloscopes and the production of press tools for multilayer laminates.

Hong Kong Productivity Council

The Hong Kong Productivity Council was established by statute in 1967 to promote the increased productivity of industry in Hong Kong. It is financed by an annual government subvention and by fees earned from its services. The council consists of a chairman and 20 members appointed by the Governor. Its membership is drawn from the management, labour, academic and professional fields and from government departments.

   The council has over 450 staff members with expertise in a wide range of disciplines. It provides a variety of training programmes, industrial and management consultancies and technological support services, using resources available in its 10 operational divisions: Computer Services, Electronics Services, Engineering Services, Metals Development,

INDUSTRY AND TRADE

     Textiles and Apparel, Industrial Consultancy, Training, Environmental Management, Information Services and Administration.

      Its facilities include five training centres (in the Tsim Sha Tsui headquarters, To Kwa Wan, Tai Kok Tsui, Mong Kok and Central District); electronic data processing facilities; microprocessor application, industrial chemistry, metal finishing, heat treatment, die cast- ing and environmental control laboratories; a computer-aided design service centre and computer-aided manufacturing workshop; a technical reference library, and an on-line information retrieval service.

      In 1989, significant progress was made in implementing a programme of new and ex- panded productivity-enhancement services endorsed by the Industry Development Board. A surface mount technology laboratory, a radio frequency and digital communication laboratory and a photo-chemical machining laboratory commenced operation. A sheet- metal-working laboratory will be completed soon.

       There was sustained demand for the consultancy and technical support services from both local and overseas companies. In 1989, the council completed 944 consultancy proj- ects, including feasibility studies, production management, new plant projects, personnel recruitment, marketing and technical assistance.

      The council organised over 500 training programmes for 13 600 participants, covering management and supervisory techniques, advanced programming and electronic data processing, and a range of technology programmes for various industries. There was an increased demand for in-plant courses and some 100 programmes were organised to meet the specific training needs of individual companies.

      The council also ran exhibitions on computer-aided design, manufacture and testing, computer software and linkage industry. 12 overseas study missions and visits were organised for local industrialists to gain first-hand information on the latest technology in various areas, including clothing manufacture, mechatronics, die and mould, plastics, metal working, electroplating and on such management techniques as quality-control circles, Just-In-Time and total quality control.

      Construction went ahead for a special purpose headquarters building for the council at Kowloon Tong. The building is expected to be completed late in 1990.

The council is the government's agent for all matters concerning the Asian Productivity Organisation (APO). During the year, under the sponsorship of the APO, the council held two seminars on management information systems for the clothing industry and pollution in metropolitan areas.

Hong Kong Industrial Estates Corporation

The Hong Kong Industrial Estates Corporation develops and manages fully-serviced industrial estates to enable industries with a relatively high level of technology that cannot operate in ordinary multi-storey factory buildings to set up in Hong Kong. Currently the corporation is responsible for managing two industrial estates. The Tai Po Industrial Estate, which has a total of 69 hectares of land, is virtually full, with only three hectares left along the seafront, an area reserved for high-technology industries. The Yuen Long Industrial Estate provides 67 hectares of industrial land, of which more than half has already been sold or allocated to manufacturers. Apart from being fully serviced with roads, drains and sewers, electricity and water, the estates have good transport links to the urban area, the container terminal at Kwai Chung and the Hong Kong International Air- port. The corporation's estates have been planned to provide a high-quality environment for modern industrial projects. In order to protect this environment the corporation

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maintains close liaison with the Environmental Protection Department to make sure that environmental rules are followed when companies plan their plant and machinery and draw up their building plans.

   Feasibility studies have been completed for the development of a third industrial estate of about 90 hectares in Tseung Kwan O new town.

Leases of land on the industrial estates are sold by the corporation to applicants at premiums based on cost. By the end of 1989, applications from 117 companies had been approved and sites provided on the two estates.

   Besides providing sites to industrialists for the construction of purpose-built factory buildings, the corporation also provides pre-built factory premises for those who wish to begin production with the minimum of delay.

External Trade

Hong Kong is among the top twelve traders in the world. Overall, its trade is normally in balance and in 1989 it showed a small surplus. Its largest trading partner is China, followed by the United States and Japan. Its external trade was generally buoyant in 1989. Total merchandise trade amounted to $1,133,291 million, an increase of 14 per cent over 1988. Imports rose by 13 per cent to $562,781 million and re-exports by 26 per cent to $346,405 million while domestic exports increased by three per cent to $224,104 million. Domestic exports and re-exports together, valued at $570,509 million, registered an in- crease of 16 per cent. Appendices 15 and 16 provide summary statistics of external trade.

Imports

Hong Kong is almost entirely dependent on imported resources to meet the needs of its population of 5.81 million and its diverse industries. In 1989, imports of raw materials and semi-manufactured goods totalled $230,455 million, representing 41 per cent of total im- ports. The principal items imported were fabrics of man-made fibres ($21,419 million); transistors, diodes, semi-conductors and integrated circuits ($27,205 million); plastic moulding materials ($18,620 million); iron and steel ($11,900 million); woven cotton fabrics ($11,494 million), and watch and clock movements, cases and parts ($12,160 million).

   Consumer goods, valued at $201,482 million, constituted 36 per cent of total imports. The major consumer goods imported were: clothing ($44,998 million); radios, television receivers, gramophones, records, amplifiers and tape recorders ($24,813 million); baby carriages, toys, games and sporting goods ($13,738 million); diamonds ($12,898 million); watches ($9,779 million); travel goods, handbags and similar containers ($10,156 million) and footwear ($8,103 million).

   Imports of capital goods amounted to $84,394 million, or 15 per cent of total imports. Imported capital goods consisted mainly of electrical machinery ($14,222 million), trans- port equipment ($7,698 million), office machines ($7,849 million), electronic components and parts of computers ($6,176 million) as well as textile machinery ($4,012 million).

   Imports of foodstuffs were valued at $33,969 million, representing six per cent of total imports. The principal imported food items were fish and fish preparations ($7,398 million), fruit ($4,726 million), meat and meat preparations ($4,047 million) and vegetables ($3,887 million).

Mineral fuels, lubricants and related materials, worth some $12,481 million were im- ported in 1989, representing two per cent of total imports.

   China and Japan were the two principal suppliers of imports in 1989, providing 35 per cent and 17 per cent respectively of the total. China alone supplied 37 per cent of Hong

INDUSTRY AND TRADE

Kong's imported foodstuffs. Taiwan ranked third, providing nine per cent, followed by the United States, the Republic of Korea, Singapore, the Federal Republic of Germany and the United Kingdom.

Exports

     Clothing remained the largest component of domestic exports, being valued at $71,874 million or 32 per cent of the total. Exports of miscellaneous manufactured articles consisting mainly of plastic toys and dolls, jewellery, goldsmiths' and silversmiths' wares and plastic articles, were valued at $27,867 million, representing 12 per cent of domestic exports. Photographic apparatus, equipment, supplies and optical goods, watches and clocks were valued at $19,602 million (nine per cent of the total). Electrical machinery, apparatus and appliances consisting mainly of household-type appliances, transistors and diodes amounted to $17,888 million or eight per cent of the total. Domestic exports of textiles valued at $16,814 million, contributed another eight per cent to the total. Other important exports included telecommunications and sound recording and reproducing apparatus and equipment (seven per cent) as well as office machines and automatic data- processing equipment (seven 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 1989, 52 per cent of all domestic exports went to the United States and the European Economic Community (EEC). The largest market was the United States ($72,162 million or 32 per cent of the total), China ($43,272 million or 19 per cent), the Federal Republic of Germany ($15,689 million or seven per cent) and the United Kingdom ($14,638 million or seven per cent). Domestic exports to Japan and Canada increased to $13,028 million and $6,299 million res- pectively, with Japan representing six per cent and Canada three per cent of total domestic exports. Other important markets were Singapore, the Netherlands, Australia and Taiwan.

Re-exports

      Re-exports showed a very significant increase in 1989, accounting for 61 per cent of the combined total of domestic exports and re-exports. Principal commodities re-exported were: textiles ($42,529 million); miscellaneous manufactured articles ($42,359 million); clothing ($37,281 million); electrical machinery, apparatus and appliances ($33,550 mil- lion); telecommunications and sound recording and reproducing apparatus and equipment ($27,552 million) as well as photographic apparatus, equipment, supplies, and optical goods, watches and clocks ($13,485 million). The main origins of these re-exports were China, Japan, the United States, Taiwan and the Republic of Korea. Largest re-export markets were China, the United States, Japan, Taiwan and the Republic of Korea.

Documentation of Imports and Exports

As a free port, Hong Kong keeps its import and export licensing requirements to a minimum. Products over a wide range do not need licences to enter or leave Hong Kong. Where licences are required, they are intended to achieve two main objectives. Firstly, they help Hong Kong to fulfil its international obligations to restrain exports of textiles products and, related to this, to monitor the flow of these products into Hong Kong. Thus there is a requirement for all imports and exports of such products to be covered by licences issued by the Director-General of Trade. Secondly, they help Hong Kong to control, on health or safety grounds, exports and imports of a few types of non-textile products such as strategic commodities, pharmaceuticals and agricultural pesticides.

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   Hong Kong maintains a certification of origin system to establish the origin of the goods which Hong Kong exports and to meet the requirements of the importing authorities. The Trade Department administers and safeguards the integrity of this sytem, 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, the Federation of Hong Kong Industries, the Chinese Manufacturers' Asso- ciation of Hong Kong, and the Chinese General Chamber of Commerce.

External Commercial Relations

  Hong Kong possesses full autonomy in the conduct of its external commercial relations. The Governor has been formally entrusted with executive authority to conduct external relations on behalf of Hong Kong, namely to conclude and implement trade agreements, whether bilateral or multilateral, with states, regions and international organisations and to conduct all other aspects of external commercial relations. Hong Kong is a separate contracting party to 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. GATT is the cornerstone 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.

   The Hong Kong Government pursues a free trade policy. Hong Kong is one of the best examples of GATT principles in action and the success of the policy is evidenced by the steady rise in the value and sophistication of Hong Kong's exports in recent years. Within the context of this free trade policy Hong Kong's commercial relations are designed to ensure that Hong Kong's trading rights in overseas markets are protected and that its international obligations are fulfilled. The most important of these rights and obligations are contained in the GATT and the MFA.

GATT

  On April 23, 1986, Hong Kong became the 91st contracting party to the General Agree- ment on Tariffs and Trade (GATT). Hitherto, Hong Kong had already been participating in GATT activities from within the United Kingdom delegation and the United Kingdom spokesman for Hong Kong was invariably a Hong Kong Government official. The arrangement enabled Hong Kong to take positions that were different from those of the European Economic Community (EEC), and, by implication, the United Kingdom. With effect from April 23, 1986, the Head of the Hong Kong Government Office in Geneva was appointed as the Permanent Representative of Hong Kong to the GATT.

In the United Kingdom declaration concerning Hong Kong's separate GATT contracting-party status, the British Government formally informed the Director-General of the GATT that Hong Kong was a separate customs territory possessing full autonomy in the conduct of its external commercial relations and of other matters provided for in the GATT. At the same time as the British Government made this declaration, the Chinese Government made a parallel declaration to the effect that, as from July 1, 1997, the Hong Kong Special Administrative Region will continue to meet the requirements for a separate customs territory to be deemed to be a contracting party to the GATT. By their respective declarations, therefore, the British and Chinese Governments have taken the necessary concrete steps to secure the continuance of Hong Kong's participation in the GATT in the years leading to and beyond 1997.

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      Hong Kong is an active participant in the GATT Uruguay Round of multilateral trade negotiations which began in 1986 and is scheduled to conclude by the end of 1990. Hong Kong's complete adherence to the GATT principles of free trade gives it added credibility and influence in the negotiations which aim to strengthen the GATT and further liberalise world trade. Hong Kong was closely associated with many of the key decisions taken during a ministerial review of progress held in Montreal in December 1988 and completed in Geneva in April 1989. Significant differences among the governments participating in the Uruguay Round negotiations were overcome during the review and a framework for discussions up to completion of the Round was agreed upon, paving the way for substan- tive negotiations for the remainder of the Round.

Hong Kong co-sponsored proposals in the Uruguay Round talks during the year. In particular, it introduced initiatives to improve and strengthen the multilateral rules governing anti-dumping actions and country of origin regulations which, it was felt, in their present form could be used to obstruct legitimate trade. Hong Kong played an im- portant role in the discussion on bringing trade in services within the disciplines of a multi- lateral system. To raise awareness among service sector companies in Hong Kong, the Trade Department and Trade Development Council jointly organised a seminar in October 1989 at which Hong Kong's interest in negotiations on trade in services was more clearly identified. Hong Kong also worked closely with exporters of textiles and garments under the International Textiles and Clothing Bureau to press for bringing world trade in textiles and clothing back under the disciplines of the GATT and for phasing-out the MFA.

Textiles

Bilateral agreements negotiated under the MFA govern Hong Kong's textiles exports to Austria, Canada, the EEC, Finland, Norway, Sweden and the United States.

Consultations held in Vienna in November 1989 resulted in a new three-year Hong Kong/Austria Textiles Agreement (February 1, 1990 to January 31, 1993). The agreement represents a substantial improvement over the current one in terms of product coverage and growth rates. The number of categories under restraint has been reduced from five to four and export authorisation categories from 14 to eight.

      Two rounds of consultations between Hong Kong and the EEC were held in 1989 to address problems arising from changes of product definitions upon adoption of the Harmonised System by the EEC. Agreement was reached on adjustments to the quota levels of six categories of textile products restrained under the agreement. Consultations were also held with the United States to review implementation of the new US textiles category structure adopted in conformity with the Harmonised System and a clearer understanding of classification practices was established.

Non-textiles Issues

Anti-dumping actions against Hong Kong companies emerged in 1988 as a signifi- cant phenomenon. Few cases had been brought against Hong Kong in the past; not surprisingly, since in Hong Kong's highly competitive trading environment it is difficult to see how companies could afford to operate at a loss or sell at less than normal value. However, during the period December 1987 to March 1989, eight anti-dumping actions were initiated in the EEC against Hong Kong companies. Of these, only one case (against Hong Kong exports of mobile cellular radio-telephones) was terminated without imposi- tion of any anti-dumping duties. Definitive anti-dumping duties, as high as 22 per cent for some companies, were imposed as from June 23, 1989, in respect of video cassette

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  tapes. Cases against small-screen colour televisions, tungsten ores, photo albums, audio tapes, silicon metal and denim fabric were still under investigation.

   In October 1989, the United States authorities initiated an investigation in response to a petition from US knitwear manufacturers alleging that Hong Kong man-made fibre sweaters were being dumped in the United States.

   In all these cases the Hong Kong Government worked closely with the industries alleged to have been dumping to ensure that each was given a fair chance to present its case fully and accurately to the investigating authorities and to see that the principles and provisions of the GATT Anti-dumping Code were adhered to.

   Hong Kong made a detailed submission to the EEC Commission in June on the EEC's 1990 Generalised System of Preferences (GSP) and a further submission in September on the EEC's review of its GSP scheme (1991-2000). The EEC decided to exclude 39 Hong Kong products from GSP benefits in 1990.

Participation in International Organisations

The Pacific Economic Co-operation Conference (PECC) is a non-governmental organ- isation set up in 1980 to develop closer co-operation in regional trade and economic policy issues. Conferences are held regularly with member countries taking turns to host. Participation in PECC takes the 'tripartite' format whereby delegations consist of senior government officials, business leaders and academics, all attending in their personal capacity. Although it is not a member of the organisation, Hong Kong attended the PECC VII meeting held in Auckland in November 1989 as an observer.

The Organisation for Economic Co-operation and Development (OECD), a 24-country organisation established in 1961, initiated a dialogue with Asian economies in January 1989 by organising an informal seminar to exchange views on national policies and inter- national co-operation in sustaining the development of the global economy. Hong Kong participated in the seminar and has shown interest in taking part in further dialogue with the OECD. Hong Kong attended the OECD symposium on structural adjustment of the Asia-Pacific economies and the OECD informal consultation on export credits in October and November 1989, respectively, and has expressed interest in participating in all four proposed OECD workshops with Asian economies to be held in 1990.

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-General 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 which 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 collection and dissemination of information on developments which may affect Hong Kong's external trade, especially those relating to trade policies and measures adopted in Hong Kong's major markets. 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 com- mercial relations, such as its participation in the GATT and in the negotiation of the Multi- Fibre Arrangement. The fifth division is responsible for the textiles export control system,

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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 and Brussels, and Hong Kong Economic and Trade Offices in Geneva, New York, Washington, San Francisco and Tokyo. Details are at Appendix 6. These overseas offices are administered by the Trade and Industry Branch of the Government Secretariat. They represent Hong Kong's commercial relations interests on a day-to-day basis and provide information on international developments which may affect Hong Kong.

Hong Kong Government Offices Overseas

The Hong Kong Government maintains offices in Geneva, Brussels, London, Washington, New York, San Francisco and Tokyo, mainly to safeguard and advance Hong Kong's economic and commercial interests overseas.

      The Geneva office represents Hong Kong in the General Agreement on Tariffs and Trade. The office keeps under review developments arising from the deliberations in the GATT and other international organisations in Geneva and has been closely involved in the Uruguay Round of multilateral trade negotiations. The Brussels office represents Hong Kong's economic and related interests concerning the European Community and the governments of member states (other than the United Kingdom). Hong Kong's com- mercial relations with the United Kingdom, Austria and the Nordic countries (Finland, Sweden and Norway) are handled through the London office. The Washington, New York and San Francisco offices closely monitor economic and trade developments, pro- posed legislation, and other matters in the United States of America and Canada that might affect Hong Kong's economic interest in general and bilateral trade with these two countries in particular. The Hong Kong Economic and Trade office in Tokyo was established in September 1988 for the development of Hong Kong's commercial, economic and public relations interests in Japan. The Brussels, London, New York, San Francisco and Tokyo offices undertake industrial promotion activity, advising firms in the host countries about opportunities for investing in Hong Kong industries. All overseas offices, except Geneva, act as a point of direct contact between Hong Kong and the host country, and the local media and organisations with an interest in Hong Kong. They keep under review the commercial, economic and industrial developments and official thinking on international trade policies and advise the Hong Kong government on the likely repercussions of these developments. The London office, in addition, provides assistance to Hong Kong people in the United Kingdom, including Hong Kong students, and supervises the recruitment and training of Hong Kong public servants in the United Kingdom. The Marine Adviser based in London is Hong Kong's permanent representative to the Internation Maritime Organisation and provides an information centre for technical, legal and general maritime matters pertaining to Hong Kong. Details of representation overseas are at Appendix 6.

Customs and Excise Department

The Trade Controls Branch, one of the four component branches of the Customs and Excise Department, is responsible for the enforcement of the law relating to trade controls. The work of the other branches of the department is described in Chapter 16 (Public Order).

      The Trade Inspection and Verification Bureau, of the Trade Controls Branch, is respon- sible for the inspection of factories and consignments in connection with certificates of

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origin, textile quota controls, import and export licences and the verification of trade declarations and manifests. Its Trade Investigation Bureau and Trading Standards Investigation Bureau are responsible for the investigation of licensing and origin fraud, consumer protection, weights and measures control and the control of reserved com- modities.

The re-organisation of the Customs and Excise Department last year provided the opportunity for the restructuring of the Trade Controls Branch. As a result, its overall enforcement ability and staff resources in particular were more effectively deployed, result- ing in a large rise in the number of textile consignment checks and a significant increase in the number of cases of origin and textile fraud that were detected.

Greater emphasis is being placed on the enforcement of consumer protection legislation, particularly the new Weights and Measures Ordinance which came into effect on January 1, 1989.

Government Supplies Department

The Government Supplies Department is the government's central purchasing and supply agency. It buys equipment, goods and services ranging from simple office sundries to aircraft and complex computer systems, for 50 departments and units of the Hong Kong Government. It also gives advice on purchasing and supply matters, and seconds staff to other departments to ensure a professional approach to acquisition and maintenance of supplies throughout the government.

To ensure continuity of supply, the department maintains goods which are generally required by other departments in its main stores in Hong Kong and Kowloon and five sub-stores specially established to serve the engineering workshops.

In conformity with Hong Kong's commitments as a signatory to the Agreement on Government Procurement of the GATT, the department's purchases of significance are widely advertised and open to competitive bidding. In the taxpayers' interest, all purchases are made entirely on the basis of best value for money regardless of the source of supply. Due to its open procurement policy, goods and services are procured from over 35 countries and some 4 000 registered suppliers.

In 1988-9, the department placed orders to a total value of $2,402 million including the purchase of aircraft from the United States for use by the Royal Hong Kong Auxiliary Air Force at a contract value of $423 million.

Hong Kong Trade Development Council

The Hong Kong Trade Development Council (HKTDC) is a statutory body responsible for promoting and developing Hong Kong's overseas trade and publicising the oppor- tunities and advantages of Hong Kong as a trading partner.

The chairman is appointed by the Governor and the 18 other members include representatives of major trade associations, leading businessmen and industrialists, and two senior government officials.

The council was established in 1966 and has built up a network of 29 offices throughout the world, in addition to the head office in Hong Kong, local branch offices in Tsuen Wan and Kwun Tong and a trade enquiries office in the Ocean Centre. In 1989, offices were opened in Singapore, and the council moved its head office to the Office Tower of the Hong Kong Convention and Exhibition Centre.

  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

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overseas representatives and consultants can put traders in touch with any of the 40 000 Hong Kong manufacturers and exporters registered in the Trade Enquiries Service computer. Furthermore, local businessmen can find markets for their goods through 130 000 overseas importers and buyers registered with the council.

In 1989, the computerised Trade Enquiries Service of the council processed more than 230 000 overseas and local trade enquiries. The Research Department continued to publish special market surveys and detailed product reports, identifying opportunities in overseas markets for Hong Kong exports.

      Council staff carried out an extensive trade promotion programme in 1989, organising more than 80 major international projects. In the United States, these included the Winter Consumer Electronics Show in Las Vegas and the Summer Consumer Electronics Show in Chicago, the American Toy Fair in New York, the International Houseware Exposition in Chicago and the New York International Gift Fair.

In Europe, the council participated in the International Toy Fair in Nuremburg, the Frankfurt International Spring and Autumn Fairs, the Birmingham International Spring Fair and SONIMAG in Barcelona, IGEDO in Dusseldorf, CeBIT in Hanover, MIDO in Milan and 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 over 400 inward missions from more than 35 countries.

       In Hong Kong, the council staged Hong Kong Fashion Week, Hong Kong International Toys and Games Fair, Hong Kong International Electronics Fair, Hong Kong Inter- national Jewellery Show, Hong Kong International Watch and Clock Fair and Hong Kong International Gifts and Houseware Fair. It also participated in the Leather International Fair, World Unit Pack Expo, Hong Kong Industrial Trade Fair and Hong Kong Jewellery and Watch Fair.

      In a series of successful store promotions, the HKTDC joined forces with Ahelens in Stockholm, Hertie in Munich, Meitetsu in Nagoya and Pacific Sogo in Taipei, plus a number of stores in Toronto's Mississauga Square I.

The council produces eight product magazines, a fashion magazine and a newspaper for general circulation and distribution at trade events around the world. They are: Hong Kong Enterprise, a monthly general products magazine; the annuals Hong Kong Toys, published each January to coincide with the Hong Kong International Toys and Games Fair, Hong Kong Jewellery Annual, Hong Kong Watches and Clocks, Hong Kong Household and Hong Kong Gifts and Premiums; a biannual, Hong Kong Electronics; Hong Kong Apparel, a prize-winning quarterly fashion magazine and Hong Kong Trader, a bimonthly newspaper (sent airmail) giving news and views of the territory. In October, Hong Kong Collection, a Japanese-language quarterly featuring general products, was introduced. A guidebook, Hong Kong For The Business Visitor, is published annually in seven languages (English, Chinese, French, German, Italian, Spanish and Japanese).

       The council's Overseas Associations Section administers the Hong Kong-United States Economic Co-operation Committee. The 12th plenary session of the Hong Kong-Japan/ Japan-Hong Kong Business Co-operation Committee was held in Hong Kong in March. The section also monitors the activities of overseas associations in Sweden, Spain, Canada, Austria, the Netherlands, the United Kingdom, Italy, Finland, Norway, Australia and New Zealand.

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The Hong Kong Convention and Exhibition Centre was officially opened on November 9 by Their Royal Highnesses The Prince and Princess of Wales, although it had begun functioning some months earlier. During its first year of operation the centre hosted 571 conventions, exhibitions, seminars and other corporate gatherings.

Hong Kong Export Credit Insurance Corporation

The Hong Kong Export Credit Insurance Corporation (ECIC) is a statutory corporation established in 1966 to provide insurance protection to exporters against the risk of monet- ary loss arising from non-payment by their overseas buyers for goods exported and services rendered on credit which are not normally covered by commercial insurers. The maximum percentage of indemnity against country and buyer risks is 90 per cent.

   The corporation's paid-up capital of $20 million is provided by the government, which guarantees the payment of all moneys due by the corporation. The maximum contingent liability arising from its insurance and guarantees operations which may be assumed by the corporation is $6,000 million. The corporation is autonomous in its day-to-day operations and is run on a commercial basis. In the conduct of its business, the corporation is assisted by a 12-member Advisory Board comprising prominent members of the private business sector and representatives from the government.

   It insures domestic exports and re-exports transacted on all kinds of short-term credits and payment methods including documents against payment, documents against accept- ance and open account up to a maximum credit period of 180 days. Shipments from third countries direct to overseas buyers may be covered. Cover is also available to protect the exporters against buyers' insolvency during the manufacturing stage, against non-payment due to war and civil disturbance, or against confiscation and non-repatriation of raw materials, work-in-progress and finished products where goods are manufactured outside Hong Kong. For exports of capital goods and services sold on medium or long-term credits, the corporation can provide tailor-made insurance policies.

The corporation is a member of the International Union of Credit and Investment In- surers (the Berne Union) and has regular access to confidential and updated economic and market information on all major trading countries.

   Being a professional credit manager itself, the corporation conducts assessments on credibility of overseas buyers and gives advice on credit-risks monitoring and debt collec- tion. These services have proved invaluable to exporters who lack resources to have effective credit management systems.

   The corporation has a computerised databank containing information on over 60 000 overseas buyers. This enables it to deal speedily with policyholders' enquiries and helps ex- porters to determine the extent of credit which they may prudently trade with these buyers.

   In 1989, the corporation insured a total of $11,468 million in goods and services, an in- crease of 12 per cent over 1988, and earned a total premium income of $68 million. Against this, 81 claims totalling $27 million were paid.

Other Trade and Industrial Organisations

  Hong Kong has a number of major trade and industrial organisations which provide services to their members and represent their views to the government, either of their own accord or in response to government consultation.

   The Hong Kong General Chamber of Commerce is the oldest internationally-recognised trade association in Hong Kong. Established in 1861, it now has a membership of some 2 700 companies representing all branches of commerce and industry, including exporters

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Previous page: Heavy industry, such as this Junk Bay (Tseung Kwan O) steel foundry, provides essential support to other local industries and the export trade.

The clamour of the construction site is never far away as more high-rise structures crowd the skyline.

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Radio paging services are extremely popular in Hong Kong, which probably has the world's highest per capita rate of subscriptions for pagers.

Below: Paging equipment being manufactured at a Kwun Tong factory.

Right: Operations centre for a busy paging service.

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Below: Computerised design plays a part in fashion courses at the Polytechnic.

Right: The Trade Development Council promotes local

designers' creations at the new Convention and Exhibition Centre during Hong Kong Fashion Week.

Overleaf: A recent arrival in Hong Kong's line-up of luxury hotels, the Grand Hyatt boasts a splendid 1930s-style lobby with marble pillars and burnished gold and silver in the high, domed ceiling.

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 worke

INDUSTRY AND TRADE

     and importers, a wide section of the manufacturing industry, transport, utilities, banking insurance and commercial and professional services. The chamber was formed to promote trade and industry, to act as a focus of local business opinion and to make that opinion known when necessary. It organises trade and industrial investment promotion groups, goodwill missions, and handles trade enquiries. It receives official and trade del- egations as well as individual businessmen from overseas, and extends to them appropriate assistance. It is authorised by the government to issue certificates of origin. Although an independent organisation, the chamber is represented on a variety of official advisory committees and other local organisations. It is a member of the International Chamber of Commerce.

      The Chinese Manufacturers' Association of Hong Kong (CMA), established in 1934, is a non-profit-making chamber of commerce and industry. It has a membership of over 3 600 industrial and trade establishments, and is authorised by the government to issue certificates of origin. It also handles trade enquiries, organises missions, fairs and ex- hibitions, and is active in encouraging product development and quality improvement. The CMA Testing and Certification Laboratories provide technical back-up services, including product testing, certification, inspection and technical consultancy services. The CMA also operates two prevocational schools to provide technical education and training for more than 2200 students. Since 1964, it has awarded scholarships annually to outstanding students studying in universities, polytechnics and technical institutes through the CMA and Donors' Scholarships Scheme. In 1989, it ran the award competition in the machinery and equipment design category of the newly-introduced Governor's Award for Industry, to emphasise the importance of machinery and equipment design in Hong Kong's industrial development.

      The Federation of Hong Kong Industries is a statutory body, established by the govern- ment in 1960 to promote and protect the interests of Hong Kong's manufacturing industry. It offers a wide range of services, covering certificates of origin, the Hong Kong Quality Mark Scheme, a custom-built multi-risks insurance policy, consultancy work on quality assurance, trade enquiries, and economic and market research.

      In 1989, the federation ran the award competition in the consumer product design category in the newly-introduced Governor's Award for Industry, attracting nearly 300 entries, and organised the Hong Kong Young Designer of the Year Award Competition in recognition of outstanding achievements by local designers. The second Young Industrialist Awards of Hong Kong were presented in June 1989 in honour of seven young industrialists for their professional endeavors and commitment to the manufacturing industry.

      With a membership spanning all industrial sectors, the federation services the Hong Kong Toys Council, Chemical and Pharmaceutical Industries Council, Transport Services Council, Hong Kong Electronics Industry Council, Hong Kong Plastics Industry Council and the Mould and Die Council.

Established in 1900, the Chinese General Chamber of Commerce is an association of local Chinese firms, businessmen and professionals. It has a membership of more than 6 000, representing a wide spectrum of business as well as industry. It provides a variety of services including certification of origin, organisation of seminars, exhibitions, trade missions and other trade promotional activities. It maintains close links with trade organisations in China and, since 1957, has been authorised by the Chinese Export Com- modities Fair authorities to issue invitations on their behalf to local Chinese firms. It has been operating courses for senior government officials to China since 1982. These courses

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 are designed to enable the participants to better understand the various aspects of Hong Kong's economy.

Incorporated in 1981, the Hong Kong Trade Facilitation Council was set up to facilitate international trade procedures and the documentation and information flows associated with them. Its members include representatives of government, trade and industrial organisations and private sector companies. In recent years, the emphasis in trade facili- tation work has shifted from paper to the transmission of trade data by electronic means. More recently, in conjunction with the Hong Kong General Chamber of Commerce, it was instrumental in establishing the Hong Kong Article Numbering Association Limited, which is the recognised Hong Kong authority for the issue of bar codes for product identification.

The Hong Kong Management Association was established in 1960 with the aim of im- proving the effectiveness and efficiency of management in Hong Kong. It runs management training courses, provides management consultancy services, publishes a bimonthly journal The Hong Kong Manager, offers library information and translation services, and organises seminars, forums and inter-firm competitions.

Consumer Council

The Consumer Council is a statutory body responsible for protecting and promoting the interests of consumers of goods and services. Its chairman, vice-chairman and 20 other members the number was increased from 15 during the year - are all appointed by the Governor from various walks of life, representing a considerable diversity of consumer interests.

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Established in 1974, the council provides a comprehensive consumer protection service including consumer representation and legislation, advice and complaints, research and testing, and information and publications. It maintains close co-operation with the government through the Trade and Industry Branch and is represented on many com- mittees dealing with a wide range of consumer issues and concerns.

The year began with the council inquiring into a proposed significant increase of motor vehicle insurance premiums, following a public outcry. The study resulted in recommendations for the monitoring of the insurance industry in respect of its pricing mechanism and other related matters.

A thorough review of the functions of the council was carried out in the light of rising consumer expectations and the changing needs of society. A major area of the review was to investigate the adequacy of the existing mechanism of controls over public utilities and transport companies. A report with recommendations to expand the council's scope of functions was submitted to the government at the end of the year.

Marked progress was made in the area of consumer product safety. A government working group, with representation from the council, has been studying the international safety standards of toys and children's products with a view to adopting the relevant standards for use in Hong Kong. The proposed legislation to expand control on domestic pesticides is at an advanced stage. The Electricity Bill, which aims to delineate clearly the responsibilities of the government, the power companies, the electrical appliance trade and electricity consumers, will also enforce safety regulations on electrical products. The amended Money Changers' Ordinance came into operation and the Control of Exemption Clause Ordinance was enacted.

The council regularly conducts research into a diverse range of goods and services to assist consumers in their purchasing decisions and to alert them to potential hazards to

INDUSTRY AND TRADE

their health and safety. In the field of comparative product testing, the council's work was enhanced by taking part in international joint tests. Such tests provided both substantial financial savings and suitable laboratory facilities which might not exist in Hong Kong. Extensive use was made of surveys to tap the experiences of users, particularly in evalua- ting services. This regular flow of information was published in the council's Chinese- language monthly magazine Choice, which maintained a high circulation of some 45 000 per issue. An annual English version entitled Choice Buying Guide was published for the second year with continued success.

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      The educational publicity campaign on 'Consumers' Right to Know', launched in 1988, continued to gain momentum in arousing the awareness of the public consumers and traders alike - to this basic right of consumers. Continuous efforts in consumer education have increasingly prompted schools and community groups to organise projects of con- sumer interest.

      The council operates 16 Consumer Advice Centres throughout the territory and during the year, dealt with 9 473 complaints and 97 354 enquiries for consumer advice. Publicity sanction was imposed on seven shops which were subjects of frequent consumer complaints for dishonest business practices. Most shops named by the council were retailers of house- hold electrical appliances.

The Consumer Council of Hong Kong is a Council Member of the International Organisation of Consumers Unions (IOCU) and maintains strong ties with similar councils elsewhere.

Trade in Endangered Species

In Hong Kong, the importation, exportation and possession of endangered species of an- imals and plants, including parts and derivatives, are 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). The licensing policy follows closely the principles of the convention and licences are only granted to facilitate the trade of species permissible under CITES, whereas the commercial trade in highly-endangered species is strictly forbidden.

      Ivory, reptile skins imported for the leather trade and wild American ginseng roots imported for medicinal purposes, are major commodities in trade in endangered species.

In June, a number of overseas countries, including the United States, Japan, the United Kingdom and some European Community countries, announced a ban on ivory imports as a result of increasing worldwide concern over the continued decline of the African elephant population in the producing countries, due to widespread poaching. As these countries represent Hong Kong's major ivory export markets, the ban had an adverse effect on the local ivory trade.

      As a party to CITES, the Hong Kong government has the responsibility for taking posi- tive action in conserving the African elephant. After consulting the trade and the workers, the government announced in June that it supported the ban on the trade of new ivory. It pointed out, however, that there was still a demand for ivory products in the world market and this should best be met by the existing legal stocks rather than by killing more elephants. For the sake of conservation, and in order to be fair to those legal traders, the government strived to convince the international community that trade in existing stocks of legally-held ivory should be allowed to continue under close supervision.

      To fulfil this aim, the government strengthened its already strict control by introducing such additional measures as thorough registration of all existing ivory stocks in the

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territory, a moratorium on imports of raw ivory from all sources until further notice, setting up a special task force to investigate and suppress any illegal trade of ivory and extending the licensing control of export of raw ivory to include worked ivory as well as the possession of ivory for commercial purposes.

In addition, government representatives participated in the CITES African Elephant Working Group meeting in July and the CITES biennial conference in October, to present Hong Kong's case.

   The CITES conference decided that the African elephant should be uplisted from Appendix II to Appendix I, which means all international trade in elephants, their parts or ivory, is prohibited. The conference rejected the proposal to allow trade in existing ivory stocks despite arguments put forward by Hong Kong that the continued trade of the territory's legal, finite and strictly-controlled ivory stocks would not pose a threat to the survival of the elephants in Africa and that an indiscriminate trade ban would be unfair to traders who have acquired stocks in strict compliance with the CITES requirements.

   The Animals and Plants (Protection of Endangered Species) Ordinance was amended during the year to extend its prohibition against trade in rhinoceros products including medicines claimed to contain its ingredients, to increase the maximum fines by five-fold and to introduce additional provisions to enhance enforcement.

   The ordinance is administered by the Agriculture and Fisheries Department and is enforced by officers of the department and the Customs and Excise Department through checking at entry points, markets, shops and restaurants, as well as inspection of licenced shipments. The Trade Department is authorised to issue certificates for the export of ivoryware carved in Hong Kong. All suspected offences are thoroughly investigated and prosecutions follow if there is evidence of a breach of the ordinance. During 1989, there were 350 seizures and 240 prosecutions under the ordinance.

Metrication

The government's metrication policy is to facilitate progressive adoption of the Inter- national System of Units (SI) in those areas for which it is responsible and to encourage 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. Most government departments are now using metric units exclusively.

   A Metrication Committee, consisting of representatives of industry, commerce, man- agement and consumer affairs, and government officials appointed by the Governor, is the focal point of liaison on all matters concerning metrication. It advises and encourages the commercial and industrial sectors in the framing of their metrication programmes.

   During the year, the committee continued to direct its activities towards the metrication of the retail trade sector. A publicity campaign was mounted to encourage the use of metric units in the sale of frozen meat products by means of television announcements and the distribution of posters and conversion cards to retail outlets.

Trade Marks and Patents

The Trade Marks Registry, which is a sub-division of the Commercial Division of the Registrar General's Department, is a registry of original registration. Trade marks are registered under the Trade Marks Ordinance, the provisions of which are similar to trade marks legislation in the United Kingdom. The procedure in applying for registration is laid down in the Trade Marks Rules, and the prescribed forms may be obtained free from the Trade Marks Registry. Every mark, even if already registered in the United Kingdom or

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     any other country, must satisfy all the requirements of the Trade Marks Ordinance before it may be accepted for registration. During 1989, 10 255 applications were received and 4 235, including many made in previous years, were accepted and allowed to be advertised. A total of 4 060 marks were registered in 1989, compared with 4 360 in 1988. The principal countries of origin were: United States of America, 955; Hong Kong, 933; Japan, 394; United Kingdom, 338; France, 274; West Germany, 231; Italy, 185; Switzerland, 137; Taiwan 81, and the Netherlands, 78. The total number of marks on the register at December 31, 1989, was 54 255.

      Unlike the Trade Marks Registry, the Patents Registry, which is another sub-division of the Commercial Division of the Registrar General's Department, is not a registry of original registration. 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.

      During the year, 1 030 patents were registered in this way, compared with 1 070 in 1988. 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 com- mencement of the term of the patent in the United Kingdom and continue as long as the patent remains in force there.

Companies Registry

The Companies Registry of the Registrar General's Department keeps records of all com- panies 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 was largely based on the Companies Act 1929, formerly in force in Britain but now replaced by various statutes culminating in the Companies Act 1985. 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, 1984. The ordinance is subject to continual revision and improvement on the advice of the Standing Committee on Company Law Reform which was set up in 1984. The primary task of the committee is to ensure that Hong Kong's company law meets the most up-to-date needs of government and business. Further amendments to the ordinance were made by various Companies (Amendment) Ordinances between February 20, 1987 and July 21, 1989.

      On incorporation, a company pays a registration fee of $600 plus $6 for every $1,000 of nominal capital. In 1989, 31 674 new companies were incorporated, 1 200 more than in 1988. The nominal capital of new companies registered totalled $3,371 million. Of the new companies, 113 had a nominal share capital of $5 million or more. During the year, 8 401 companies increased their nominal capital by amounts totalling $27,406 million on which fees were paid at the same rate of $6 per $1,000. At the end of 1989, there were 242 709 local companies on the register, compared with 213 515 in 1988.

      Companies incorporated overseas are required to register certain documents with the registry within one month of establishing a place of business in Hong Kong.

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A registration fee of $500 and some incidental filing fees are payable in such cases. During the year, 266 of these companies were registered and 150 ceased to operate. At the end of the year, 2 464 companies were registered from 65 countries, including 605 from the United States, 350 from the United Kingdom and 286 from Japan.

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

Money Lenders

Under the Money Lenders Ordinance, which came into force in December 1980, and was amended in July 1988, anyone wishing to carry on business as a money lender must apply to a Licensing Court for a licence.

Any application for a licence is in the first instance 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, 496 applications were received and 473 licences were granted. At the end of 1989, there were 468 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. With certain exceptions (primarily authorised institutions under the Banking Ordinance), 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. Agreement for the repayment of any such loan or any security given in respect of such loan shall be unenforceable.

Bankruptcies and Compulsory Winding-up

The Official Receiver's Office of the Registrar General's Department administers estates in bankruptcy and estates of companies in compulsory winding-up.

The Registrar General, who is also the Official Receiver, becomes the receiver of the property of the debtor against whom a receiving order is made, or the provisional liquidator of the company against which a winding order is made. He continues to act as such until he or another person is appointed as trustee or liquidator.

During the year, there were 224 petitions in bankruptcy and 224 petitions for the compulsory winding-up of companies. The court made 177 receiving orders and 158 winding-up orders. As in past years, the Official Receiver was appointed trustee or liqui- dator in most cases. The assets realised by the Official Receiver during 1989 amounted to $351 million.

Official Trustee, Official Solicitor and Judicial Trustee

The Registrar General also exercises the powers and performs the duties conferred or im- posed upon the Official Trustee, the Official Solicitor and the Judicial Trustee. At the end of the year, the total funds administered by the Official Trustee under 14 trusts amounted to $2.13 million. The Official Solicitor agreed to act in four cases.

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HONG KONG's labour market continued to be very tight during the year due to a high level of economic activity. The problem of the brain drain, due to emigration of professionals and experienced personnel, continued to cause concern. Employers were adopting new approaches to tackle the problem of staff recruitment and retention. A limited scheme was approved by the government to import skilled foreign labour to help ease the tight labour situation. Higher wages were offered to workers, particularly in the construction industry and service sectors.

Unemployment for the third quarter of 1989 was at a low of 1.4 per cent, and underemployment was 0.6 per cent.

      The average wage rates for all employees, including workers or wage earners and salaried employees up to the supervisory level, increased by 13.4 per cent in money terms between September 1988 and September 1989, while those for workers (or wage earners) increased by 11.7 per cent over the same period. After allowing for rises in consumer prices, wage rates for all employees increased in real terms by 2.9 per cent and those for workers increased by 1.4 per cent. The overall average daily wage rate for workers in September 1989 was $167, being $201 for males and $144 for females. While the increase of wage rates in real terms was small, the increase of average earnings was more significant. For example, between September 1988 and September 1989, average earnings for employees in the manufacturing sector, in terms of payroll per person engaged, rose by 16.1 per cent in money terms, or by 5.5 per cent in real terms.

      Hong Kong's dynamic workforce totals 2.8 million, of which 64 per cent are males and 36 per cent females, as recorded by the July-September 1989 General Household Survey. Of the total workforce, 29.7 per cent are engaged in manufacturing, 25.1 per cent in wholesale and retail trades, restaurants and hotels, 18.3 per cent in community, social and personal services, 9.5 per cent in transport, storage and communications, 8.4 per cent in construction, and 7.4 per cent in the financing, insurance, real estate and business services.

      A survey of Employment, Vacancies and Payroll in the Manufacturing Sector conducted in September showed that 802 983 people were engaged in 49 926 establishments. The survey covered working proprietors and partners, employees receiving pay and unpaid family workers affiliated to business organisations, but excluded out-workers. Some 353 101 people, the largest portion of the manufacturing workforce, were engaged in the textile and wearing apparel industries. The electronics and plastics industries 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 17 and 18.

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Labour Legislation

To provide better standards of safety, health and welfare for the workforce, 10 items of labour legislation were enacted in 1989. This brings the total number of items of labour legislation enacted in the last 10 years to 139 under the broad policy of achieving a level of legislation on safety, health and welfare broadly equivalent to Hong Kong's neighbouring countries at a similar stage of economic development. The more significant items of labour legislation enacted during the year included amendments to the Protection of Wages on Insolvency Ordinance which extended its coverage to severance payments, and amend- ments to the Factories and Industrial Undertakings Ordinance which imposed general responsibilities on employers and employees in respect of work safety at industrial undertakings and construction sites.

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 1989, Hong Kong has applied a total of 47 conven- tions, of which 29 were in full and 18 with modification. This compares favourably with other member nations in the region.

There has been an increase in the number of prosecutions under the various ordinances and regulations administered by the Labour Department. During the year, 4 120 cases were heard in the courts with total fines of $15,274,925 imposed on offenders.

Wages and Conditions of Work

Wage rates are usually calculated on a time basis, such as hourly, daily or monthly, or on an incentive basis depending on the volume of work performed. The pay period is normally 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 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.

Wage rates in the manufacturing sector continued to increase in money terms during the year, while unemployment and underemployment remained at a low level due to continued expansion of the service sector of the economy. After allowing for rises in consumer prices, the wage rates for all employees and workers increased in real terms by 1.8 per cent and 1.2 per cent respectively between September 1988 and September 1989.

In September, 75 per cent of manual workers engaged in manufacturing industries received daily wage rates, including fringe benefits, of $129 or more, and 25 per cent received $191 or more. The overall average daily wage rate was $163.

Besides granting statutory holidays, annual leave, rest days and other entitlements under the Employment Ordinance, some employers in the manufacturing sector provide workers with various kinds of fringe benefits, including subsidised meals or food allowances, attendance bonuses, free medical treatment and free or subsidised transport. Many employees also enjoy a year-end bonus of one month's pay or more under their em- ployment contract, usually paid just before the Lunar New Year. In recent years, an increasing number of employers have introduced provident fund schemes to provide 100 improved long-term security for their employees.

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The Employment of Children Regulations, made under the Employment Ordinance, prohibit the employment of children under 15 in any industrial undertakings. Children who have attained the age of 13 may be employed in non-industrial establishments, subject to stringent conditions which aim at ensuring a minimum of nine years education and protecting their health, safety and welfare.

      Under the Women and Young Persons (Industry) Regulations, young persons aged 15 to 17 and women are permitted to work eight hours a day and six days a week in industry. By agreement between the employer and employees, their working hours may exceed eight on one or more days in any week or 48 in a week, provided that the total number of hours worked (excluding overtime) does not exceed 96 hours in any two consecutive weeks, but in any case the maximum working hours per day (including overtime) remain at 10. Women and young persons must be given a break of at least 30 minutes after five hours of continuous work.

In industry, overtime employment for women is restricted to two hours a day and 200 hours a year, while persons under the age of 18 are not permitted to work overtime. The Commissioner for Labour may, under special circumstances, increase the hours of overtime employment allowed for an industrial undertaking. As a general rule, overtime employment for women is reckoned by reference to an industrial undertaking. However, an employer may, subject to compliance with conditions imposed by the Commissioner for Labour, opt to calculate overtime by reference to different parts of his undertaking, or to different sets of women in different processes, or to the individual woman.

      Women are usually not allowed to work after 11 pm and before 6 am, while persons under the age of 18 are prohibited from working between 7 pm and 7 am. Permission has been given by the Commissioner for Labour to some large factories - mostly those engaged in cotton-spinning - to employ women at night, subject to certain stringent conditions. Women and young persons must not be employed on more than six days in any week. The regulations also prohibit them from working underground and provide that, except with the written permission of the Commissioner for Labour, no person shall employ any female person of whatever age or any male person under 16 years of age in a dangerous trade.

      In 1989, the Labour Inspectorate of the Women and Young Persons Division made 219 217 day and night inspections of both industrial and non-industrial establishments and conducted four special campaigns against the employment of children and illegal immigrants, covering 11 128 establishments. During the year, 159 cases of child em- ployment involving 159 children were brought before the courts.

      In addition, a special team of labour inspectors is responsible for monitoring employers' compliance with the provisions of the Employment Ordinance concerning rest days, statutory holidays, annual paid leave, sickness allowance, maternity leave pay and the keeping and maintenance of records relating to statutory benefits.

From July 1, a general enquiry telephone service has been set up to provide information for the public in the form of pre-recorded tapes in both English and Chinese. The tapes cover 26 topics under the Employment Ordinance, Protection of Wages on Insolvency Ordinance, Employees' Compensation Ordinance and matters relating to the employment of foreign domestic helpers.

Controls on Illegal Employment

Employers are prohibited, under the Immigration Ordinance, from employing persons who have no valid proof of identity and those Vietnamese refugees who are not permitted to obtain employment. The ordinance also requires all employees to produce proof of identity

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for inspection 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 enforced by the Labour Department.

The Immigration Ordinance was amended in July to empower labour inspectors and senior labour inspectors of the Labour Department to seize and remove records of em- ployees as evidence and to require production of records by notice in writing served on an employer.

Long Service Payment

Since January 1986, employers have been required by the Employment Ordinance to make long service payment to their employees under certain circumstances. An employee who has worked continuously for the same employer for a specified number of years ranging from five to 10 years, depending on the employee's age, and who has been dismissed other than by way of summary dismissal or redundancy, is entitled to a long service payment calculated at the rate of two-thirds of a month's wages for each year of service. However, the amount of long service payment varies with the age of the employee. An employee aged 40 or above is entitled to the full payment, while younger ones are entitled to only 50 per cent or 75 per cent, depending on their age. In the case of redundancy, the employee is entitled to severance payment.

In July 1988, the long service payment scheme was extended to cover eligible employees who resign on grounds of ill-health and old age. Long service payment is also payable to the families of eligible employees who die in service.

Trade Unions

In Hong Kong, trade unions must be registered under the Trade Unions Ordinance, which is administered by the Registrar of Trade Unions. Once registered, they become corporate bodies and enjoy immunity from certain civil suits.

During the year, 19 new unions were registered. At the end of the year, there were 481 unions, comprising 439 employees' unions with about 416 400 members, 29 employers' associations with some 2900 members, and 13 mixed organisations of employees and employers with about 18 300 members.

The majority of the blue collar employees' unions are affiliated to one or the other 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 has 81 affiliated unions with about 173 900 members. The affiliated unions are concentrated in shipyards, textile mills, transport, public utilities and the printing and construction industries.

   The Hong Kong and Kowloon Trades Union Council has 70 affiliated unions with a membership of about 17 800. These unions are mainly in the catering and building trades.

   The remaining 288 employees' unions have a total membership of about 224 700, mostly drawn from the public service and the teaching profession.

Labour Administration and Services

The Labour Department has an establishment of 1611. Branch offices throughout the urban areas and the New Territories deal 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.

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The department initiates labour legislation and ensures that Hong Kong's obligations under international labour conventions are observed. Other major activities of the department include enforcement of ordinances regulating employment conditions, pro- viding employment assistance, promoting good labour relations, providing assistance to employees injured at work and persons suffering from pneumoconiosis in obtaining compensation, protecting and promoting the safety and health of workers, and admin- istering legislation on explosives, prospecting, quarrying and mining.

During the year, the Staff Training and Development Division organised three induction courses for 51 new recruits and 24 in-service training programmes for 931 serving officers. A total of 47 officers were sent overseas for training or duty visits with a view to improving the quality of the department's services to the public or preparing for new areas of service.

Labour Relations

In 1989, the Labour Relations Service of the Labour Department conciliated in 130 trade disputes which led to seven work stoppages, with a loss of 3 270 working days. These compared with 2 345 working days lost in eight work stoppages in 1988. The service also dealt with 15 206 claims for wages in lieu of notice, wages in arrears, annual leave pay, holiday pay, end-of-year payment, severance payment, long-service payment and others.

The Labour Relations Ordinance provides the machinery for special conciliation, voluntary arbitration and boards of enquiry for settling trade disputes that cannot be resolved through ordinary conciliation. The Employment Ordinance provides for the protection of the wages of employees and regulates the general conditions of employment. To promote good labour-management relations, a committee on labour relations was set up in 1986 by the Labour Advisory Board.

      To sustain the momentum generated from Labour Relations '88 which was a large-scale promotional programme held between November and December 1988, a Hong Kong Labour Relations Conference was held at the Hong Kong Convention and Exhibition Centre in October 1989. The event attracted 900 participants from local trade unions, business, professional and academic circles. The main theme of the conference was Business Management and Industrial Relations in 1990's - New Challenges and Opportunities. Leading speakers from various industries and trades dealt with the subject from the economic, socio-political, technological and legislative points of view.

The Labour Relations Service's promotion unit endeavours to promote harmonious labour-management relations in the private sector through a variety of activities. In 1989, these included 305 visits to individual establishments in major economic sectors, em- ployers' associations and employees' trade unions, two symposia on effective utilisation of human resources, 49 seminars on labour relations, 11 exhibitions, 349 talks delivered to various establishments and organisations, the publication of a quarterly newsletter and a series of information leaflets and pamphlets on a wide range of labour legislation and labour relations matters. The unit also organised 31 certificate courses, one of which was jointly organised with an employers' association, and 19 staff relations management courses for supervisors.

      To meet the increasing demands at district level, an establishment of four officers with supporting staff was created during the year to liaise with district boards and their committees and individual establishments in the districts. Promotional activities mounted at district level in 1989 ranged from audio-visual shows to training courses and seminars. An expanded schedule of district promotional activities is expected to be launched early next year.

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Protection of Wages on Insolvency Fund

Employees of insolvent employers can apply to the Protection of Wages on Insolvency Fund for ex-gratia payment in respect of severance payment under the Employment Ordinance, up to the limit of $4,000 per applicant. The fund also covers four months' arrears of wages, up to $8,000, and seven days' wages in lieu of notice, up to $2,000.

During the year, 3 489 applications were received and payments totalling $8.32 million were made involving 2 482 applications.

The Labour Tribunal

The Labour Tribunal, which is part of the judiciary, is intended to provide a quick, inexpensive and informal method of adjudicating certain types of dispute between em- ployees and employers, with a minimum of formality. The tribunal deals with claims of right, wherever possible in the language of the parties.

   In 1989, the tribunal heard 3 689 cases involving employees as claimants, and a further 596 cases which were initiated by employers. More than $31 million was awarded by the presiding officers. Of the cases dealt with by the tribunal, 93 per cent were referred by the Labour Relations Service after unsuccessful conciliation attempts.

Finding Employment

The Employment Services Division of the the Labour Department consists of the Local Employment Service, the Central Recruitment Unit and the Higher Education Employ- ment Service.

The Local Employment Service provides free placement services to help employers recruit staff and job-seekers to find suitable employment. It operates from 15 offices which are linked by a facsimile system for the rapid exchange of vacancy information. The Central Recruitment Unit is a central agency for the recruitment of non-pensionable staff, such as artisans, motor drivers and workmen in all government departments. The unit also provides employment services to some private companies with territory-wide recruitment needs. During the year, 23 899 people were placed in employment, including 5 899 who found jobs in the public service. To help alleviate the labour shortage, the Local Em- ployment Service organised four mobile exhibitions and a 'job bazaar' during the year. The bazaar aimed to help participating employers publicise their job opportunities and conduct on-the-spot recruitment to meet urgent staffing needs. In addition, publicity efforts through the mass media were intensified to encourage more people to use the free employment services.

   The Higher Education Employment Service provides free employment assistance to job-seekers who possess university, post-secondary or professional qualifications. It has computerised its operation to provide job-matching and produce promotional materials. Vacancy information on job opportunities is disseminated regularly to universities abroad for the information of Hong Kong overseas students. During the year, 148 people found employment through this service. Seminars were also organised to advise job-seekers on job-hunting techniques and employment opportunities.

The Selective Placement Division provides a free employment counselling and placement service for the physically disabled, mentally retarded and ex-mentally ill persons seeking open employment. The division operates from three offices in Hong Kong, Kowloon and the New Territories. During the year, the division launched a series of activities to publicise its work and to promote the employability of the disabled. A ceremony was held in September to give recognition to those employers who took on the largest number of

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disabled employees or made special efforts to facilitate the employment of the disabled in the preceding 12 months. A seven-day exhibition on Employment Opportunities of the Disabled was organised in November to show the public the working potential of disabled persons, and the training facilities and technical aids available to them. Some 1 032 disabled persons were placed in employment in 1989.

      The placement of socially-maladjusted job-seekers is the responsibility of the Employ- ment Service of the Hong Kong Council of Social Service.

Careers Guidance

The Careers Advisory Service of the Labour Department, previously known as the Youth Employment Advisory Service, provides careers information and guidance to young people to help them choose a career best suited to their interests, talents and abilities. In 1989, the service delivered 488 careers talks in 183 schools and five voluntary agencies covering an audience of 86 625. In collaboration with the Vocational Training Council the service also organised a series of regional careers projects. Through the sixth Work Orientation Programme launched in May, arrangements were made for some 1 300 students from 49 schools to visit various establishments in the private and public sectors to gain a better insight into the world of work. In addition, more than 124 500 students from 252 schools participated in the Careers Quiz.

      The 18th annual Careers Exhibition, co-sponsored by the Regional Council, was held in December at Sha Tin Town Hall. Altogether, 23 exhibitors from commerce, industry, the services, professional bodies and the government took part in the 10-day exhibition which attracted more than 85 000 visitors.

To promote careers education, the service organises annually a one-year, part-time certificate course for careers teachers in conjunction with the Education Department and the University of Hong Kong. In addition, a seminar was held in July to provide a forum for careers teachers to update their knowledge and exchange views on careers guidance.

      The service also produces various publications including careers pamphlets, occupation leaflets and a monthly careers newsletter which are distributed free of charge to schools, youth centres and interested persons.

With the introduction of a new careers information centre at Sha Tin in February 1989, the service now operates four such centres. Each is equipped with a reference library, an audio-visual unit and an enquiry service providing information on employment and training opportunities. In 1989, the centres recorded a total of 26 440 visitors.

Foreign Workers

The Immigration Department is responsible for controlling the entry of foreign workers for employment in Hong Kong. Generally speaking, foreigners who have special skills or experience not readily available in Hong Kong are allowed entry. Those who are able to contribute substantially to the economic well-being of Hong Kong, such as bankers and entrepreneurs and other persons whose activities are likely to stimulate local employment, are also considered for entry. In all cases, normal immigration requirements must be met. The Immigration Department considers special cases in consultation with the Labour Department and other expert departments.

      During the year, 11 409 professionals and other persons having technical expertise or administrative and managerial skills from over 30 countries were admitted for employment.

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Due to the general shortage of skilled labour in the local market, a special scheme allowing employers to recruit skilled workers from outside Hong Kong was introduced in May 1989. This scheme provided for the importation of 3 000 workers at technician, craftsman and supervisory levels on contracts not exceeding two years.

Subsequently, 641 applications involving 8 479 workers were received. After vetting, 2 323 workers were found eligible for entry. The majority of them were in the construction and manufacturing fields.

Foreign Domestic Helpers

The entry of foreign domestic helpers is subject to the condition that the employer is a bona fide resident of Hong Kong who can provide suitable accommodation to the helper and is willing to undertake his or her maintenance in Hong Kong and repatriation to the country of origin. The demand for foreign domestic helpers has increased steadily. In 1989, there were 57 971 foreign domestic helpers in Hong Kong, compared with 45 154 in 1988, representing an increase of 28.4 per cent. Of these, 52 868 are citizens of the Philippines.

Attestation of Employment Contracts for Foreign Domestic Helpers For the purpose of controlling and protecting the employment conditions of foreign domestic helpers in Hong Kong, the Foreign Domestic Helpers Service of the Labour Department attested to 44 111 employment contracts for foreign domestic helpers in 1989.

It also handles conciliation of disputes arising from the employment of foreign domestic helpers. During the year, 629 claims, 1 011 consultations and 46 158 enquiries relating to their employment were handled.

Employment Agencies

The Employment Agencies Administration of the Labour Department is responsible for administering Part XII of the Employment Ordinance and the Employment Agency Regulations in controlling the licensing and operation of employment agencies in Hong Kong. In 1989, 498 licences were issued to agencies dealing with local employment and 119 licences to those handling employment outside Hong Kong.

Employment Outside Hong Kong

The External Employment Service is responsible for enforcing the Contracts for Em- ployment Outside Hong Kong Ordinance which controls employment contracts entered into in Hong Kong between employers and manual workers proceeding to work outside the territory. Under the ordinance, such contracts must be attested by the Commissioner for Labour before the workers depart from Hong Kong. An employer or his agent who fails to comply with the provisions of this ordinance is liable on conviction to a fine of $50,000. During the year, the service attested 200 fresh contracts under the ordinance.

Industrial Safety

The Factory Inspectorate of the Labour Department is responsible for enforcing the Factories and Industrial Undertakings Ordinance and its subsidiary regulations. These regulations provide for the safety and health of workers in factories, on building and engineering construction sites and in other industrial undertakings. Advice and assistance are given to management on various safety and health aspects, including the adoption of safe working practices and layout of new factories to achieve a better working environ- ment. The inspectorate also investigates industrial accidents and dangerous occurrences.

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      The Factories and Industrial Undertakings (Amendment) Ordinance 1989 was enacted on December 15, 1989. It imposes a general responsibility on employers and employees with regard to safety and health at work and introduces custodial sentences for serious breaches of industrial safety and health regulations.

      A working group was formed by the department to study the safe handling and storage of freight containers on land. The findings and recommendations are being studied.

The Factory Inspectorate Division pays particular attention to safety in high risk areas on construction sites. From April to October, four special enforcement campaigns were conducted, during which factory inspectors visited 781 construction sites throughout the territory. The campaigns resulted in 417 summonses being issued.

Throughout the year, the Factory Inspectorate's Industrial Safety Training Centre conducted safety training courses for workers, supervisors and managers from various industries. Safety talks were organised for teachers and students of technical institutes and special safety courses were also arranged for potential summer job-seekers before the school holidays commenced. As in the past, the centre gave talks on safety management to business students in post-secondary institutions. Starting in 1989, centre staff delivered talks to medical and engineering students of the University of Hong Kong. In colla- boration with the Hong Kong Polytechnic, the centre continued to organise two evening courses leading to the award of a Certificate of Proficiency in Industrial Safety and two evening courses leading to the award of a Certificate of Proficiency in Advanced Industrial Safety. Furthermore, the department continued to assist the Construction Industry Training Authority to run training courses for safety officers and safety supervisors.

The Safety Programme promotion unit helped industry to develop a sense of self- regulation towards the promotion of in-plant safety and health. The unit assisted management and employees to recognise and rectify safety and health hazards and to develop or improve their own in-plant safety and health programmes. Guidance materials were published regularly to assist industry to understand the principle and the technical aspects of self-regulation. The unit also assisted in organising seminars, safety training courses and other activities. In July, a three-day residential seminar on Self-Regulatory Approaches in Labour Inspection was organised for the second consecutive year jointly with the Asian and Pacific Project for Labour Administration of the International Labour Organisation.

The Factory Inspectorate, in conjunction with the Information Services Department, continued its publicity programme for the promotion of industrial safety through the mass media and other means. A campaign to promote protection of the eyes was organised during the period from July to November jointly with the Hong Kong Federation of Societies for Prevention of Blindness. A large-scale conference on industrial safety management for managers, unionists, supervisors and workers' representatives was held in November, with an audience of over 500.

In April, a new committee on Industrial Safety and Health was established under the Labour Advisory Board to advise the Commissioner for Labour on industrial safety and health legislation.

      The title of the Boilers and Pressure Receivers Ordinance was changed to the Boilers and Pressure Vessels Ordinance in December 1988. The Commissioner for Labour has been appointed as the Boilers and Pressure Vessels Authority under the ordinance.

The Boilers and Pressure Vessels Ordinance stipulates that boilers, steam receivers, steam containers, air receivers and pressurised cement tanks mounted on trucks or trailers must be approved and registered with the Pressure Equipment Division and must be

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examined periodically by qualified engineers in the private sector acting as appointed examiners.

   Thermal oil heaters are now included in the definition of a boiler. The division monitors pressure equipment through spot checks to ensure compliance with statutory requirements and carries out investigations into accidents involving pressure equipment.

   Under the Gasholders Examination Ordinance, the division approves the design of gasholders and carries out inspections during fabrication and repairs, and subsequently conducts annual inspections.

   In collaboration with the Haking Wong Technical Institute, the division organises comprehensive training courses for attendants operating electrically-heated boilers. Special courses are conducted, in conjunction with the Vocational Training Council, for training handicapped persons as operators of small electrically-heated boilers. Short training courses are also organised for persons intending to obtain a provisional certificate of competency.

   The division provides technical assistance to the Fire Services Department concerning the safety of storage and handling of Category 2 dangerous goods, and to the Electrical and Mechanical Services Department on the design of gasholders and the implementation of statutory controls on boilers and pressure vessels.

Occupational Health and Hygiene

  The Occupational Health Division of the Labour Department 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. It 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 supervising health standards and practices in industry.

   The division took part in a number of seminars in 1989 and arranged several exhibitions to promote occupational health. It also published a series of booklets and codes of practice on the prevention of occupational diseases. Occupational health promotion and education activities were carried out by nursing officers to alert employers and employees to occupational hazards in the workplace.

A major 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 a number of epidemiological studies on health and hygiene conditions have been completed. These included solvent hazards in printing, silica hazards in the quarrying industry, cutting fluid hazards in the metal manufacturing industry and the health effects of the use of moulding powder associated with the metal-casting process. Programmes to monitor various chemicals, dusts and other occupational health hazards were also carried out.

The division also carries out medical examinations of personnel exposed to ionising radiation, users of compressed-air breathing apparatus, and government employees work- ing in compressed air or engaged in diving or pest control. It also deals with cases of silicosis under the Pneumoconiosis (Compensation) Ordinance. The division's registered nurses handle medical clearance for employees' compensation cases and its occupational health officers are appointed as members of Special Assessment Boards and Prostheses and Surgical Appliance Boards under the Employees' Compensation Ordinance.

The division's laboratory carries out analytical tests on biological samples collected from workers and other environmental samples taken during site visits.

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Occupational Safety and Health Council

The Occupational Safety and Health Council, established by statute in 1988, is financed primarily by a levy on employees' compensation premiums. It consists of a chairman, a vice-chairman and 18 members, all of whom are appointed by the Governor. Its membership is drawn from employers and employees, academic and professional fields, and from the government.

The council aims to promote a safer and healthier working environment through programmed activities for education and training, promotion of the use of modern technology, dissemination of technical knowledge, provision of consultancy services, and encouragement of co-operation and communication among government and non- government bodies having such common goals.

Under the council are five functional committees and seven industry-based safety and health committees. The five functional committees deal with publicity, staffing, finance, research and general matters. The seven industry-based committees cover the construction, textiles, plastics, shipbuilding and shiprepairing, metalware, electronics and catering industries. The council plans to establish more such committees in future to help promote higher standards of safety and health at work in specific industries and trades.

The council and its committees are serviced by its own staff which has an establishment of 14. Since inception, it has organised a series of promotional activities including a logo design competition, an occupational safety and health quiz, exhibitions, a six-week radio programme and other industrial-oriented programmes. Six indicator boards with industrial accident statistics have been erected at various locations. A well-stocked library with publications on occupational safety and health and data-based information is situated in the council office. This library and other training facilities are open to the public.

Employees' Compensation

The Labour Department administers the Employees' Compensation Ordinance and the Pneumoconiosis (Compensation) Ordinance. The department ensures that injured em- ployees and dependants of deceased employees covered by the Employees' Compensation Ordinance obtain compensation from their employers in respect of injuries or deaths caused by accidents arising out of and in the course of employment, or by occupational diseases. It also ensures that persons covered by the Pneumoconiosis (Compensation) Ordinance obtain compensation as soon as possible from the Pneumoconiosis Com- pensation Fund which is financed by a levy imposed on the construction and quarry industries.

Under the two-tier Employees' Compensation Assessment Board system, employees with work-related injuries which are likely to result in permanent incapacity are assessed by the boards at eight major hospitals in Hong Kong. In 1989, Ordinary Assessment Boards convened 549 sessions and completed assessment of 18 135 cases referred to them by the Commissioner for Labour and 1 149 review cases. Special Assessment Boards convened five sessions and completed assessment of three cases referred to them by the Ordinary Assessment Boards and two review cases.

From January 1, 1989, the authority of the Commissioner for Labour to assess compensation payable in cases with loss of earning capacity has been extended to those where such loss is assessed at not more than five per cent.

Following a review of the compensation level under the Employees' Compensation Ordinance and the Pneumoconiosis (Compensation) Ordinance, the level of compensation

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will be increased by about 23 per cent with effect from January 1, 1990, to take into account the changes in wage levels since the last review in 1988.

A plan is in hand to establish an Employees' Compensation Assistance Scheme. Under the scheme, assistance will be given to victims of accidents occurring since January 1, 1984, when insurance was made compulsory. The scheme covers employees who are unable to receive statutory compensation or damages at Common Law due to them as a result of defaulting employers or insolvent insurers. It also covers those employers who fail to receive indemnity due to the insolvency of their insurers.

In 1989, 146 cases were awarded compensation amounting to $12,983,071 from the Pneumoconiosis Compensation Scheme. The Pneumoconiosis Compensation Fund Board allotted $1.5 million for financing six research and educational programmes to prevent pneumoconiosis.

Labour Advisory Board

The Labour Advisory Board is appointed by the Governor to advise the Commissioner for Labour on matters affecting labour, including legislation and conventions, and recom- mendations of the International Labour Organisation. The board has been expanding its role and functions in recent years. It has played an active part in the formulation of labour policies and has given advice on all major labour legislation.

The Commissioner for Labour or his deputy is the ex-officio chairman of the board. There are 12 members, six representing employers and six representing employees. Of the employers' representatives, five are nominated by five major employer associations and one appointed ad personam by the government. Five of the employees' representatives are elected by registered employees' trade unions and one appointed ad personam by the government. To cope with the increasing range and complexity of work and to encourage greater participation by employers and employees, committees have been set up on special subject areas such as employment services, the implementation of international labour standards, industrial safety and health, labour relations and employees' compensation. A number of employers and employees are co-opted from time to time to serve on these committees.

9

PRIMARY PRODUCTION

EVERY day in Hong Kong, people consume about 1 000 tonnes of rice, 1 100 tonnes of vegetables, 10 000 pigs, 500 head of cattle, 320 tonnes of poultry, 450 tonnes of fish and 1 300 tonnes of fruit. Much of this is imported, but Hong Kong farmers, working on a very small agricultural base, satisfy some of the demand by producing mainly high-value foods to cater to the local preference for fresh, rather than frozen or chilled, foods.

Only about eight per cent of the total land area is suitable for crop farming, and about two per cent of the work force is engaged in primary production - agriculture and fisheries.

In terms of quantity, local farmers produce about 34 per cent of fresh vegetables, 37 per cent of live poultry, 18 per cent of live pigs, and 13 per cent of freshwater fish. The fishing fleet of some 4 900 vessels supplies about 79 per cent of all live and fresh marine fish eaten.

Based on these figures, Hong Kong people, according to the United Nations Food and Agriculture Organisation, are among the world's highest consumers of protein.

The locally-produced foods are generally of a higher quality than the same type of imported foods and thus fetch higher prices in the markets.

      Foodstuffs account for about 8.1 per cent of Hong Kong's imports from China. Local production, which complements rather than competes with imports, is aimed at main- taining some degree of self-sufficiency with respect to highly-perishable foodstuffs.

Agricultural Industry

Due to the limitation of land, agriculture in Hong Kong will continue to be directed towards the production of high quality fresh foods through intensive land use.

Common crops are vegetables and flowers although a small quantity of fruit and other yield crops is also grown. Rice production has given way to intensive vegetable production and has become insignificant. The area of land under vegetables and flowers was about 2230 hectares in 1989. The value of crop production was about $486 million. Vegetable and flower production accounted for about 74 per cent and 23 per cent of the total value and stood at $359 million and $112 million respectively.

      The main vegetable crops are white cabbage, flowering cabbage, lettuce, 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 mushrooms are also produced, using industrial cotton waste as the growing medium.

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Among the common types of flowers, gladioli and chrysanthemums grow throughout the year, while dahlias, roses, asters, snapdragons and carnations are produced in winter, and ginger lilies and lotus flowers in summer. A wide range of ornamental plants - including philodendrons, dieffenbachia, bamboo palms and poinsettia - is produced in commer- cial nurseries. Peach blossom and ornamental citrus are grown specially for the Lunar New Year.

   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 in 1989 amounted to $380 million. However, the production of local pigs is expected to decline in the long run as a result of the implementation of the Livestock Waste Control Scheme by the government.

The production value of poultry, including chickens, ducks, pigeons and quails, amounted to $745 million. Local chicken production was about 15 million birds, repre- senting 39 per cent of total consumption.

Friesian cattle are kept by dairies, all of which are in the New Territories.

Fishing Industry

Marine fish constitute one of Hong Kong's most important primary products. In 1989, total production from the two major sectors of marine capture and culture fisheries was estimated at about 245 950 tonnes with a wholesale value of $2.425 million. The figures represented increases of three per cent in weight and three in value compared with 1988. The marine capture sector was more important by far in weight terms, contributing 96 per cent towards total production while the remaining four per cent came from the culture

sectors.

The Hong Kong fishing fleet comprises about 4900 vessels of which 4300 are mechanised. It is manned by some 23 400 fishermen and plays a vital role in marine cap- ture fisheries, exploiting over 150 species of commercially important food fish and supplying over 55 per cent of all marine produce consumed locally. In terms of landed weight, golden thread, lizard-fishes, bigeyes, croakers, yellow belly, and squid are the most important.

The fleet employs trawling, lining, gill-netting and purse-seining as the major types of fishing methods. About 60 per cent of the vessels are between 10 and 34 metres in length comprising mainly trawlers, liners, and gill netters that operate offshore over a wide sector of the continental shelf extending between the Gulf of Tonkin and the East China Sea. The remaining 40 per cent of the vessels are less than 10 metres long, consisting primarily of small gill netters, hand liners, and purse seiners which operate in shallow coastal waters.

Trawling is the most important type of fishing, accounting for 76 per cent or 181 000 tonnes of marine fish landed in 1989. The total landed catch of live and fresh marine fish available for local consumption amounted to 94 650 tonnes with an estimated wholesale value of $958 million.

Pond fish farming is one of the most important culture activities. Fish ponds under active cultivation and covering 1 380 hectares are located in the New Territories, mostly 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 5 780 tonnes, or 13 per cent of the local consumption of freshwater fish.

PRIMARY PRODUCTION

      Marine fish culture has developed considerably in the past decade. Young fish captured from their natural environment as well as imported fish fingerings are reared in cages suspended from rafts in sheltered bays throughout Hong Kong, particularly in the eastern New Territories. Under the Marine Fish Culture Ordinance, 28 fish culture zones have been designated and all marine fish culture operations are required to be conducted at sites within these zones under licences issued by the Director of Agriculture and Fisheries. By year-end, 1 780 licences had been issued. Live marine fish supplied by this activity amounted to 3 019 tonnes valued at $182 million.

Agriculture and Fisheries Department

The Agriculture and Fisheries Department encourages the productive use of agricultural land in the rural areas. Among the major on-going programmes are the agricultural land rehabilitation scheme and projects for irrigation maintenance and development. Furthermore, 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.

Investigatory programmes of the department cover crops, pest control, animal health and husbandry and fisheries. Experiments are conducted on government experimental stations to improve the quality and yield of vegetables, flowers and fruit.

      The department advises farmers on disease prevention and control, and on modern methods of animal production. It also supplies good quality seeds and breeding stocks of pigs and poultry.

A wide spectrum of studies on marine resources, aquaculture, and the environmental impact of development activities on fisheries is conducted with a view to developing and promoting the local fishery industry. In marine resources, emphasis is placed on optimising production from currently exploited fisheries resources and exploring the develop- ment potential of under-exploited or hitherto unexploited new resources. In this context, the department is actively examining the feasibility of using a new trapping technique to exploit the new crustacean resource on the edge and slope of the continental shelf of the South China Sea at depths between 300 to 1 000 metres. The initial results are encouraging.

      Aquaculture studies are concerned with the development of more efficient culture systems and improved husbandry techniques to increase productivity of the marine and pond fish culture sectors. In addition, efforts are also channelled into developing effective measures against fish diseases with a view to reducing mortality and hence cost- effectively increasing production. Hydrographic investigations are designed to supply en- vironmental information for an assortment of biological programmes. Studies of the marine environment are conducted to assess the impact of pollution, including red tides, on fisheries, particularly mariculture, in order to prevent pollution and minimise production loss.

Low-interest loans are administered by the department to help farmers and fishermen to finance their operational or long-term investment requirements. The department 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.

      Consumer demand and local primary production are monitored for development planning purposes. Statistics on food supplies, including imports, are collected and analysed to help formulate local production and marketing policies. The business efficiency

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 of different sectors within the primary industries is studied to establish and update productivity standards and to identify areas for improvement.

Agricultural Development

Owing to the shortage and rising costs of farm labour and land in Hong Kong, the main development in the agricultural industry in recent years has been the introduction of labour-saving devices and intensive production practices. Farmers use pre-emergence herbicides for weed control in market garden crops and there is widespread use of small farm machines and sprinkler irrigation.

Integrated pest management, a safe method of pest control on vegetables without the use of toxic pesticides, is the subject of an active development programme undertaken by the Agriculture and Fisheries Department. The use of a safe microbial organism to control the Diamond-back moth, a major pest on leafy green vegetables, has been adopted by local farmers. Seminars and demonstrations are also organised to publicise and promote integrated pest control and safe use of pesticides.

The cultivation of edible mushrooms has become an active development programme in recent years. New strains, high quality spawn and technical advice are made available to growers based on experimental results.

Exotic and improved local breeds of pigs and chickens are readily accepted by livestock farmers due to their superior performances. Sporadic outbreaks of Foot-and-Mouth Disease in pigs and Newcastle Disease in poultry still occur but are kept under control by vaccination.

  Loans are available to the agricultural industry through three main funds: the Kadoorie Agricultural Aid Loan Fund, the J. E. Joseph Trust Fund and the Vegetable Marketing Organisation Loan Fund. These loan funds are administered by the Agriculture and Fisheries Department. By December 31, 1989, loans issued since the inception of these three funds had reached a total of $271.7 million. Of this, $264.2 million has been repaid.

  There were 70 co-operative societies and two federations among the farming commu- nity with a total membership of some 11 936 farmers. These societies help to promote agriculture and 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 enquiry, general supervision of operations, and such matters as mediation in disputes and dissolution of co-operative societies when necessary.

  Teams of agricultural extension officers are posted by the department throughout the New Territories to deal with farming problems and to liaise with co-operative societies and rural associations. Technical assistance, agricultural loans and related services are made available to farmers to promote better farming results. Visits were also arranged for farmers to see government experimental farms and farming projects.

Fisheries Development

 Fisheries development work involves modernising fishing craft and introducing more efficient fishing gear and navigational aids. A free advisory service on fishing vessel hull design, fishing methods and fishing equipment is available to fishermen while tests and demonstrations are conducted to assess the suitability of new fishing gear and methods. Training classes in navigation, engineering radiotelephony, proper use of ancillary equipment such as radar and weather facsimile, and seminars on safety on board fishing vessels at sea are regularly organised in the main fishing ports.

PRIMARY PRODUCTION

      Following the introduction of steel-hulled fishing vessels in May, the department has been providing a new advisory service to assist local fishermen interested in building these new and more efficient fishing vessels. In addition, new training programmes have been formulated in conjunction with the Marine Department to train and qualify fishermen to operate steel hull fishing vessels as masters and engineers.

      Education is provided for the children of fishermen at 10 schools run by the Fish Marketing Organisation. At the end of 1989, more than 1 500 children were attending these schools. A further nine were attending other schools on scholarships, grants and loans awarded by the organisation.

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

      The Fisheries Development Loan Fund, with 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 funds from the Organisation's surplus and deficit account, is another important source of loan finance for fishermen. At the end of 1989, the fund capital was $19 million.

      The Agriculture and Fisheries Department administers another revolving loan fund, financed by the Co-operative for American Relief Everywhere (CARE).

      By December 31, loans issued since the inception of these four funds totalled $201 million of which $172 million has been repaid.

      At the end of the year, 2 087 fishermen were members of co-operative societies and there were 67 societies and four federations supported by fisherfolk.

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. This year, 31 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, 60 135 tonnes of local vegetables valued at $158 million were sold through the organisation.

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URBAN COUNCIL PUBLIC LIBRARIES

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  The Fish Marketing Organisation operates under the Marine Fish (Marketing) Ordinance, which also provides for the establishment of a Fish Marketing Advisory Board. The ordinance provides for the control of the landing, transport, 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 to fishermen, improvements to the markets, financial support for the 10 schools for fishermen's children, and scholarships for secondary and tertiary education.

In 1989, the wholesale fish markets handled 74 400 tonnes of marine fish, crustacea and molluscs which were sold for $617 million. This included 4 100 tonnes of imported marine fish sold through these markets.

  The wholesale marketing of imported vegetables, fruit, poultry, eggs, freshwater fish and crustacea takes place at various wholesale markets located in different parts of Hong Kong Island, Kowloon and the New Territories. Facilities provided in some of these markets have already become dilapidated, congested and unable to cope with the increasing throughput.

  Marketing activities have spilled onto areas adjacent to these markets, causing obstruction, traffic congestion and environmental problems. To improve the situation, a long-term programme has been devised to replace the outdated markets by establishing large modern wholesale market complexes on Hong Kong Island and in Kowloon to centralise the wholesale marketing of fresh foodstuffs. Work on the Hong Kong complex is progressing satisfactorily while plans for the Kowloon complex are still at an early stage. In the interim, the government has established a number of temporary wholesale markets - at Western District on Hong Kong Island for fruit and poultry, at North District in the New Territories for agricultural products and at Cheung Sha Wan in Kowloon for imported vegetables, freshwater fish and poultry. Plans are well in hand to construct a temporary combined wholesale market on the Cheung Sha Wan Reclamation to replace the three existing temporary markets in the area.

Mining

The Mines Division of the Labour Department enforces legislation and safety regulations relating to mining, quarrying and explosives. It processes mining and prospecting applications and inspects mining and prospecting areas, stone quarries, blasting sites and explosives stores. At the end of 1989, one mining lease for the extraction of feldspar and kaolin was in operation. Details of the mining leases are published twice a year in the Government Gazette.

  The division also controls the possession, conveyance, storage, manufacture and use of explosives in Hong Kong, including the delivery of explosives from government depots to blasting sites, and issues shotfirers' blasting certificates. In addition, it manages government explosives depots which provide bulk storage facilities for imported as well as locally manufactured explosives.

  The Tate's Cairn Tunnel project and the stone quarries were the largest users of explosives in 1989 when the overall consumption of explosives in the territory increased by 21 per cent. Total consumption was 5 063 tonnes.

  Storage space was provided for the imported fireworks for the Lunar New Year fireworks display in February and the Tuen Mun District Festival in November. The division continued to provide transit storage facilities for explosives imported from the United States for use by offshore oil well drilling companies in the South China Sea.

10

EDUCATION

WITHIN the Government Secretariat, policy responsibility for education matters rests with the Secretary for Education and Manpower. A number of bodies are, however, involved in an executive or advisory capacity in the administration and development of the educa- tional system.

Education Commission

The Education Commission was established in April 1984, following the recommendations made by a visiting panel of educational experts in November 1982. Its overall objective is to provide the Governor with advice on the development of the educational system, in the light of the needs of the community.

The terms of reference of the commission are: to define overall educational objectives, to formulate policy and recommend priorities for implementation having regard to the resources available, to co-ordinate and monitor the planning and development of educa- tion at all levels and to initiate educational research.

       The commission is composed of 15 members. Twelve of these, including the chairman, are non-government members appointed with a view to ensuring that a broad range of personal and professional experience is brought to bear on the issues before the commission. The ex-officio members are the chairmen of the Board of Education, the University and Polytechnic Grants Committee and the Vocational Training Council. The three remaining members are government officials - the Secretary for Education and Manpower (who is vice-chairman), the Secretary for the Treasury and the Director of Education.

       The commission sets out its recommendations in reports which are normally published for public consultation. In 1989, the government accepted the major recommendations in the commission's third report which dealt with the structure of tertiary education and the future of private schools.

      The commission is now working on its fourth report which will deal with curricular and behavioural problems in primary schools and junior secondary classes. The commission expects to publish this report in the first half of 1990. The report will also contain an introductory chapter, explaining the commission's educational philosophy and setting out its programme of work for the 1990's.

Board of Education

The Board of Education was formed in 1920. It is a statutory advisory body appointed by the Governor in accordance with Section 7(1) of the Education Ordinance, Chapter

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279 of the Laws of Hong Kong. Although the board is an advisory body without executive functions, it plays a key role in formulating and planning education policy for the school sector.

The 18 board members comprise 16 non-officials (including the chairman), who are experienced educators and prominent members of the community. The two official members are the Director of Education (vice-chairman) and the Deputy Secretary for Education and Manpower. The board is serviced by the Education Department.

University and Polytechnic Grants Committee

The University and Polytechnic Grants Committee (UPGC) is appointed by the Governor to advise the government on the development of, and funding requirements for, higher education in Hong Kong and to administer government grants for the tertiary institutions.

The committee was established in 1965, with the title of the University Grants Commit- tee, to advise the government on the development and financial needs of the universities. The present title was adopted in 1972, to reflect the inclusion of the first polytechnic within the purview of the committee. There are at present five institutions funded through the UPGC: the University of Hong Kong, the Chinese University of Hong Kong, the Hong Kong Polytechnic, the City Polytechnic of Hong Kong and the Hong Kong Baptist College.

At present, the UPGC is assisted by four sub-committees. The research sub-committee determines the disbursement of funds from grants earmarked for research activities. The University of Science and Technology sub-committee advises on the development of the new university, which will be funded by the UPGC from 1991. The sub-committee on Revision and Expansion provides advice on the implementation of the revised structure of tertiary education, arising from the government's consideration of the Education Commission Report No. 3; and the further expansion of tertiary education, as announced by the Governor in his Opening Address to the Legislative Council, which will result in an increase in the number of first year, first degree places planned from nearly 10 510 to about 15 000 in 1994-5. The Lingnan College sub-committee has been set up to consider the possible upgrading and development of Lingnan College.

The development of academic plans for the UPGC-funded institutions follows a triennial cycle, which begins almost three years prior to the commencement of each triennium. The recurrent grants for the institutions are determined on the basis of formal Academic Development Proposals which are considered by the UPGC. Capital grants are approved annually, to finance the institutions' building programmes to keep pace with planned academic developments.

In addition to monitoring the academic development and funding of the institutions, the UPGC is responsible for providing advice to the government and the Education Commission on a wide variety of issues pertaining to tertiary education. During the year, the committee was consulted on such subjects as the future structure and further expansion of tertiary education; manpower planning; the level of research funding for the 1991-4 triennium; the future development of postgraduate medical education and training; the feasibility of developing a Hong Kong Technology Centre; the Hong Kong Open Learning Institute, and the establishment of the proposed Hong Kong Council for Academic Accreditation.

The UPGC is an advisory committee, with membership comprising distinguished over- seas academics, eminent Hong Kong-based academics and prominent local professionals

EDUCATION

and industrialists. There is no government representation, but the committee is serviced by a secretariat staffed by civil servants.

Vocational Training Council

The Vocational Training Council was set up in 1982 and comprises 22 members appointed by the Governor. Four are official members: the Secretary for Economic Services; the Director of Education; the Commissioner for Labour, and the Director of Technical Education and Industrial Training. The council's role is to advise the Governor on measures to ensure a comprehensive system of technical education 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 to maintain and improve Hong Kong's industry, commerce and services, and also to establish, operate and maintain technical institutes and training centres.

Under the council are 20 training boards and seven general committees. The training boards cover all major economic sectors: accountancy; advertising; public relations and publishing; 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, ship repair and off- shore engineering; textile; transport and physical distribution, and wholesale/retail and import/export trades. The seven general committees, which are concerned with areas of training relevant to more than one sector of the economy, deal with apprenticeship and trade testing; electronic data processing training; management and supervisory training; precision tooling training; technical education; training of technologists, and translation.

The training boards and general committees assess the future manpower needs of the economic sectors and recommend measures to meet these needs, prepare and disseminate training materials such as job specifications, training programmes and trade test guidelines and carry out other duties, such as operating and maintaining training centres or training schemes. During 1989, manpower surveys were conducted in the following 11 sectors: advertising; public relations and publishing; building and civil engineering; clothing; electrical; electronic data processing; hotel and catering; insurance; jewellery; plastics; textiles, and transport and physical distribution. The training boards and general com- mittees also continued to prepare or update job specifications, training programmes, trade test guidelines, training curricula and glossaries of common technical terms.

The council and its training boards and committees are serviced partly by its own staff and partly by staff of the Technical Education and Industrial Training Department.

Education Department

The Director of Education, supported by the Education Department, is responsible under the terms of the Education Ordinance for general supervision of education in Hong Kong at kindergarten, primary and secondary levels. He also supervises institutions registered under the Post Secondary Colleges Ordinance.

He directly controls all government schools, the Colleges of Education (including the Hong Kong Technical Teachers' College) and the Institute of Language in Education. All other schools, with minor exceptions, are required to be registered under the Education Ordinance and to comply with its requirements. All schools are regularly inspected by the Education Department. Schools which receive financial assistance from the government under codes of aid are in addition subject to the provisions of these codes, which deal with matters like general administration, grants, staffing and conditions of service.

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In addition to these duties of supervision and control, the department plays a major role in educational planning and development, to ensure that approved policy objectives are achieved. Through its Advisory Inspectorate, the department provides advice to schools on teaching methods, and plays an important part in curriculum development. Other major aspects of the department's work include the provision of educational television, im- plementation of the school building programme, the allocation of school places, and educational research.

There are 17 educational districts, each headed by a Senior Education Officer whose function is to supervise the administration of schools within the district, to provide advice and assistance to schools, teachers, parents and students, and to act as a channel of communication between them and the department. These officers also attend District Board meetings to assist in discussions on educational matters.

Expenditure

The annual estimate of expenditure for educational services in the financial year beginning in April 1989 provided for $1,335 million in capital expenditure for educational projects and $11,714 million in recurrent expenditure, representing 16.6 per cent of the total budget.

Kindergartens

Pre-school education for the 3-to-5 age group is provided in privately-run kindergartens. In September 1989, 201 750 children were enrolled in 791 kindergartens, of which an increasing number are run on a non-profit-making basis. Such kindergartens are eligible for rent and rates rebates, and may be allocated premises in public housing estates.

In October, the government announced measures, based on advice in the Education Commission's Report No. 2, for improving the standard of kindergarten education. The most important measures were for the department to encourage operators to meet targets for standards of staffing and to pay staff according to a recommended salary scale, for teacher training courses to be made more accessible, and for the fee assistance scheme for needy parents to be simplified and taken over by the Education Department from the Social Welfare Department. In November, a working group including non-official members was appointed by the Secretary for Education and Manpower to monitor the improvements already approved and to consider possible further measures.

Officers of the department inspect kindergartens and offer professional advice to school managers, teachers, parents and the public. For basic professional training, a two-year, part-time day-release course leading to qualified kindergarten teacher status and a 12-week, part-time evening course leading to qualified assistant kindergarten teacher status are conducted by the Grantham College of Education. An identical 12-week, part-time day-release course is operated by the kindergarten section of the Advisory Inspectorate of the department. Additional training centres are being planned in convenient locations.

The department's kindergarten section also organises seminars, workshops and exhibitions to help heads and teachers raise their professional standards. During the year a series of curriculum development materials was produced to help teachers in planning educational activities. A booklet, Guidelines for Physical Play, in both Chinese and English, was compiled for issue to schools in 1990.

Primary Education

Primary education has been free in all government schools and in nearly all aided schools since September 1971. In the few aided primary schools where fees are charged, the fees

EDUCATION

may be remitted in cases of hardship. Some parents continue to send their children to the 82 private schools, although places are available in the public sector.

In September, primary school enrolment totalled 534 450 and enrolment in primary-level evening schools for adults totalled 1 686. During the year, 13 new schools were completed, providing 24 000 primary places. All these schools were located in the developing new towns to cater for the needs of their growing populations.

Most primary schools operate on a bisessional basis, with children attending either a morning or an afternoon session. In October, the government announced its intention to convert all Primary 5 and 6 classes to whole-day operation.

      The Primary One Admission Scheme was introduced in 1983 to monitor admission to Primary 1 in government and aided schools. Of the 78 837 children who took part this year, 46 237 or 58.6 per cent were allocated places in schools of their parents' choice. The remainder were allocated places in schools in their own districts, account again being taken of parental preference.

Primary 6 leavers are allocated secondary school places in the public sector through the Secondary School Places Allocation (SSPA) System. Allocation is based on the results of internal school assessments, scaled by a centrally-administered Academic Aptitude Test, and on parental choice. During the year, 84 607 Primary 6 students participated in the SSPA and were allocated places in the public sector. Half were allocated to the school of their first choice. This year, an additional twenty pairs of primary and secondary schools joined the Nominated Schools System, under which a secondary school may reserve 25 per cent of its places for students from one or more nominated primary schools.

Secondary Education

In 1978, free education was extended to the junior secondary level. The policy target is to provide, by 1991, subsidised places on senior secondary courses leading to the Hong Kong Certificate of Education examination for about 85 per cent of the 15-year-old population. Places for a further 10 per cent of the age group are to be provided on full-time craft courses in technical institutes. One third of the students on subsidised senior secondary courses will be able to proceed to a subsidised sixth form place.

To meet these targets new secondary schools are built and places are bought from private schools. During the year, 16 new secondary schools were completed, providing 18 520 places. Another 51 schools will be completed between 1990 and 1994 to meet the increasing demand and to reprovision schools from areas of surplus to areas of shortfall. A new standard design of school building, providing additional teaching space, was introduced in 1989.

To supplement the supply of government and aided secondary school places, the government buys Secondary 1 to 3 places from those private schools which have a satisfactory standard, and plans to buy Secondary 4 and 5 places from September 1990. In 1989, 57 539 places were bought from 39 schools. In October, the government announc- ed that, following advice in the Education Commission's Report No. 3, a direct subsidy scheme (DSS) would be introduced in 1991, under which any secondary school meeting specified standards could receive a public subsidy for each student enrolled, but would be free to set its own curriculum, entrance requirements and fee levels, with minimum govern- ment control. It was also announced that the bought place scheme (BPS) would come to an end in the year 2000, and that schools in the BPS would be helped before then to raise their standards to those required of a DSS school. A Private Schools Review Committee was appointed in November to advise on the implementation of these changes.

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The Junior Secondary Education Assessment (JSEA) System allocates suitable Secondary 3 leavers to subsidised Secondary 4 places and to full-time craft courses. Of the 78 790 students who participated this year, 66 291 or 84.1 per cent were allocated places. Of those allocated Secondary 4 places, 83.6 per cent were able to continue studying in their own schools.

There are three main types of secondary school in Hong Kong: grammar schools, technical schools and prevocational schools.

In 1989, there were 382 grammar schools with a total enrolment of 397 602. These offer a five-year secondary course in a broad range of academic, cultural and practical subjects leading to the Hong Kong Certificate of Education Examination (HKCEE). Most offer, in addition, a two-year sixth form course leading to the Hong Kong Advanced Level examination (HKALE), although a few offer a one-year sixth form leading to the Hong Kong Higher Level examination, or do not have any sixth form.

There were 22 technical schools with a total enrolment of 21 713. These prepare students for the HKCEE with emphasis on technical and commercial subjects. Qualified can- didates can continue their studies in the sixth form or in technical institutes.

   There were 21 prevocational schools with a total enrolment of 17 113. These offer an alternative form of secondary education suited to students with an aptitude for practical and technical subjects. They provide a solid foundation of general knowledge and a broad introduction to technical and practical education upon which future vocational training may be based. The curriculum in Secondary 1 to 3 is made up of about 40 per cent technical and practical subjects and 60 per cent general subjects. The technical and practical content is reduced to about 30 per cent in Secondary 4 and 5. Students completing Secondary 3 in a prevocational school may enter approved apprenticeship schemes or continue their studies to Secondary 5 and subsequently take the HKCEE. Qualified candidates can continue their studies in polytechnics or technical institutes. Beginning in 1992, some prevocational schools will provide sixth form classes, to prepare suitable students for technical or other studies in the polytechnics, universities or other tertiary institutions.

   In October, the report of a working group on sixth form education was released. The working group, comprising principals from all types of secondary schools, representatives of tertiary institutions and the Hong Kong Examinations Authority (HKEA) and government officials, was set up to advise the Secretary for Education and Manpower on the implementation of the new policy on the sixth form which was announced in 1988. Major changes were recommended to take effect in 1992: the abolition of the Higher Level examination, the introduction of Advanced Level subjects in the medium of Chinese, the adoption of a uniform two-year sixth form course in all types of secondary school and the introduction of new courses leading to an Advanced Supplementary examination. By year's end planning for the changes was well under way.

Special Education

  Special education continued to develop in line with the objectives of the White Paper on Rehabilitation published in 1977 and the subsequent annual reviews of the Rehabilitation Programme Plan. Altogether, 14 928 special places for handicapped children were provided in 1989.

   There were 71 special schools providing 9 023 places for the more severely handicapped. These schools provided special education for the blind, the deaf, the physically handi- capped, the mentally handicapped, the maladjusted and socially deprived and those with

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learning difficulties. There were 892 residential places provided in boarding sections of 16 special schools. In addition, there were 399 special education classes in ordinary schools providing 5905 places for the partially sighted, the partially hearing, and students with learning difficulties.

A programme to provide remedial support for mildly-handicapped children integrated in non-profit-making kindergartens was implemented in 1988 and extended to 11 kin- dergartens in 1989.

Intensive remedial services were provided by the Special Education Section of the Education Department for students with learning difficulties and adjustment problems in ordinary classes. These services included remedial support outside school hours in resource teaching centres and adjustment units, a peripatetic teaching service in ordinary schools during or outside school hours, and advisory service to schools.

Screening and assessment services were provided to identify special educational needs among school-age children so that remedial action could be taken as early as possible. Primary 1 students were screened under the Combined Screening Programme with screen- ing tests for hearing and vision. The programme also provided checklists and guides for teachers to detect children with speech problems and learning difficulties. Students requiring further assessment were given audiological, speech, psychological or educational assessments while those in need of remedial services such as speech and auditory training, speech therapy and counselling were given such services at the Special Education Services Centres. The government also operated a laboratory to provide ear moulds to students with impaired hearing.

      The Centralised Braille Production Centre, established late in 1986, and operated by the Hong Kong Society for the Blind under government subvention, produced braille reading material, including textbooks, and carried out research to improve braille production in both English and Chinese.

The two-year in-service courses of training for teachers of children with special educa- tional needs continued to be operated by the Sir Robert Black College of Education. Short courses, seminars and workshops, as well as refresher courses, were frequently held by the Special Education Section to enhance the professional knowledge of staff in the special education field.

Post-Secondary Education

There are two approved post-secondary colleges registered under the Post Secondary Colleges Ordinance (Chapter 320). They are the Hong Kong Shue Yan College and Lingnan College. The Hong Kong Shue Yan College, registered in January 1976, has three faculties Arts, Social Science and Business, with 13 departments offering day and evening courses to 3 961 students. It operates a four-year diploma programme without government financial assistance. However, the students are eligible to apply for loans which are admin- istered by the department. The maximum amount was $9,400 in 1989-90.

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      Lingnan College, registered in October 1978, has three faculties Arts, Business and Social Science - with eight departments and a general education division which provides 12 study programmes. The total enrolment in the various courses is 1088. Following an institutional review by the Council for National Academic Awards, an integrated three-year Honours Diploma course was introduced in September 1988. This has attracted greater government financial assistance. Financial assistance is also available to students on the integrated three-year course. In 1989-90 the maximum level for grants was revised to $4,300, and for loans to $5,100.

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University of Hong Kong

The University of Hong Kong, situated on the slopes above the Western District of Hong Kong Island, is the oldest tertiary education institution in Hong Kong. Established in 1911 and originally housed in just one building, the university has grown to its present size of 9 124 students, and now occupies two additional sites: the Faculty of Medicine is situated in Pok Fu Lam, adjacent to its teaching hospital, Queen Mary Hospital, and the Faculty of Dentistry, housed in the Prince Philip Dental Hospital at Sai Ying Pun.

The structure of the degrees and the governance of the university are based mainly on the British system. The university has nine faculties: Arts, Architecture, Dentistry, Education, Engineering, Law, Medicine, Science and Social Sciences. Each faculty teaches both undergraduate and postgraduate courses.

Most undergraduate courses are of three years' duration. Exceptions are the curricula for the Bachelor of Architecture, Bachelor of Dental Surgery, Bachelor of Medicine and Bachelor of Surgery degrees, which last for five years, and the Bachelor of Science in Quantity Surveying and the Bachelor of Science in Speech and Hearing Sciences, both lasting for four years. All courses, apart from some in the Department of Chinese, are taught and examined in English. A total of 18 998 candidates competed for 1 999 first-year places in the university's 1989 admission exercise.

The university offers three kinds of higher degree, two of which, the Master of Philo- sophy and the Doctor of Philosophy, are awarded on the basis of original research. Another Master's degree is obtainable by coursework. In 1989, higher degree enrolment constituted about 17 per cent of total student registration. A number of postgraduate diploma and certificate courses are also offered.

Research at the university is active and ongoing, with almost every member of the academic staff engaged in research of some nature. Financial resources for the support of research are provided by the government, private benefactions and private companies. The government, through the University and Polytechnic Grants Committee, has allocated a total of $13.16 million earmarked research grant to support a variety of research projects. Other research activities, undertaken in co-operation with the commercial and industrial sectors of the community, and collaborative research and exchange at an international level, are encouraged and supported as far as possible.

  The university has a number of specialist centres, many of which undertake inter- disciplinary studies. The Institute of Molecular Biology, the first of its kind in Hong Kong, started operation early in 1989 with the objective of providing the territory with the necessary basic and back-up research for its own biotechnology industry. The Swire Marine Laboratory at Cape d'Aguilar on Hong Kong Island, due to be opened formally in November 1990, will become the first centre in the South China Sea region providing facilities for studies in marine biology, particularly in the context of environmental problems in this part of the world. Other research centres include the Centre of Asian Studies, which serves as a focal point for research on China, Hong Kong, East Asia and South-east Asia; the Centre of Urban Studies and Urban Planning; the Kadoorie Agricultural Research Centre, and the Social Sciences Research Centre.

  Close links are maintained with universities abroad, through individuals and de- partments, as well as through the Association of Commonwealth Universities and the Association of South-east Asian Institutes of Higher Learning. Academic staff are recruited by international advertisements.

  Degrees awarded by the University are recognised internationally, and for the professional disciplines, specialists from major bodies in the United Kingdom and other

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Previous page: Playtime for these happy Maryknoll schoolgirls, amid bauhinias and azaleas.

Below and right: Hong Kong's beaches provide recreation and relaxation for all ages during the hot summer months.

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Both pages: Having fun - and high fashion - at a colourful Girl Guides' May fair, one of many events enjoyed by youngsters throughout Hong Kong.

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Going for the big one! Young baseball enthusiasts hold their own League competitions. Overleaf: Singers in the Hong Kong Children's Choir rehearse for the première of the Cantata "Prologue to the 21st Century" at the newly-opened Cultural Centre.

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countries are invited regularly to review and advise on academic developments. Quali- fications for graduates have become prerequisites for admission to professional practice in fields such as architecture, dentistry, engineering, law, medicine, psychology, social work, quantity surveying and urban planning.

New academic developments are undertaken in close consultation with the University and Polytechnic Grants Committee, as well as relevant government departments and other agencies such as the Education and Manpower Branch of the Government Secretariat, the Environmental Protection Department, the Social Welfare Department and the Industry Development Board. Close contact enables the university to plan new initiatives in direct response to specific community and manpower needs. One example is the new part-time Master of Science programme in Environmental Management, introduced in the 1989- 90 academic year, which adopted a multi-disciplinary approach in training the much- demanded personnel in environmental protection.

To keep pace with academic developments and increasing student numbers, the uni- versity is undergoing substantial physical redevelopment. The K K Leung Building, a 20-storey academic building on the main estate, came into use in 1989 and an extension to the main library is due for completion in 1990-1.

Accommodation is currently provided by the university for about 25 per cent of its undergraduate students. There are seven residential halls and two non-residential halls. Planning is in hand to build two additional 400-place halls of residence, plus a 150-place hall for 'on-call' clinical students. A number of postgraduate students and academic visitors to the university can be accommodated at the Robert Black College on the main estate. There are three student amenities centres providing study, recreational and restaurant facilities for those students who are unable to obtain a place in a hall of residence.

The University Main Library, with its collection of over 900 000 volumes, is one of the best equipped in South-east Asia, and includes a unique and invaluable collection of Chinese works. There are other specialist libraries located in the Faculties of Dentistry, Education, Law, Medicine and Music. The university also has its own publisher and bindery. The Fung Ping Shan Museum, situated in Bonham Road, is a University Museum which is open to the public on weekdays. The museum's collections are chiefly Chinese paintings, ceramics and bronzes dating back to the third millenium BC.

Apart from the regular student enrolment, the university offers about 1 500 courses to some further 35 000 students each year through its Department of Extra-Mural Studies. While the department teaches a considerable number of courses in a wide range of disciplines, a major thrust of its programmes is in the development of degree, postgraduate and professional courses. Most of the students attend courses at the end of the working day mainly on university premises either in the Extra-Mural Studies Town Centre in Central District, or at the university campus.

Graduate Teachers

The training of graduate teachers for secondary schools is undertaken by the Faculty of Education at the University of Hong Kong and the School of Education of the Chinese University of Hong Kong.

       In the University of Hong Kong, more than 800 students were enrolled in the Post- graduate Certificate in Education programme, both full-time and part-time, in 1988-9. For further professional and academic development of teachers, the faculty offers Advanced Diploma and MEd programmes by coursework and dissertation in a variety of curriculum

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areas. The Advanced Diploma electives offered were Curriculum Studies, Early Childhood Education, Special Educational Needs, and Education and National Development, and in the MEd, the electives were Educational Administration, Educational Evaluation and Language Teaching. Partly as a result of the numbers of students who have graduated from the Masters programme over the 10 years since it was instituted, the numbers of applications for research degrees (MPhil and PhD) in education continued to rise. There were 17 enrolments in 1988-9, and the faculty intends to increase the number of places available for study at this level in the next few years.

As well as its regular formal teaching programme, the Faculty of Education provides a wide range of In-service Teacher Education Programme courses of varying length, aiming to cater for a wide diversity of needs in the education community. Sixty-four courses were taken by 1 150 students in 1988-9.

Education Research

Members of the Faculty of Education at Hong Kong University are engaged in over 50 research projects in education, ranging from pre-primary to tertiary level and from broad issues of educational planning and curriculum development to studies of particular learning contexts. The faculty has continued its active co-operation in research with the Education Department, and is gradually extending its work with colleagues in China.

The Chinese University of Hong Kong

The Chinese University of Hong Kong was inaugurated in 1963 as a federal university and 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 comprises three original colleges - New Asia College (founded in 1949), Chung Chi College (1951) and United College (1956). A fourth college, the Shaw College, named after its donor Sir Run Run Shaw, became operational in 1988 at the north-west part of the campus.

   Since its inception, the university has adopted a curriculum structure based on a combination of the credit unit system and degree examination system. Students admitted to the undergraduate programme after six years of secondary education are granted a Bachelor's degree upon completion of a number of course credits and the passing of a degree examination assessed by external examiners from home and abroad.

   The university started a comprehensive curriculum review in 1983 which resulted in the adoption of a new curriculum structure for its undergraduate studies, based solely on the credit unit system. The new curriculum is applicable to students admitted in 1986-7 and thereafter. Under this new structure, general education is strengthened, language standards are emphasised, minor programmes become optional and degree examinations are replaced by course examinations with the external examiner system retained.

In 1989-90, the university offered full-time undergraduate students 33 major subjects and 36 minor subjects through its 49 departments grouped under five faculties, namely, Arts, Business Administration, Science, Social Science and Medicine. The first four faculties offer four-year programmes, leading to Bachelor's degrees. The Faculty of Medicine runs a five- year programme with two years of pre-clinical studies. Clinical teaching is conducted mainly in the university's teaching hospital - the Prince of Wales Hospital in Sha Tin. The degrees of MB ChB conferred by the university are recognised by the General Medical Council of the United Kingdom and the Medical Council of Hong Kong for the purposes of provisional and full registration of medical practitioners. An intercalated degree

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programme in medical sciences has been introduced in 1989-90 to give those medical students who have an affinity for medical research the opportunity to develop that interest. The university emphasises bilingualism. Students have to be proficient in both Chinese and English on admission, and both languages are used in teaching.

At postgraduate level, there are 57 academic and professional programmes leading to the degrees of Doctor of Medicine, Doctor of Science, Doctor of Philosophy, Master of Philosophy, Master of Business Administration, Master of Social Work, Master of Divinity, Master of Science, Master of Arts, Master of Arts in Education and Master of Social Science, as well as diplomas in Education and Social Work.

Part-time degree programmes leading to Bachelor's degrees in Business Administration, Chinese and English, Mathematics and Statistics, Music, Physical Education, Primary Education and Social Work and Master's degrees in Translation, Chinese Language Literature, Business Administration and Social Work as well as professional diplomas in both Education and Social Work are offered to working adults.

Expansion in the fields of Education, Architecture, Medicine, Electronics and Computer Science is expected in the coming years. Plans are also in hand to establish engineering studies in the near future. In 1989-90, an Integrative Engineering Programme encom- passing Computer Engineering, Electronic Engineering and Information Engineering was launched.

The university is strongly committed to research and other academic activities. In addition to research work conducted in the teaching departments, six research centres are operating under the Research Institutes of Chinese Studies, Science and Technology, and Social Studies. The Hong Kong Institute of Biotechnology was established in 1988 on the university campus to promote biotechnology research and the development of a biotechnology industry in Hong Kong. The university also took over the management of the Universities Service Centre in 1988-9. Established since 1963, the centre has provided office accommodation and professional assistance to several generations of international scholars who came to Hong Kong to carry out research on contemporary China. It has built up an extensive library of over 400 newspapers and 1000 journals and magazines published in China.

Competition for university places is intense. Of the 25 000 candidates who sat the various public examinations held in 1989, approximately 1 650 were admitted to first year studies. Enrolment as of September 1989 totalled 8 436, comprising 6 214 full-time and 763 part- time undergraduate students and 490 full-time and 969 part-time postgraduate students. Almost all students are local, and about half of them are given hostel places.

In 1988-9, the Department of Extramural Studies offered more than 1 710 courses with a total enrolment of 53 300. In addition to general courses and those leading to the award of diplomas and certificates, the department provided correspondence courses, courses on radio and television and self-learning courses packaged in the form of audio tapes, programmed texts and resource materials. Apart from running courses in China, the department collaborates with universities and institutions of higher learning in Canada and Australia in offering joint courses in a variety of subjects and at different levels. The distance education programme has expanded rapidly with the support of Radio Television Hong Kong. Cable television, which will come into operation next year, will be harnessed to further develop distance education.

With an increasing rate of growth in the number of students and new programmes, an extensive development proposal has been planned for the university's physical plants. Unfortunately, owing to shortage of labour and material and high inflation which badly

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hit the construction industry during the year, the commissioning of several construction projects has been delayed, such as the Lady Shaw Building, the new Shaw College's initial buildings of two 300-bed hostels and an amenities building complex, an administration and education building and a block of staff quarters. The Leung Kau Kui Building (teaching facilities) at central campus and the extension to the Fong Shu Chuen Chinese Language Centre at Chung Chi campus have commenced with sub-structure work at site whereas others are at tendering stage such as the Phase I redevelopment of the Teaching Buildings Complex of Chung Chi College and the extension to the Elisabeth Luce Moore Library at Chung Chi campus. Other capital projects covering teaching, amenities, sports and domestic facilities at various stages of active planning and design include the Hong Kong Institute of Biotechnology, several new academic buildings for engineering studies, archi- tectural studies and other disciplines, an extension to the university main library, further hostels for Chung Chi and Shaw colleges, a new telecommunication system and a variety of engineering services and redevelopment programmes.

   The library system consists of the University Library, the Medical Library, and three branch libraries in the colleges. The total collection in 1989 was 1 000 900 volumes.

   The university participates in the affairs of regional and international associations of universities, and has from time to time launched co-operative projects with foreign. governments and individual institutions. It is a member of the Association of Common- wealth Universities, International Association of Universities, and the Association of South-east Asian Institutions of Higher Learning. The university has also been closely associated with the Committee for International Co-operation in Higher Education in the United Kingdom.

Hong Kong University of Science and Technology

  Following the establishment of the Hong Kong University of Science and Technology, good progress has been made with site formation for the campus and the recruitment of staff worldwide. The main contract for the academic building was awarded in August for completion in June 1991, in time for the scheduled intake of students in October that year. Of the 38 posts at the head of department and professor levels, 18 have accepted offer of appointment as at September 1989.

   The university campus, which is being built as a turnkey building project managed by the Royal Hong Kong Jockey Club, will be located on a 60-hectare site at Clear Water Bay, Sai Kung. This project, costing over $2 billion, of which $1.5 billion will come from a Jockey Club donation, will be completed in two phases, phase I in 1991 and phase II in 1993. When completed, the campus will have a full range of academic and research. facilities, excellent recreational facilities, hostel places for at least 30 per cent of its student population and quarters on campus for at least 50 per cent of its eligible staff.

The university will provide undergraduate and postgraduate courses in its three schools: Science, Engineering, and Business and Management, and a General Education Centre will be established which will, in addition to undertaking a service role, offer postgraduate and research programmes. A modular system is planned for undergraduate courses and this will allow for a large measure of flexibility, enabling academic subjects to be grouped in various combinations. Seven hundred full-time or part-time equivalent students will be admitted in October 1991, increasing to the approved student target of 7 000 places during the 1994-7 triennium and to 10 100 by the end of the century.

   The undergraduate courses in the School of Engineering will include Computer Science, Electrical and Electronic Engineering, Industrial and Manufacturing Engineering, Civil

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and Structural Engineering, Mechanical Engineering and Chemical Engineering. Post- graduate programmes will be determined mainly by the needs of the community and to some extent by the specialities of the academic staff recruited and by the availability of equipment and facilities. In addition to a Research Centre, a Technology Transfer Centre will be established on the university campus.

       The undergraduate courses in the School of Science will include Biology, Biochemistry, Mathematics and Physics. Postgraduate programmes will depend again on community needs, the specialities of academic staff recruited and the availability of laboratories.

The School of Business and Management will offer a general business programme for undergraduate students, comprising an integrated package with many required modules and a limited number of speciality electives. It is intended that the school should offer two separate but complementary postgraduate courses. The first is a standard two-year MBA course, shaped to suit Hong Kong's needs. This course will emphasise finance and entrepreneurship and will be technology oriented. The second is a one-year Masters course in business and technology, designed for people already well trained or experienced in technology.

       The General Education Centre will cover such areas as Chinese and China Studies, Local and Regional Studies, History, Geography, Philosophy, Psychology and Linguistics.

Hong Kong Polytechnic

The Hong Kong Polytechnic was established in 1972, taking over the campus of the former Hong Kong Technical College which formed the basis of the polytechnic's initial development.

Since then, student and staff numbers have increased greatly. At the beginning of the academic year 1989-90, there were 8 040 full-time, 1870 sandwich, 1 450 mixed-mode, 3 450 part-time day release and 11 260 part-time evening students. There were also 720 students enrolled on a distance learning course. In mid-1989, the polytechnic had a total staff of 2 561, comprising 912 teaching, 263 senior administrative and 1 386 technical, clerical and ancillary staff.

The polytechnic has 25 teaching units grouped under seven divisions. These are the Division of Applied Science and Textiles (Departments of Applied Biology and Chem- ical Technology, Applied Physics, and Institute of Textiles and Clothing); the Division of Business and Management Studies (Departments of Accountancy, Business Studies, Management Studies and Hospitality Management); the Division of Communication (Departments of Chinese, Translation and Interpretation, English and Swire School of Design); the Division of Construction and Land Use (Departments of Building and Surveying, Building Services Engineering, Civil and Structural Engineering and Centre of Land and Engineering Surveying); the Division of Engineering (Departments of Electrical Engineering, Electronic Engineering, Manufacturing Engineering, Mechanical and Marine Engineering, and Department of Nautical Studies); the Division of Health and Social Studies (Departments of Applied Social Studies, Diagnostic Sciences, Health Sciences and Department of Rehabilitation Sciences), and the Division of Mathematical and Computing Studies (Departments of Computing Studies and Mathematical Studies).

A wide range of courses is offered to meet the demands of commerce, industry and the community. For 1989-90, 183 courses were offered in different modes of attendance, namely full-time, sandwich, part-time day release, part-time evening, mixed-mode and distance learning. Successful completion of these courses leads to the awards of Bachelor's degree, associateship, professional diploma, higher diploma, diploma, post-registration

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diploma, post-registration certificate, endorsement certificate, higher certificate, certificate and certificate of proficiency.

   Degree courses offered in the 1989-90 academic year include: BA(Hons) in Account- ancy; BA(Hons) in Business Studies; BA in Clothing Studies; BA(Hons) in Computing Studies; BA in Design; BA in Hospitality Management; BA in Language and Commu- nication; BA(Hons) in Textile and Clothing Marketing; BA(Hons) in Translation and Chinese; BEng(Hons) in Building Services Engineering; BEng(Hons) in Civil Engineer- ing; BEng(Hons) in Electrical Engineering; BEng(Hons) in Electronic Engineering; BEng(Hons) in Manufacturing Engineering; BEng(Hons) in Mechanical Engineering; BSc in Building Technology and Management; BSc in Building Surveying, BSc in Quantity Surveying; BSc in Land Management; BSc(Hons) in Combined Studies in Mathematics and Science, and Bachelor of Social Work (Hons). The BEng(Hons) course in Electronic Engineering was offered in both the sandwich mode and mixed-mode, while the Bachelor of Social Work (Hons) course was offered in both the full-time mode and mixed-mode.

   In 1989-90 academic year, the polytechnic offered, for the first time, five mixed-mode postgraduate courses leading to the awards of Master's degrees in Information Systems, Postgraduate Diplomas in Information Technology, Management Studies, Mental Health and in Precision Engineering respectively.

   The polytechnic continued to register candidates for the Degree of Master of Philosophy by research. Commencing 1989-90, the polytechnic also registered candidates for the Degree of Doctor of Philosophy. Holders of an appropriate Master's degree may apply for direct registration for the degree of PhD. The period of registration for research degree candidates is normally two years on a full-time or three years on a part-time basis.

   In response to the training and retraining demands of business, industry and the pro- fessions, the polytechnic offers a range of self-financing programmes of professional and continuing education courses some of which lead to academic awards. "Tailor-made' courses were commissioned by over 40 private and public sector organisations for their employees in 1988-9. In all 11 358 students enrolled in 301 continuing education courses in 1988-9.

   Through the Student Affairs Unit, the polytechnic offered to its full-time students a good range of extra-curricular education programmes which can be taken on a voluntary basis. These included structured programmes on physical education; inter-personal and communication skills; understanding of man-society and man-environment relationships; arts and culture, and introduction to the basic sciences.

   The polytechnic's staff members offer their services to the community through con- sultancy and other industrial liaison activities. A Business and Technology Centre was established to integrate and provide new support services for the benefits of local industry and commerce. Liaison and exchange with outside institutions in China and overseas continued to thrive on various consultancy and collaborative research projects.

   The polytechnic took further steps to strengthen the development and co-ordination of research activities through the appointment of several Readers within the institution. The total research grant in 1988-9 was $9.8 million, which was used to support 66 new research projects and 52 on-going projects.

   The polytechnic also gave high priority to staff development. The funding of staff development programmes in 1988-9 increased by 6.6 per cent over the previous year.

   Each year, the polytechnic receives donations in the form of grants, equipment, scho- larships and bursaries for students from organisations, firms, professional associations and individuals. In 1988-9, donations of $1.88 million were received from the private sector.

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       The polytechnic library has seating capacity for over 1900 readers, as well as special facilities for disabled persons. Its collection has grown to 550 000 items and over 9 000 titles of periodicals. Various kinds of audio-visual materials including 140 000 slides, laser discs, interactive video and computer software are available. Extensive use of CD-ROM databases is made by students and staff. The library is currently replacing its in-house automated system with integrated software.

       Situated on a nine-hectare campus which is partly on reclaimed land in Hung Hom, Kowloon, the Hong Kong Polytechnic is still in the midst of an extensive building develop- ment programme which was planned to be completed in the early 1990s.

The Phase IIIA project which was completed in April 1989 houses the directorate and most of the polytechnic's administrative departments as well as teaching and staff accommodation. The project also incorporates the polytechnic's Main Entrance develop- ment and a 250-seat Studio Theatre.

       Construction of the Phase IIIB project, which began in April 1988, will provide additional specialist and general teaching accommodation, research space, staff offices, administrative facilities, additional student and staff dining facilities (including a new and enhanced staff club), and a new sports hall. This project is scheduled for completion in mid-1990.

       A new major development, the Industrial Centre redevelopment/Phase IVA project, will shortly be underway. When completed in 1991-2, this will provide expanded industrial training facilities for students of both the Hong Kong Polytechnic and the City Polytechnic of Hong Kong, plus some additional teaching and research space.

City Polytechnic of Hong Kong

For the City Polytechnic of Hong Kong, 1989 was a significant year. Vacating the temporary campus in Mong Kok it moved to its permanent campus, a 12-hectare site in Kowloon Tong. The move, Phase I, has given the polytechnic 64 000 square metres of net floor area. Planning commenced for Phase 2, which is scheduled for completion by 1992 with a net building area of 32 000 square metres. Tat Chee Yuen, the 110-unit senior staff quarters adjacent to the campus, was completed at a cost of $102 million. Architects and consultants were appointed for another senior staff quarters project in Cornwall Street, scheduled to be ready in 1993.

Occupation of the modern, purpose-built campus has enabled the polytechnic to increase its student intake to 4 100. Competition for entry remained extremely keen and the polytechnic, through a joint admission scheme run in conjunction with the Hong Kong Polytechnic, received about 49 000 applications for places on 64 courses in various modes of attendance. At the end of the year the total student population reached about 8 800, about 4 800 being on full-time and sandwich mode courses. During the year, the polytechnic agreed to join the introduction of the Joint Admissions Scheme initiated by the University of Hong Kong and the Chinese University of Hong Kong, which is due to be introduced from 1990-91 for full-time and sandwich first degree courses, the normal entry requirements for which are A-level. A number of new courses were mounted, notably the Master of Business Administration and Master of Science in Electronic Systems Design. In June, the polytechnic submitted to the University and Polytechnic Grants Committee the Statement of Intent for the 1991-4 triennium outlining a list of new courses, new modes of attendance in existing courses, and new options and streams. The Department of Lan- guages was re-organised into two separate Departments - English and Applied Linguistics respectively.

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   The founding director, Dr David Johns, left at the end of July to become Vice- Chancellor of the University of Bradford in the United Kingdom. Professor Cheng Yiu-chung, former Professor of Electronic Engineering and Dean of the Faculty of Engineering at the University of Hong Kong, took up the directorship of the polytechnic in August.

   In a major move towards forging closer and mutually-beneficial links with industry, commerce and the professions, the polytechnic launched an Institute for Research and Consultancy in July. The institute will promote consultancy links between the polytechnic staff and local industries and foster departmental and inter-departmental research through self-finance and sponsorship. It will provide encouragement and recognition for such efforts by forming research units, groups and centres in collaboration with particular firms.

A Centre for Environmental Technology for Industry was also formally established. The centre, the first of its kind in Hong Kong, is operated jointly with the Hong Kong Pro- ductivity Council, providing advice on ways to control pollutants emitted from factories and demonstrating treatment and recovery systems for industrial waste.

During the year, the polytechnic received a total allocation of $5.29 million from the earmarked research grants administered by the University and Polytechnic Grants Committee, to support a variety of research activities.

In November, the polytechnic conferred academic awards on its fourth group of gra- duates. The 1 353 graduates included 126 postgraduate diplomates, 370 bachelors, 215 professional diplomates, 486 higher diplomates, 26 higher certificate awardees and 130 diplomates. By the year's end, the vast majority of the graduates had found employment.

   After two years of planning, an alumni association was incorporated as a limited company under the Companies Ordinance, in the name of the 'The City Polytechnic of Hong Kong Alumni Association'.

Hong Kong Baptist College

Founded in 1956 and fully funded by the government since 1983, the Hong Kong Baptist College succeeded in 1989 in upgrading all its former Honours Diploma programmes to Honours Degree courses, and at the same time started a postgraduate programme in the Science Faculty leading to the award of Master of Philosophy (MPhil) through research work. Beginning in 1989-90, the college admitted students only to degree and higher degree courses, as the phasing out of the remaining Honours Diploma programmes continued to move towards its scheduled completion by 1991.

   The year 1989 also saw the first batch of graduates from the two courses of BSc(Hons) in Combined Sciences and BSW in Social Work, which were the first courses successfully accredited by the UK Council for National Academic Awards (CNAA) in 1986. Includ- ing these two courses, the college currently offers a total of eight degree courses, of which the remaining six are: BBA(Hons) in Business Administration, BSocSc(Hons) in Communication, BA(Hons) with majors in Chinese, English, Geography, History, Religious Studies, and Sociology; BSocSc(Hons) in China Studies; BA(Hons) in Music, and BSc(Hons) in Computing Studies. The last three were the newest additions accredited by the CNAA and offered for the first time in September 1989.

   The college is a fully-autonomous institution and is governed by its own ordinance. Its statutory governing bodies, the Board of Governors and the Council, are composed predominantly of members independently appointed by the Governor from sectors of commerce, industry and education, together with members nominated by the Baptist Convention of Hong Kong.

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      All the college's degree courses are carefully planned to meet the needs of the community and are academically accredited by the CNAA. They all share the common objective of educating students to become well balanced in academic achievement, professional competence and character development. Each course is therefore designed to be broad- based and comprises two essential components - liberal education and vocational prepara- tion. Emphasis is also placed on the development of communication skills. New degree courses in the areas of Translation, Humanities, Systems Science, and Human Resources Management are now being planned, for introduction by 1990-91. For academic qual- ity assurance, external examiners from home and abroad are appointed to each course.

       Teaching and research in the college are organised around its three faculties and one school, which includes 22 departments altogether. They are the Faculty of Arts (Departments of Chinese Language and Literature, English Language and Literature, Music and Fine Arts, Religion and Philosophy, Language Centre); Faculty of Science (Departments of Biology, Chemistry, Computing Studies, Mathematics, Physics); Faculty of Social Sciences (Departments of Communication, Education Studies, Geography, History, Social Work, Sociology), and School of Business (Departments of Accountancy, Administrative Information Management, Economics, Finance, Human Resources Man- agement, Marketing). All full-time undergraduate courses of the college require three years of study, and students are admitted on the results of the Hong Kong Advanced Level (HKAL) examination. In 1989-90, applications for admission continued to exceed by far the number of available places with an average of nine qualified applicants to every place.

       In October, the total full-time student enrolment was 2 943, with a breakdown of: Arts 476, Business 845, Science 649, and Social Sciences 973. While 100 per cent of the first-year students were on degree courses, the number of students on degree courses for all years constituted 84 per cent of the total enrolment. Additionally, there were 12 students enrolled in the MPhil programme; 65 students enrolled in a special full-time two-year course preparing them to sit for the HKAL examination in music, and 467 taking part-time 'conversion courses' which provide opportunities for past honours diplomates of the college to upgrade their qualification to that of a Bachelor's Degree. The teaching staff strength stood at 224, with the majority of them holding higher degrees from overseas institutions. Senior academic and administrative staff are recruited through international advertisement.

       Apart from the full-time regular student body, the college catered for some further 40 000 students through the 400 part-time courses offered by its Division of Continuing Education. These courses cover a broad range of cultural, vocational and professional interests to meet the demands for education from people in employment, and are held in the evening using the campus and off-campus centres.

       The college's main library has a unique integrated computer system covering all the major library services. The collection of books increased to 222 000 during the year. There is also a branch library which holds a special collection of research materials on contemporary China between 1949 and 1976. Research activities have continued to grow significantly. In addition to research grants obtained from the University and Polytechnic Grants Committee through open bidding, the support allocated by the college in the current year was more than double that of the previous year. There were also increases in academic exchanges with institutions overseas and in China.

       With the opening for use of two more new buildings and a sports centre, the entire campus redevelopment project on the Waterloo Road site nears completion. One of the new buildings houses the Science Faculty and its specialist facilities, while the other

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provides accommodation for the Business School and central administration. The final stage of the redevelopment project - refurbishment of the first group of buildings on campus - has already started and is scheduled for completion in 1990.

During the year, approval was obtained from the government to expand the college's enrolment beyond 3 000 students, starting in the 1991-4 triennium and using a neigh- bouring site, at Renfrew Road, currently being used as a temporary campus.

Provisional Hong Kong Council for Academic Accreditation

Following the government's decision that Hong Kong should have its own academic accreditation agency to ensure that the standards of non-university degree courses were comparable with those of internationally-recognised degrees, the Provisional Hong Kong Council for Academic Accreditation (PHKCAA) was set up in November 1987 to prepare for the establishment of an independent Hong Kong Council for Academic Accreditation (HKCAA).

   In April, the provisional council completed its task and submitted its final report to the Governor. In the course of its work, it has established criteria and developed the procedures and administrative systems which the HKCAA will follow. The PHKCAA has also prepared a handbook setting out the principles and methodology of external evaluation in accordance with the HKCAA's objective of disseminating information on good accreditation practices.

   A carefully-selected specialist register of academics and non-academics, both locally and overseas, has been established. These specialists have the expertise to form the backbone of panels responsible for validation and revalidation of degree courses. To date the register comprises over 400 experts.

   Links have been established with some 40 overseas accrediting bodies. This will help to ensure the international standing of the council itself and of the institutions whose courses it validates.

The HKCAA will be formally established as a statutory body early in 1990. It will meet twice a year and will comprise no more than 21 members appointed by the Governor. Members will include overseas and local academics, as well as non-academics drawn from Hong Kong's industrial, commercial and professional sectors. The council will be serviced by a permanent secretariat headed by an executive director who will also be a member of the council.

    The council's initial role will be to validate and revalidate individual courses. The HKCAA will be the academic authority on degree standards in Hong Kong and will provide information and advice on academic quality assurance.

Open Education

The Open Learning Institute of Hong Kong (OLI) was formally established in June as the seventh degree-granting institution in Hong Kong, following an active period of planning and the enactment of legislation. This was followed by a visit from the UK National Council for Academic Awards (CNAA) to help establish the academic standard of the institute and its programmes.

Enrolment of students commenced in August and the public response turned out to be overwhelming. Over 200 000 application forms were distributed and 60 000 actually applied for entry. Consistent with the concept of open access, the applicants were selected on a random basis after the OLI provided careful counselling on the nature and the vigorous demands of studying open learning courses. In September, about 4 000 students

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were enrolled on various foundation courses leading to degree awards. The OLI was firmly committed to expanding its capacity to offer high-quality academic programmes to satisfy the public demand for higher education.

       The institute will offer a second chance for those who have been unable to go on to further education after leaving school, as well as opportunities for workers and managers to update their qualifications and for personal development. It offers courses through three Schools: the School of Science and Technology, School of Business and Administration, and School of Arts and Social Sciences. It adopts a multi-media approach to instruction. Apart from printed text supplemented by audio-visual materials, it provides extensive tutorial support through its temporary headquarters at Hennessy Centre and another regional study centre. It will move to its permanent headquarters at Argyle Centre Tower II in April 1990.

Student Finance

      Full-time students attending the local tertiary institutions are eligible, on the basis of need, for grants to cover their faculty expenses, tuition fees and Student Union fees, and for loans to meet their living expenses. This scheme is means-tested and is administered by the Student Finance Section, Education and Manpower Branch, Government Secretariat. Loans provided with effect from the 1987-8 academic year are subject to an interest charge of 2.5 per cent which will begin to accrue upon the student's graduation. During the year 7999 students received loans totalling $75.1 million and 6 493 of these students also received grants, totalling $38.3 million.

Also administered by the Student Finance Section is a joint-funding arrangement between the governments of the United Kingdom and Hong Kong. Under the terms of this particular scheme, grants are made on the basis of need to full-time students who are attending first degree or Higher Diploma courses in the United Kingdom, to meet the difference between home and overseas student fees. However, if the total requirement exceeds the joint contribution of the United Kingdom and Hong Kong governments, each applicant's grant will be proportionately reduced, with the balance made up by an interest-free loan provided solely by the Hong Kong Government. During the year, grants totalling £4 million and loans totalling $18 million were paid to 125 institutions on behalf of 1 621 students.

UK-HK Scholarships

The scope of the joint-funding arrangement was expanded in 1988 to include a number of UK-HK Scholarships awarded on merit.

       The aim of the scholarships is to provide further educational opportunities at the tertiary level in the United Kingdom for local students who are recognised as having the potential to contribute significantly to mutual understanding between the United Kingdom and Hong Kong and to Hong Kong's future well-being. Those selected are expected upon return to number among the future leaders, decision makers and formers of opinion in Hong Kong.

The scholarship fund is made up of an annual total of up to £250 000 contributed equally by the United Kingdom government and the Jockey Club on behalf of the Hong Kong government.

       The scholarships are administered by the UK-HK Scholarships Committee appointed by the Governor. For the 1989-90 academic year, a total of eight undergraduate and postgraduate scholarships were awarded.

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Sir Edward Youde Memorial Fund

The Sir Edward Youde Memorial Fund was brought into being on April 1, 1987, to centralise the management of public donations received in memory of the late Governor Sir Edward Youde who passed away in service in December 1986.

The assets of the fund stood at over $87 million on March 31, 1989. The fund is managed by the Board of Trustees consisting of Lady Youde, three prominent members of community appointed by the Governor and the Secretary for Home Affairs.

In accordance with Lady Youde's wishes, it has been provided in the Sir Edward Youde Memorial Fund Ordinance that the income of the fund is to be used for promoting the education and learning of the people of Hong Kong and encouraging research activities.

   The uses of the income of the fund are determined by a Council comprising Lady Youde, five prominent members of the community and the Secretary for Education and Man- power. For the 1989-90 academic year, the council awarded fellowships and scholarships to nine students to finance their postgraduate or undergraduate studies overseas. Four of these students pursue studies in the United Kingdom, four in the United States and one in China. For local studies, 38 fellowships were awarded to postgraduate research students and 70 scholarships to undergraduate, diploma and certificate students. These awards. were made on the nominations of the heads of the institutions followed by interviews by the council. During the year, five students who excelled in local public examinations, six disabled students in tertiary institutions, and 560 senior secondary students nominated by the heads of the schools also received awards from the fund.

The value of all awards made for the 1989-90 academic year was about $3.4 million.

Technical Education

  Eight technical institutes are operated by the Vocational Training Council and they provide a total of 338 courses at craft and technician levels with full-time, block-release, part-time day-release and part-time evening attendance. A large number of short courses are also offered and these are mainly designed to update the knowledge and skills of people in employment.

The main disciplines covered by the institutes include: applied science, environmental studies, chemical technology, food technology, clothing, commercial studies, accountancy, computing studies, construction, design, electrical engineering, electronic engineering, general studies, child care, hairdressing, hotel-keeping and tourism studies, industrial technology, marine engineering and fabrication, mechanical engineering, motor vehicle engineering, printing and textiles. Most technician-level courses have been validated by the United Kingdom Business and Technician Education Council (BTEC) and students attending these courses are able to register for the BTEC awards.

The demand for places on most courses remained high. Enrolments for the 1989-90 academic year totalled 11 900 full-time, 14 800 part-time day and 28 800 part-time even- ing students. A number of new courses were offered including: Diploma in Marketing, Diploma in Purchasing and Stores Supervision, Diploma in Mechanical Engineering (Computer Aided Engineering), Diploma in Computing Studies (Technical Applications), Certificate in Retail Supervision, Introduction to Metal Works Craft Studies for Cons- truction Industry, and Introduction to Clothing Manufacture. In September 1989, the number of full-time teaching staff in the technical institutes was about 850 and there were some 750 supporting staff and 2 200 part-time lecturers.

   Each technical institute has on average 75 computer work-stations comprising terminals linked to medium-scale computers and microcomputers. In addition, computer-aided

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design and drafting facilities have been installed in the technical institutes. These enable the study of computer appreciation and application to be included in most courses.

       The annual employment survey of graduates from full-time courses again showed that they had little difficulty in finding employment in their respective disciplines after com- pletion of their studies.

      To meet the increasing demand for study places, additional accommodation and facil- ities were provided in the new annexes of the Kwai Chung, Kwun Tong and Morrison Hill Technical Institutes.

Industrial Training

Industrial Training is promoted and co-ordinated by the Vocational Training Council.

      The council administers and operates a number of industry-wide training schemes for the major industries and assists individual employers in setting up or improving their own staff training schemes. Young persons wishing to obtain organised training may also approach the council for assistance.

      In 1989, the Vocational Training Council operated 16 training centres for training manpower for the automobile, banking, electrical, electronic data processing, electronics, gas, hotel, insurance, jewellery, machine shop and metal working, plastics, precision tooling, printing, shipping, textile and welding industries. Together, the centres provide off-the-job basic or updating training for over 21 000 trainees a year on a full-time or part-time basis, at skill levels ranging from the operative to the technologist. The council was in the process of setting up a training centre for the wholesale/retail and import/ export trades.

      The Engineering Graduate Training Scheme aims at bringing about adequate practical training opportunities for engineering graduates and engineering students in sandwich courses to enable them to complete their overall training as engineers and satisfy the training requirements of the Hong Kong Institution of Engineers as well as other recognised institutions for professional status. In 1989, 90 engineering firms took part in the scheme and provided 240 training places.

      Since May 1987, the council has been administering an experimental scheme on behalf of the Industry Department for the training of engineers in the design of Application Specific Integrated Circuits (ASIC). The scheme involves the provision of a government grant to assist employers to train local engineers in overseas facilities in the field of ASIC design. The scheme ended in March 1989 and a total of 32 engineers have received overseas training.

The Management Development Centre of Hong Kong is responsible for research, development, co-ordination and promotion of management training. Its programmes and projects include work with owner-managers and entrepreneurial firms, the creation of learning materials, and activities with management teachers, trainers and business executives.

      Technicians and craftsmen in the industrial sectors and supervisory and clerical personnel in the commerical sectors are effectively trained through apprenticeship schemes and traineeship schemes. To upgrade or update the workforce, the training boards organised subsidised training courses for in-service workers in conjunction with education and training institutions. Participants in these courses were refunded about 50 per cent of the course fee by the council upon satisfactory completion of the course.

      Four training boards: the automobile; electrical; machine shop and metal working, and printing started a voluntary trade test scheme for specific trades in their sectors. Trades

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for which tests were offered included vehicle mechanic, electrician, mechanical fitter and typesetter. Serving workers in these trades were invited to apply for the tests and the response was good, with the number of applicants for the electrician trade far exceeding the planned test capacity.

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 their industries. The former is financed by a levy based on the export value of clothing and footwear items while the latter is financed by a levy based on the value of construction works exceeding $1 million. The new Construction Industry Training Centre in Aberdeen became operational in September 1989 and there are now three training centres for construction trades and two for training in clothing and footwear manufacture.

Apprenticeship Scheme

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. The apprenticeship period of the designated trades is normally three or four years. However, the period may be shortened by any period not exceeding one year if the apprentice has obtained relevant special qualification before entering into an apprenticeship.

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 technical institutes.

To enforce the ordinance, inspectors of the Apprenticeship Section conduct inspections and visits at regular intervals to apprentices and establishments covered by the ordinance.

   Apprenticeship contracts registered in 1989 totalled 5 400, of which 900 were for non- designated trades. These contracts covered 4 720 craft apprentices and 680 technician apprentices. By the end of the year, 10 280 apprentices were being trained in accordance with the ordinance.

Vocational Training for the Disabled

  The Technical Education and Industrial Training Department provides vocational training for disabled persons. It operates two government skills centres for the disabled and sub- vents another three centres operated by voluntary agencies. The total capacity of these five centres is 756 training places, of which 240 are provided with residential facilities. These skills centres offer two broad groups of courses. The first and major group prepares disabled persons for open employment while the second group prepares them for main- stream technical education.

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In addition to this training the department also provides three main support services for disabled trainees in the skills centres and in the technical institutes.

      First, the Vocational Assessment Section assesses a disabled person's potential and provides guidance in the selection of a suitable vocational training course. The assessments are based on internationally-recognised test batteries, in addition to work samples which are designed to meet local industrial requirements. The main vocational assessment pro- grammes offered are a five-day one for all mildly mentally-disabled school leavers and an eight-week one for the more complex assessment cases.

Second, the Technical Aids and Resource Centre designs and makes about 40 different kinds of technical aids and adaptations to standard machinery each year for disabled workers or trainees. The aim is to improve their employment prospects and training attainments.

      Third, the Inspectorate Unit gives advice to skills centres on administration, curriculum development, instructional methods and training standards. It also provides guidance and academic counselling to disabled students in the technical institutes.

The department's annual employment survey of disabled trainees completing full-time courses in technical institutes and skills centres showed that over 85 per cent of these leavers either obtained open employment or entered mainstream technical education.

The construction work for the new Tuen Mun Skills Centre for the Disabled is on schedule. The centre, which will open in September 1990 and cater for all categories of disabled persons, will provide 300 training places, of which 150 are residential.

Teacher Preparation

Four Colleges of Education - Grantham, Northcote, Sir Robert Black and the Hong Kong Technical Teachers' College (HKTTC) train non-graduate teachers for primary and secondary schools. All four colleges are directly financed and staffed by the government and administered by the department.

The three general colleges of education conduct initial full-time teacher education courses lasting two years for students with HKALE qualifications, and three years for students with HKCEE qualifications. Part-time in-service training courses of two or three years' duration are also offered to serving kindergarten, primary and secondary school teachers and to teachers of students with special educational needs. Retraining courses lasting seven or eight weeks are offered to teachers in primary and secondary schools, and part-time courses of 12 weeks to serving assistant kindergarten teachers.

The Hong Kong Technical Teachers' College provides courses for future teachers of technical subjects in secondary and prevocational schools. A three-year full-time course is open to secondary school leavers who have studied technical or commercial subjects. The college also offers in-service courses for teachers and lecturers in the technical institutes as well as a variety of short courses for instructors working with the handicapped, and for supervisors and instructors employed in industry.

       All four colleges also offer a one-year full-time Advanced Course of Teacher Education in cultural, practical and technical subjects.

       There were 1054 students in the three-year full-time course, 1 199 students in the two-year full-time course, 92 students in the Advanced Course of Teacher Education and a total of 2 222 students in the in-service training and retraining courses.

      Financial assistance in the form of interest-free loans and maintenance grants is provided by the government for eligible students who are enrolled in full-time courses at the four colleges.

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   Basic training courses in educational management for heads and senior teachers of schools in the public sector were provided by the department's Training Unit. Various seminars, short courses, induction and basic training courses were also offered for pro- fessional officers and new recruits of the department.

Adult Education

The department's Adult Education Section provides formal and non-formal education in the evening through a number of courses and activities, and assists voluntary organisations through a subvention scheme.

Formal courses cover remedial education, second chance education and education for personal development at levels ranging from primary to post-secondary. Some courses are jointly operated with other government departments. Various teachers' courses provide opportunities for serving teachers to refresh their knowledge and skills in a variety of cultural subjects. Over 20 000 people enrolled on formal courses during the year.

Non-formal education courses cover a variety of cultural, social, recreational and educational activities to stimulate social awareness, cultivate creativity and develop individual talents and skills. Nineteen Adult Education and Recreation Centres operate in various administrative districts. Numerous activities are organised with other government departments and organisations. Over 30 000 people participated in these courses and activities.

   Subvented courses run by voluntary agencies supplement and complement those operated by the department. In 1989-90, government subsidies were granted to 296 projects operated by 62 organisations.

Language in Education

To improve the quality of Chinese teaching, an additional graduate teacher of Chinese was provided to every public-sector secondary school with 18 classes or more with effect from September 1989. Smaller schools were given enhanced provision for teaching Chinese in September 1986.

   To encourage secondary schools to increase the use of Chinese as the language of instruction, additional teachers of English and other resources have been provided since September 1988 to secondary schools which made greater use of Chinese, so as to avert any consequential drop in the standard of English due to reduced exposure. In 1989, a further 25 schools increased their use of Chinese as the medium of instruction.

   The Expatriate English Language Teacher pilot scheme came to an end in mid-1989. The final evaluation revealed that the scheme had had a significant effect in several areas of English language learning. At year's end, planning was in progress for a more permanent scheme to help secondary schools recruit expatriate English language teachers. Mean- while, to maintain continuity, 11 aided schools in the pilot scheme, and eight government schools which had vacancies for English teachers, recruited 33 expatriate teachers for up to two years.

   The Chinese Textbooks Committee (CTC) continued its work in support of the policy of encouraging schools to adopt Chinese as the medium of instruction. Phase 1 of an incentive award scheme encouraged the production of 59 sets of Chinese textbooks for 14 general subjects at secondary level by September 1989. Phase 2 was aimed at producing Chinese textbooks for eight practical and technical subjects at secondary level for use by September 1991. $3.6 million has been awarded to participating publishers to produce quality text- books with editorial assistance provided by the department.

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In preparation for the first Chinese-medium Hong Kong Advanced Level Examination in 1992, the government accepted, in June 1989, the CTC's recommendation for a review of Chinese-medium reference materials available on the market with a view to assessing their suitability for the courses. The review was completed in November 1989 and 214 Chinese-medium reference books were found suitable.

The report of a departmental working group to review language improvement mea- sures was issued for public consultation in October 1989. The report contained propo- sals for strengthening language skills in English, Chinese (Cantonese) and Putonghua.

Institute of Language in Education

The Institute was founded in September 1982 as a 'centre of excellence' for all matters relating to language learning and teaching in Hong Kong schools. It offers in-service refresher courses for teachers of English and Chinese in primary and secondary schools, conducts research into areas of language learning and teaching, organises workshops, seminars and international conferences on language and language learning, provides consultancy services on language teaching and language teacher education, designs and develops language teaching resources for use in schools and publishes books and articles on language teaching. The institute also serves as a centre for courses leading to the Royal Society of Arts Diploma for Overseas Teachers of English.

       Over 1 000 teachers attended courses at the institute during the year. The fifth volume of the institute's professional journal (ILEJ), two teachers' guides and two seminar books were published. In the area of research, the institute completed a study on the effectiveness of extensive reading in English in secondary schools and launched a similar study on extensive reading in Chinese in primary schools. It continued to focus on aspects of Cantonese pronunciation and the application of computer-assisted language learning in secondary schools. It also conducted research into the role of classroom observation, the value of language enrichment projects, and factors affecting project work. Two exhibitions of teacher-produced language learning and teaching materials were mounted.

Education Research

The Educational Research Establishment (ERE) of the department is mainly concerned with test development and programme evaluation.

       In the year under review, the ERE constructed test papers for the three basic subjects of Chinese, English and Mathematics at Primary 1 and 2 levels, thereby completing the current series of the Hong Kong Attainment Tests (HKAT) from Primary 1 to Secondary 3. The HKAT was used by schools to assess students' attainment in the respective subjects for streaming and grouping purposes as well as for the implementation of guidance and remedial teaching. It also enabled the department to monitor changes in overall standards in the three subjects across levels and years.

       The ERE conducted research into various aspects of education and educational programmes, including a study of the continuity of curriculum and teaching practices between different levels of education, an evaluation of the Expatriate English Language Teachers' Modified Scheme, norming and validation of the Aptitude Test for Secondary 3 students and a project on Chinese extensive reading at upper primary levels.

Advisory Inspectorate

The main function of the department's Advisory Inspectorate is to monitor and improve the quality of teaching. This involves regular school inspections to advise on curriculum

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  matters, teaching methods and the utilisation of resources. In-service training courses, seminars and workshops for teachers are offered, aimed at improving the quality of teaching. In addition, the inspectorate is responsible for curriculum development as well as evaluation of textbooks and instructional materials. To support curriculum development in schools, the inspectorate publishes reference materials in the form of syllabuses, curriculum guidelines, handbooks, newsletters and bulletins; operates teaching and resource centres for various subjects as well as a field study centre, and provides a number of supporting services such as audio-visual aids, educational television, and the school library service. It is also involved in developing and monitoring civic, sex and moral education in schools.

   The Curriculum Development Council (CDC) and its co-ordinating committees and subject committees continued to advise on curriculum innovations at pre-primary, primary, secondary and sixth form levels as well as on special education. The school curriculum at different levels of education was reviewed with the aim of formulating new curriculum guides for the reference of schools. The CDC also studied a number of curriculum issues, such as strengthening literacy and numeracy in primary schools and strengthening the social awareness and language proficiency of students in secondary schools. Handbooks for 12 subjects with technical terms in English and Chinese were prepared to facilitate the adoption of Chinese as the medium of instruction at sixth form level. Curriculum research projects initiated by the CDC were undertaken by the Educational Research Establishment and the Advisory Inspectorate. With continuous support of the CDC and the inspectorate, 251 primary schools have adopted a child- centred and less formal teaching method known as the Activity Approach.

   The school-based Curriculum Project Scheme, launched in September 1988, provides grants for development of curriculum projects catering for the specific needs of students in individual schools. Under the scheme, 35 curriculum projects were completed in 1989 and 58 were being undertaken by educationalists including teachers, school heads and lecturers at the colleges of education and the school/faculty of education of the universities.

Technical and Commercial Education

  Technical and commercial education continued to expand. Prevocational schools were restructured in the year to offer more senior classes. New and revised syllabuses such as Light Metalwork and Finishing, and Metalwork were completed. Chinese textbooks for Technical Drawing, Metalwork, Electrical Studies, Electronics and Electricity, Bookkeeping and Office Practice were being compiled under Phase II of the Incentive Award Scheme.

   The Technical Teaching Centre continued to provide supporting courses for serving technical teachers. A teaching centre for commercial subjects was being planned, to open in 1990.

With the continued support of the Hong Kong Federation of Industries and the Chinese Gold and Silver Exchange Society, the Hong Kong Young Designer of the Year Award and the Commercial Subjects Projects competitions were held to encourage students to explore the world of design, and to experience technical and commercial studies as an integral part of general education in the overall curriculum.

Computer Education

Computer Studies is available as a HKCEE subject to students in Secondary 4 and 5. Following the completion of a pilot project, plans were drawn up to extend the subject to students in Secondary 1 to 3 of any interested school.

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      Beginning in 1989, handicapped children were given the chance to learn through computers. Eighteen special schools were selected to take part in the Computer Education in Special Schools Project. The project aimed to provide students in special schools with the same opportunity of accessing microelectronic technology in education as their counterparts in ordinary schools. Besides using computers to learn, they were also expected to use part of the equipment provided as communication and rehabilitation aids. More special schools are expected to join the project next year.

Physical Education

The Physical Education Section continued to play an important role in advising physical education teachers and organising refresher courses and seminars for them.

      The new Curriculum Development Council Secondary Syllabus for Physical Education was introduced to schools, and video tapes and teaching materials relating to the sylla- bus were prepared. The inclusion of this subject in the HKCEE was approved by the Hong Kong Examinations Authority and the examination syllabus was implemented in September.

       The section continued to administer the annual Summer Youth Programme for Schools. With funds totalling $3 million, including a donation of $1,416,800 from the Royal Hong Kong Jockey Club, the Summer Youth Programme attracted 320 000 students and teachers in 3 000 events.

      During the year the government announced that a statutory body, the Hong Kong Sports Development Board, would be established on April 1, 1990. Its role would be, inter alia, to strengthen the development of sports in education.

Music Education

Efforts during the year to promote Chinese Music resulted in greater interest amongst students in learning to play Chinese instruments. Contemporary Music was featured in the in-service training courses/seminars organised for music teachers in primary and secondary schools.

Five sets of music textbooks in Chinese were published for junior secondary classes. Curriculum projects on 'Adaptation of the Kodaly Choral Method' in primary and secondary schools were successfully carried out through the School-based Curriculum Project Scheme. Supplements to the English-Chinese Glossary of Terms Commonly Used in the Teaching of Music in Secondary Schools and A List of Reference and Resource Materials for Music in Secondary Schools were published.

      The Education Department continued to provide students with opportunities for the further study of music through its Centralised Scheme of Music Training, which offered courses leading to the HKCEE and HKALE in Music.

Teaching and Resource Centres

The Advisory Inspectorate operates seven teaching centres concerned with the teaching of Chinese, English, Mathematics, Science, Social Subjects, Cultural Crafts and Technical Subjects; and six resource centres covering Civic Education, Religious/Ethical/Moral Education, Sex Education, Health Education, Activity Approach and Kindergarten. A Field Studies Centre is open to Secondary 6 and 7 students and teachers.

       The Visual Education Section's Audio Visual Resources Library provides a wide range of audio-visual aids on free loan to schools. Its Media Production Services Unit is open to help teachers produce their own teaching aids.

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The Hong Kong Teachers' Centre

The Hong Kong Teachers' Centre was officially opened in June. The aim of this multi- purpose centre is to promote continuous professional development and a greater sense of unity and professionalism among teachers. An Advisory Management Committee was formed with wide representation from teacher organisations and individual teachers in schools. The committee, together with its standing committee, working groups and sub- committees, successfully organised the first series of professional development activities for teachers.

School Library Services

School library services expanded with the employment of more school librarians in secondary schools. In the school year 1988-9, 345 schools were provided with either one full-time or one half-time school librarian. Library grants were increased. A large-scale curriculum project, the 1989 Reading Award Scheme for Secondary 1 to 3, attracted 26 000 students from 190 schools. In primary schools, the class library scheme continued to operate smoothly and a Reading Award Scheme for Primary 5 and 6 was planned. A number of training courses were organised for school librarians, including a computer-

awareness course.

Community Youth Club

The Community Youth Club (CYC) was first established in 1977, as part of the Education Department's effort to build a strong community spirit among schoolchildren through organised activities. These activities aim to inform members about the community and to help them develop into concerned and caring individuals.

The CYC has been very successful in helping to promote moral and civic education in schools and has contributed substantially to community service campaigns in Hong Kong. Its aims are summed up in its motto: 'Learn, be concerned and serve'. 270 000 students from 1000 primary and secondary schools took part in its activities. Nineteen district committees co-ordinate activities at the local level.

Thousands of members have gained awards under the CYC Merit Award Scheme, which requires them to set examples of good citizenship by offering services to the community. Overseas educational visits for outstanding members are the highlight of the scheme. This year, a team of 37 members visited Malaysia and Singapore during the summer.

Educational Television

Educational television (ETV) programmes, produced jointly by the department's Educa- tional Television Section and Radio Television Hong Kong, provide a useful audio-visual supplement to classroom teaching. Viewing of ETV programmes has become a normal part of school life in Hong Kong. In the 1988-9 academic year, 350 000 primary and 260 000 secondary school students watched ETV programmes.

Programmes are transmitted to schools through the two local commercial television stations. Programme contents are drawn from the syllabuses used in primary and secondary schools. Programmes for secondary schools cover Chinese Language, English Language, Mathematics, Social Studies and Science at the Secondary 1 to 3 level, while those for primary schools cover the same five subjects and Health Education at Primary 3 to 6 levels. As support materials to these programmes, teachers are provided with suggestions for preparation and follow-up activities, while students are provided with exercise and activity sheets.

EDUCATION

      Apart from syllabus-based programmes, special programmes on curriculum-related topics are produced from time to time for broadcasting to schools. In 1988-9, special programmes on Anti-shoptheft, Safety Precautions in Physical Education, Viral Hepatitis, and a special series of three programmes on Computer Literacy were produced.

      Television equipment, including colour television receivers and video-cassette recorders, is provided in all government and aided schools and private secondary schools with bought places. In the financial year ending March 1989, $1.8 million was spent on this equipment.

Hong Kong Examinations Authority

The Hong Kong Examinations Authority, an independent statutory body, has admin- istered the HKCEE since 1978, the HKHLE since 1979, and the HKALE since 1980. In 1989, a total of 139 978 candidates entered for the HKCEE, 5425 for the HKHLE, and 19 502 for the HKALE. Near the end of the year, it started work on translating HKALE syllabuses into Chinese, in preparation for Chinese-medium examinations in 1992. It also began work on developing syllabuses for new Advanced Supplementary examinations.

      The authority conducts a large number of overseas examinations on behalf of various examining bodies in the United Kingdom and elsewhere. These examinations include the GCE, the Test of English as a Foreign Language (TOEFL), the London Chamber of Commerce and Industry examinations, and many others which enable students to acquire academic and professional qualifications.

Hong Kong Students in Britain

The Students Division of the Hong Kong Government Office in London is responsible for the welfare of Hong Kong students and nurses in training in the United Kingdom. The division liaises with the Education Department concerning the admission of students from Hong Kong to institutions in the United Kingdom. It also works closely with the Student Finance Section of the Education and Manpower Branch, Government Secretariat, in administering the United Kingdom-Hong Kong Joint Funding Scheme and the new United Kingdom-Hong Kong Scholarships.

       The division monitored developments in education in the United Kingdom and, in order to promote the interests of Hong Kong students, established and maintained close relations with universities, polytechnics and colleges, British government departments, local edu- cation authorities, the British Council, welfare organisations and, in the case of trainee nurses, with medical authorities. It gave advice to on-course students who sought assistance regarding academic and personal welfare problems, and maintained close contact with the Hong Kong student community through college-based student societies.

Hong Kong Students Overseas

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

Altogether 4 539 students went to Britain during the calendar year 1989, 5096 to Canada, 4 855 to the United States and 4 678 to Australia.

British Council

The aims of the British Council in Hong Kong are to promote an enduring understanding of Britain, its language, its education and its culture and to encourage the interchange of persons between Hong Kong and United Kingdom.

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   English-language teaching is the major programme of the council in Hong Kong and over 28 000 Hong Kong residents attended courses at the English Language Centre in 1988-90. In addition, a summer school for 5 800 secondary school students was held. Language improvement courses were provided for 225 primary English teachers.

Specially-tailored English courses were run at a number of Hong Kong's major business organisations, and, in conjunction with RTHK, the council provided radio courses for schools and for business-letter writing. Teacher training courses were run during the year, including one Royal Society of Arts diploma and two Royal Society of Arts certificate courses for teaching English as a foreign language.

   The council also works with the Hong Kong University and the Chinese University in the promotion and teaching of English. It sponsors conferences, workshops and seminars in the teaching of English and also jointly sponsors scholarships for top students, business executives and journalists.

   Visits to Hong Kong were arranged for specialists in such diverse areas as education, textiles, law, medicine and computer architecture. The council sent representatives of various professions to Britain for courses and familiarisation visits and eight Fellowships were awarded, three to prominent young theatre professionals in subjects such as choreography and directing. Three awards were made to handicapped students who will be studying computer networking and special education.

   Through its arts programme, the council seeks to further the understanding and appreciation of British arts in Hong Kong and to develop closer links with local arts organisations. It organised, sponsored and co-sponsored many arts events, especially in the areas of visual and performing arts. Notable events were a British Film Week, the Charlie Chaplin Centenary touring exhibition, a retrospective of Chaplin films, and Hitchcock: the British Profile.

   The council's library represents all aspects of British life and culture, although the emphasis is on English-language teaching and teacher training. There is also a film and video library covering a wide range of topics. During the year, the library has been re-organised and major work undertaken to complete a retrospective reclassification of stock, giving members the benefit of a comprehensive new microfilm catalogue with subject listings. Library membership is open to all Hong Kong residents.

The promotion of British education is undertaken by the Education Counselling and Promotion Service of the British Council. The service gave advice and assistance to 10 300 students seeking admission to British institutions of higher and further education in 1988-9. Three missions from British universities, polytechnics and colleges involving some 85 institutions visited Hong Kong during the year and individual visits were made by 99 institutions.

The council organised the British Education Exhibition in November and more than 130 universities, polytechnics, colleges, examination bodies and other educational organisations participated.

11

HEALTH

ON April 1, 1989, the Medical and Health Department was re-organised into the Depart- ment of Health and the Hospital Services Department. The two departments work together to provide a balanced programme of preventive, promotive, curative and rehabilitative services.

       The Department of Health provides a wide range of services to promote health and prevent diseases. These include personal health services like out-patient clinics, family health and family planning, health education and community health, non-regionalised health services like chest health and tuberculosis, social hygiene, child assessment, dental health, occupational health, disease surveillance, public health and special health services like preventive programmes on AIDS and hepatitis, environmental health, port health, radiation health, drug addiction treatment, as well as various paramedical services. Through collaboration with the private sector and teaching institutions, the department strives to provide a comprehensive range of primary health care services to the local community.

       The Hospital Services Department is responsible for carrying out government policies on hospital services and advising the government, through the Health and Welfare Branch, on the operational implications of these policies. The department operates a range of regional, district and convalescent hospitals, supporting specialist clinics and other facilities, including community nursing, day centres and rehabilitation services. A multi-disciplinary approach in medical rehabilitation is undertaken which includes the provision of occupa- tional therapy, physiotherapy, prosthetic service, psychological services, speech therapy and community care in medical rehabilitation centres, day hospitals, out-patient clinics and polyclinics.

      In 1987, the government decided to establish a statutory Hospital Authority to oversee the delivery of public hospital services in Hong Kong. A Provisional Hospital Authority was set up in October 1988 under the chairmanship of Sir S. Y. Chung to make preparations for the formation of the Hospital Authority, which is expected to be established in 1990.

The two departments are embarking on an extensive development programme which includes the construction of at least three additional major acute public hospitals in Chai Wan, East Kowloon and North District and 16 additional clinics and polyclinics. Development of rehabilitation services is also an integral part of the overall planning of the development programme.

       For the 1989-90 financial year, the allocation of funds to the government medical and health services amounts to $3,939 million. In addition, subventions totalling $1,629

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  million were provided for non-government medical institutions or organisations. Capital expenditure on new hospitals and other buildings, including equipment and furniture, was about $984 million, including $402 million for the subvented sector.

Health of the Community

The general level of health of the population remains good, largely due to anti-epidemic and disease-surveillance measures, developments in preventive, promotive and personal health services, and a comparatively high standard of living. This is reflected in the highly satisfactory health indices. Infant mortality has stayed below 10 per 1 000 live births and the average life expectancy is 80 for females and 74 for males.

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

The incidence of AIDS (Acquired Immune Deficiency Syndrome) has increased. During 1989, 16 cases were reported, bringing the total number on record to 32, of which 17 have died.

   In the absence of effective vaccines or cure, health education and publicity remain the only effective tools for the prevention and control of AIDS. The Committee on Education and Publicity on AIDS has the task of co-ordinating education and publicity to ensure that the AIDS prevention messages get across in an effective manner. Activities are directed towards three main target groups - the general public, the high-risk groups and the health- care professionals. Different channels are employed, including the mass media, health talks and special programmes for specific groups.

The AIDS Counselling and Health Education Service continues to provide counselling and medical consultation for persons who are at risk of contracting AIDS. Health talks are also arranged for various groups like students, prison inmates and intravenous drug abusers. Members of the public may use a special telephone hotline to obtain advice in confidence. Blood tests may be arranged under conditions of complete anonymity.

The Surveillance Programme, which was started in 1985, is maintained to provide baseline information on the prevalence of infection by AIDS virus among the various groups of individuals at risk, like sexually promiscuous people, multi-transfused patients and intravenous drug abusers.

   Mass screening of all donated blood for antibodies to AIDS virus has been carried out by the Hong Kong Red Cross Blood Transfusion Service since 1985. This ensures the safety of blood used in transfusion and prevents the possible transmission of AIDS through blood transfusion.

   Among the general population three local isolated cholera cases were reported in 1989. Epidemiological investigations did not reveal any further spread of the disease. Close surveillance and intensified health education and environmental measures were conducted. There was, however, an outbreak of cholera in August 1989 among the Vietnamese boat people detained on Tai A Chau, when 21 cases were reported. The outbreak was contained and there was no spread of the disease to the general population.

During the year, 745 malaria cases were reported. The great majority of them were imported cases coming from Vietnam and China. In order to detect cases early and to prevent their spread to the local community, effective surveillance systems, meticulous vector control measures and intensified health educational activities were effected. The

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co-ordination of various departments in the prevention and control programmes was achieved by the Inter-departmental Co-ordinating Committee on Malaria Control.

       Tuberculosis remains a disease of public health importance in Hong Kong. In spite of continued diligence and a dynamic programme in the fight against the disease, there were 6 704 notifications during the year, representing a notification rate of 116 per 100 000. The local BCG immunisation scheme effectively covers some 99 per cent of the newborn. Booster doses are given to primary school children and to new immigrant children after an initial Mantoux test. 403 deaths resulting from tuberculosis were recorded in 1989, representing a death rate of 6.99 per 100 000. Corresponding figures recorded in 1988 were 388 and 6.83 respectively.

       Immunisation programmes against common childhood infections are carried out in schools as well as at Maternal and Child Health Centres. Primary 1 and 6 schoolchildren receive booster vaccination against diphtheria, tetanus and poliomyelitis. In addition, girls in Primary 6 are given rubella vaccination. The coverage is consistently over 98 per cent.

      To increase the protection of the at-risk group, namely women of child-bearing age, rubella vaccination is made available to nurses, teachers and social workers and other female staff in the government service. The vaccination is also provided to women attending Maternal and Child Health Centres.

       In order to combat the hepatitis B infection, which is one of the major public health problems in Hong Kong, the Department of Health has formulated and implemented cost-effective preventive and control measures. The Hepatitis B Vaccination Programme was first introduced in 1984 for health-care workers and babies born to carrier mothers. It was extended in November 1988 to cover all newborn babies. The programme is well accepted by the community and the coverage rate is over 98 per cent for the first dose. Health education and screening of donated blood are also important preventive measures.

       All babies born in Hong Kong are being covered in the Combined Neonatal Screen- ing Programme for congenital hypothyroidism and glucose-6-phosphate-dehydrogenase deficiency. The programme was first introduced in 1983. It facilitates early diagnosis and treatment of these conditions which may lead to disability. Parents of children identified through the screening programme are advised on the treatment and management needs of their children.

Rabies Control

      Rabies control is carried out by the Agriculture and Fisheries Department. Hong Kong regained its rabies-free status in July 1989 following a period of two years in which no case of indigenously acquired rabies in man or animal had occurred. Notwithstanding the situation, strict control measures remained in force throughout the year, and these included import control and quarantine of imported animals, compulsory licensing and inoculation of dogs against the disease, intensive apprehension and elimination of stray dogs, thorough observation of biter animals for rabies infection and close surveillance of the closed areas at the border.

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Hospitals and Development Programmes There are three types of hospitals in Hong Kong - government, government-assisted and private - with a total of 25 059 beds, representing 4.3 beds per thousand population. Provision of hospital services at nominal cost is made universally accessible to the people of Hong Kong. In 1989, more than 653 000 patients were treated at 14 government and 20 government-assisted hospitals.

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    Cases of acute illness and accident casualties are taken to the accident and emergency departments, which are usually attached to major hospitals. Such emergency treatment is provided free of charge. In 1989, there were 1 165 000 attendances in the public sector, averaging 3 193 attendances per day.

During the year, the demand for hospital services remained high, as reflected by the consistently large number of attendances at out-patient and specialist clinics, accident and emergency departments, and the number of hospital admissions.

Work on the Hospital Services Department's development programme has been progressing satisfactorily. Construction work on a major government acute hospital, the 1 600-bed Tuen Mun Hospital, was completed in 1989. The hospital will be opened in five phases and is expected to be fully operational in 1992, providing a comprehensive range of medical services for the west New Territories region. On Hong Kong Island, construction work is continuing on the 1600-bed Pamela Youde Hospital in Chai Wan, which is scheduled to be completed in 1992.

The development programme includes plans for the construction of a 1 000-bed hospital in East Kowloon and a 1 300-bed hospital in North District. There is also a preliminary plan to provide a 600-bed acute hospital in Junk Bay New Town (Tseung Kwan O).

Work on Stage II of the extension to Queen Mary Hospital was completed in 1989. There will be a total net addition of 513 beds, with new psychiatric and paediatric facilities, upon completion of the whole extension project by 1994.

Extensive redevelopment of the Ruttonjee Sanatorium in Wan Chai from an institution for chest and tuberculosis patients into a general acute hospital with 614 beds is expected to be completed in early 1990.

Other important projects which are well underway include the construction of the Sha Tin Infirmary and the Sha Tin Cheshire Home, the expansion of the Queen Elizabeth Hospital in Yau Ma Tei, the Yan Chai Hospital in Tsuen Wan and the Tung Wah Eastern Hospital in Causeway Bay.

Projects in the pipeline include further extensions to the United Christian Hospital and Pok Oi Hospital, and the reprovisioning of the Haven of Hope Hospital. The Alice Ho Miu Ling Nethersole Hospital will be expanded and reprovisioned in Tai Po.

There is an increasing emphasis on the provision of infirmary beds. An additional 2 845 beds are to be provided in projects such as the Sha Tin Infirmary, Tsuen Wan and Tai Po Convalescent and Infirmary Hospitals and the Wong Chuk Hang Complex for the Elderly.

Clinics

General out-patient services form a vital part of the health care system. The government now operates 54 public general out-patient clinics. Evening, Sunday and public holiday sessions continue at clinics in the more densely-populated areas as part of the overall measures to meet the demand for out-patient services. The total attendance figure at government out-patient clinics was 15 million, four per cent less than in the previous year. The medical development programme includes 16 additional clinic and polyclinic projects throughout the territory.

   Mobile dispensaries and floating clinics provide the necessary 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 Auxiliary Air Force.

   At the end of the year, 93 clinics operated by charity organisations were registered under the Medical Clinics Ordinance. At the same time, 182 were registered as exempted

HEALTH

clinics. Registered medical practitioners in the Estate Doctors' Association set up clinics in housing estates to provide a low-cost service for local residents. Private medical practi- tioners continued to see the majority of out-patients.

Family Health

The Family Health Services of the Department of Health operate 45 maternal and child health centres, providing a comprehensive health programme for women of child-bearing age and children aged up to five years. Ante-natal and post-natal medical consultation as well as family planning service are offered to women. Immunisation programmes are carried out against tuberculosis, diphtheria, whooping cough, tetanus, poliomyelitis, measles and viral hepatitis B. During the year, over 90 per cent of newborn babies attended the maternal and child health centres.

Under the Comprehensive Observation Scheme, children are assessed at different ages for detection of early developmental abnormalities. If necessary, they are referred for specialist clinics or to child assessment centres for further examination.

At present, there are three child assessment centres. The multi-disciplinary approach adopted there ensures early rehabilitation for the child. Five more centres have been included in the Department of Health's development programme.

Health education is an essential component of the Family Health Services. In addition to health talks and counselling on child care offered at centres, health education for ex- pectant mothers is also extended to government hospitals, with particular emphasis 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 35 birth control clinics, providing such services as pre-marital counselling, contraception, sterilisa- tion, vasectomy and advice on sub-fertility. There is also emphasis on health education and publicity on family planning and sex education.

School Health

      The School Medical Service Scheme is operated by an independent School Medical Serv- ice Board. Participation is voluntary and all children from Primary 1 to Form 3 of the participating schools can join the scheme by paying a token fee of $10 a year. The general response to the scheme is good and as at November 1, 1989, more than 360 000 children from 1 090 schools have taken part - representing about 46 per cent of the eligible school population - and about 520 general medical practitioners have enlisted. Starting from November 1, 1989, each child has to pay $10 for each consultation made at the chosen medical practitioner's office. The government contributes $120 a year for each pupil enrolled and also bears the administrative cost.

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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 regular inspections of schools to advise on matters concerning the health of children and organise health education activities and immunisation campaigns.

Port Health

The Port Health Service is the control authority to prevent the introduction of quaran- tinable diseases into Hong Kong via air, land, rail or sea, and to enforce the measures

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stipulated under the Quarantine and Prevention of Disease Ordinance and the Inter- national Health Regulations.

   A 24-hour health clearance service is provided for all incoming vessels, including those ferrying refugees, and radio pratiques are granted to ships. The service provides vaccination facilities and issues international vaccination certificates. It also inspects and supervises the eradication of rats from ships on international voyages, and ensures adequate standards of hygiene and sanitation on board vessels or aircraft. It provides medical assistance to ships and planes within the territory, and transmits medical advice to vessels at sea.

The food catering service for international airlines is kept under close surveillance by the health staff to ensure that the food and water supplied to flight kitchens is clean and safe.

   The service regularly exchanges epidemiological information with the World Health Organisation in Geneva and its Western Pacific Regional Office in Manila, as well as with neighbouring countries.

Review of Primary Health Care

In August 1989 the government set up a working party to conduct a comprehensive review of Hong Kong's primary health care services. The working party will review the provision of the general out-patient service, maternal and child health care including family plan- ning, the school medical service, health education and immunisation and other forms of prevention against disease. It will examine the respective roles of the government and the private sector in the provision of primary health care to the community and will suggest arrangements to strengthen the co-ordination between the out-patient clinics and the hospitals. The recommendations of the working party are expected to be available by the end of 1990.

Dental Services

The School Dental Care Service aims at promoting dental health among schoolchildren. Services provided include regular dental examination, treatment and oral health education. Since 1987, the programme has been extended to all primary school children. In 1989, 390 752 took part in the service, representing 73 per cent of the primary school population.

An Oral Health Education Unit has been established by the Department of Health to organise oral health education activities for the community.

   The Government Dental Service provides dental care for all monthly-paid government servants, pensioners 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.

Services for the Mentally Ill and Mentally Handicapped

Medical services for the mentally ill include treatment in hospitals, out-patient clinics and day hospitals. The Mental Health Service of the Hospital Services Department, in conjunc- tion with other local academic and voluntary bodies, provides a comprehensive psychiatric service for the territory as a whole.

   Currently 3 527 beds are provided in psychiatric hospitals, and 608 beds in psychiatric units of general hospitals. In line with the universal trend for the latter type of provision, 2 115 additional beds are being planned for the mentally ill in various hospitals.

   Psychiatric patients are treated, as far as possible, in the community. In 1988, domiciliary occupational therapy became an integral part of the mental health services.

HEALTH

Apart from attending out-patient clinics or day hospitals, patients may be visited at home by specially-trained community psychiatric nurses. The Community Psychiatric Nursing Service aims to provide continuity in after-care treatment programmes for discharged mental patients, to assist them in social readjustment and to educate the patients and their families in mental health. There are now seven centres accepting referrals from hospitals and psychiatric out-patient clinics, and four more centres have been planned. Other complementary rehabilitative services include day centres, half-way houses, long-stay care homes, vocational training, selective placement and social clubs offered by various government departments and voluntary agencies.

      Severely mentally-handicapped persons requiring intensive nursing and medical treatment are cared for at the 200-bed Siu Lam Hospital and at the 300-bed unit in the Caritas Medical Centre. A further 704 beds in this category have been included in the Medical Development Programme to meet the continuing need.

Special Services

The Pathology Service provides both clinical and public health laboratory services for government hospitals and clinics, and a consultant service for the subvented sector. It also administers hospital mortuaries and blood banks.

The Forensic Pathology Service with its fully-established forensic laboratory works closely with the Royal Hong Kong Police Force on the medical aspects of criminology and other medico-legal work. It also performs investigations in all homicides and coroner's cases. The public mortuaries are under the administration of the service.

The Virus Unit is the central laboratory for the diagnosis and surveillance of viral infections including AIDS. It provides laboratory support for the screening, assessment and guidance of vaccination programmes against viral diseases. Moreover, its Institute of Immunology undertakes the monitoring and quality control of biological products, including vaccines for use in the local health services.

A Central Neonatal Screening Laboratory was established in 1984. Its main function is to co-ordinate the laboratory activities of the territory-wide neonatal screening programme on congenital hypothyroidism and glucose-6-phosphate-dehydrogenase deficiency.

The Institute of Radiology and Oncology comprises two major divisions, the Diagnos- tic Radiology Division and the Radiotherapy and Oncology Division. The Diagnostic Radiology Division provides a diagnostic organ-imaging service. The Radiotherapy and Oncology Division provides comprehensive radiotherapy programmes and a chemotherapy service for cancer patients. The division also operates a cancer registry covering the whole territory.

During 1989, regular visits were made by the staff of the Radiation Health Unit to medical, commercial and industrial premises to inspect the working conditions of radiation workers. The unit also issues radiation licences to the proprietors in accordance with the Radiation Ordinance and Regulations. It assisted in the Background Radiation Moni- toring Programme organised by the Royal Observatory to establish an accurate baseline of the background radiation levels in Hong Kong.

The Pharmaceutical Service of the Department of Health is made up of two divisions, with a total establishment of 250, including 27 pharmacists. The first division provides pharmaceutical service to all government clinics. The second division deals with the inspection and licensing of pharmaceutical manufacturers and dealers and the registration and import-export control of pharmaceutical products and medicines. Action is taken against the illegal sale and distribution of pharmaceutical products and medicines, and

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in 1989, there were 37 prosecutions. In the Hospital Services Department, there are 56 pharmacists to look after the pharmaceutical needs of government hospitals.

Community Nursing Service

The Community Nursing Service provides domiciliary and rehabilitation nursing care and treatment for the sick, the elderly infirm and the disabled, in their own homes.

   Jointly operated by eight agencies, including the Hospital Services Department, the service functions from a network of 48 hospital stations and satellite centres. During the year, 11 600 patients were served and more than 226 300 home visits were made.

Health Education

The Central Health Education Unit of the Department of Health is responsible for organising, co-ordinating and promoting health education activities. In 1989, the unit was actively involved in a number of campaigns, including those on AIDS education and publicity, notably the second World AIDS Day, home safety, organ donation, anti- malaria, immunisation and eye care.

The theme of the major health education campaign for 1989 was 'Let's Talk Health'. An exhibition was organised in November in City Hall and attracted a large audience.

   The 10th Young Health Leaders' Training Course was organised during June 1989. It consisted of lectures, games and slide-shows on health-related subjects, to help the students learn health and leadership skills. Two hundred and fifty health leaders from 45 secondary schools graduated from this course, to promote health education at home, in school and among friends.

Other activities for youths included anti-smoking, adolescent health and sex educa- tion workshops at the audio-visual centres. Voluntary agencies and schools may also borrow film, videos and slides from the unit free of charge for their own health education activities.

   The increased community concern for health is reflected by the popularity of the various health education programmes offered, such as the 24-hour telephone information service and the slide and video shows at out-patient clinics. An increasing number of people visited the various centres of the unit to obtain health information on various health topics.

Close liaison is maintained with the media, medical professionals, and other govern- ment departments and non-governmental organisations for the smooth implementation of various campaigns and activities. The unit participates in many television and radio programmes and press interviews. It provides advice and counselling to voluntary agencies and bodies concerning their health education activities.

Collaboration with medical bodies and various units in the department has resulted in the increased production of useful health education materials for the public.

Council on Smoking and Health

The Council on Smoking and Health is a statutory body established in 1987 to acquire and disseminate information on the health hazards of using tobacco products and to advise government on matters related to tobacco and health. During the year, the council carried out publicity and community events to discourage smoking, especially among the young population. Between April and June 1989 the government sought the opinion of the public on a package of measures recommended by the council to further restrict the use, sale and advertising of tobacco products. The results of the public consultation exercise are used in the formulation of future government policy on smoking and health.

HEALTH

Medical Charges

      Medical charges remained low, reflecting a substantial subsidy from public funds despite the adjustment in August 1989 to take account of increases in costs. Patients in the general wards of government hospitals are charged $29 a day and the fee covers everything from meals, medicine and laboratóry tests, to surgery or any other treatment required. The charge may also be reduced or waived in cases of hardship as certified by a medical social worker. A limited number of private beds are provided at major government hospitals with higher maintenance and treatment charges.

       The charge for consultation at general out-patient clinics is $15, while that for specialist clinics is $22. Charges for physiotherapy, occupational therapy and child assessment are $22. Attendance at geriatric or psychiatric day centres and home visits by community nurses cost $24. These fees may also be waived if warranted.

       The charge for injections and dressings in general out-patient clinics is $6, while charges for visits to family planning clinics and methadone clinics remain at $1.

        Free medical services continue to be offered at maternal and child health centres, tuber- culosis and chest clinics, social hygiene clinics and accident and emergency departments.

Training of Medical and Health Personnel

The basic training of doctors is provided by the University of Hong Kong and the Chinese University of Hong Kong. Graduates of the two medical schools are awarded degrees recognised by the General Medical Council of Great Britain. The medical student intake at the University of Hong Kong remained at 150 in 1989. During the same year, the Chinese University of Hong Kong took in its ninth group of 131 students.

       Under the licentiate scheme of the Hong Kong Medical Council, 31 externally-trained doctors passed the local licentiate examination in 1989. After satisfactory completion of an externship programme in public hospitals, they will become registered medical practitioners.

In 1989, the government decided to establish a statutory Hong Kong Academy of Medicine, which would be responsible for organising and supervising post-graduate and continuing medical education in Hong Kong. The purpose of the academy is to enhance clinical competence and thereby improve medical services. The academy will set standards, define the content and duration of training courses and accredit specialist qualifications. It would have as its main objective the advancement and promotion of the science and practice of medicine. A preparatory committee was set up at the end of 1989 to make preparations for the formation of the academy.

The Prince Philip Dental Hospital produced 54 dentists in 1989. The training of dental therapists is provided at the Tang Shiu Kin Dental Therapists Training School.

The basic training for general nurses is conducted at government, government-assisted and private hospitals. There are now nine training schools for student nurses and 11 for pupil nurses with an average annual intake capacity of about 1 170 and 540 respectively. An additional student nurse training school and one more pupil nurse training school are planned over the next decade. The annual intake capacity is to be increased from 1 170 to 1 420 for general student nurses and from 540 to 670 for general pupil nurses.

The training of psychiatric student nurses is conducted at Kwai Chung Hospital and Castle Peak Hospital, and training of psychiatric pupil nurses at Castle Peak Hospital. The average intake capacity for psychiatric student nurses is 170 and for pupil nurses 80. Three more training schools for psychiatric nurses have been planned for the next decade to meet the rising demand for nursing care in the Mental Health Service.

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   The need for continuing training and education for nurses is recognised. The post-basic school of the Nursing Training Unit provides post-registration courses in midwifery, health nursing and community nursing on a regular basis.

The departments of Diagnostic Sciences, Rehabilitation Sciences and Health Sciences of the Hong Kong Polytechnic provide training for para-medical and para-dental staff, including radiographers, optometrists, physiotherapists, occupational therapists, medical laboratory technicians and dental technicians. There are opportunities for overseas training in specialised areas for medical, nursing, para-medical and para-dental staff. The Chai Wan Technical Institute of the Technical Education and Industrial Training Department pro- vides training for dispensers which is complemented by in-service departmental training. There is also in-service training for prosthetists, mould laboratory technicians and thera- peutic radiographers in the respective units of the government institutions.

Government Laboratory

The Government Laboratory offers comprehensive and impartial scientific advice and analytical services to government departments and public institutions. It undertakes analytical, advisory, and investigative work in chemistry and related sciences.

   One of the functions of the laboratory is to examine food samples for the presence of residues of pesticides, hormones, animal drugs, and other potentially-hazardous chemicals. The monitoring of nitrosamines and radioactive contaminants in food commenced in 1989. These services are carried out under the Public Health and Municipal Services Ordinance.

Close surveillance of pharmaceutical products for use in government hospitals and clinics is maintained to ensure that only medicines of acceptable quality are supplied to the public. Chemical tests for conformity to specified standards are also conducted on medicines intended for sale over-the-counter. Preparations of Chinese herbal medicines are analysed to detect possible adulteration with Western synthetic drugs and heavy metals.

   During the year, chemical analysis of air, water and waste samples continued to be one of the main activities of the laboratory. The demand for asbestos identification, and for asbestos fibre counting in final air tests at the completion of asbestos-stripping operations, increased substantially last year and continues to increase.

   The laboratory carries out tests on the identification and classification of dangerous goods. A 24-hour emergency service is also provided to cater for incidents involving chemical spills and chemical hazards.

   Wines and spirits are routinely monitored for the presence of methyl alcohol and other contaminants in addition to determining their alcohol contents for duty assessment purposes. Other dutiable commodities, including tobacco, non-alcoholic beverages, beer, and cosmetic products, are examined for the assessment of duties while cigarettes continue to be analysed for their tar and nicotine contents.

Narcotics

  Drug abuse is a multi-faceted problem with serious social, economic, legal, medical and psychological implications. The government's policy is to stop the illicit trafficking of narcotic drugs into and through Hong Kong, to develop a comprehensive treatment and rehabilitation programme for drug addicts and to dissuade people, particularly young people, from experimenting with drugs so as to eradicate drug abuse in the community.

   The exact number of addicts is not known. However, the government's computerised Central Registry of Drug Abuse and other linked indicators show that at the end of 1989

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the size of the known and active addict population was about 42 000, which was 0.9 per cent of the population aged 11 and above.

       Data collected by the registry, based on 413 000 reports on 62 000 persons, indicate that 90 per cent are male and 10 per cent female. As for age distribution, 70 per cent were over 30 as at the end of 1989, 25 per cent were in the 21 to 30 bracket and five per cent were under 21. The principal drug of abuse is heroin, which was used by 91 per cent of the persons reported to the registry in 1989. However, there are indications that more young people have been abusing psychotropic substances in the last few years, although the abuse of these drugs is not as serious a social problem as heroin addiction.

Overall Strategy and Co-ordination

The government's overall strategy consists of four main elements: law enforcement, treat- ment and rehabilitation, preventive education and publicity, and international co-opera- tion. Law enforcement is the responsibility of the Narcotics Bureau and individual district formations of the Police Force, and the Customs and Excise Department. Treatment and rehabilitation are undertaken by the Department of Health, the Correctional Services Department and a number of voluntary agencies, the largest being the Society for the Aid and Rehabilitation of Drug Abusers (SARDA) which is subvented by the government. Preventive education and publicity rests mainly with the Narcotics Division of the Government Secretariat, working closely with the Information Services Department, Radio Television Hong Kong and government district offices. International co-operation is the responsibility of all.

The work undertaken in each of these four areas is inter-related. Effective law enforcement curtails the supply of illicit drugs and pushes up their prices, thus inducing addicts to seek ways of ridding themselves of their drug habit through treatment. These addicts 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. Co- operation at the international level, through the exchange of information and experience, enhances the effectiveness of efforts in these three areas.

All these efforts are co-ordinated by the Action Committee Against Narcotics (ACAN), a non-statutory body comprising a chairman, 10 government officials and 12 members from the community. 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.

Legislation and Law Enforcement

      The government's determination to eradicate drug trafficking is evident in its decision to adopt measures to attack traffickers' assets. After months of preparation, law drafting and consultation with government departments and professional bodies, the Drug Trafficking (Recovery of Proceeds) Bill passed into law in July 1989 and came into effect on September 1, 1989. The ordinance empowers the courts to confiscate drug traffickers' assets and counters the laundering of drug money. A person who helps drug traffickers retain or otherwise benefit from their proceeds may be prosecuted. The legislation shows the government's readiness to respond positively to the international call for legislative measures to confiscate the proceeds of drug traffickers and to counter money laundering, as embodied in the 1988 UN Convention Against the Illicit Traffic in Narcotic Drugs and Psychotropic Substances.

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   The Police Force and the Customs and Excise Department seized some 400 kilograms of No. 3 heroin and 600 kilograms of No. 4 heroin during the year. This included a single seizure of 420 kilograms of No. 4 heroin in Sai Kung in September 1989, the largest haul in Hong Kong, and the second largest in the world. The seizure of 450 kilograms of cannabis during the year was the highest since 1971. As a result of joint operations with overseas law enforcement agencies, a number of international drug trafficking syndicates were neutralised with substantial quantities of dangerous drugs seized and a number of ring- leaders arrested locally and abroad. During the year, police and customs action resulted in over 10 000 prosecutions for drug offences.

Treatment and Rehabilitation

The voluntary methadone treatment programme operated by the Department of Health provides both maintenance and detoxification for out-patients. Methadone maintenance is designed to prevent an addict's return to heroin or other illicit drugs, while the detoxification programme aims to eliminate dependence on any drug. The programme has proved to be very effective in serving both the addicts and the community. There are 25 methadone clinics.

   The largest voluntary in-patient treatment programme is run by SARDA. The society operates three in-patient treatment centres, one for men on the island of Shek Kwu Chau with a capacity for 500 patients, and the others for women at Sha Tin. Linked to these centres are three intake units, five regional social service centres, six halfway houses, an employment placement office and a clinic which provides pre-admission medical examination and methadone treatment, urine analysis and post-discharge medical care.

A compulsory treatment programme is operated by the Correctional Services Depart- ment under the Drug Addiction Treatment Centres Ordinance. The department runs two addiction treatment centres, one for males on the island of Hei Ling Chau and the other for females in Tai Lam Chung. The former has capacity for 938 and the latter 80. These treatment programmes range from two to 12 months, the actual period being determined by the inmate's progress and the likelihood of continued abstinence from drugs following release. All persons discharged are given one year of statutory after-care.

   In 1989, the two voluntary treatment programmes and the Correctional Services Department's compulsory treatment programme admitted 12 500 addicts. On average, 13 000 addicts and ex-addicts were receiving some form of treatment, rehabilitation and after-care every day.

The pilot counselling centre, PS 33, set up in Tsim Sha Tsui in April 1988 to provide counselling and telephone advice for psychotropic substance abusers, handled 100 cases and 1 200 telephone enquiries since its inception. PS 33 is operated by the Hong Kong Christian Service with financial support from the Lotteries Fund.

Preventive Education and Publicity

The government and the community continued their efforts in anti-narcotics preventive education and publicity. The main thrust of the publicity campaign in 1989 was to warn the younger generation about the injurious effects of using psychotropic substances, particularly cannabis, and to involve parents.

Five district campaigns were held to encourage community involvement through carnivals, variety shows, camps, exhibitions, and visits to drug treatment centres. Beach pop concerts were held at Butterfly and Shek O beaches in August.

The major event of the year was the Road To A Happy Life programme held in October. This comprised a series of anti-drug events including a family camp at Lei Yue Mun Park

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Holiday Village, a training camp for youth leaders at Sai Kung Outdoor Recreation Centre, exhibitions at popular venues, a drama competition, a long-distance run and a model car race.

       The school talks team in the Narcotics Division gave a total of 140 drug education talks to 58 700 students in 100 secondary schools and technical institutes throughout the territory. The division also organised a territory-wide seminar involving schoolteachers and student counsellors in October. To enhance the school talks, a new slide show with synchronised voice-over and background music was introduced in September.

Drug education was also provided for Vietnamese refugees and boat people.

For the ninth year the Youth Against Drugs Scheme provided encouragement and financial support to young people who wished to participate directly in the planning and implementation of anti-narcotics projects. The scheme helped seven groups of these young people. The 60-member ACAN Youth Volunteer Group, established in 1981 to train and encourage young volunteers to play an active part in anti-narcotics work, took part in district campaigns and organised a number of community involvement projects.

       To keep in touch with the current trends and thinking of youngsters, the ACAN Youth Advisory Group comprising a cross-section of young people was set up in December 1988 to give advice on educational publicity materials and activities.

       The ACAN Drug Abuse Telephone Enquiry Service received 1959 enquiries, the majority seeking information on treatment facilities.

To assess the extent of public awareness of anti-drugs publicity programmes a survey covering some 2 000 households was conducted in mid-1989. The survey results are being processed and analysed.

International Action

Externally, Hong Kong continued to play an active and important part internationally by maintaining close links with the United Nations, inter-governmental agencies such as the Colombo Plan Bureau, Interpol and the Customs Co-operation Council and with governments of countries in South-east Asia, Europe and North America. Hong Kong took part in 15 regional and international meetings and seminars concerned with anti-drug policies, law enforcement, treatment and rehabilitation, and preventive education. In 1989, Hong Kong contributed $131,000 to the United Nations Fund for Drug Abuse Control in support of its world-wide anti-narcotics activities, which include opium poppy crop- substitution programmes in the 'Golden Triangle' on the borders of Burma, Laos and Thailand, the source of most of Hong Kong's opiate drugs. Drug seizures overseas were particularly high, especially in the United States and Australia, requiring extensive co- operation of Hong Kong law enforcement officers with their overseas counterparts.

The techniques and methods employed in Hong Kong have made it an important venue for training anti-narcotics personnel from overseas. During the year, 137 people from 13 countries and international bodies 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. Hong Kong Narcotics Bureau and Customs Officers travelled overseas as lecturers or consultants on training courses related to anti- narcotics work.

Environmental Hygiene

The work of the Urban Services Department and the Regional Services Department includes street cleansing, collection and removal of refuse and nightsoil, cleansing of 159

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gullies, management of public toilets and bathhouses, pest control and services for the dead.

In the urban areas, a regular workforce of about 5 022 is employed in cleansing duties. The cleansing force operates a fleet of 328 specialised vehicles which include refuse- collection vehicles, street washers, mechanical sweepers, nightsoil collectors and gully emptiers. All streets are swept at least once daily, either manually or mechanically, while busier thoroughfares are swept from four to eight times a day. Streets and lanes are also hosed down regularly. A daily refuse-collection service is provided and about 2 900 tonnes of refuse and junk are collected every day. A nightsoil collection service is also provided daily in those areas which do not have a water-borne sewage disposal system. These services are free.

   The Urban Council continued to implement its policy of contracting-out selective cleansing services to private contractors to reduce the involvement of direct departmental labour and to enhance cost-effectiveness.

   By the end of the year the Urban Services Department had contracted-out cleansing services for the Shau Kei Wan squatter area, all urban cargo working areas and almost all public toilets and bathhouses in Hong Kong and Kowloon. These contracts were supervised by departmental staff and the results have been highly satisfactory.

   Two similar cleansing contracts, undertaken on a self-help basis by local residents of Ma Hang Village at Stanley and Telegraph Bay Village in the Southern District, were working well.

   To help improve the hygiene condition of the environment, the Regional Services Department introduced rectangular-shaped plastic bins to replace traditional metal drum containers at refuse collection points in the Regional Council area. They eliminate much of the nuisance attributable to the older models and are more pleasant in appearance. Launched in September 1988, the scheme has been successfully implemented to cover private estates in the built-up areas of Tuen Mun, Yuen Long, Tsuen Wan, Kwai Tsing and parts of Sai Kung. Public housing estates in these districts, which joined the scheme in April 1989, should be completing their conversion to the new bins in 1990.

Regular cleansing duties in the council area are carried out by a work force of 3 552 and a specialised fleet of 217 vehicles. The waste-collection services collected 555 260 tonnes of refuse and junk during 1989-90, about 8.1 per cent higher than the previous year.

   The 'Keep Hong Kong Clean' campaign co-ordinated by a Joint Urban Council- Regional Council Steering Committee launched a seven-phase clean-up programme covering the environment, water, roads, schools, homes, squatter areas and villages as well as the countryside, with emphasis on community involvement, education and publicity. Enforcement of the law, however, remained the major weapon in the war against littering. During the year 28 595 people were fined $7.1 million for littering offences in the Urban Council area. In the Regional Council area, 10 332 people were fined $2.1 million.

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Controls

In maintaining and improving standards of hygiene through the enforcement of the Public Health and Municipal Services Ordinance and its subsidiary legislation, health inspectors of the Urban Services Department and the Regional Services Department regularly inspect licensed and permitted premises, common parts of residential and commercial buildings, construction and vacant sites and squatter areas throughout the territory. They also carry out inspections to deal with complaints on poor sanitation and vermin infestation and

HEALTH

      work closely with the staff of the Department of Health in the investigation and control of food-poisoning outbreaks and infectious diseases.

To facilitate more effective action against illegal food business operators, the Public Health and Municipal Services Ordinance was revised to enable the Urban Services Department to physically close down premises being operated as illegal food establish- ments. Since the coming into effect of the revised law on October 1, 1988, 485 illegal food premises had ceased operations voluntarily and another eight were closed by the depart- ment subject to Court Orders.

For the prevention of vector-borne diseases, pest control staff continued with the integrated programmes to control rodents, mosquitoes, flies and other public health pests. Measures taken included environmental improvement, health education, eradication of breeding places, use of pesticides and law enforcement. The Pest Control Advisory Section of the Municipal Services Branch provided technical support.

Environmental Health Education

The Health Education Unit of the Municipal Services Branch focused on promoting good hygienic practices and educating the public on preventive measures against environmental health problems. The highlights of a series of health education programmes in 1989 included the staging of a Building Sanitation Exhibition in the territory's two major civic centres, the Hong Kong City Hall and the Sha Tin Town Hall, during the Live Clean and Stay Healthy Campaign, and the launching of a territory-wide Keep the Toilet Clean drive. The aim of the latter campaign was to arouse public awareness on the proper use and maintenance of both public and communal toilets. The unit also organised activities for supervisory personnel of the food trade in a food hygiene campaign on the theme Better Hygiene, Safer Food and for schoolchildren in the Inter-Schools Health Education Speech and Song Contests.

Other subjects covered by major territory-wide programmes included the prevention of nuisances caused by air-conditioners and the prevention of mosquito breeding and rodent infestations. Besides conducting health talks and seminars to various sectors of the public like food handlers, building management personnel and schoolchildren, the unit also provided out-reaching broadcasting services, a health education resource centre and a telephone hotline for consultation by the public.

Food

      The health inspectorate, backed by medical consultancy, controls the food for sale, both imported and locally produced. Assisted by a scientific advisory arm and supported by laboratory resources, the inspectorate ensures that the consumer is able to buy good wholesome food, unadulterated, uncontaminated, properly labelled, and of nutritious quality.

       In March, the harvesting and sale of shellfish from certain parts of the local waters was temporarily banned in the wake of reports of contamination by 'red tide' toxins. The public was advised through the mass media not to eat shellfish until the situation cleared. In early April, the ban was lifted after successive samples of shellfish collected from the previously affected waters were given a clean bill of health by laboratory testing. The November 1988 outbreak of mass chemical food-poisoning which the health inspectorate traced to pesticide-tainted vegetables from across the border led to the introduction of a quick screening field test for pesticide residues. Complementary to regular laboratory analysis, this field test was performed on imported vegetables at their point of entry into Hong

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  Kong. Food commodities, especially those from Europe, continue to be monitored for possible radioactive contamination arising from the Chernobyl reactor accident.

   The growing number of food establishments and the quantities and varieties of food items available on the local market have increased the importance of law enforcement. Parallel to this is the increasing demand for services for health certification of foods for export and re-export to foreign countries and territories.

The review of food legislation has been an on-going exercise to keep abreast with international developments in food standards. During the year, the Imported Meat and Poultry Regulations were amended to impose control on imported game and to provide for upgraded control on imported meat and poultry, the Food Adulteration (Artificial Sweeteners) Regulations were updated to harmonise with the World Health Organisation's recommendations on the acceptance of artificial sweeteners, and the Milk (Regional Council) By-laws and Milk (Urban Council) By-laws were amended to improve control on the transportation of milk and milk beverages.

   Externally, Hong Kong maintains close ties with the Food and Agriculture Organisation of the United Nations, the World Health Organisation and other international authorita- tive bodies on food science and technology. As the bulk of the local food supply comes from the mainland, Hong Kong has been working hand in hand with the Chinese authorities towards promoting food safety.

Markets

The Urban Council operates 60 retail markets in urban areas. A total of 9 102 stalls are provided in these markets offering a choice of commodities ranging from fresh food to household items and a wide range of clothing.

   Where feasible, old and outdated markets have been replaced by multi-purpose com- plexes with new markets and cooked food centres accommodated on the lower floors. On the upper floors, these complexes provide a variety of amenities for indoor sports activities, educational, cultural and recreational pursuits. There are 13 such multi-purpose complexes in the Urban Council areas.

   New markets with cooked food centres are purpose-built, upon establishing demand and a role for them in the District Plan. They have been built to meet consumer demand in the areas in which they are situated rather than meeting hawker resiting commitments. This approach, together with other improvements in design, has been adopted in planning and building in order to provide more viable markets and a better environment for stall-holders and the buying public.

   The Regional Council is responsible for the management of public markets in its region. There are 46 public markets with a total of 4956 market stalls and 386 cooked food stalls under its management. Three new markets, located at Plover Cove Road in Tai Po, Hop Yick Road in Yuen Long and Cheung Chau Market in Cheung Chau, will be commissioned in 1990, providing an additional 978 market stalls.

Hawkers

The Urban Council is responsible for the licensing of street hawkers in the urban areas and its general duties teams enforce hawker control legislation. By end-December 1989, there were 15 201 hawker licences issued, 2 057 less than in 1988. The continued efforts of the council to move on-street hawkers into newly-completed markets was a significant factor in this reduction. In April, for example, some 600 licensed hawkers were resited and re- ordered in conjunction with the commissioning of the Fa Yuen Street Market. There has

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been a significant decline in the number of unlicensed hawkers, due mainly to intensified enforcement action by the general duties teams against illegal hawkers, together with the relatively attractive employment prospects available in the commercial and industrial sectors.

Following the recommendations of the Urban Council's Working Party on Hawker and Related Policies, efforts have been made to relax the issue of hawker licences. As a first step, the council began issuing licences in early 1988 to fixed-pitch newspaper hawkers. The issue of other classes of licences will depend largely on the availability of suitable sites identified to be viable and publicly acceptable.

Having completed the computerisation of all hawker particulars in April 1988, the council completed a further project on the computerisation of hawker conviction records in February 1989. The purpose of such records is to assist the Courts in determining appropriate levels of fines in respect of hawker offences. This system is running smoothly.

       The management and control of hawkers in the Regional Council area is the res- ponsibility of the council. In 1989, there were 2 848 licensed hawkers in the council area, a drop of 109 compared with 1988. There were an estimated 1 855 unlicensed hawkers.

Through the deployment of general duties teams, 759 men in all, the Regional Services Department maintains control over the hawker situation. Although there are illegal hawk- ing blackspots in the new towns, the problem is generally contained, and the number of licensed hawkers is gradually declining as more of them are given sites in new markets.

The council has a firm policy of not issuing any new hawker licenses, except Fixed Pitch (Newspaper) Hawker Licences.

Abattoirs

The Urban Council's two abattoirs at Kennedy Town on Hong Kong Island and at Cheung Sha Wan in Kowloon continued to supply 63 per cent of local demand for fresh meat. During the year, 2 067 000 pigs, 113 000 cattle and 12 000 goats were slaughtered in the abattoirs.

In 1987, the council decided in principle that the two abattoirs should be privatised on the condition that the council would continue to undertake a meat inspection service after privatisation. The Urban Services Department held a series of negotiations during the year with an interested company and some progress has been made. Meanwhile, a package of redundancy terms has been proposed to the affected abattoir staff for their consideration.

       Slaughtering services in the Regional Council area are provided by two licensed private slaughterhouses in Kwai Chung and Yuen Long districts. They handled a total of 1244 600 pigs, 56 000 head of cattle and 8000 goats during the year. The slaughter- house at Kwai Chung, which can slaughter up to 3 000 pigs a day, also helps to meet the demand in Kowloon. To meet long-term demand, a site at Sheung Shui has been reserved for the construction of a private slaughterhouse with a possible throughput capacity of 3 900 pigs and 240 cattle. In addition, a small slaughterhouse is being constructed for Cheung Chau.

All animals slaughtered in these abattoirs and slaughterhouses were inspected by qualified health inspectors of the Urban Services and Regional Services Departments.

Cemeteries and Crematoria

It is the government's policy to encourage cremation rather than burial for the disposal of the dead. During the year, over 66 per cent of the dead were cremated. Human remains

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buried in public cemeteries are subject to exhumation after six years. The exhumed remains are then either cremated or re-interred in an urn cemetery.

   The Urban Council operates one public funeral parlour in Kowloon which provides free funeral services for the needy. Two service halls at the Hung Hom Public Funeral Parlour are provided free of charge for public use as 'farewell pavilions'. 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.

   The Regional Council manages three public crematoria, at Kwai Chung, Fu Shan and Wo Hop Shek. The first two are used for the cremation of dead bodies and the third solely for cremation of exhumed skeletal remains. Niches are provided at the columbaria in these three areas. The council also manages six public cemeteries, including the Wo Hop Shek Cemetery, the biggest public cemetery in use in Hong Kong, and oversees nine private cemeteries in the Regional Council area. The public cemetery at Mui Wo, named Lai Chi Yuen Cemetery, was opened for public use in the last quarter of 1988.

Auxiliary Medical Services

  The role of the Auxiliary Medical Services (AMS) is to augment the services of the Department of Health, Hospital Services Department and Fire Services Department in times of natural disaster, civil disturbance, or other emergencies. In such situations, AMS resources would provide properly-trained personnel together with the necessary medical supplies and equipment for resuscitation and treatment for the injured on the spot, to convey casualties to hospitals, and to render nursing care to patients at acute and convalescent hospitals.

   AMS is a medical civil defence organisation, funded by the government since 1950. By statutory requirement, the Director of Health is the Commissioner of the Auxiliary Medical Services and is responsible to the Governor for the efficient operation of the unit. Assisting him is a number of Deputy and Assistant Commissioners appointed in a voluntary capacity.

Volunteer members of AMS come from all walks of life and include doctors, nurses and paramedical personnel, in government or in private practice. Members undergo different categories of training including first-aid, footdrill, casualty handling, nursing, life saving, manning of ambulances, practical ward training, leadership development and management courses. The current establishment is 5 835 volunteers.

   AMS also provides supplementary medical services to government agencies and departments for ambulance manning, life-guard duties, methadone centre clinical services and first-aid coverage. A total deployment of more than 729 800 man-hours was recorded for the report period.

   AMS volunteers have devoted much of their time and knowledge to the manning of the camps and detention centres coping with the influx of Vietnamese boat people. AMS services have been fully stretched to provide 13 first-aid and medical posts in 11 of the

centres.

   One of the responsibilities of AMS is to provide first-aid training for government servants, and in 1989 it trained 3 598 civil servants who successfully completed the basic first-aid courses.

District offices have now been set up by AMS in Kwun Tong and Ap Lei Chau to enhance operational efficiency and to provide local training facilities. Departmental headquarters and a training centre are being built at Ho Man Tin and should be completed by early 1991.

12

SOCIAL WELFARE

IN support of the drive to provide more and better welfare services, the government increased spending on social welfare in 1989-90 by about 14 per cent, to $4,108 million.

The Director of Social Welfare is responsible for carrying out government policies on social security and social welfare, based on the objectives set out in three White Papers - Integrating the Disabled into the Community: A United Effort (1977), Social Welfare into the 1980s (1979), and Primary Education and Pre-primary Services (1981).

The government is advised on social welfare policy by two groups - the Social Welfare Advisory Committee, covering the whole area of social welfare, and the Rehabilitation Development Co-ordinating Committee, on matters of rehabilitation. Members of these committees are appointed by the Governor, with unofficial members as chairmen.

In the provision of welfare services, the Social Welfare Department maintains a close working partnership with the subvented welfare agencies, most of whom are affiliated to the Hong Kong Council of Social Service.

In October 1989, the Governor announced a review of social welfare services, to be conducted in conjunction with the subvented welfare sector. A White Paper would be published in the second half of 1990, setting out proposals for the further development of these services into the 1990s and beyond. To conduct. the review, a working party was set up at the beginning of 1990, comprising officials and non-officials - particularly from the subvented welfare sector. To assist the working party in formulating its proposals, the public were invited to submit their views.

Apart from expanding existing services to meet the demand for various social rehabilitation services, emphasis has been placed on finding new methods to improve employment opportunities for the disabled and additional resources for improvement of quality of services.

Anticipating the introduction of legislation to control residential homes for the elderly, a two-year experimental Bought Place Scheme was implemented in October this year. A grant of $30.6 million from the Lotteries Fund made it possible to buy up to 500 places in private homes for the elderly in order to help these homes to raise their service standard and to increase the supply of such places.

To encourage elderly persons to continue living in the community for as long as possible, a new form of community support service, Respite Care for the Elderly, was introduced during the year. This programme enables family members to have short-term relief from the constant burden of their caring duties. In addition, efforts were made to provide a continuum of residential services in residential institutions to minimise the need to transfer frail elderly persons from one establishment to another, which might be stressful for them.

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   In the area of services for offenders, qualified teachers have been employed to run academic classes in the department's correctional institutions. To provide continuity in trade training for residents of the correctional institutions, links with the Vocational Training Council have been strengthened. A growing number of discharged trainees go on to vocational courses managed by the Council and the Department of Technical Education and Industrial Training.

Continued attention was given to reviewing the provision of the Protection of Women and Juveniles Ordinance, with particular reference to the protection of the child's well- being. Proposals for amendments to the ordinance were formulated, and a number of concerned bodies have been consulted. Representatives from the government and volun- tary agencies came together in various forums such as the reconvened Working Group on Child Abuse. Its recommendations focused on measures to help overcome the problems of child neglect and abuse.

The Housing Department is entrusted with the fitting-out work for welfare premises in Public Housing Estates under a rolling programme. The number of services with standard layout plans covered by this programme will be increased to six, including day nurseries, children and youth centres, social centres, hostels for the elderly and half-way houses for discharged mental patients. Work continued on preparing layout plans and fitting-out requirements for homes for the aged with care-and-attention units in new public housing

estates.

During the year, 10 new day nurseries, one family-services centre, two small group homes, one child custody service unit, three homes/hostels for the aged, one combined home, one care-and-attention home, two day-care, one multi-service and seven social centres for the elderly and 22 children centres, youth centres and combined children- and-youth centres were established.

Provision of these additional services and the increase in the social security caseload were reflected in increased recurrent expenditure.

Community Chest

The Community Chest, which organises and co-ordinates fund-raising activities for its member agencies, raised $71 million in 1988-9, compared with $56 million in 1987-8.

Social Security

Social security is a major social welfare programme aimed at meeting the needs of those vulnerable groups in the community requiring financial assistance. The Public Assistance and Special Needs Allowance Schemes are the key elements in the entirely non- contributory social security system. They are supplemented by three other schemes: Criminal and Law Enforcement Injuries Compensation Scheme, Traffic Accident Victims Assistance Scheme and Emergency Relief. The social security programme provides an effective 'safety net' for those who need assistance.

The Public Assistance Scheme, which is means-tested, provides cash assistance to those in need. It is designed to raise the income of needy individuals and families to a level where essential requirements are met. Persons who have resided in Hong Kong for not less than one year may be eligible if they can prove that their income and other resources are below the prescribed levels. An able-bodied unemployed person aged 15 to 59 who is available for work is, in addition, required to register with the Labour Department for job placement in order to qualify for assistance. The Director of Social Welfare is vested with a discretionary power to waive the one-year residence requirement in cases of genuine hardship.

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       The rates of assistance were increased across the board by 11 per cent in April 1989 to keep pace with inflation. The current basic allowances are $620 for a single person, $465 for each of the first two eligible members of family, $455 for each of the next two eligible members and $445 for each additional eligible member. Separate allowances are paid to cover the cost of renting accommodation.

A monthly old-age supplement of $310 is given to those aged 60 to 69, and $355 to those aged 70 and over, who are not receiving a disability supplement or a special needs allow- ance under a separate scheme. A disability supplement of $310 per month is payable to those who are certified to be partially disabled with at least 50 per cent loss of earning capacity and who are not in receipt of an old-age supplement or a special needs allowance. Those who have received public assistance continuously for 12 months are given an annual long-term supplement to enable them to meet the cost of replacing household wares and durable goods: $790 for a single person; $1,580 for a family with two to four members; and $2,370 for a family with five or more members. In addition, special grants are given to certain categories of recipients to meet other needs in particular circumstances. To encourage self-help, an individual's monthly earnings of up to $465 may be disregarded in the calculation of assistance payable.

      At the end of 1989, the number of public assistance cases was 66 000, compared with 64 600 in 1988. The majority of recipients are elderly, disabled and single parent families. Expenditure on public assistance in the 1988-9 financial year amounted to $779.3 million, an increase of 10.4 per cent over the previous year.

The Special Needs Allowance Scheme provides flat-rate allowances for the severely disabled and the elderly. Any person, regardless of age and financial means, who is certified to be severely disabled and who has resided continuously in Hong Kong for at least one year immediately before application, is eligible for a disability allowance. To be eligible for an old-age allowance, a person must have resided continuously in Hong Kong for at least five years prior to attaining the qualifying age.

      In 1988, a higher disability allowance was introduced at twice the rate of the disability allowance to help those severely disabled persons aged 60 and above who require constant attendance from others in their daily life but are not receiving such care in a government or subvented institution. On April 1, 1989, the age limit was lowered to 16 and will be further extended to cover all ages next year. The current monthly rate for the disability allowance is $620 and, for the higher disability allowance, $1,240.

Old-age allowance is non-means-tested for those aged 70 and above, and they are entitled to a current rate of $355 per month. For those below the age of 70, monthly payments are at a lower rate of $310, subject to a declaration that income and assets do not exceed the prescribed levels. The minimum qualifying age for an old-age allowance was lowered to 67 on April 1. This will be further lowered by phases to 65 in 1991.

       The number of people receiving disability and old-age allowances at the end of the year was 401 300, compared with 361 500 at the end of 1988. Expenditure on special needs allowances in the 1988-9 financial year was $1,374 million, an increase of 37 per cent over the previous year.

The Criminal and Law Enforcement Injuries Compensation Scheme provides financial assistance to persons who are injured in the course of crimes of violence or in helping to prevent crime in Hong Kong. It also extends compensation to those injured by law enforcement officers using weapons in the execution of their duty. Payments are made to their surviving dependant family members in the case of individuals killed in any one of these circumstances.

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On June 1, the payment rates were increased by 11 per cent to offset inflation.

   This scheme, operated on a non-means-tested and non-contributory basis, is ad- ministered by the Criminal Injuries Compensation Board and Law Enforcement Injuries Compensation Board. Both boards consist of unofficial members who are appointed by the Governor.

During the year, total payments amounted to $5.7 million, compared with $5.9 million in the preceding year.

The Traffic Accident Victims Assistance Scheme provides cash payments to victims of traffic accidents or, in the case of death, their dependants. It is a no-fault, non-means-tested scheme. For a person to be eligible, the traffic accident must be one as defined under the Traffic Accident Victims (Assistance Fund) Ordinance (Cap 229) and must have been reported to the police. The application must be lodged within six months of the accident. In the case of injury not causing death, the victim must have required no less than three days' sick leave supported by a medical certificate. Payments are not made for damage to property. The scheme does not affect the applicant's right to claim legal damages or compensation from other sources in respect of the same accident. In the case of a successful claim, the applicant is required to refund either the payment he has received from the scheme or the amount of damages or compensation received, whichever is the less.

In May, the Traffic Accident Victims (Assistance Fund) Ordinance was amended to extend the scheme to cover victims of all traffic accidents involving light rail vehicles operated by the North-west Railway. The ordinance was also amended to enable victims of accidents occurring on private roads to which public access is restricted to be eligible for assistance under the scheme, with effect from July 1, 1989.

The rates of assistance were revised upwards by 11 per cent in June 1989 to offset the rise in the cost of living.

   During the year, 6350 applications were received and 5870 were approved for assistance, with payments amounting to $48.0 million compared with $42.6 million in the previous year.

   Emergency relief is provided to victims of natural or other disasters in the form of material aid, such as hot meals, eating utensils and other essential articles. Grants from the Emergency Relief Fund are also paid to disaster victims or their dependants to relieve hardship arising from personal injury or death. The payment rates under this fund were also increased by 11 per cent in June. On October 1, 1989, emergency relief services were extended to the Island District and remote parts of the New Territories.

During the year, emergency relief was given to 3 310 registered victims on 170 occasions. The Social Welfare Department also assisted in providing hot meals to refugees and boat people from Vietnam.

To prevent abuse of the various schemes, a special team conducts in-depth investigation in cases of suspected fraud or difficulties encountered in recovery of overpayment. During the year, the team completed investigations into 344 cases.

Social Security Appeal Board

The Social Security Appeal Board is an independent body comprising unofficial members appointed by the Governor. It provides a system of redress for those who are not satisfied with the decisions made by the Social Welfare Department concerning public assistance, special needs allowances and traffic accident victims assistance payments. A total of 45

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appeals was heard by the board during the year. Of these, six were related to public assistance, 37 to special needs allowances, and two to traffic accident victims assistance.

Services for Offenders

The Social Welfare Department has several statutory duties in the field of services for offenders. These duties are to put into effect the directions of the courts on the treatment of offenders through social work methods. The overall aim is to rehabilitate offenders through probation supervision, the Community Service Order Scheme, residential training for young offenders and after-care services.

The Community Service Order Scheme started in January 1987 and is another community-based treatment. Its aims are both punitive and rehabilitative. It requires an offender over the age of 14 and convicted of an offence punishable by imprisonment to perform unpaid work of benefit to the community and to receive counselling and guidance from a Probation Officer. A full review of the scheme conducted during the year has confirmed its effectiveness.

      Probation applies to offenders of all age groups. It allows offenders to remain in the community under the supervision of probation officers and subject to prescribed rules set by the courts. Community participation in the rehabilitation of offenders has been promoted through the Volunteers Scheme for Probationers in which volunteers from many walks of life are selected to provide probationers with personal and moral support, as well as direct services.

      In April 1987, a Young Offenders Assessment Panel was set up jointly by the Social Welfare Department and the Correctional Services Department. The panel comprises professional staff from the two departments and provides magistrates with a co-ordinated view on the most appropriate programme of rehabilitation for convicted young offenders aged between 14 and 25. Following an overall review of the functions and services of the panel in 1988, active plans are being made to extend its services.

      The Social Welfare Department operates seven residential institutions, each with a slightly different training programme to cater for the needs of the residents. Educational, pre-vocational, and character training are provided to assist juvenile offenders to return to the community as law-abiding citizens. The Begonia Road Boys' Home and Ma Tau Wai Girls' Home are combined remand-and-probation institutions for juvenile offenders and youths in need of statutory care and protection. The establishment of Pui Chi Boys' Home in 1984 helped to alleviate overcrowding in the probation section of the Begonia Road Boys' Home by catering for a younger age group of under 14. Similarly, the Pui Yin Juvenile Home, in operation since February 1986, has contributed to improving conditions at the remand sections of the Begonia Road Boys' Home and Ma Tau Wai Girls' Home. The Castle Peak Boys' Home is a reformatory school for boys aged 13 to 15 on admission, while the O Pui Shan Boys' Home is a similar institution for those aged under 13 on admission. Since April 1989, these two boys' homes have undertaken aftercare services to enhance the co-ordination and continuity of their treatment programmes. The Kwun Tong Hostel is a probation hostel for young men aged between 16 and 21.

      While a new girls' home is being built in Tuen Mun, plans are in hand to improve residential facilities, including the relocation of the Castle Peak Boys' Home and Begonia Road Boys' Home to Sha Tin and Ngau Chi Wan. Following a review of the educational programmes in these institutions, the department has recruited qualified teachers to run all academic teaching and pre-vocational training. New teaching material is being designed to suit the needs and interests of the trainees. These new arrangements have brought about

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improvements although there have been problems in the recruitment and retention of teachers.

   In addition to the work carried out by the Social Welfare Department, several subvented welfare agencies also provide services to help young offenders and young people with behavioural problems to reintegrate into the community.

Family Welfare

  The Social Welfare Department and a number of subvented welfare agencies provide a variety of family and child care services with the objective of preserving and strengthening the family unit through helping individuals and families to solve their problems or to avoid them altogether.

The department operates a network of 31 family services centres and the subvented welfare sector operates a further 23 such centres. The major services provided in family services centres include: family casework and counselling; referrals for schooling, housing, employment and financial assistance; and care and protection of children and young people aged under 21.

   After the setting up of the Wai On Home For Women in 1987, a second refuge for women, Harmony House, was opened. These two homes together provide short-term accommodation for 80 women and children who may be victims of domestic violence as well as for young girls at risk.

   The department has continued its efforts, in co-operation with other government departments, to tackle the problem of street sleeping. In response to the recommendations of an inter-departmental co-ordinating committee on street sleepers set up under the auspices of the Health and Welfare Branch, and with a grant of $2.3 million from the Hong Kong Jockey Club Charities (Limited), planning was put in hand to establish a second urban hostel for the homeless, including street sleepers, as part of a pilot scheme designed to provide more permanent accommodation for the homeless in the urban area. A temporary shelter and a day relief centre were established to provide temporary accommodation and relief services for street sleepers.

   The department provides child care services through the Chuk Yuen Children's Reception Centre and the Sha Kok Children's Home for the temporary care of children aged up to eight. The Child Protection Services Unit caters for abused children. The Adoption Unit is responsible for local and overseas adoption of orphans, abandoned babies and children freed for adoption, while the Central Foster Care Unit promotes foster care services in Hong Kong. Furthermore, the Child Custody Services Unit was set up in October 1989 to carry out statutory duties in respect of supervision or care arising from custody and guardianship matters handled in Family Courts or the High Court.

   Child care centres are available for children aged under six. Such centres must comply with the standards laid down in the Child Care Centres Ordinance and are subject to registration and inspection. At the end of the year, there were 30 013 places in day child care centres and 733 places in residential child care centres. Families with low incomes and a social need for children to attend a child care centre may apply to the Social Welfare Department for assistance in meeting fees charged. A total of 8 200 children were receiving fee assistance at the end of the year. To meet the changing needs of families, new modes of child care services were being tried out. Meanwhile, reviews were conducted of the financing and provision of the day nursery and day creche services.

   Family life education aims to improve the quality of family life through the promotion of interpersonal relationships and social consciousness which may help to prevent family

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breakdowns and social problems. To commemorate the 10th Anniversary of the Inter- national Year of the Child, 'Responsible Parenthood and Child Care' was chosen as the theme for the 1989 Family Life Education Publicity Campaign. A wide variety of publicity media, including TV, radio, posters, booklets on good parenting and programmes such as seminars, exhibitions and carnivals, were organised throughout the second half of the year. In response to the central publicity campaign, promotional and educational activities have been organised by social workers at the district level. The central resource centre which provides the necessary audio-visual equipment and resource material in support of the service has been moved to the Southorn Centre in Wan Chai, with much improved facilities and easier accessibility to the users.

A study of the home help service was conducted to collect data on the demand for the service, which will form the basis of future expansion plans.

Medical Social Service

To assist patients and their families to deal with personal and family problems arising through illness, a medical social service is provided by social workers stationed in 103 medical social service units in government hospitals and clinics. With the implementation of the Mental Health (Amendment) Ordinance 1988, additional posts have been created to strengthen psychiatric medical social service units to take up the additional duties arising from the provisions in the ordinance.

Care of the Elderly

     The 1979 White Paper laid down 'Care in the Community and by the Community' as the guiding principle for the planning and development of services for the elderly. A wide range of community support services is provided to help families to look after their family 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, canteen services, community education, day care, social and recreational activities. At the end of 1989, there were 52.5 home help teams, 106 social centres, 15 multi-service centres and seven day care centres. Thirty seven respite care places for the elderly were also available in homes for the elderly. Housing assistance, including compassionate rehousing and priority allocation of public housing, continues to be available for those eligible.

       Additional residential facilities were provided for those who, for health or other reasons, are unable to look after themselves and who have no relatives or friends to assist them. At the end of the year, there were 5969 places in hostels/homes (including 1 480 non- subvented and non-profit-making places) and 1980 places in care-and-attention homes. In addition, the government provided sheltered housing for 2 339 elderly people who are capable of living independently in private housing flats as well as in public housing estates. In order to encourage and assist private homes for the elderly to reach the standards required for registration under the Voluntary Registration Scheme, the Registration Office of Private Homes for the Elderly continued to give advice and assistance to these homes, including offering to buy places from them under the experimental Bought Place Scheme.

Services for Young People

Helping young people to become mature and responsible members of society is the main objective of this programme. A wide range of services has been designed for young people from six to 25 to foster the development of their personality, character, social aptitude,

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sense of civic responsibility, ability to use their leisure time constructively and to enable those with adjustment problems to direct their energies towards positive goals in society.

   At the district level, apart from providing group work activities in community centres, the department also promotes youth activities and encourages the establishment of self-programming and volunteer groups through its youth and community offices. The department has run the Opportunity for Youth Scheme since 1974. Every year, young people are helped with funds to implement a variety of community service projects to meet specific social needs. Awards are given for outstanding projects to recognise the contribution of the participants.

   Children and youth centres, operated mainly by subvented welfare agencies, serve as focal points for a variety of programmes and activities for the personal growth and social development of young people. In 1989, one youth centre and 23 combined children and youth centres were opened, making a total of 198 children centres, 204 youth centres and 144 combined children and youth centres.

   Outreach social work attempts to cater to groups of young people at risk who do not normally participate in organised youth activities. With the addition of two new teams in 1989, there are totally 22 outreaching social work teams serving in priority areas with large youth populations, high population densities and high juvenile crime rates. The review conducted during the year has pointed the direction for future development.

The school social work service is provided by social workers in secondary schools, and a guidance service for primary school students is provided by student guidance officers. These services help students with personal problems or problems in adjusting to school life. A comprehensive review of the service is underway.

   Uniformed organisations offer young people opportunities for training in the devel- opment of character and leadership, skills, community services, and indoor and outdoor recreation. There are seven subvented welfare organisations, with about 70 000 members, operating a wide range of activities with different emphasis in their programmes for different target groups of young people. The Duke of Edinburgh Award Scheme offers a comprehensive programme focusing on the development of the potential of young people, attracting a membership of 40 000.

Rehabilitation of the Disabled

The objective of rehabilitation services in Hong Kong is to integrate the disabled into the community. Services provided by government departments and welfare agencies are aimed at enabling the disabled people to fully develop their physical, mental and social capabilities. These services are co-ordinated by the Commissioner for Rehabilitation, who also conducts regular reviews of the Rehabilitation Programme Plan, which projects the requirements for and identifies the shortfalls in rehabilitation services for the following 10 years.

The Hospital Services Department and the Department of Health are responsible for providing medical rehabilitation services. The Social Welfare Department is responsible for the planning and development of a wide range of social rehabilitation needs, either through direct service provision or subvention to welfare agencies. 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 is responsible for co-ordinating vocational training for disabled young people and adults. The Labour Department is responsible for job placements for the deaf, the blind, the physically disabled, the mentally handicapped and

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Previous page: A magnificent 93-stop organ, largest in South-east Asia, dominates the Concert Hall at the new Cultural Centre.

The new Cultural Centre, on the Tsim Sha Tsui waterfront, was officially opened by the Prince and Princess of Wales on November 8.

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Both pages: Student dancers from New York, Rome, Manila, Sumatra, Taipei and Hong Kong performed in the International Festival of Dance Academies in July, probably the largest event

of its kind in South-east Asia.

Below: Learning the subtleties of Chinese painting.

Right: Works of art in terracotta are created today in much the same way as they were centuries ago.

Overleaf: The guzheng, an ancient Chinese instrument similar to

the Japanese koto, recaptures the gentle sounds of an earlier age.

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for discharged mental patients. The Transport Department subvents a Rehabus service operated by the Hong Kong Society for Rehabilitation for disabled persons who cannot use public transport.

       By the end of the year, the Social Welfare Department and subvented welfare agencies had provided a total of 604 integrated programme places, 795 special child care centre places (including 54 residential special child care centre places) and 695 early education and training centre places for pre-school disabled children. As for disabled adults, there were 1 298 day activity centre places to provide day care, daily living skills and work training for the mentally handicapped, 3 175 sheltered workshop places to provide work or employment for the disabled who are unable to compete in the open job market, and 1 706 hostel places for those disabled persons who cannot live independently and cannot be adequately cared for by their families, or who live in areas too remote from their places of training or employment. In addition, 200 long stay care home places, 757 half-way house places and 110 activity centre places were provided for discharged mental patients and 21 social and recreational centres were provided for all categories of disabled persons.

During the year, the Social Welfare Department introduced a pilot supported- employment scheme for the disabled through setting up a mobile crew comprising several disabled persons supervised by one non-handicapped person to take up contracted cleaning jobs. The aim is to create and explore more open employment opportunities for disabled persons.

In order to improve the quality of services, two central support services were established to provide all rehabilitation day centres and hostels with professional back-up from clinical psychologists, occupational therapists and physiotherapists. Other improvements made include the staffing provisions of day activity centres, hostels for disabled persons and special child care centres which admit autistic children and children with autistic features.

The Queen Elizabeth Foundation for the Mentally Handicapped was set up in August 1988. Its purpose is to further the welfare, education and training of the mentally handi- capped and to promote their employment prospects. The management and uses of the Foundation Fund are determined by a council consisting of prominent members of the community appointed by the Governor. In the first quarter of the year, the foundation made grants of over $1.9 million to nine voluntary organisations and two government departments. The fund stood at over $90 million on March 31, 1989.

Staff Development

Training of professional social workers is provided by the two universities, two polytechnics and two post-secondary colleges. The Social Welfare Department and the subvented welfare agencies assist in the provision of practical work placements for social work students from these training institutions.

The Social Welfare Department provides various types of in-service training programmes through its Lady Trench Training Centre. These include basic social work training for non-professional grade staff, staff development programmes, and induction training and orientation courses for both departmental staff and social workers employed in the subvented welfare sector. To enhance the competence of social workers in handling the more complex and complicated social problems, local and overseas professionals were commissioned to conduct specialised or advanced training programmes in such demanding areas as mental health, family and child abuse services.

During the year, 185 programmes, seminars and workshops were organised by the training section, compared with 147 in 1988. The Training Section also operates a child

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care centre for 100 children aged between two and six which serves as a demonstration nursery for trainees in child care work.

   To equip staff with updated and specialised skills in the various fields of professional practice, the department sponsors experienced staff to attend advanced training courses and international conferences. During the year, 91 officers attended 30 such courses and conferences. The Social Work Training Fund and other scholarships also contribute towards promoting basic and advanced social work training for local practitioners.

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Research and Evaluation

The Research and Statistics Section provides a support service to the department by preparing estimates, conducting surveys, and developing and maintaining data systems. Eleven surveys were carried out during the year. In conjunction with the Hong Kong Council of Social Service, the section is responsible for the operation of the Social Welfare Manpower Planning System. This system collates information on individual social work personnel and on the demand for and supply of trained social workers in order to facilitate overall manpower planning in the welfare sector. The section also runs six other data systems, these being the Integrated Law and Order Statistical System on offenders under the charge of the department, the Street Sleepers Registry, the Planned Welfare Projects Registry, and three central referral systems for placement in institutions for the elderly, the disabled adults and disabled pre-schoolers.

The Evaluation Section of the department is responsible for monitoring and assessing services provided by the subvented welfare agencies. Departmental staff make regular visits to these agencies which are, in turn, required to submit service statistics at specified intervals. Where appropriate, findings are submitted to the Subventions and Lotteries Fund Advisory Committee which advises on the allocation of subventions and Lotteries Fund Grants. During the year, the department conducted 10 in-depth evaluations of pilot projects and service programmes operated by subvented welfare agencies.

Community Building

A number of government departments and voluntary organisations contribute towards the community building programme.

   This programme, co-ordinated by the Community Building Policy Committee, serves to foster among the people of Hong Kong a sense of belonging, mutual care and civic responsibility as society undergoes rapid socio-economic changes.

   Community building efforts involve the provision of purpose-built facilities for group and community activities, the formation of citizens' organisations and the encouragement of community participation in the administration of public affairs, solving community problems, promoting social stability and improving the quality of life in general.

The City and New Territories Administration and the Social Welfare Department are the two departments principally responsible for implementing this programme. The City and New Territories Administration, through its network of district offices, is primarily concerned with promoting mutual care and community spirit through local organisations, such as area committees, mutual aid committees, rural committees, kaifong welfare associations, women's organisations and local arts and sports associations. Community centres, run by the City and New Territories Administration, are provided throughout the territory to serve as a base for community building work.

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The Social Welfare Department is responsible for various aspects of group and community work aimed at promoting the development of individuals and groups and at fostering a sense of community responsibility.

Central Committee on Youth

The Central Committee on Youth was set up in mid-1986 by the government with the main task of examining whether there was a need for a youth policy in Hong Kong. In April 1988, the committee issued a Report on Youth Policy for public consultation and more than 130 organisations, boards and committees commented on its recommendations.

The committee's final recommendations were considered by the government in mid- 1989. It was decided that a Commission on Youth with members appointed by the Governor would be set up in early 1990 to advise the government on matters pertaining to youth, promote better co-operation among those involved in providing youth services, undertake research on young people and serve as a contact point for youth exchanges with overseas organisations.

      To promote public awareness of the importance of young people, the committee launched a Youth Festival in December 1989. About 100 organisations participated in the festival, the theme of which emphasised young people's commitment towards building a better community. More than 80 events were staged in various districts during the month-long festival.

Committee on the Promotion of Civic Education

In 1986 the government set up the Committee on the Promotion of Civic Education to encourage all sectors of the community to actively promote civic awareness and responsibility.

      Made up largely of non-government members, the committee advises the government and community organisations on the objectives and scope of civic education. It en- courages, through sponsorship, community effort in organising civic education activities among different age groups.

       During the year, the committee sponsored 26 projects with an allocation of $760,000. A Civic Education Resource Centre was set up on the advice of the committee to provide updated reference materials for organisers of relevant activities.

      A new theme song carrying the message 'Hong Kong's Future is Right in Your Hands' was produced and shown on television. Other promotional activities launched by the committee included a seminar on the Spirit of Rule of Law and a number of outdoor projects to encourage people's participation in political and community affairs. The work of the committee has received a great deal of support from district organisations, in particular district boards.

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CLOSE to one million new flats will be built in the next 10 years in order to fulfil the government's aim of providing affordable housing for all those who need it.

   Towards this goal, the Housing Authority, which is the delivery agent for the government, will be producing close to 60 per cent of the new flats required and offering them to the public through the various rental and home ownership schemes, with the Housing Department providing the construction, administrative and management services. The remaining 40 per cent of the flats are expected to be built by the private sector.

   The government provides the capital financing and the land for the authority to im- plement the housing programme as set out in the recently-adopted Long Term Housing Strategy.

Since the public housing programme began in 1953, more than 2.8 million people, or close to half the population, are now living in public housing. Although most of these people are living in rental premises, in some 135 estates, there is a growing number who are buying their own flats under the Home Ownership Scheme (HOS) and Private Sector Participation Scheme (PSPS) and the more recent Home Purchase Loan Scheme (HPLS) also operated by the authority.

   During the year, the authority produced 54 000 new flats, comprising 34 000 rental units and 20 000 HOS and PSPS units, which were so much in demand that they were heavily oversubscribed. At the same time, it raised the amount of loan under the HPLS from an original $70,000 to $110,000, so as to increase the opportunities for assisted home purchase, and granted 1 200 loans under this scheme.

   On average, rents for the authority's flats account for about seven per cent of tenants' income, while the home ownership scheme flats are offered for sale at about 30 per cent below the market rate.

While it is building new flats to increasingly higher standards and better designs, the authority is also redeveloping its older housing estates in line with its policy of improving residential living conditions to meet the higher aspirations of the tenants. It is also in- troducing innovative measures which will enhance construction efficiency and quality.

   In all, the authority had about 150 000 flats under various stages of construction during the year, and spent some $6 billion on development and maintenance of its public housing projects.

In the next five years, it will be spending about $30 billion on new construction work. Apart from the work of the authority, the Hong Kong Housing Society continued to supplement the provision of public housing through its rental and rural public housing projects, urban renewal scheme and flats-for-sale scheme.

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      In the private housing sector production remained high, with output reaching 37 655 units.

Housing Authority

Established under the Housing Ordinance, the Hong Kong Housing Authority is a statutory body responsible for co-ordinating all aspects of public housing.

      This role has been expanded to enable it to implement the Long Term Housing Strategy effectively and efficiently.

      The authority advises the Governor on all housing policy matters and, through its executive arm (the Housing Department), plans and builds public housing estates, Home Ownership Scheme courts and temporary housing areas for various categories of people as determined by the authority with the approval of the Governor.

It also manages public housing estates, Home Ownership Scheme courts, temporary housing areas, cottage areas, transit centres, flatted factories and the ancillary commercial facilities throughout the territory, and administers the Private Sector Participation Scheme and the Home Purchase Loan Scheme. On behalf of the government, the authority clears land, prevents and controls squatting, and plans and co-ordinates improvements to squatter areas.

The authority meets every three months to review the work of its eight standing committees which have delegated powers to deal with matters concerning establishment and finance, building, management and operations, home ownership, development, com- mercial properties, complaints and tenancy appeals. It also meets whenever there are important issues which require special attention.

In addition to the eight standing committees, the special committee on Clearance of Kowloon Walled City, an ad hoc committee established in January 1987, continues to perform its functions. In 1989, two ad hoc committees, the committee on Sale of Flats to Sitting Tenants and the committee on Domestic Rent Policy and Allocation Standards, were established in June and August respectively.

The authority has been chaired by a non-official member since April 1, 1988. It now comprises 20 non-official members, including the chairman, and four official members. All members are appointed by the Governor. There are also 35 co-opted members, who sit on one or more of the committees. Many of the members of the authority also serve the community as Legislative, Urban or Regional councillors, or as members of the New Territories Heung Yee Kuk, district boards, area committees and mutual aid committees. Together, they have a broad range of experience and representation and are able to apply a critical and conscientious perspective in determining public housing policies.

The authority is responsible for its own finance and management. Under its new financial arrangements with the government which came into effect on April 1, 1988, the government will continue to provide the authority with the funds required to meet the housing programmes as set out in the Long Term Housing Strategy. For its part, the authority will continue to pursue financial efficiency in a manner consistent with providing accommodation at affordable rents and prices.

On March 31, 1989, the government's capital investments and contribution to housing stood at about $65 billion, which comprised permanent capital of $16.4 billion, con- tribution to domestic housing of $41.4 billion and non-domestic equity of $7.2 billion.

      In the 1988-9 financial year, recurrent expenditure on the authority's domestic rental properties, covering mostly management and maintenance costs, totalled $3,694.6 million, while income from domestic rents was $3,081.5 million, resulting in a deficit of $613.1

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million. This deficit was due to the fact that the low rents in old estates were insufficient to cover management expenses and the high cost of maintenance and improvements. The authority was partly able to offset this deficit from the income derived from its commercial properties which, in the same period, generated a surplus of $297.6 million after paying the interest on permanent government capital and 50 per cent dividends to the government.

   The authority spent $5,787.8 million on its capital programmes, of which $2,922.2 million (50.5 per cent) was financed by the authority, while the balance of $2,865.6 million (49.5 per cent) came from the government through the transfer of the closing balance as at March 31, 1989 of the Home Ownership Fund and supplementary capital injection.

Construction

The Housing Authority achieved yet another record, completing over 54 000 flats in 1989, well above the all time high record of 41 000 flats in 1988.

Despite the exceptional output, the shortage of skilled labour continued to be a serious problem affecting the progress of work on most of the building sites, so much so that the authority's ability to meet its future commitments under the Long Term Housing Strategy may be adversely affected in terms of both quantity and quality. However, the authority has introduced several positive measures to counteract the problem.

   One measure will require the production off-site of some of the major components for the three new residential block designs, the Harmony blocks, which were developed last year. This will help reduce the need for skilled labour on-site and will also require tight quality control to be exercised in the manufacturing process.

   Tenders for the first Harmony blocks were invited in October 1989. Arrangements for the bulk purchase of the building components were being finalised and selection of the suppliers will be made in 1990.

   To further the aim of achieving good, consistent construction quality against a reasonable and realistic specification for a fair price, the authority intends to set up its own List of Building Contractors. It is believed that a group of contractors dedicated to the authority's work will complement the design and construction philosophy of the Harmony range, as it will optimise the benefits to be gained from standardisation, while contractors and their workforces quickly become familiar with the buildings. Applications for inclusion in the list were invited at the end of 1989, and it is hoped that a tentative list will be published early in 1990.

Efforts have also been made by the authority to help the construction industry to attract more workers to join and remain in the trade. Suggestions put forward by the authority to improve the safety standards and working conditions on-site were examined by the Hong Kong Construction Association. It is also hoped that the setting up of the authority's List of Building Contractors will quicken the pace in this direction.

   Overall, the authority remains firmly committed to producing 230 000 flats in the first five-year development period from 1985 to 1990, and 215 000 flats and 135 000 flats in the second and third five-year development periods. During the year, 19 building contracts, with a total value of $3,530 million, were awarded. With the present rate of production and the normal seven-year lead time required before new flats can be let or sold, more new housing sites will be urgently needed to meet the projected demand in 1996 and after. This is a matter of great concern to the authority. No effort has been spared by the authority and the government departments concerned in resolving this problem, and hopefully by 1990 the requisite new sites will be determined for inclusion in the authority's housing programme.

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Urban Housing

      On Hong Kong Island, site formation works at both Shau Kei Wan East and West progressed steadily. The two stages of the Shau Kei Wan East site formation will be due for completion in late 1990 and 1991 respectively. The Shau Kei Wan West site formation will be completed in 1992. Building works at both of these sites, when completed, will provide 7168 rental and 3 648 rental/HOS flats. Wah Kwai Estate at Kellett Bay, which will provide 3 264 rental and 1 402 HOS flats between late 1990 and early 1992, is now in its building construction stage.

At Siu Sai Wan Phase 1, some 1710 rental and 660 HOS flats were receiving their finishing touches. The remaining 594 rental flats will be completed in April 1990. By the end of the year, 716 rental flats in Siu Sai Wan Phase 2 will have been completed. Another 1074 rental flats of this phase will soon be completed within the next few months. The building contract for Siu Sai Wan Phase 3 will begin in early 1990 to produce 2017 rental and 1 216 rental/HOS flats in 1993.

       In Kowloon several phases of the Kowloon Central Redevelopment have been completed. Wang Tau Hom Phase 5 and Lower Wong Tai Sin Phase 7 provide 1 008 and 1938 rental flats respectively. The redevelopment of Lei Cheng Uk Phase 2 involving the oldest Mark I-II blocks has also been completed, producing 1 750 rental flats. New blocks in two supplementary housing sites identified for the Extended Redevelopment Programme, Shun Tin Phase 4 and Nam Cheong Estate, were completed during the year, providing a total of about 3 000 rental flats. The redevelopment of Tsui Ping Estate Phase 4 at Kwun Tong is nearing completion, with 1 190 rental flats in its first stage completed in late 1989. For the HOS, 700 flats in King Lai Court at Ngau Chi Wan were completed by the end of this year.

Construction of all three phases of Fung Tak Estate at Diamond Hill is on schedule and will provide 5 752 rental flats upon completion in 1991 and 1992. Further east at Lam Tin, the main part of the site formation for the Lam Tin South Estates has been completed and building work is in hand. In all, the Lam Tin South Estates, when completed, will provide 4 389 rental, 1 824 rental/HOS and 1 400 HOS flats.

Housing in New Towns, Rural Townships and Outlying Islands

In Sha Tin, Phase 1 of Kwong Yuen Estate has been completed with an output of 1 556 flats. Also completed are the 612 and 350 HOS flats at the nearby Kwong Lam Court and Hong Lam Court respectively. Further north in Ma On Shan, the building works at Area 103 are progressing satisfactorily, to provide 3 500 rental flats in 1991. Other housing projects planned in Ma On Shan Areas 90, 100, 103 and 108 will provide 8 562 rental, 5 515 HOS and 4 950 PSPS flats.

       The remaining portion of Cheung Fat Estate, and the whole of Tsing Yi Estate Phase 2 situated at the northern part of Tsing Yi Island, were completed this year, thus adding 1 596 rental flats to the housing stock. Cheung Hang Estate, which will provide 2 856 flats, is still under construction. In Tsuen Wan, the redevelopment of Tai Wo Hau Phase 3 with 2 032 flats has been completed. Building works for Phase 4 will soon follow. Over the next few years, the redevelopment of a number of estates in Kwai Chung will begin as part of the Comprehensive Redevelopment Programme. The formation of a supplementary site at Shek Yam East will be put in hand by the department in early 1990 and will provide land for 2 043 rental flats.

In the Tuen Mun area, Kin Sang Estate Phase I and part of Tin King Estate Phase 4 were completed, providing 2 652 and 970 rental flats. Construction of the remaining flats in

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Tin King Estate is still underway. For the Home Ownership Scheme, 2 100 flats at San Wai Court of Tuen Mun Area 1 were completed by the end of 1989. Piling work began on the Tuen Mun Area 14 Phase 1 HOS. The other two phases will be started in 1990. The three phases will contribute 4 200 HOS flats by 1993. As for the PSPS, the Affluence Garden at Tuen Mun Area 5, which has 2 208 flats, was completed in 1989. Two more PSPS projects, one at So Kwun Wat and the other at Tuen Mun Area 45, will provide 5 000 and 3 000 flats in 1994 and in 1995.

   The four phases of Tai Wo Estate at Tai Po were completed. Of the total number of flats produced, 6 389 are rental units and 2 448 are for sale under the HOS. Projects under construction at Tai Po include Wan Tau Tong and Tai Po Area 8. The former will provide 3 520 rental flats, 700 HOS flats, and a further 1 224 flats earmarked for transfer to HOS, while the latter will provide 5 792 rental flats and 2 040 flats earmarked for HOS. These two projects will be completed in 1991 and 1992. North of Tai Po, the project completed in Fanling this year includes Tai Ping Estate (1 429 rental flats). Site formation at Fanling Areas 18, 39A, 46 and 47B is ongoing. Building construction at Tin Ping Phase 3 (714 rental flats) and Wah Ming Phases 1 and 2 (5 340 rental flats) are scheduled for completion in 1990.

Site formation for Tin Yiu and Tin Shui Estates at Tin Shui Wai was completed. Building work was due to begin on Tin Yiu Phase 1, while the piling work for other phases of this estate was well in hand. Progress at Tin Shui Estate is generally on schedule. The building contracts of all four phases will begin in 1990. Tin Yiu and Tin Shui Estates, when completed in 1992-3, will provide a total of 16 422 rental flats and 3 040 flats earmarked for transfer to HOS.

Projects at Junk Bay are also progressing satisfactorily with contracts on Po Lam Phase 3 (2 568 rental flats), Ying Ming Court (1 750 HOS flats), and Tsui Lam Phase 2 (816 rental flats) completed during the year. Construction of 1 605 rental flats at King Lam Phase 1 is nearing completion, and is progressing on Phases 2, 3 and 4. A total of 5 160 rental flats will be provided by these four phases. The Fu Ning Garden PSPS project, providing 2 450 flats, is scheduled for completion in 1990.

For the outlying islands, the proposed rural public housing projects at Cheung Chau and Peng Chau are still in their planning stages. Piling work for Lung Tin Phase 2 at Tai O, Lantau, will begin early in 1990.

Redevelopment

  Between 1954 and 1964, 12 Mark I and Mark II estates, comprising 240 blocks, were constructed to house victims of natural disasters and squatters displaced by development clearances. These estates provided only basic accommodation with community and social facilities which are not up to the present standard. A redevelopment programme was launched in 1972 to improve the living environment of some 84 000 families in these estates.

   In 1983, the government decided to step up the redevelopment programme, so that by 1990-1 the living conditions of all the remaining Mark I-II estates tenants could be improved.

During 1989, 14 old blocks were evacuated to make way for new buildings, leaving 58 Mark I-II blocks to be redeveloped by 1990-1.

The rehousing work of the extended redevelopment programme which was started in 1985 was completed in 1989. The programme involved the clearance of 26 sub-standard blocks in 11 middle-aged estates and all 15 100 affected families were rehoused.

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The Long Term Housing Strategy, endorsed by the Executive Council in 1987, envisaged the need to extend the redevelopment programme from Mark I-II estates to all Mark III-IV and former government low-cost housing estates, to improve the living environment in these estates. The current five-year rolling redevelopment programme for 1989-90 to 1993-4, involving 253 blocks accommodating 69 000 families, was made public in May 1989. The affected tenants will be formally notified 18 to 24 months before the clear- ance dates.

Maintenance

With 146 rental estates and 56 HOS courts under its care, comprising some 4 500 buildings and structures, and about half of them over 15 years of age, the Housing Authority carried out a major review of its maintenance policies and strengthened the planning process to improve its services to tenants and owners.

In carrying out work on the buildings, which range from blocks of flats, shopping centres and offices to multi-storey carparks and community facilities, it spent some $1,200 million during the year.

Greater emphasis has been placed on communication with tenants, so that whenever a comprehensive repair contract is undertaken, mutual aid committees, housing management and maintenance staff and contractors meet to consider the proposals and work progress. For information, two booklets were produced on What You Should Know About Asbestos, and What You Should Know About Strengthening and Repairs, as well as a video on repair proposals.

As a result of extensive surveys and structural investigations, some reinforced-concrete buildings, which are particularly vulnerable to deterioration, were found to have sub- standard concrete and required strengthening. The repairs carried out ranged from minor patching to very extensive works.

The six-year comprehensive repair programme launched in 1987 to ensure that existing buildings remain serviceable, gathered momentum during the year with contracts worth $182 million being let, covering 74 buildings. Good progress was made, with 1 500 flats being repaired each month. Some 300 000 concrete spalling repair operations were under- taken, totalling 65 000 square metres. To minimise inconvenience to tenants, new repair materials, techniques and improved working procedures were introduced, thereby reducing the time spent on each flat.

Since 1984, the authority has ceased using materials containing asbestos in the construc- tion of buildings and has had an established policy for control of asbestos materials already present in buildings. The removal of such materials presents particular difficulties in occupied buildings. Whenever possible, in these circumstances, materials are sealed in place, and where removal is necessary, specialist contractors are engaged and strict measures are taken to monitor the air. On this basis some 44 000 balcony panels were sealed during the year. The cost of the abatement work totalled $18 million and the cost of air monitoring $7.5 million.

      A programme for the electrical rewiring of almost all estates constructed prior to 1973 was completed at a cost of $215 million. The programme upgraded the capacity of supply installations so as to allow unrestricted use of electrical appliances such as air- conditioners, thereby benefiting some 153 000 homes. A programme was completed for providing communal aerials to 204 000 homes.

Regular servicing is carried out to ensure that the 4 000 lifts in public housing estates are reliable, and in addition, a modernisation programme has been started to replace 53 lifts in

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four estates. In the next five years, an average of 50 lifts will be replaced each year, and in the five years after that, replacement work will be stepped up to 100 lifts each year.

   As the estates get older, the age pattern of residents changes, creating the need for new facilities to be provided. So far 43 nurseries, youth centres and accommodation for the elderly and disabled have been added and 19 are being constructed. Forty-one classrooms were added to 23 primary and secondary schools at a cost of $17.5 million.

Improvement work was carried out at eight commercial shopping centres. In the middle-aged estates and those not included in the redevelopment programme, where the environment and facilities have started to fall behind, measures have been taken to improve the quality of life.

Home Ownership Scheme

To meet the community's growing aspirations, the government established the Home Ownership Scheme in the late 1970s to help lower-middle-income families and public housing tenants to become home owners by providing flats for sale at prices below market value.

   Before April 1, 1988, the Housing Authority acted on the government's behalf in admin- istering the HOS, using government funds. With the re-organisation of the authority on that date, it took over the responsibility for the scheme.

Private sector applicants for HOS flats may not own domestic property and are subject to a household income limit of $10,000 per month. These restrictions, however, do not apply to public rental estate tenants. The income restriction is also not applicable to res- idents of Temporary Housing Areas and cottage areas managed by the authority, house- holds displaced by clearance of squatter areas for development, natural disaster victims and junior civil servants.

Since the scheme started in 1978, a total of 119 000 flats, including 39 000 produced under the complementary PSPS, have been sold to eligible families. About 45 per cent of these families were public housing tenants who were required to surrender their rental flats to the authority on obtaining HOS flats. Since the beginning of 1985, 7 500 flats have been sold to prospective public housing tenants, who were, in return, required to forego their rights to rental accommodation.

To encourage public housing tenants to become home owners and therefore give up their rental accommodation for families who are in greater need of public housing, public housing tenants are accorded higher priority than private sector applicants in select- ing HOS flats. This incentive is also extended to prospective public housing tenants, so that rental flats which would have been allocated to them can be let to applicants in greater need.

The authority ensures the provision of adequate mortgage funding from financial institutions for the purchase of HOS and PSPS flats. In return for the authority's indemnity for an institution's loss in case of default, purchasers are able to enjoy favourable mortgage terms provided by over 50 financial institutions. Public sector priority status purchasers are able to borrow up to 95 per cent of the purchase price and private sector purchasers up to 90 per cent, with repayment periods of up to 20 years)

Implementation of the Long Term Housing Strategy has required an increase in production of HOS/PSPS flats from the previous level of 10 000 flats a year to around 17 500 flats a year for the period 1989 to 1994. Of these, about 27 per cent of annual production will be upgraded flats in blocks originally intended for rental housing estates, thus providing a wider choice of flat sizes, standards, locations and prices for applicants.

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During 1989, a total of 16 777 flats were sold, starting in January with 5 278 flats in Phase 10C. Applications were invited for a further 5 865 flats in Phase 11A in April 1989 and over 108 000 applications were received, a record since the scheme began.

In August another 5 634 flats were put up for sale, attracting about 60 000 applications, despite the uncertain state of the property market in mid-1989. Finally, in December, applications were invited for 5 867 flats in one PSPS and five HOS estates. This included 4 275 flats in upgraded blocks transferred to HOS from the rental housing programme.

The prices and sizes of flats sold covered a wide spectrum, with prices ranging from $177,600 for a 36-square metre flat at On Shing Court, Sheung Shui, to $593,500 for a large flat of 60 square metres at King Lai Court, Ngau Chi Wan.

Home Purchase Loan Scheme

The Home Purchase Loan Scheme, administered by the Housing Authority, forms an in- tegral part of the government's Long Term Housing Strategy. The purpose of the scheme is to promote home purchase by assisting lower-middle income families to purchase flats of their own in the private sector. Eligible applicants are offered interest-free loans, repayable up to 20 years, to help overcome the problems of initial financing faced by many families wishing to buy their own homes.

      After one year, the authority carried out a review of the scheme, and this resulted in a number of changes. The more significant of these were the extension of eligibility to families in the private sector in addition to existing applications from sitting or prospective tenants in public sector housing, an increase of the loan from $70,000 to $110,000 and relaxation of the restriction on the age of property to be purchased from five years to

10 years.

For budgetary purposes, a quota of 6 000 loans was set aside for 1989-90. During the year, a more flexible approach was adopted regarding the application period in that applications remained open until further notice in the light of general response. A total of 10 000 applications were received, of which 5 500 (55 per cent) were from public hous- ing applicants, and 4 500 (45 per cent) from the private sector. Altogether, 6 000 applicants were found eligible. A total of 2 500 loans were granted. As a result, 650 loan recipients had served notice-to-quit, their public housing units being recovered for re-allocation to other families.

Allocation

The Housing Authority owns and manages 621 000 rental flats in 135 housing estates. These flats are of different sizes, amenities and rent levels to meet the wide-ranging requirements of families in need of public housing.

      During the year, 41 600 new flats and 8 000 vacated flats were let to the various categories of eligible applicants. The biggest share went to Waiting List applicants (32 per cent), followed by tenants involved in the redevelopment of the old Mark I and II blocks and in the comprehensive redevelopment programme (26 per cent), and families affected by development clearances (15 per cent). Junior civil servants, victims of fires and natural disasters, occupants of huts and other structures in dangerous locations, compassionate cases recommended by the Social Welfare Department, families affected by Kowloon Walled City clearance and applicants from Temporary Housing Areas took up the rest of the flats.

       The Public Housing Waiting List and allocation of rental flats have been computerised, with information on nearly three million applicants and tenants being stored in the Hous- ing Applications and Tenancies Management Information System. The system enables

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housing allocation and duplication checks to be carried out effectively and produces useful statistical information.

During the year, 15 800 flats, mainly in Tuen Mun, Sha Tin, Tsuen Wan, Junk Bay and Tai Po, were allocated to successful Waiting List applicants. Waiting time varied from eight years for estates in Sha Tin to three years for those in Tuen Mun.

Applications for public rental housing through the authority's Waiting List were con- sidered in the order of registration and in accordance with the choice of districts in- dicated by applicants. Accommodation was offered to those who, on investigation, were found eligible in respect of their family income and residence in Hong Kong. The income limits range from $4,400 for a family of two to $9,400 for a family of 10 or more. The number of 'live' applications at the end of the year stood at 135 000. In addition, there were 25 000 applications on the Single Persons Waiting List which was established in January 1985. The income limit for single persons is $3,000.

The authority provides a priority scheme under which elderly couples or single elderly persons applying in groups of two or more will be allocated public housing within two years. So far, 6 300 flats have been allocated to this category. In 1982, the authority approved an incentive scheme under which families with elderly parents are allocated housing one year ahead of their normal waiting time. So far, 4 400 families have benefited from this scheme. In 1986, the authority introduced a sheltered housing scheme with a warden service for able-bodied elderly people. In 1989, the scheme's second sheltered housing project was opened at Tai Wo Estate in Tai Po, where 138 units were allocated to applicants attaining 60 years of age who were eligible under the compulsory rehousing categories, and to qualified elderly applicants from the Single Persons Waiting List and the Elderly Persons Priority Scheme.

Rent Policy for Public Housing

With the help of heavy government subsidies in the form of free land and low-interest loans, rents for domestic premises in public housing estates have been maintained at low levels, despite increasing operating and maintenance costs.

   On the recommendation of the Domestic Rent Policy Review Committee in December 1986, domestic rents for new public housing estates are set so as not to exceed a median rent/income ratio of 15 per cent. Rents at present stand at $24.2 per square metre for the newest urban estates, but are adjusted downwards for others of lower estate values. These rent levels represent about one-third of current market rents.

   Rents are reviewed on a biennial basis and adjusted to take account of increases in rates, maintenance and other costs, estate values in terms of location, facilities and services provided, as well as tenants' ability to pay. On average, public housing tenants are paying seven per cent of their income as rent. Owing to the very low rents in old estates where maintenance and improvement costs are high, there is an overall deficit in the Housing Authority's estate working account for domestic properties.

   Some 780 premises in estates and HOS courts are let for the provision of welfare and community services. They are charged at a concessionary rent of $19 per square metre per month, exclusive of rates. In addition, offices are let at full market rents to District Board and OMELCO members, and Urban and Regional Councillors.

Management

As an integral part of the management process, the Chairman of the Housing Authority regularly pays goodwill visits to housing estates and HOS courts, meeting community

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representatives. Such visits are also made by members of the authority and the Management and Operations Committees, accompanied by senior officers of the depart- ment, to meet members of mutual aid committees and residents' associations for in- formal exchanges of views on the management of the estates and HOS courts. At estate level, the housing manager also holds meetings with mutual aid committee and resident association officer-bearers.

Under the existing housing subsidy policy, tenants who have lived in public housing estates for 10 years or more and whose household incomes exceed the subsidy income limit which is twice the Waiting List income limit are required to pay double net rent. In the first year of implementation of the policy, 21 per cent of the 41 000 affected households with 23 or more years of residence in public housing estates had to pay double net rent. In the second year of implementation, 26 per cent of the 62 000 affected households with 19 to 22 years' residence in public housing estates were required to pay double net rent.

       The current year involves 62 000 households with 14 to 18 years of residence in public housing estates. In addition, 25 000 households who were exempted from payment of double net rent two years ago because their household incomes were below the sub- sidy income limit, are also due for review of their incomes. If their household incomes are found to exceed the subsidy income limit, they will be required to pay double net rent in April 1990.

       The first sheltered housing run by the department was opened in November 1987 at Heng On Estate, Ma On Shan, to house 145 able-bodied persons aged 60 years and over. The next three projects at Tai Wo Estate, Tai Po; Kwong Yuen Estate, Sha Tin, and Cheung Fat Estate, Tsing Yi, were due for completion during the year. Similar facilities will be incorporated in 17 more estates over the next five years.

With six HOS courts already under the care of private property management agents, a further scheme is being tried in five new courts where the agents will be expected to as- sume the management role as soon as the buildings are taken over. Under the agency management scheme, the authority remains ultimately responsible for the management standards.

       Under the Housing (Traffic) By-laws, the authority is empowered to impose charges for impounding and removing vehicles illegally parked in housing estates. The roads in 122 rental estates, nine factories, 38 HOS courts and 25 THAs are now under the authority's control.

      A three-year contract, effective from November 1987, was awarded to a private management company to manage carparks in 28 selected estates as a pilot scheme. The authority conducts half-yearly reviews of the scheme.

       Staff of the Housing Management Branch have been required to work irregular hours to keep hawking activities within housing estates under control. The efforts of the Major Operations Unit resulted in 130 arrests and seizures and clearance of 480 illegal hawkers in the estates during the year. Staff at estate level carried out 9 200 cases of seizures and 1 470 prosecutions to deter illegal hawking.

Letting of Commercial Properties

The Housing Authority manages 1.22 million square metres of commercial space, including shops, market stalls, banks, restaurants and flatted factory units, as well as a new stock of 60 000 square metres completed in 1989.

       All these spaces are held under some 27 500 separate tenancies. Rental income, including carpark charges collected during 1988-9, amounted to $1,401 million.

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The stock includes 6 673 'graded' shop tenancies in former resettlement estates. These shops were initially let at very low rents and current rents are, in most cases, less than one-third of current market levels despite moderate biennial increases since 1976. Rents for other commercial premises are fixed at market levels, in keeping with the authority's policy not to subsidise commercial operators.

   Under the Commercial Properties Committee, research and design were emphasised to ensure that new shopping centres are best suited to the needs of both tenants and local residents, and existing centres were upgraded where necessary. Promotional activities were held in more than 60 centres to sustain and enhance their competitiveness. Shops and market stalls continued to be let mainly by rental tender, although increasing num- bers of premises were let by negotiation to well-known retailers, including a Japanese department-store chain in Lok Fu Centre II. The letting of an entire market to one single operator was concluded as an experimental scheme during the year. Similar letting arrangements may be applied to other selected new markets in future.

The arrangements by which a rent review is conducted every six months to ensure that tenants affected by the Extended Redevelopment Programme are not being asked to pay rent in excess of market value, have been extended to cover tenants affected by the Comprehensive Redevelopment Programme. Tenants required to vacate their premises to facilitate redevelopment receive an ex-gratia payment and, where possible, reprovisioning in alternative premises through restricted tender. A three-month rent-free period is then granted.

Temporary Housing

Temporary Housing Areas (THAs) continued to play an important role in providing places for people made homeless by natural disasters or displaced by development clearances, but who are not immediately eligible for permanent housing.

During the year, 12 000 people, mostly affected by development clearances, were allocated units in THAS, but at the same time 30 000 people moved out mainly to per- manent public housing through the general Waiting List or clearances of THAs.

Temporary housing spaces for 18 000 people were completed in the year, against a loss of 13 000, mainly due to the development of existing sites. While THAs with 16 000 person spaces were under construction, there was still an acute shortage of sites for THA develop- ment in the urban areas.

At the end of the year, there were 74 THAs throughout the territory housing 110 000 people from 38 000 families.

Residents of THAs have priority in the purchase of HOS flats or may be granted an interest-free loan of $110,000 to buy a flat in the private sector under the newly-introduced Home Purchase Loan Scheme.

Transit Centres

At the end of the year, there were 10 transit centres with a capacity of 2 100 person-spaces providing emergency accommodation for those rendered homeless by fires, typhoons, or other natural disasters. These people will eventually be rehoused in permanent or tempo- rary housing, according to their eligibility.

Cottage Areas

There were seven remaining cottage areas scattered throughout the territory, providing accommodation for 10 400 people. The largest, the Rennie's Mill Village Area at Junk Bay, houses 5 600 people.

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Squatter Control

Daily patrols and hut-to-hut checks have been effective in keeping squatting activities under strict control.)

      Each squatter patrol team consists of a housing assistant supported by workmen equipped with demolition tools. During the year 7 100 new unauthorised structures or extensions to existing structures were demolished on government land and leased agri- cultural land.

       The squatter population was reduced from 376 000 to 330 000 and domestic structures from 118 000 to 110 000 as a result of clearances, natural disasters and rehousing through various channels.

Improvements to Squatter Areas

The comprehensive Squatter Area Improvement Programme is aimed at safety and providing basic services in squatter areas not yet due for clearance and redevelopment for a minimum of three to four years.

      In the first five years this programme was enforced in large and densely-populated settlements in the urban area and Tsuen Wan. However, for the past two years, it has been extended to smaller and less densely-populated areas. Where required, a separate street lighting programme is carried out.

       During the year, 11 comprehensive projects were completed and another five were under construction. In addition, 203 street lights were installed in 14 squatter areas not required for comprehensive improvements.

      When the improvement programme is completed in 1990, some 120 000 persons will have benefited from it. The cost of the whole programme amounts to $182 million.

Clearance

During the year, 420 hectares of land were cleared for development. This resulted in 27 000 people being given permanent housing and 11 000 temporary housing. Some 1 500 in- dustrial, commercial and agricultural undertakings affected by clearances were awarded ex-gratia allowances. A total of 3 000 people who became homeless as a result of fires and landslips were provided with permanent or temporary accommodation.

Kowloon Walled City Clearance

The Kowloon Walled City covers 2.7 hectares and encompasses some 30 000 people and 930 commercial undertakings. Since January 14, 1987, when the government announced its decision to clear the Walled City, good progress has been made. The clearance is being undertaken in four phases by the Special Duties Office.

Phases I and II have been completed and 13 000 people have moved to new homes. The whole clearance programme is expected to be completed in mid-1992. After the clearance, the site will be developed by the Urban Council into a public park with related community facilities. Construction work on this is expected to begin late in 1992.

       At the end of 1989, 14 500 residents had been rehoused and the operators of 296 commercial undertakings had accepted cash compensation totalling $86 million.

Management of Private Residential Buildings in Multiple Ownership

Privately owned buildings constitute more than half the territory's housing stock and accommodate about half the population. Most of these buildings are high-rise blocks

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which are held by a number of owners who may or may not be residents of the building. The nature of ownership of these buildings, combined with other factors, has resulted in a situation over the years where the management of some private properties has dete- riorated.

Although the management of privately owned buildings is the responsibility of property owners, the consequences of consistent neglect are of serious concern to the government. The government is, therefore, taking steps to provide a better legal and administrative framework to enable those concerned to manage their properties more effectively.

Draft legislation to amend the Multi-Storey Buildings (Owners' Incorporation) Ordin- ance is being prepared to make it easier to form owners' corporations, to improve their functioning, and to define more clearly the powers and responsibilities of the corpora- tions' management committees. Such corporations act in the interests of individual owners regarding their rights, powers, duties and liabilities in relation to those parts of a building held in common ownership. Although the existence of an owners' corporation does not guarantee good management of a building, it has been found from experience that manage- ment standards in buildings which have owners' corporations have generally been better than in cases where no comparable management body exists.

To involve the public in developing policies on building management, an Advisory Committee on Private Building Management was established in November 1988. This committee consists of a majority of non-official members and advises the government on measures to improve the management of private buildings.

Separately, the government is concerned about the problems associated with existing Deeds of Mutual Covenant, many of which fail to protect adequately the interests of individual flat owners. The public was consulted from February to May 1989 on proposals to remedy unfair clauses in the covenant. Measures to remove the unfairness are being formulated having regard to the views of the public and in consultation with the Advisory Committee on Private Building Management.

So far, 12 Building Management Co-ordination Teams have been set up to offer advice to owners' corporations, mutual aid committees and other building management bodies, at district level. These teams of professional housing managers and assistants play an important role in encouraging the formation of owners' corporations and in providing advice to members of management committees. They also work towards improving public awareness in building management matters through seminars and discussion groups.

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 under constant review to improve its working and to achieve the objective, recommended in 1981 by a Committee of Review and endorsed by the govern- ment, 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 exempted. 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

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     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 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.

      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 November 1989 when the legislation was amended to provide for permitted rents to be 43 times (previously 39 times) the standard rent (i.e. the rent payable in respect of the unfurnished premises on or most recently before December 25, 1941). 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 compensation 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 buildings first certified for occupation after June 18, 1981, nor to new lettings created on or after June 10, 1983, nor to tenancies of premises having a rateable value of or above $30,000 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. 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 65 per cent of the prevailing market rent, the permitted increase will be an amount necessary to bring the current rent up to 65 per cent of

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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 enabling tenancies to be transferred, under certain statutory conditions, from the ambit of Part II to Part IV.

14

LAND, PUBLIC WORKS AND UTILITIES

THE primary objectives of the Hong Kong Government's lands and works policies are to ensure an adequate supply of land to meet the short-term and long-term needs of both the public and private sectors, to optimise the use of land within the framework of land use zoning and development strategies and to ensure co-ordinated development in infra- structure and buildings.

On September 1, 1989, the Lands and Works Branch was re-organised into two separate policy branches - the Planning, Environment and Lands Branch and the Works Branch - each headed by a Secretary. The aim was to improve the institutional framework to ensure the integration of the planning and environmental functions as well as to devote greater attention to the formulation of works policies and the implementation of the public works programme.

Both Secretaries are members of the Land Development Policy Committee, which is chaired by the Chief Secretary, and is responsible for overseeing all aspects of the physical development of the territory and for approving, in principle, all major proposals affecting the development or planned use of land. The Secretary for Planning, Environment and Lands is the Chairman of the Development Progress Committee, which is responsible for monitoring the general progress of the physical development of the territory as well as considering and approving detailed planning briefs, layouts and development plans. He is also Chairman of the Town Planning Board.

In addition to his policy functions, the Secretary for Planning, Environment and Lands oversees the operation of the Environmental Protection Department and the Buildings and Lands Department. He also oversees the new Planning Department, created in January 1990. The Planning Department is organised into two main streams dealing respectively with territorial and district planning matters.

The Secretary for Works oversees the operation of the seven works departments, namely Architectural Services, Civil Engineering Services, Drainage Services, Electrical and Mechanical Services, Highways, Territory Development and Water Supplies Departments. The Drainage Services Department, being established in stages since July 1989, is responsible for the planning, construction, operation and maintenance of all drainage infrastructure in the territory.

Land Disposal

All land in Hong Kong is held by the government which sells or grants leasehold interests. Such grants and leases are now made in accordance with the terms set out in Annex III to the Sino-British Joint Declaration. The total amount of new land to be granted is limited to

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  50 hectares a year, excluding land to be granted to the Hong Kong Housing Authority for public rental housing, although the Land Commission may increase this limit. Premium income obtained from land transactions is shared equally, after deduction of the average cost of land production, between the Hong Kong Government and the future Hong Kong Special Administrative Region Government.

Normal land grants and leases are now made for terms expiring not later than June 30, 2047. They are made at a premium and nominal rental until June 30, 1997, after which date an annual rent equivalent to three per cent of the property's rateable value will apply.

Public Works and Development

To cope with Hong Kong's future development, the government continues to invest heavily in capital works. In 1989-90, funds allocated for capital works amounted to $9,877 million, representing about 14 per cent of government's total approved expenditure for the period. About 58 per cent of the provision was for civil engineering, environmental protection and highways projects. About 35 per cent of the provision was for building items and eight per cent for waterworks. Of the total investment in capital works for 1989-90, 42 per cent was for projects in new towns and new urban development areas. In addition $2,955 million was allocated for acquisition of land for public works projects.

Forward Planning

  Since the beginning of the 1970's Hong Kong has relied on its new town programmes for the greater part of its urban expansion, including the provision of land for industry. At present, eight new towns are in various stages of construction in the New Territories, resulting in a gradual decentralisation of population from the crowded urban areas. About 2.0 million people, or 35 per cent of the population, are now living in the new towns. By 1998, this figure is expected to increase to about 42 per cent.

In 1983, it was concluded after extensive strategic studies that the optimal areas for further expansion beyond the new towns would be on new reclamations in the harbour. It was also recognised that the port of Hong Kong, where many of the more centralised facilities had been redeveloped for other uses in the 1970's, would require further expansion in the Western Harbour.

   In 1986 and 1987 it became clear that three major problems needed further and urgent - attention:

first, that both port and airport facilities were approaching saturation much faster than expected in the earlier strategic studies;

• second, the higher environmental standards of the new towns showed up the poor environmental quality of large parts of the metropolitan areas; and,

third, the environmental quality and minimal provision of services in the rural areas had become a source of increasing dissatisfaction to its residents.

   This gave rise to three studies: the Port and Airport Development Strategy study, the Metroplan study and the Rural Planning and Improvement Strategy study.

   The Port and Airport Development Strategy study, which is concerned with the phased provision of new port, airport and related infrastructure facilities, started in March 1988. Work on this important study was brought to a conclusive stage in mid-1989 resulting, in July, in a submission to the Executive Council of three optional strategies. A final decision by the council was made in October in favour of a strategy that provides for the de- velopment of a replacement airport at Chek Lap Kok located on the northern coast of Lantau Island. The aim is to commission the first runway by early-1997. The strategy also

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provides for the development of Container Terminals 8 and 9 on reclamation at Stone- cutters Island and south-east Tsing Yi Island respectively. Further long-term port develop- ment is planned for North Lantau and at Tuen Mun West. Associated with all these projects are major new highways and an airport passenger rail link.

      (Details of the Port and Airport Development Strategy are illustrated in the end-paper map at the end of this Report).

The Metroplan study will provide a framework for the more comprehensive re- structuring of urban areas around Victoria Harbour through redevelopment and the creation of new sites by reclamation and the terracing of hill slopes. This study has reached an advanced stage involving the formulation of nine initial options which, through a careful and complex process of evaluation, have been reduced to one 'hybrid' plan that takes account of the relocation of the airport to Chek Lap Kok. In parallel with this work, a second booklet comprising a digest on the initial options has been produced for public consultation. Also, a Landscape Strategy for the Urban Fringe and Coastal Areas has been produced as a guide for detailed planning. The final phase of work on Metroplan will involve the formulation of more specific land use transport proposals and various devel- opment guidelines. This work will take account of the results emerging from feasibility studies for major reclamation projects at Central/Wan Chai, West Kowloon and Green Island. The aim is to complete Metroplan by April 1990.

The Rural Planning and Improvement Strategy proposal is aimed at improving living conditions and the general environment of the New Territories outside the new towns. This study covers the essential infrastructure for rural development and also the planning and land administration strategy for its implementation. Policy guidelines were approved by the Executive Council in March 1989 and the next steps are to produce sub-regional planning statements, detailed layout plans and rural development works programmes.

Water

To cope with Hong Kong's future demand for water, the government has completed a conceptual plan for increasing the China water reception and distribution facilities in Hong Kong. When completed, the expanded system will be able to receive 1 100 million cubic metres of China water per year which will be sufficient to meet the anticipated water demand in the early 2000's.

Professional Registration

Legislation to provide for professional registration of architects and engineers was introduced into the Legislative Council in July 1989. Similar bills for surveyors and planners are expected to be introduced in 1990.

Land Administration and Supply

The Land Administration Office of the Buildings and Lands Department co-ordinates all aspects of land administration throughout the territory.

The first priority in land supply is to make sufficient land available for the government's development programmes, including the public housing programme. Land for the Hong Kong Housing Authority's public rental estates is provided free by the government, as is land for the residential element of the authority's Home Ownership Scheme. Land for the rental estates constructed by the Hong Kong Housing Society, a non-profit-making body with aims similar to those of the Housing Authority, is provided on concessionary terms. Land is also granted by private treaty, at nil or nominal premium, to non-profit-making

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charitable institutions which operate schools, hospitals, social welfare and other com- munity services in accordance with the government's policy objectives.

   Most government land available for private sector commercial, industrial or residential development is sold by public auction or tender. Regular auctions are held and a provisional land sales forecast is published at regular intervals. In the New Territories, however, where much of the land required for development has to be acquired by the government, a high proportion is disposed of by tenders restricted to holders of Land Exchange Entitlements (Letters A/B). Since 1983, when Letters A/B were last issued, the amount of entitlements outstanding has decreased from $36 million to $11 million.

   Leases for certain special purposes, which are affected by particular site requirements or other factors which are inappropriate for disposal by public auctions, are also offered for sale by public tender. Special purposes include capital-intensive industries which intro- duce new technology and cannot be adequately accommodated in more conventional multi-storey flatted factory buildings. These sales are initiated only in response to formal applications and, in certain circumstances, may be concluded by direct private treaty.

Land Acquisition

When private property needed for the implementation of 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, the Land Acquisition (Possessory Title) Ordinance, the Mass Transit Railway (Land Resumption and Related Provisions) Ordinance, or through the Roads (Works, Use and Com- pensation) Ordinance. These ordinances provide for the payment of compensation based on the value of the property at the date of acquisition. If agreement cannot be reached on the amount payable, either party can refer the claim to the Lands Tribunal for adjudication.

Where land is acquired in the New Territories, a system of ex-gratia payments applies, with enhanced rates for land situated within the new town development areas and progressively lower rates for land situated outside these areas. In the case of building land, an ex-gratia payment is offered in addition to the statutory compensation. A system of ex-gratia payments also applies in the case of old scheduled lots acquired in the urban area.

   The need for development has continued to grow. During 1989, about 1.2 million square metres of private land was acquired in the New Territories to carry out various public works projects and the total land acquisition and clearance costs involved were about $1.8 billion. These projects included the Yuen Long-Tuen Mun Eastern Corridor and Yuen Long West Link; the West New Territories Landfill - Initial Phase in Tuen Mun; the formation and servicing of the North District Hospital site at Fanling; and the North West New Territories Development - Sewage Treatment Plant (Stage I) effluent tunnel/outfall, also at Tuen Mun.

   In the urban areas of Hong Kong Island and Kowloon, about $1.1 billion was paid in compensation for land and buildings acquired during the year for public works projects, either under compulsory powers or by agreement. These projects included the Tate's Cairn Tunnel and Approaches; the Choi Ha Road Southern Extension; the Kwun Tong By-Pass Phase II; the Wyndham Street and Connaught Road improvements; and the Kowloon Walled City Clearance.

Land Office

The Land Registration Ordinance provides for the registration in the Land Office, a Division of the Registrar General's Department, of all instruments affecting land.

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Registration is effected by means of a memorial containing the essential particulars of the instrument which are then placed on a register card relating to the particular piece of land. Register cards are kept also in respect of individual premises such as residential flats, shops and commercial and industrial premises. The register cards provide a complete picture of the title to each property from the grant of the government lease and are available for search by the public in photostat form on payment of a small fee. The memorials and a complete copy of each registered instrument are kept and are available for search in microfilm form by the public, again on payment of a fee.

The ordinance also 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 relates back to the date of the instrument. In the case of charging orders made by the court and pending court actions, priority runs from the day following the date of actual registration. The ordinance further provides that unregistered instruments, other than bona fide leases at a rack rent for a 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.

       The records of transactions affecting land on Hong Kong Island and in Kowloon, New Kowloon and some of the urban areas of the New Territories are kept at the Land Office, Victoria, while those relating to transactions affecting land in the remainder of the New Territories are kept in the appropriate District Land Offices in the New Territories. During the year, 350 393 instruments were registered at the Land Office, compared with 355 576 in 1988. Detailed statistics are at Appendix 34. At the end of the year, the card index of property owners contained the names of 709 485 owners, an increase of 50 038 over the previous year.

Work on the computerisation of information on the Land Office register cards, with a view to introducing a computerised land registration system, continued during the year, and conversion into computerised data began in November 1986. This exercise is expected to be completed by late 1990.

The office also provides a conveyancing and legal advisory service to the government for all government land transactions and associated matters. It is responsible for the issue, renewal, variation and termination of government leases as well as the drafting, completion and registration of conditions of sale, the grant and exchange of government land, the granting of mining leases, the registration of owners' corporations, the apportionment of government rents and premia and the recovery of outstanding 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 Financial Secretary Incorporated in connection with the extension of non-renewable government leases, mortgages to secure interest-free loans to private schools, the purchase of properties for government staff quarters and group housing schemes for the elderly.

Land Sales

Notable land transactions in 1989 included the grant of a 58.7 hectare site in Sai Kung for the new Hong Kong University of Science and Technology, and the grant of a site of 5.65 hectares in Tai Po for the relocation of the Nethersole Hospital. Prompted by environmental considerations, a significant land exchange was completed which will enable Mobil oil depot opposite Mayfair Gardens in Tsing Yi to be relocated on a site in the south-west of the island.

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The strong growth of the economy during 1988 fuelled demand for prime commercial space in the urban area resulting in rentals and land values continuing their upward climb, particularly in the early part of 1989. There was keen interest at an auction in January for a commercial site of 7 230 square metres adjacent to the Hong Kong Exhibition Centre in Wan Chai, now a well-established business district. Inland Lot 8888, the last major site currently available in Central, was offered for tender in May. The exercise attracted bids from five major developers. Although the closing date for tenders followed closely upon events in China in early June, the tender result was looked upon as a positive indication of confidence in the future of Hong Kong. This confidence was further demonstrated in subsequent land auctions.

   Another interesting site put up for sale by tender was on the Peak, adjacent to the Peak Tram Terminal. The site is to be redeveloped in a way that enhances its importance as a city landmark. It will include residential, commercial and community facilities.

At Tsing Yi 1.93 hectares of land were granted to the Hong Kong Housing Society which upon completion will provide some 1 800 residential flats.

   Three sites with a total area of 3.79 hectares were sold under the Private Sector Participation Scheme and are expected to provide about 3 700 flats.

Eleven sites were granted to the Hong Kong Housing Authority for the development of Home Ownership Schemes. These included a 2.25-hectare site in Wang Tau Hom, a 2.48-hectare site in Lam Tin and a 1.69-hectare site in Tseung Kwan O.

In the New Territories, a 1.277-hectare site in Fanling and a 2.729-hectare site in Sha Tin were offered by tender restricted to holders of Land Exchange Entitlements (Letters A/B). Both sites were for commercial/residential use.

Town Planning

Hong Kong's land area is about 1 074 square kilometres. About 80 per cent of the territory consists of hilly land which is too steep for economical large-scale comprehensive development. The main urban built-up areas are still concentrated on the northern coast of Hong Kong Island and Kowloon Peninsula. To accommodate the needs of the growing population and the economy, the use of the limited land resources must be planned very carefully to ensure that it is both effective and provides a good living and working environment. The table at Appendix 35 shows the current distribution of land uses in the territory.

Territorial Development Strategy

The Territorial Development Strategy provides general direction for the long-term development of Hong Kong to cater for the target population and associated socio- economic activities, and to produce the highest-quality environment within resource and time constraints. During 1989, further updating of the strategy and review of an outline works programme to provide a guide to major long-term development projects con- tinued and took into account the findings of major on-going studies including Metroplan, the Port and Airport Development Strategy study, and the Second Comprehensive Trans- port study.

Sub-Regional Planning and Rural Planning

In line with the Territorial Development Strategy, detailed sub-regional planning state- ments and district plans are prepared to provide guidance for more detailed land use planning and development control. Resulting from the Rural Planning and Improvement

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Strategy, the non-metropolitan sub-regional planning statements are being reviewed, priority being given to those for the north-western and south-western New Territories. In addition, site search exercises were conducted to identify the most suitable locations for major facilities.

Planning Standards and Studies

The Hong Kong Planning Standards and Guidelines provides a basis for the designation of land for various uses, such as community, recreational, commercial and industrial facilities, the density of different types of residential developments and environmental, locational and site requirements, all of which need to be considered in the preparation of town plans and planning briefs. The document is constantly under review to take account of changes in government policies, demographic characteristics and social and economic trends. Changes to the standards and guidelines are approved by the Land Development Policy Committee. Reviewed during the year were sections related to children's and youth centres, community centres, cooked food centres, markets, refuse-collection points, sports complexes, and parking and loading/unloading facilities for various types of development.

Surveys on land and floor uses covering the whole territory are carried out or updated to provide basic input for the preparation of statutory and departmental plans. Land use surveys were completed for Happy Valley, Tai Tam, Sheung Wan, Ho Man Tin, Cheung Sha Wan, Lei Cheng Uk, Pak Tin, Ngau Chi Wan, Wang Tau Hom, Sau Mau Ping, Lei Yue Mun and Ma Yau Tong. Studies were conducted on special topics such as the planning implications of relaxing airport height restrictions, industrial activities in Tuen Mun, industrial buildings constructed with special requirements, alternative approaches to assessing industrial floorspace requirements, industrial land use in Quarry Bay, open space in private housing estates, and cycle-parking facilities. Regular studies, such as the forecast of future land supply and land requirements, are also carried out to provide information for planning and development of the territory. Other studies completed or in progress include retail facilities in private residential estates, occupation ratios for public and private housing, the Tertiary Planning Unit/Street Block system, and office automation.

Design and Layout

The Design and Layout Unit of the Town Planning Office provides urban design services and advice for the preparation of outline development plans, layout plans and planning applications which require special design and landscaping treatment.

District Planning

At the district level, two types of plans are prepared, statutory and departmental. Their purposes are to control land use, building volume and development characteristics on in- dividual sites to meet the demands of the territory's growing population and to ensure, as far as possible, adequate provision of required community facilities and public utility services.

       The Town Planning Ordinance provides for the preparation of statutory town plans, known as outline zoning plans, by the Town Planning Board, with the aim of promot- ing the health, safety, convenience and general welfare of the community. These plans show areas designated for residential, commercial, industrial, open space, government/ institution/community or other specified purposes. They provide a framework for the development and use of land and serve as a guide for public and private investment.

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They have statutory effect once exhibited for public inspection, and any plans relating to building works submitted under the Buildings Ordinance may be disapproved by the Building Authority if they contravene a statutory outline zoning plan.

   In 1989, the Town Planning Board exhibited 12 statutory outline zoning plans, including one new plan covering Tsuen Wan West and 11 amendment plans for various districts in the territory. During the exhibition of these plans, a total of 101 public objections were received by the board and amendments to some of the plans were made to meet these objections.

At the end of the year, 45 statutory outline zoning plans covered the main urban area as well as Tsuen Wan, Tsuen Wan West, Kwai Chung, Tsing Yi Island, Sha Tin, Tai Po, Tuen Mun, Fanling-Sheung Shui, South Lantau Coast and Ma Wan. Eighteen of them have been approved by the Governor in Council.

   Attached to and forming part of each plan is a schedule of notes setting out the land uses which are permitted as of right in particular zones or which may be permitted with or without conditions on application to the Town Planning Board. The system of application for planning permission allows greater flexibility in land use planning to meet community needs. The ordinance also provides an applicant whose application is refused by the Town Planning Board with the right to request the board to review its decision. During the year, the board considered 282 applications for planning permission and 33 applications for review, as compared with 248 and 42 respectively in 1988.

   An area may be designated a 'Comprehensive Development Area' or a 'Comprehensive Redevelopment Area' on a statutory outline zoning plan. This is intended to promote development or redevelopment in a comprehensive manner, often including the provision of a range of related community facilities and open space. Developments within these areas must have planning permission from the Town Planning Board and applications for planning permission should be in the form of a master layout plan. During the year, five applications for approval of master layout plans were considered by the board.

   Outline development and layout plans are used administratively within the government to guide development. While both are prepared within the framework of the sub-regional planning statements and statutory outline zoning plans, layout plans are usually of local significance and apply to newly-formed land or to areas requiring comprehensive re- development. They are action plans enabling land to be prepared and released for public and private development. Compared with statutory plans, they are normally drawn to a larger scale, showing development proposals and the disposition of sites in greater detail.

Review of Town Planning Ordinance

The Town Planning Ordinance now in force was enacted in 1939. Although amendments have been made to the ordinance over the years, the essence of the legislation remains basically unchanged. The ordinance is now considered to be inadequate to cope with today's rapidly changing socio-economic and political conditions.

   An advisory group set up in 1988 has made recommendations for new planning legislation. These are being studied by the Planning, Environment and Lands Branch with a view to putting forward proposals for new legislation in 1990.

Planning Information

The Central Information Unit of the Town Planning Office provides a channel through which planning information is released to the public. The unit promotes public under- standing of town planning and development in Hong Kong by issuing pamphlets,

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reports and other publications. A revised edition of the booklet Town Planning in Hong Kong was published in January 1989 and is on sale to the public. Briefings, lectures and seminars were arranged to explain to district boards, local residents' associations, educa- tional institutions and other organisations, the concept and process of town planning in Hong Kong and also specific planning issues.

      As the community becomes more concerned about the living and working environ- ment, planning information is increasingly sought. Altogether, 3 700 enquiries from members of the public were handled by or through the unit in the year. Those seeking planning information included professionals, property owners, developers, journalists, academics and students. The unit has also briefed 33 delegates and 257 visitors from overseas on town planning in Hong Kong.

New Towns and Rural Townships

The initial 10-year housing programme aimed to provide proper living conditions for 1.8 million people. To meet this objective, new town development programmes were drawn up in 1974 to co-ordinate planning and construction activities for the provision of land, infrastructure and a full range of social, educational and recreational facilities in the New Territories. Since then, the programmes have been substantially increased and extended into the 1990s. The present population design capacity of the eight new towns at Sha Tin, Tai Po, Fanling, Yuen Long, Tin Shui Wai, Tuen Mun, Tsuen Wan and Tseung Kwan O and rural townships is 3.5 million. At present, more than two million people are living in the new towns.

      The New Territories Development Department was created in 1973 to plan and implement the new town development programmes. Since 1986, the department has extended its role to cover further development in the urban areas and its title has been changed to Territory Development Department.

      The department is constituted on a multi-disciplinary basis and includes professional officers with expertise in civil engineering, town planning, architecture and landscap- ing. They work closely with the Housing Department, the City and New Territories Administration, Urban Services Department, Regional Services Department and other government departments to ensure that development objectives are met economically, efficiently and in accordance with the development programmes.

In addition to participation by other works departments and consultants, the private sector has also been actively taking part in the development of comprehensive housing schemes within the new towns and rural townships.

Tsuen Wan and Kwai Tsing

With the recent completion of Tsuen Wan Bay reclamation off Yeung Uk Road, Tsuen Wan New Town - including Kwai Chung and Tsing Yi - has expanded to cover an area of 3 300 hectares and to house 700 000 people. When all major developments are completed in the mid-1990s, it will have a population of about 720 000 with 290 000 job opportunities in the manufacturing industry.

Since the opening of Tsing Tsuen Bridge to provide an alternative route between Tsing Yi Island and the mainland in late 1987, developments on the island have progressed at a faster pace. The Cheung On and Cheung Fat public housing estates in the north-eastern part of Tsing Yi Island have been completed, providing homes for 43 000 people. The Cheung Hang public housing estate and a private residential housing development, now under construction, will accommodate another 21 000 people. Two other housing estates,

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constructed under the Housing Authority's Private Sector Participation Scheme and by the Housing Society, will be built in Tsing Yi Town Centre providing accommodation for a further 9 000 people.

The construction of Container Terminal 6 is substantially complete and most of the facilities are in operation. Container Terminal 7, scheduled to be completed in 1990, will provide an additional 31 hectares of land for the world's busiest container port.

Several major highway projects, to improve the busy Kwai Chung Road linking Kwai Chung with Kowloon, have been progressing satisfactorily. An additional road link off Kwai Chung Road to the Container Port is under construction to cope with additional traffic resulting from continuing port expansion. The Tsuen Wan section of Route 5, linking Tsuen Wan with Sha Tin, is due to be completed early in 1990. Road improvement schemes on Texaco Road and Kwan Mun Hau Street have commenced to alleviate traffic congestion in Tsuen Wan district.

The basic services to Kwai Chung Park at Gin Drinker's Bay have been completed and the construction of a garden, a miniature golf course and playgrounds will proceed. The completion of Tso Kung Tam outdoor recreation centre has provided further recreational facilities including swimming pools, tennis courts and a jogging trail, in addition to dormitories for overnight campers.

The newly-reclaimed land off Yeung Uk Road is being planned for modern commercial/ residential developments which will revitalise Tsuen Wan town centre. Plans are also being drawn up to implement environmental improvements to, and expansion of, the existing villages to the north of Tsuen Wan.

Sha Tin

The development of Sha Tin began in 1973. The population has since grown from 30 000 to 530 000 and is expected to reach 700 000 by the end of the century, when about 60 per cent of the population will live in some form of government-subsidised public housing. The new town has reached a relatively advanced stage of development and most of the works carried out during 1989 were intended to complete or enhance its infrastructure and provide community facilities.

The increasing population in Sha Tin, Tai Po and North districts continued to cause traffic congestion on Sha Tin's external transport links although much effort has been made to improve the road system. The situation will improve when Route 5, a road tunnel from Sha Tin to Tsuen Wan and West Kowloon, is completed early in 1990. Work has also started on the Sha Tin approaches to Tate's Cairn Tunnel which will provide a road link to East Kowloon by mid-1991.

In the newly-developing areas in Ma On Shan, work has started on the construction of roads and drains to meet the target of accommodating another 200 000 people by the end of the century.

Modification to the Sha Tin Sewage Treatment Works is in hand to further improve the quality of effluent and the water quality of Tolo Harbour. In addition to various other community facilities, work has also started on a 3.6-hectare district open space which will include the territory's first full-size grassed public baseball pitch.

Tuen Mun

Tuen Mun is being developed mainly on land reclaimed from Castle Peak Bay and on platforms formed in the valley between Castle Peak and the Tai Lam hills. In 1989, about 11 hectares were reclaimed for residential and industrial development.

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      The present population of Tuen Mun is about 336 000, including about 247 000 people in nine public housing estates and seven Home Ownership, Middle Income Housing and Private Sector Participation Schemes. Three new rental housing estates are under con- struction and will be completed by late 1990. Over the next five years, seven more Home Ownership and Private Sector Participation Schemes will be constructed. Together, they will provide homes for some 105 000 people, bringing the population to over 500 000 by the mid-1990s.

A regional hospital providing 1 606 beds has been completed. It will be opened in five stages commencing from early 1990.

In the town centre a library, a post office and a garden have been built near the existing government offices. Expansion of the adjacent town park is approaching completion. At Butterfly Beach a comprehensive recreation area and promenade are substantially complete.

      Along the coast to the south east of the town, a marina is being built. This development consists of residential buildings, hotels, shops and recreational facilities and includes berths for 300 boats.

Existing industrial areas provide floorspace for about 2 100 companies and jobs for about 36 000 workers, mainly in plastics, garments, metal, electronics and textiles. Over 60 per cent of the workers employed in these factories reside in Tuen Mun.

The backbone of the transport service, both within the town and to Yuen Long, is the Light Rail Transit System. Extension work is in progress with the construction of reserves for three regional links in Tuen Mun. This started in May 1988 and is scheduled for completion in the latter half of 1990.

Tai Po

Tai Po New Town is situated at the north-western end of Tolo Harbour, about 20 kilometres north of Kowloon. It is well served by the Tolo Highway and two railway stations at Tai Po Market and the new Tai Wo Station which opened in May 1989.

The present population is about 179 000 and is expected to reach 270 000 by the end of the 1990s, with 175 000 in the public housing sector. Tai Wo Estate was partly completed in 1989 and has started to take in residents. Two more public housing estates and home ' ownership schemes are under construction.

      Community facilities to match the increasing population of the new town have kept pace with development and about 40 hectares of land was formed and serviced for various uses in 1989.

Tai Po Industrial Estate, which is planned for industries with relatively high technology, will broaden Hong Kong's industrial base. The estate, with a total area of 70 hectares upon full development, together with other industrial areas in Tai Po, will offer about 29 000 job opportunities. By the end of 1989, about 95 per cent of land in the estate was leased.

The development of recreation facilities in Tai Po is aimed at satisfying both local and regional demand and is enhanced by the area's particularly attractive scenic setting. The strategy for recreational provision is based on the idea of linking important facilities to each other. This will be achieved by the provision of a comprehensive system of cycleways and footpaths and an extensive network of parkland. The existing cycleway linking Tai Po and Sha Tin along Tolo Highway is extremely popular during holidays. Another major cycleway along Ting Kok Road leading to Tai Mei Tuk will be completed in 1990.

Modification to the Tai Po Sewage Treatment Works is in hand to further improve the quality of effluent and the water quality of Tolo Harbour.

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Fanling/Sheung Shui

Despite the fact that Fanling/Sheung Shui New Town is the most northerly of all the new towns and is only about four kilometres from China, it is well linked to the urban areas and other parts of the territory by the railway and the New Territories Circular Road.

The new town is now under rapid development. The present popula. on is about 125 000 and is expected to reach 235 000 by the end of the 1990s. Engineering works are in progress in several areas and about 35 hectares of land were formed and serviced for various uses in 1989.

During the year, Tin Ping Estate Phase 2, Tai Ping Estate and a Private Sector Participation Scheme were completed to accommodate a population of 22 000. The private housing sector has begun to pick up momentum with several commercial/residential developments adjacent to the Fanling and Sheung Shui railway stations now under construction.

On Lok Tsuen is the major industrial area of the new town and the main source of industrial employment for residents. Development in this industrial area is progressing rapidly with 12 industrial buildings completed during 1989. To keep pace with population growth, planning is in hand to provide additional industrial land in the new town.

At Sha Tau Kok, a small township with a population of about 3 700 adjacent to the border with China, work is in progress to upgrade and improve the services, community facilities and environment. Projects completed during the year include Phases II and III of a rural public housing estate for 1 400 persons, a community hall and some open spaces.

Yuen Long, Tin Shui Wai and the North-western New Territories

Yuen Long town has continued to grow since the start of its development in the early 1970s. In 1989, the population of the town stood at 95 000 and is expected to grow to 137 000 by the end of the 1990s.

The Light Rail Transit System between Tuen Mun and Yuen Long became operational in Autumn 1988 and measures to improve traffic flow in Yuen Long were completed shortly thereafter.

   A scheme to reduce the smell and visual impact of the Yuen Long nullahs is about to start, with completion scheduled for 1991.

Yuen Long town park is beginning to take shape since its construction commenced in late 1988. When completed in 1990, the town park will feature extensive areas of woodland, an ornamental lake, a pagoda, an aviary and football pitches.

Yuen Long Industrial Estate provides 67 hectares of serviced industrial land. About 40 per cent of the land has been leased.

   Reclamation is underway for Tin Shui Wai new town using material dredged from the seabed in Deep Bay, and the southern half of the reclamation is almost complete. Construction of infrastructure and the two public housing estates in Tin Shui Wai commenced during the year. The two estates are scheduled for completion by stages from 1992 to 1993 to accommodate some 60 000 people. By the end of 1997, the population is expected to reach about 137 000.

A new road is being built to connect Yuen Long and the south-eastern end of Tin Shui Wai.

Flood protection works for a number of villages in the surrounding low-lying areas of Tin Shui Wai are complete and in operation. A comprehensive village flood protection study for nearly 200 villages in the north-western New Territories has been completed and an implementation programme is now being drawn up.

LAND, PUBLIC WORKS AND UTILITIES

To cope with development in Yuen Long Town, Tin Shui Wai and the Tuen Mun-Yuen Long Corridor, construction of the North West New Territories Sewage Treatment and Disposal Scheme began in the year. The treated effluent will be conveyed through a nine- kilometre tunnel underneath Castle Peak and a 2.6-kilometre submarine outfall pipe for dispersion into the sea at Urmston Road.

      In the Tuen Mun-Yuen Long Corridor, construction work commenced on the first stage of a commercial/residential development at Hung Shui Kiu. This development will provide accommodation for about 5 200 persons with the first population intake in 1993.

Tseung Kwan O (Junk Bay New Town) and Sai Kung

The name of Junk Bay was changed in 1989 to Tseung Kwan O, to accord with the Chinese name - literally meaning 'General's Bay'.

The new township of Tseung Kwan O, when fully developed, will provide homes for over 400 000 by the turn of the century. Phases 1 and 2 of the project, which are already underway, will provide homes for 300 000 people.

In the latest planning, the new town proper will be developed mainly for commercial, residential and community uses with industrial development at the fringes. The develop- ment of a third industrial estate in the territory at the south-eastern coast of the new town will provide 70 hectares of serviced industrial land.

About 220 hectares of land has been formed so far. Much of this has been used for public housing and government facilities, but some will be planned for private residential development. Two public rental housing estates and three home ownership schemes have been occupied. Another public rental housing estate and three home ownership schemes are under construction. Population of the new town had reached 60 000 by the end of the year.

      The civil and building works for the Tseung Kwan O Road Tunnel have been completed and works on its electrical and mechanical installations are in progress. The tunnel is scheduled to be opened at the end of 1990. The Junk Bay Road/Sau Mau Ping Road interchange at the end of the western portal of the tunnel was opened to traffic early in the year.

To the north east of the new town, construction of the northern access to the University of Science and Technology has commenced. A sewage tunnel from the university to the new town sewage system is also under construction.

      At Sai Kung Town, a sewage treatment plant has been commissioned and tested. Reclamation of Sai Kung Creek for a rural public housing estate is about to commence. Planning is in hand for the development of further community and recreational facilities to serve the township and its hinterland.

Islands District

A number of projects to upgrade the living environment and improve general facilities for the rural population and the increasing number of visitors were completed during the year. Particular attention was paid to community and recreational facilities. A reclamation project at the western coast of Cheung Chau, producing sites mainly for community facilities, has been completed and a land formation project for similar use has started in Mui Wo. Drainage improvement works are underway at Tai O.

       Population intake to the Ngan Wan Rural Public Housing in Mui Wo continued during the year. Preparatory work for the construction of Lung Tin Phase 2 Rural Public Housing in Tai O is in hand.

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A study on the development of four Recreational Priority Areas in Chi Ma Wan, Pui O, Cheung Sha and Tong Fuk on South Lantau has been completed. A study on improvement to existing roads and drains in Cheung Chau Old Town was also commissioned during the year.

Urban Development Areas

Six development areas at Aldrich Bay, Siu Sai Wan, Hung Hom Bay, West Kowloon, Central/Wan Chai and Green Island, all involving reclamations in Victoria Harbour, are either being studied or under construction to meet forecast development needs in the 1990s and beyond.

The Aldrich Bay Reclamation will produce about 18 hectares of land. The first phase of work involving reprovisioning of the typhoon shelter is being carried out in conjunction with site formation work at the Shau Kei Wan foothills.

The Siu Sai Wan Development will include about 55 hectares of land for industrial, residential, commercial, public housing, government/institution/community and other uses. About 14 hectares of land has been formed.

The reclamation of 36 hectares of land at Hung Hom Bay is due for completion in 1993, 14 hectares of which has already been reclaimed. Residential, office, hotel, open space, transport interchange facilities and marginal expansion of the Kowloon-Canton Railway freight yard are being considered for the whole area.

The West Kowloon Reclamation feasibility study is in progress. The reclamation will form about 330 hectares of land to be completed in phases by 2002 for commercial, con- tainer back-up, residential and transport uses.

The consultancy feasibility study on the Central and Wan Chai reclamation was com- pleted. There will be strong emphasis on the provision of land for commercial and open space uses and for building a trunk road linking the Island Eastern Corridor with Central. The consultancy feasibility study for the Green Island reclamation is well advanced.

The long-term effects of the various proposed reclamations on the hydraulic and water quality in the harbour is being assessed by model studies.

Urban Renewal

The Land Development Corporation (LDC), established in January 1988, is charged with the task of initiating and facilitating urban renewal through negotiating the surrender of existing property and assembly of land for comprehensive development in areas where satisfactory development has been inhibited by factors such as multiple ownership of properties, small size and irregular shape of sites and obsolete street layout. A co- ordinating urban renewal team in the Town Planning Office of the Buildings and Lands Department acts as the main contact point and overall co-ordinator between the LDC and government for LDC projects.

To ensure that urban renewal will be carried out in a co-ordinated manner, the LDC commissioned consultancy studies to identify urban improvement and redevelopment opportunities in the older urban districts. As a result of these studies, redevelopment strategies for the Mong Kok, Yau Ma Tei, Wan Chai, Central and Western districts were formulated. To implement these strategies, comprehensive redevelopment studies for areas within the districts were completed.

  During the year, the LDC entered into a number of initial agreements with selected joint-development partners for eight development/redevelopment projects in various older

IN

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First page of colour section: A Sunday service in progress in the St. John's Anglican Cathedral, one of the oldest of the remaining Western-style buildings in Hong Kong.

Left and immediately below: Followers of Islam congregate in

the cool, marble elegance of the Kowloon Mosque, a gleaming- white landmark in Nathan Road.

Bottom, right: For Hong Kong's Sikh community, the Sikh Temple in Wan Chai provides a tranquil centre for religious and

cultural activities.

Left: The giant, 11-storey high bronze Buddha, overshadowing the Po Lin Monastery on Lantau Island, was completed in October 1989.

Below: Po Lin monks and dignitaries celebrate as the final bronze panel is placed in position on the giant Buddha.

Below and right: With heads freshly shaved, newly-ordained monks worship at the Min Fat Buddhist Monastery in Tuen Mun.

Overleaf: The Taoist god, Lui Tze, is honoured in many ways and on many different occasions. Here an offering is being made at Ching Chung Koon, the Taoist temple in Tuen Mun.

:

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LAND, PUBLIC WORKS AND UTILITIES

urban areas, such as Mong Kok, Yau Ma Tei, Sheung Wan, Wan Chai and the fringe of the Central District. Two redevelopment schemes with site areas ranging from 0.4 to 1.2 hectares were submitted to the Town Planning Board for approval. These schemes will entail the amalgamation of small building lots and under-utilised land for compre- hensive redevelopment to produce a better environment, rationalise land use, improve the community facilities and provide open space. The Town Planning Office prepared planning briefs for each of these schemes. A proposal for the complete renovation of Western Market was submitted by the LDC and agreed in principle by the Town Planning Board.

Environmental improvement schemes were also carried out in the year on sites zoned for open space, government, institutional and community uses in the urban area. About $50 million was spent on the acquisition of private properties for the implementation of these schemes. Considerable efforts were made to assemble project sites already acquired in the Western, Wan Chai and Yau Ma Tei districts.

       Hong Kong Housing Society continued to implement urban renewal schemes. Properties at Sai Ying Pun, Sheung Wan and Yau Ma Tei were acquired and cleared in 1989 at a cost of about $45 million. Good progress was made on schemes at Lower Lascar Row/Lok Ku Road in Sheung Wan and the 'Six Streets' area of Yau Ma Tei. In the 1988-9 financial year, about 450 residential flats were produced in Housing Society schemes.

Acquisition of private streets by the government, to improve control and environmental conditions, is supported by district boards and the general public. There are about 300 'problem' streets in the territory and priority has been given to the acquisition of those where there are safety, traffic, or environmental hazards. Twenty-five streets were selected for acquisition in the year.

Private Building

A towering structure was added to the metropolitan skyline with completion of the angular 70-storey Bank of China building. Nearby, the new Standard Chartered Bank building now rises in a series of terraces above Central, completing a trio of unique banking edifices. On the Wan Chai waterfront, the new Hong Kong Convention and Exhibition Centre is a prime example of how commercial development, in this case hotels, offices and service apartments, can support the provision of a much-needed community facility.

      With the continuing increase in the number of visitors to the territory, budget hotels have mushroomed in off-centre localities, including the industrial heartland.

      At Kwun Tong, Ap Lei Chau and Tsing Yi, the problems caused by the close proximity of massive oil-storage depots to residential areas will soon be resolved with the redevelop- ment of some of these depot sites for more compatible uses.

Given the pressure on Hong Kong's limited land area, greater use of underground space is being considered. A consultant has examined six cavern schemes covering different uses, including bulk storage facilities, warehousing, container-trade back-up facilities, a commercial complex, oil and dangerous goods storage, refuse transfer and a sewage treatment plant. A government group is currently studying the schemes and the associated problems and will draw up a code of practice for the development and use of underground

caverns.

Construction of the Hong Kong University of Science and Technology on a 58.7-hectare site at Sai Kung is well underway. The new university will comprise three schools (Engineering, Science and Business Management) and a general Education Centre for the humanities and social sciences.

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Fewer new building proposals were received during the year. This not only reflects the limited availability of land for development but could also be interpreted as a tendency to slow down building development projects at a time of uncertainty after the events in China. The number of occupation permits issued for completed buildings decreased steadily, numbering 510 compared with 542 in 1988. The amount of usable floor area provided reached 3 620 782 square metres and the total expanded cost of new building works was $16,244 million.

   It is now becoming more widely known that the Buildings Ordinance Office is also involved in controlling works in completed buildings. In overcrowded urban conditions, it is not easy to deal with the perennial problem of unauthorised building works. However, increased publicity has heightened awareness that swift enforcement action will be taken against unauthorised works which are a danger to life or property. Apart from having to remove the works, offenders can be taken to court and may be subjected to heavy fines.

The Buildings Ordinance Office is also tackling the problem of deterioration in the older generation of high-rise and reinforced-concrete buildings. Poor maintenance over the years means that the risk of some of these buildings becoming dangerous is increasing. To ensure that any potentially-dangerous situations are detected, enhanced planned surveys of private sector buildings were commenced in the Buildings Ordinance Office in October 1989. This important development will systematically examine building problems on a district-by- district basis. Using powers available in the Buildings Ordinance, comprehensive clearance programmes will be established which will require the demolition of unauthorised building works, eliminate danger arising from deteriorating structural elements, remove dangerous advertising signs and effect the repair of defective drainage systems.

Public Building

The Architectural Services Department undertakes building projects under the Public Works Programme and the building programmes of the Urban and Regional Councils and the British Forces.

   During 1988-9 the department completed 107 building contracts under various programmes at a total cost, including minor works, of $2,522 million. In addition to this the Maintenance Branch of the department spent $636 million in providing routine maintenance and minor alteration work to about 6 600 government, Urban and Regional Councils' and British Forces' buildings and property. The branch was also involved in providing emergency accommodation for the increasing numbers of Vietnamese boat people at a cost of $300 million. The overall expenditure of $3,158 million shows an increase of 16 per cent over 1987-8 expenditure of $2,705 million.

   Tendering on all types of projects continued to be very active and competitive. During the 12-month period to March 1989, tender prices increased by about 13 per cent, while over the same period labour and basic materials costs rose by 26 per cent and 10 per cent respectively, reflecting the high level of activity and shortage of labour in the construction industry.

The Subvented Projects Division of the Architectural Services Department advises departments providing subvention to private organisations for building, repair and maintenance works. These include subventions provided by the Education, Health, Hospital Services, Technical Education and Industrial Training, and Social Welfare de- partments and the University and Polytechnic Grants Committee. The total government capital commitment for these projects in the Capital Works Reserve Fund is over $7,400 million, with expenditure exceeding $1,000 million during the year. The Lotteries Fund also

LAND, PUBLIC WORKS AND UTILITIES

committed $452 million to subvented projects. These figures do not include private donations or funding. Advice is also given on the provision of government accommodation in private developments. Examples include joint-venture housing, office accommodation and transport interchanges. During the year, some 164 projects were handled with a combined value of over $4,000 million.

       The number of projects carried out for the Urban Council continued to increase, with the completion of sports grounds at Hammer Hill and Kowloon Tsai. Both provide covered spectator stands, grass football pitches and all-weather running tracks. Multi- functional complexes, providing cooked food facilities, markets and indoor games halls, were completed at Chun Sing, Kwun Chung and Java Road. Air-conditioning was pro- vided at the Kwun Chung games hall as an improvement to the standard provision. A major event for the Urban Council was the completion of the Hong Kong Cultural Centre at Tsim Sha Tsui. The complex was handed over in the middle of the year for a series of commissioning concerts, and was officially opened on November 8. The new centre provides concert and theatre facilities of international standards.

Construction of the new Regional Council Chamber and Regional Services Department headquarters superstructure in Sha Tin commenced in April. The project is due to be completed in early 1991.

Medical facilities continued to be expanded with the completion of the 1 650-bed Tuen Mun Hospital, serving Tuen Mun and the western region of the New Territories. Work on the Pamela Youde Hospital in Chai Wan continued during the year and work on the associated Nurses' Training School and staff quarters is due to start in early 1990, with the entire complex scheduled for completion in 1992. The improvement work at Queen Mary Hospital continued, with the main phase of Stage II being completed during the second half of the year. Work progressed on the 700-bed Sha Tin Convalescent and Infirmary Hospital, due to be completed by the end of 1990. Convalescent hospitals in Tai Po and Tsuen Wan are at design stage. The Pamela Youde Child Assessment Centre and School Dental Clinic was brought into operation at the end of the year and public clinics are under construction in Yuen Long, Tseung Kwan O and Ap Lei Chau.

The government continues to construct office buildings for its own use. The first phase of Wan Chai Tower II, comprising the lower 27 floors, was completed for occupation near the end of the year, with the remainder of the 49-storey building due to be finished in mid-1990. Work also commenced on the identical Tower III on an adjacent site which will be completed in 1992. Work commenced on the Tsuen Wan Central Library and government office complex, while work continued on the Eastern Magistracy and offices and the 11-storey government office on the podium of Mong Kok Station, due for completion in 1990 and 1991 respectively.

Several projects were completed for the disciplined services including the New Territories Regional Police Headquarters, the Kowloon Regional Command and Control Centre and the new border crossing point at Lok Ma Chau. Five sub-divisional fire stations and two ambulance depots were commissioned at various locations in the territory. Works are still in progress on Phase 1 of the new depot for the Police Tactical Unit in Fanling and Phase 1 of the redevelopment of Police Headquarters, both due for completion in 1990. In addition, three district police headquarters, three divisional police stations, two marine police bases and 844 departmental quarters for disciplined services personnel are under construction for completion in 1990 and beyond.

During the year, the last phase of the provision of air-conditioning to multi-purpose halls in existing community centres was completed. A total of 44 existing centres are now

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fully air-conditioned, enabling social activities attracting large numbers of people to be held throughout the year and providing improved conditions for users. Fourteen aided and two government schools affected by aircraft and traffic noise received noise abatement treatment at a cost of $26.5 million. This programme will continue in 1990, with a further $39.3 million allocated to 30 schools affected by traffic noise.

In recent years, the Antiquities Section of the Maintenance Branch of Architectural Services Department has become increasingly involved in advising on and restoring some of the historically-important buildings in Hong Kong. A total of $10 million was spent during the year on 33 different historic buildings ranging from the second century Han Dynasty Tomb at Lei Cheng Uk to the 1916 Kowloon-Canton Railway Clock Tower in Tsim Sha Tsui. Two major projects were completed, the first being the restoration of Tai Fu Tai near San Tin. This house was built in 1866 for a prosperous Imperial Government official named Man Chung-luen, and had fallen into total disrepair. It was gazetted as an Historic Monument in 1986. Another major project was the Chai Wan Folk Museum which opened to the public in October. Work involved the restoration of an 18th century Hakka farmhouse, Law Uk, and the construction of an adjacent museum block in similar style. The farmhouse, in traditional two-hall style with adjoining wings in grey Canton bricks with clay tile roofs, is considered to be the finest 18th century Chinese dwelling house remaining on Hong Kong Island.

Survey and Mapping

The Survey and Mapping Office is responsible for defining and recording land boundaries of all existing and new land developments, providing and maintaining the territory-wide survey control system, mapping the territory at various scales for land administration, engineering and government purposes, managing land information and preserving the territory's land records.

Geodetic control systems, which are horizontal and vertical control networks covering the whole territory, have been established and maintained to a high degree of accuracy. These systems provide the necessary origin and control points for cadastral (property boundary), topographical mapping, engineering and other surveys.

Cadastral surveying is an important function of the office. It serves both the public and the government by defining property boundaries. In the New Territories the work has been extended from the new towns to include, for example, village house lots, for which an increasing number of boundary surveys are being carried out. Other tasks include the re-establishment of private lot boundaries, on payment of a fee, for redevelopment purposes. The office maintains a comprehensive graphical record of all leasehold and government land boundaries in the territory. However, improvements to the land records are required, especially in areas first surveyed before World War II, and a Land Survey Ordinance is now being drafted to help address these problems.

The wide range of mapping coverage maintained by the office has always provided an important support service in the administration, planning and development of Hong Kong. The most definitive series of maps and the foundation of all other mapping is the large scale (1:1 000) basic topographical series (3 000 sheets). Smaller scale coverage starts at 1:5 000 (160 sheets) followed by coloured maps at scales 1:20 000 (16 sheets), 1:50 000 (two sheets), and down to single sheet coverage at 1:100 000 and 1:200 000. Two monochrome street map series at 1:10 000 and 1:15 000 of the urban areas in Hong Kong, Kowloon and parts of the New Territories are produced for special uses and as a base for the popular guide book Hong Kong Guide - Streets and Places. Demand for leisure maps, in the form of

LAND, PUBLIC WORKS AND UTILITIES

the Countryside Series (six sheets) and the Tourist Guide, remains strong and the design and contents are continually under review to make subsequent editions more attractive to users.

Extensive cartographic and reprographic services are provided for other government departments. These include full-colour mapping for the geological series, base maps for weather forecasting, aeronautical charts, electoral boundary maps, pollution control plans and photo-reproduction and plan copying of all types by the Reprographic Unit. The unit also provides essential back-up for in-house map production and other cartographic activities.

Installation of a computerised Land Information System at a capital cost of $24 million began at the Land Information Centre of the Survey and Mapping Office in late 1989. Conversion of large-scale mapping, land parcel boundaries, land use and zoning data will begin in early 1990. The new system will speed up the updating, processing and retrieval of land data and automate the production of basic survey sheets and cadastral plans. In view of its land information and data analysis capability, the land information system will be a powerful tool to assist decision-making in land administration and town planning. When the system is fully established, it will provide basic land information and a unique geographic reference system to both the public and private sectors in Hong Kong. As more users introduce their own compatible systems, an integrated network can be expected to grow. The system should be in operation for the first urban district in mid-1990 and the whole project completed by mid-1993.

      The Photogrammetric Survey Section (with the Air Survey Unit operating from Royal Hong Kong Auxiliary Air Force aircraft) continues to provide aerial photographs and photogrammetric mapping for engineering design work, volumetric calculations for quarry and controlled tipping operations, environmental studies and specific development proj- ects. The Air Survey Unit is also on call for quick-response photography to assist in the investigation of flooding, air crashes and other emergency situations.

Water Supplies

Full supply was maintained throughout the year. At the beginning of 1989, there were 230 million cubic metres of water in storage, compared with 350 million cubic metres at the start of 1988. The combined storage of Hong Kong's largest reservoirs, High Island and Plover Cove, was 173 million cubic metres. Rainfall for the year was 1945 millimetres compared with the average of 2 225 millimetres. Water piped from China during the year totalled 610 million cubic metres. The salinity of water at High Island remained at about 21 milligrams per litre while at Plover Cove it varied from 71 milligrams per litre at the beginning of the year to 51 milligrams per litre at the end of the year.

      A peak consumption of 2.63 million cubic metres per day was experienced, compared with the 1988 peak of 2.49 million cubic metres per day. The average daily consumption throughout the year was 2.32 million cubic metres, an increase of 5.0 per cent over the 1988 average of 2.21 million cubic metres. The consumption of potable water totalled 845 million cubic metres compared with 808 million cubic metres in 1988. In addition, 112 million cubic metres of salt water for flushing was supplied, compared with 110 million cubic metres in 1988.

The Lok On Pai Desalter was not operated and remained in a mothballed state. With reliable resources available from China and in view of the improved water storage situation it was decided to dispose of the desalting plant.

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Planning studies were completed for the improvement of fresh water supplies to the mid-levels of Hong Kong Island Central, areas in Kowloon West and Cha Kwo Ling and for the increase of water treatment capacity at Ma On Shan and Sheung Shui. Major studies in hand include the increase in water treatment capacity for the western urban areas of Kowloon and Hong Kong Island by providing a new treatment works at Pak Ngau Shek, Tai Po, and the improvement of system capacity in meeting the demand generated from the developments in Ap Lei Chau, Kowloon East and Tseung Kwan O.

   A China Water Supply Branch was established in February to undertake planning, design and construction of the reception and distribution system for the additional water supply from China beyond 1994-5. Agreement on this with the Chinese Authority in December ensures adequate supplies for Hong Kong's expanding needs well beyond the year 2000, to a maximum supply of 1 100 million cubic metres per year.

During the year, commissioning of the eastern cross-harbour main and Stage 1 of Pak Kong Treatment Works and the associated transfer system marked a significant step forward in supplying water to Tseung Kwan O New Town, Kowloon East and Hong Kong Island East. The new treatment works and service reservoir at Cheung Sha on Lantau Island were put into service. The submarine pipeline from the mainland to Ma Wan was also completed.

   Major construction works in progress were the Au Tau Treatment Works and Lung Cheung Road Central Workshop. The latter, which has been scheduled for completion in early 1990, will accommodate all the facilities presently provided at Bullock Lane and Argyle Street workshops, Yau Tong meter workshop and the temporary electric motor workshop at Lok On Pai. Major design works in progress included a new treatment works at Sham Tseng, extensions of Yau Kom Tau Treatment Works and Sheung Shui Treatment Works. Design of additional service reservoirs and pumping stations at Tuen Mun, Ma On Shan and Tseung Kwan O continued.

   The distribution system was continuously extended and enlarged to meet urban and rural demands in the territory. Expansion of the distribution network to supply remote villages in the New Territories continued. Salt water for flushing was supplied to most areas on Hong Kong Island and in the Kowloon peninsula, as well as Tsuen Wan, Kwai Chung, Tsing Yi and Tuen Mun in the New Territories. Design works are in hand for imple- menting flushing supply systems in Sha Tin, Ma On Shan and Tai Po.

   Several mechanical and electrical installations were commissioned during the year. These included Cha Kwo Ling Salt Water Pumping Station, Siu Lek Yuen Pumping Station, New Sai Wan Pumping Station and seven village supply pumphouses. The pumping plants at Au Tau Raw Water Pumping Station, Cheung Chau Pumping Station and Brick Hill Salt Water Pumping Station were uprated to improve water supply to the areas. The Supervisory Control and Data Acquisition system for monitoring water distribution systems on Hong Kong Island (Central and Western Districts) and Lantau Island were commissioned.

A new consumer enquiry centre was opened in Shau Kei Wan, joining the existing centres in Causeway Bay, Stanley, Mong Kok, Kwun Tong, Sai Kung, Sha Tin, Tai Po and Tsuen Wan. The network continued to prove useful and plans are in hand to provide similar centres in the regional depots throughout the territory.

   Satisfactory progress was made in the construction of the regional office for Hong Kong and Islands Region. Planning of new offices and depot facilities for the other four Mainland Regions was completed. Works are in hand to construct the regional office in San Po Kong for Mainland South East Region.

LAND, PUBLIC WORKS AND UTILITIES

Port Works

One of the major responsibilities of the Civil Engineering Office of the Civil Engineer- ing Services Department is to implement and maintain engineering works within Hong Kong waters.

      Projects in progress included reclamation adjacent to Kwai Chung Container Terminals No. 6 and No. 7 to provide land for container port operation, dredging works for deepening the approach channel to Container Terminal No. 7, reclamation of Hung Hom Bay to provide for general urban development and possibly for expansion of the Kowloon-Canton Railway goods yard, construction of 1 100 metres of breakwater for a new typhoon shelter at Shau Kei Wan, construction of piers and a seawater pumphouse for the Western Wholesale Market, and reclamations at Ap Lei Chau North, Siu Sai Wan and Lai Chi Kok Bay.

      Major projects completed in 1989 included the sand replenishment of Repulse Bay Beach and South Bay Beach, and the reclamation at Sam Ka Tsuen.

Geotechnical Control

The Geotechnical Control Office of the Civil Engineering Services Department was established after the landslip disasters of the 1970's, and the control of geotechnical aspects of construction works in the interest of public safety continues to be its foremost duty. Checks were made on 5 453 design proposals in 1989. Landslip preventive work was also carried out on 28 slopes, requiring the expenditure of $77 million in the Landslip Preventive Measures Programme.

       In addition, the office designed and is undertaking work for improvement of the stability and reduction of environmental hazards of the old sanitary landfill at Sai Tso Wan. This work to improve stability and control landfill gas migration is the first of its kind in Hong Kong.

       The presence of cavernous marble beneath sites in the north-western New Territories has posed problems for development. To ensure safe development of buildings in the area, new legislation was enacted in November 1989 to empower the Building Authority with additional geotechnical controls. Resulting from studies in this area, four 1:5 000 scale geological maps were published for the areas around Yuen Long.

       The Geotechnical Control Office operates the Landslip Warning System and a 24-hour emergency service to provide advice on landslips. Staff responded to calls for advice on 606 landslips and related incidents. Advice was also given to government departments on geotechnical aspects of 182 capital works projects. The Geotechnical Information Unit received more than 1 000 enquiries during the year.

       The Hong Kong Geological Survey continues to publish 1:20 000 scale geological maps and memoirs. During 1989, geological maps for San Tin, Yuen Long, and Clear Water Bay were published, together with a geological memoir for the Western New Territories. New geological maps at a scale of 1:20 000 are now available for more than 50 per cent of the territory.

      Three new guidance documents were published during 1989, consisting of two Model Specifications, for Prestressed Ground Anchors and Reinforced Fill Structures, and a Review of Design Methods for Excavation. With the publication in September of the Geotechnical Area Studies Programme Report for the Territory of Hong Kong, the release of the results of the regional 1:20 000 scale terrain classification was completed. The office also completed a study of the potential use of underground space in the form of man-made rock caverns, the results of which are being published.

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Construction Materials

 During 1989, Hong Kong's construction industry consumed some 19 million tonnes of crushed rock aggregates and natural sand, of which about 45 per cent was imported from China. The bulk of internal production comes from seven contract quarries, supervised by the Geotechnical Control Office. During the year the first steps were taken to implement new landscape restoration policies at urban quarries.

Construction of the new Public Works Central Laboratory at Kowloon Bay was completed and the facility will be commissioned in 1990. The government's eight exist- ing public works laboratories carried out some 320 000 tests on construction materials including soil and rock, concrete, reinforcing steel, timber, aggregates and bituminous products.

  The office is engaged in marine investigations for the preparation of an inventory of marine sand and gravel for use in reclamation and building works. Potential sources of fill of about 100 million cubic metres in volume have already been located. The future demand for fill materials for reclamation is expected to be very large, and in mid-1989 the Fill Management Committee was created, to manage and co-ordinate the use of fill resources for future development within the territory. The major tasks are to identify the demand for fill materials for all government, quasi-government and major private projects, to identify sources of land and marine-based fill to meet future needs and to decide on reservation, allocation and utilisation of fill resources in relation to development priorities.

Flood Control

Responsibility for flood control has been transferred to the Director of Drainage Services, supported by the new Drainage Services Department. The Flood Control Unit, set up in 1987 within the Civil Engineering Services Department to co-ordinate various flood-loss minimisation measures, has been restructured as part of the Special Projects Division of the Drainage Services Department. During the past year, with the help of experience gained from typhoons and rainstorms, the extent of the flood-prone areas, mainly located in the north-western and northern parts of the New Territories, has been identified.

  In response to growing public concern on flooding in flood-prone areas, government's efforts have been co-ordinated to effect improvement and remedial measures. These include the short-term measures of desilting natural drainage paths and clearance of refuse and vegetation, medium-term measures of local drainage improvement, and the longer- term measures of regional land drainage projects implemented under the Public Works Programme.

  In conjunction with these measures, the Special Projects Division also conducted exten- sive publicity and public education programmes on flood preparedness and on other precautionary measures which the local community could adopt to limit the extent of flooding. In particular, the public has been urged to avoid interfering with watercourses by indiscriminate disposal of refuse and animal waste, and uncontrolled filling over or near such watercourses.

In order to seek a long-term solution to the problem of flooding, a consultancy has been commissioned to conduct a study on territorial land drainage and flood control strategy with a view to recommending master drainage plans and a comprehensive approach to flood-loss minimisation suitable for local conditions. The findings of the study will be 212 available early in 1990.

LAND, PUBLIC WORKS AND UTILITIES

Electricity

Electricity supply is currently provided by two commercial companies, the Hongkong Electric Company Limited (HEC), which supplies Hong Kong Island and the neighbouring islands of Ap Lei Chau and Lamma, and China Light and Power Company Limited (CLP), which supplies the whole of Kowloon and the New Territories, including Lantau and a number of outlying islands.

The two supply companies are listed on the Hong Kong Stock Exchange and do not operate on a franchise basis. The government monitors the financial arrangements of the companies through schemes of control. The schemes require each company to submit to the government for approval a Financial Plan setting out the financial consequences over a period of at least five years of the companies' planned activities, including the forecast tariff levels.

The government's arrangements for monitoring the operations of the power companies were reviewed by a firm of independent consultants in 1983. The consultancy report, published in March 1985, confirmed that the monitoring arrangements in the past had been adequate and appropriate. Nevertheless, the consultants also offered a number of recommendations on how the operational aspects of the monitoring process could be im- proved. A special working party responsible to the Secretary for Economic Services was set up to develop the recommendations. The working party's report was submitted to the Executive Council and the consultants' recommendations have since been implemented.

In Kowloon and the New Territories, electricity is supplied by CLP's three affiliated generating companies - Peninsula Electric Power Company Limited (PEPCO), Kowloon Electricity Supply Company Limited (KESCO) and Castle Peak Power Company Limited (CAPCO). CLP has a 40 per cent stake in each of these affiliated companies, with the remaining 60 per cent being owned by Exxon.

PEPCO, KESCO and CAPCO have operating service agreements with CLP under which CLP constructs, commissions, operates and maintains the electricity generating facilities for these companies. The generating facilities include Tsing Yi 'A' (720 MW) and Tsing Yi 'B' (800 MW) which are owned by PEPCO; Hok Un (264 MW) and Castle Peak 'A' (1 640 MW) which are owned by KESCO; and the Castle Peak 'B' (2 031 MW) which is owned by CAPCO. The total installed capacity at the end of 1989 was 5 455 MW.

The Castle Peak 'B' station is not yet fully completed. Work is in progress to add another 677 MW dual coal/oil-fired units to it to bring the total generating capacity to 2 708 MW. When the 'B' station becomes fully operational in early 1990 it will, together with the adjacent 'A' station, make the Castle Peak Power Station complex the largest of its kind in South-east Asia.

CLP's transmission system operates at 400 kV, 132 kV and 66 kV, and 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.

To serve its consumers, CLP has more than 155 primary and over 5 616 secondary substations in its transmission and distribution network. An extra high voltage transmis- sion system at 400 kV to transmit power from the Castle Peak stations to the various load centres was recently completed. This 400 kV network comprises two transmission rings. One ring, a primary ring encircling the New Territories, consists of 90 kilometres of double circuit overhead lines and four extra high voltage substations at Lei Muk Shue, Tze Wan Shan, Tai Po and Yuen Long. The other ring consists of 22 kilo- metres of cable circuits linking the major substations at Tze Wan Shan, Tai Wan and Lai Chi Kok.

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  For the HEC, during the year, two of the four 125 MW oil-fired generating units at the Ap Lei Chau Power Station have been transferred to Lamma Power Station to be driven by gas turbines, while the remaining two units have been decommissioned and will be transferred to Lamma Power Station in mid-1990. At the end of 1989, all generating units at the Ap Lei Chau Power Station have been decommissioned and electricity in HEC's supply areas is completely supplied from the Lamma Power Station which consists of three 250 MW and two 350 MW dual coal/oil-fired units, four 125 MW and one 55 MW gas turbines, making a total installed capacity of 2 005 MW. There are plans to add a further 350 MW unit to Lamma in the early 90's.

  HEC's transmission system operates at 275 kV, 132 kV and 66 kV and distribution is effected mainly at 11 kV and 346 volts. With the exception of a small proportion of 132 kV overhead transmission lines, all supplies are transmitted and distributed by underground or submarine cables. The supply is 50 hertz, 200 volts single phase and 346 volts three phase. Supplies at high voltage are also made available to consumers.

The transmission systems of CLP and HEC are interconnected by a cross-harbour link, thereby achieving cost savings to consumers through economic energy transfers between the two systems and a reduction in spinning reserve requirements. The interconnection, commissioned in 1981, now has a capacity of 480 MVA. Upon full completion, the total capacity will rise to 720 MVA.

  CLP's system is also interconnected with that of Guangdong General Power Company of China and about three million units of electricity are transmitted to Guangdong Province each day. This interconnection results in better utilisation of the company's generating plant during periods of low demand. Also, CLP has signed a contract with the China Merchants Steam Navigation Company Limited for the supply of electricity for a period of 10 years to the industrial zone of She Kou and the adjacent Che Wan area, both in Guangdong Province. The arrangement, which affords She Kou a reliable electricity supply without subsidy from Hong Kong consumers, is illustrative of the close co- operation on energy matters which has developed on both sides of the border.

On January 18, 1985, the Hong Kong Nuclear Investment Company (a wholly-owned subsidiary of CLP) and the Guangdong Nuclear Investment Company (wholly owned by the Chinese Ministry of Nuclear Industry) signed the Joint Venture Contract for the formation of the Guangdong Nuclear Power Joint Venture Company, to construct and operate a nuclear power station at Daya Bay in Guangdong Province.

  The Daya Bay Nuclear Power Station will comprise two 900 MW pressurised water reactors which are scheduled for commissioning in 1992 and 1993. About 70 per cent of the power from the station will be purchased by CLP to meet part of the longer-term demand for electricity in its area of supply.

Main electricity statistics and sales figures are at Appendix 36.

Gas

 Gas is widely used throughout the territory for domestic, commercial and industrial purposes. Two main types of fuel gas are available: Towngas, distributed by Hong Kong and China Gas Company Limited (HKCG); and Liquefied Petroleum Gas (LPG), supplied by major oil companies based in Hong Kong, namely Shell, Mobil, Esso, Caltex, Hong Kong Oil, China Resources and British Petroleum. Towngas is mainly a manufactured gas, but also includes some substitute natural gas (SNG). The constituents of LPG are butane and propane mixed in approximate proportions of 75 and 25 per cent respectively.

LAND, PUBLIC WORKS AND UTILITIES

The total number of gas customers in Hong Kong is estimated to be in the order of 1.56 million. In 1989, Towngas accounted for 42 per cent of the total gas sold and LPG for 58 per cent.

       HKCG manufactures Towngas at two works, one located at Ma Tau Kok and the other in the Tai Po Industrial Estate. Both use naphtha as a feedstock. They currently have output capacities of 3.6 and 2.8 million cubic metres per day respectively. The calorific value of the manufactured gas is 17.3 MJ/m3 with a specific gravity of 0.56.

       Towngas is distributed through an integrated distribution system to some 652 thousand customers for cooking and heating purposes. The mains network extends to the urban areas of Hong Kong Island including Aberdeen, Repulse Bay, Stanley and Ap Lei Chau, Kowloon and many new towns in the New Territories, including Sha Tin and Tai Po, and Tsing Yi Island. HKCG is currently constructing a 92 km network of transmission pipeline of 600 mm diameter in the New Territories. The new transmission line is designed to operate at elevated pressure and will provide an additional 0.3 million cubic metres of 'line pack' storage capacity.

      SNG is distributed by HKCG under the Towngas trademark from temporary plants located in Yuen Long and Tuen Mun specifically operated to serve these two new town areas in the New Territories. The gas, which is produced from an LPG/air mix, has a calorific value of 51.8 MJ/m3 and a specific gravity of 1.37. It is expected that the plants will be decommissioned in 1991-2 when the high pressure transmission pipeline reaches the Yuen Long and Tuen Mun areas.

       LPG is imported into Hong Kong. It has a calorific value 49.6 MJ/kg and an approximate specific gravity of 2. About 65 per cent of total sales is distributed to customers, via a dealer network, in portable cylinders. The remaining 35 per cent is in the form of piped gas supplies from bulk LPG storage and vaporiser installations which are located in or adjacent to the developments being supplied.

       Currently there are about 293 LPG dealers operating within the territory. Additionally, 23 LPG site operators manage 250 bulk storage installations under government licensing arrangements. Altogether there are 912 thousand LPG customers.

       In 1982 the government introduced a piped gas policy in order to discourage further growth in the use of gas cylinders in the domestic market. The percentage of domestic consumers using cylinders has fallen to some 38 per cent in 1989.

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HONG KONG's transport policy over the last 10 years has been guided by three main principles: to improve the road system; to expand and improve public transport, and to make more economic use of the roads.

The Second Comprehensive Transport Study has projected the growth in transport demand up to 2001, and has appraised transport infrastructure and policy proposals for dealing with the problems that will be confronted in meeting this demand. The forecasts in the study have formed the basis of the Green Paper on Transport Policy in which pro- posals have been presented for public comment. Consultation on the Green Paper is now complete and a White Paper taking into account public views will be published early in 1990. The basic principles of transport policy have been reaffirmed, but continuing strong economic growth has placed more emphasis on the need to expand transport infrastructure and public transport services, and efficient management of the use of the road network.

The decisions to relocate Hong Kong's International Airport at Chek Lap Kok on western Lantau Island by 1997 and to build additional port facilities in the Western Harbour will have major implications on the transport system in the 1990's and detail- ed planning and implementation studies to integrate the new facilities have already commenced.

Meanwhile progress has continued on the construction of new transport infrastructure. The Eastern Harbour Crossing, comprising road and rail links, was opened to traffic in August and September 1989 respectively. The new Shing Mun and Junk Bay tunnels will be opened in 1990 whereas the Tate's Cairn Tunnel, a private sector project which is aimed to bring relief to congestion in the Lion Rock corridor, will be opened in 1991.

   Other measures are being taken to improve the capacity and safety of the existing road network with the aim of reducing traffic congestion. These include a continuous programme of district and sub-regional planning studies to identify practical improvement measures and a new Area Traffic Control System, linking 170 sets of traffic signals on Hong Kong Island, to improve traffic flow.

Comprehensive Transport Study and Green Paper on Transport Policy

The Second Comprehensive Transport Study was commissioned in 1986 to project the growth in transport demand up to 2001, and to appraise the transport infrastructure and policy proposals for dealing with the various problems that will confront Hong Kong over this period. The study is the start of a continuing planning process. Its computerised planning model will be updated regularly to take account of changes in economic development and planning assumptions up to and beyond 2001. The study has projected

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      significant increases in the vehicle fleet and travel demand between 1986 and 2001 which would outgrow significantly the 37 per cent increase in road capacity by the turn of the century. It identifies new road and railway programmes to cope with the expand- ing demand.

      On the basis of these findings, the Green Paper sets out a proposed strategy to meet the transport challenges up to 2001: improving the transport infrastructure; expanding and improving public transport, and managing the demand for road use. The White Paper to be published in early 1990 will set out government's broad transport strategy and policy intentions for the next decade, taking fully into account public views and the Port and Airport Development Strategy.

Transport Infrastructure

The proposed major road development programmes for the next decade include: North Lantau Expressway and Lantau Fixed Crossing to provide a direct expressway link to the replacement airport at Chek Lap Kok; Route 3 to provide a third harbour crossing and major north-south road link connecting the border with the existing container port and the urban area; the Hung Hom bypass and the Kai Tak connector to provide new east-west road links in Kowloon; Route 16 to provide a new expressway connecting Sha Tin and West Kowloon, and Route 7 and Central-Wan Chai bypass to provide a continuous expressway along the northern and western shores of Hong Kong Island. The recom- mended railway projects are the Airport Railway, an extension of the Mass Transit Railway to Junk Bay, and a rail link connecting north-western New Territories and Tsuen Wan. The total costs of the recommended new highway and rail projects are estimated at $37 billion and $18 billion respectively at 1989 prices.

Public Transport

The objective is to ensure the development of a balanced, safe, economic and efficient network. The major elements include the flexible application of the inter-modal co- ordination policy, making greater use of the efficient mass carriers and improving the quality of public transport services.

Managing Road Use

A package of measures proposed in the management of road use to maintain an acceptable level of mobility for passengers and goods includes introducing modern traffic-management measures and minimising traffic disruptions caused by defective vehicles, traffic accidents, road maintenance and utility works, priority given to the more efficient and essential road users, effective management of travel demands and identifying opportunities for adjusting land use to reduce pressure on the transport system.

Administration

The Transport Branch of the Government Secretariat, headed by the Secretary for Transport, is responsible for the overall policy formulation and the direction and co- ordination of all transport matters. In discharging this responsibility, the secretary is assist- ed on major issues by the Transport Advisory Committee, which advises the Governor in Council on major transport policies and issues. The committee has 18 appointed members, including the chairman and six government members. The secretary also chairs the Transport Policy Co-ordinating Committee which oversees the co-ordination and implementation of policies and projects.

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  The responsibility for the execution of transport policies and measures rests with the Transport Department and the Highways Department.

  The Commissioner for Transport, who heads the Transport Department, is the administering authority for the Road Traffic Ordinance and other legislation regulating public transport operations other than railways. His responsibilities cover 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 the authority for the licensing of drivers, and the registration, licensing and inspection of vehicles.

  The prosecutions unit of the department handles all prosecutions involving safety defects found on buses, disqualification under the Driving Offence Points System and breaches of vehicle safety regulations in government tunnels. The total number of prosecutions conducted by the department in respect of buses and other vehicles was 20, the number of cases for which disqualification was sought under the Driving Offence Points System was 2 050 and 210 prosecutions were conducted in respect of breach of tunnel and other regulations.

  A Transport Tribunal, chaired by an unofficial member and set up under the Road Traffic Ordinance, provides the public with a channel of appeal against decisions made by the Commissioner for Transport in respect of the registration and licensing of vehicles and the issue of hire car permits and passenger service licences.

The Director of Highways heads the Highways Department, which is responsible for designing and building all highways and roads, and for their repair and maintenance.

Planning

 Transport planning is conducted at two levels, territory-wide and regional. At the territory-wide level, strategic planning looks at the provision of new infrastructure to move people from one region of the territory to another. The Second Comprehensive Transport Study has identified a series of strategic new projects which are now under planning.

At the same time, regional and district planning looks at improvements to road links. within respective areas. Several sub-regional and district traffic studies were completed during the year including traffic studies for north-west Kowloon and Tai Po Road and improvements to the Mid-levels east-west road corridor. Currently underway is the Central Kowloon Traffic Study. Other studies with traffic and transport content completed during the year include the Central and Wan Chai Reclamation Feasibility Study, the Green Island Reclamation Feasibility Study and the West Kowloon Reclamation Transport Study.

Cross Border Traffic

Traffic volume between Hong Kong and China via the road crossing point at Man Kam To continued to rise with the number of vehicles travelling in both directions increasing from 10 000 per day in December 1988 to 10 900 per day in December 1989. Traffic at the Sha Tau Kok crossing increased from 1 700 vehicles per day in December 1988 to 1 810 per day in December 1989. Goods vehicles accounted for 81 and 86 per cent of traffic respectively at the two crossing points, reflecting the rapid growth in trading and industrial links with China. At the end of the year, 22 companies operated tourist coach services across the border. There was also a limited number of private cars, primarily used by businessmen with interests in Shenzhen. Road crossing facilities were substantially improved by the

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opening of the first bridge of the Lok Ma Chau crossing in December 1989 which provides a direct link into the New Territories Circular Road. The second bridge of the crossing will open in 1991. This will increase the processing capacity at the three border crossing points to about 28 000 vehicles per day.

      The Kowloon-Canton Railway also plays an important role in the freight and passenger traffic between Hong Kong and China. Some 1.7 million tonnes of freight (1988: 1.7 million tonnes) and two million head of livestock (1988: 2.1 million) were brought into Hong Kong by rail. Exports to China by rail accounted for 458 000 tonnes, a slight decrease from the 484 000 tonnes carried in 1988. Conditions for cross border rail passengers were greatly improved by the new terminal building at Lo Wu which was opened in 1987. Cross border passenger traffic on the railway was 26.4 million in 1989. A further extension of the terminal is being planned to cope with the anticipated future growth in traffic.

       In 1989, ferry services between Hong Kong and China, handled by eight operators, carried 3.04 million passengers (3.2 million in 1988). The new China ferry terminal in Canton Road was opened on November 8, 1988, providing much-improved facilities and sufficient capacity to meet demand beyond the turn of the century.

Road Network

Hong Kong's roads have one of the highest vehicle densities in the world. At the end of 1989, there were 345 397 licenced vehicles and about 1 465 kilometres of roads

402 on Hong Kong Island, 376 in Kowloon and 687 in the New Territories. This high vehicle density, combined with the difficult terrain and the dense building development, imposes a constant challenge to transport planners. There are five major road tunnels, over 630 flyovers and bridges, 371 footbridges and 202 subways to keep vehicles and people on the move.

To cope with the ever-increasing transport demands, the Highways Department has embarked on an extensive construction programme, with about 50 road projects under construction and a similar number being actively planned at any one time.

Expenditure on highway projects was about $2,060 million, representing a 25 per cent increase compared with 1988, while another $513 million was spent on improving and maintaining existing roads.

Strategic Road Network

The principal feature of the strategic road system is Route 1, which runs from Aberdeen on the southern shore of Hong Kong Island to Lok Ma Chau Border Control Point in the northern New Territories, passing through three tunnels - Aberdeen, Cross-Harbour and Lion Rock. On Hong Kong Island, Route 8 runs along the northern shore from the Cross-Harbour Tunnel through the Island Eastern Corridor to Shau Kei Wan and Chai Wan in the east. Route 7 stretches from the Cross-Harbour Tunnel along the north shore, through Gloucester Road, Harcourt Road and Connaught Road to Kennedy Town in the west. Route 2 runs from Kowloon Bay Reclamation Area, through the airport tunnel, onto East and West Kowloon Corridors, Tsuen Wan Road, Tuen Mun Road and Yuen Long Northern Bypass to the junction of Castle Peak Road and Lok Ma Chau Border Link Road. Route 4 runs along the base of the foothills separating Kowloon from the New Territories and connects Kwun Tong and Lai Chi Kok.

       Another two new strategic routes are under construction. Route 5, a seven-kilometre two-way trunk road connecting Sha Tin with Tsuen Wan, is being constructed at a cost of about $1.3 billion. When completed in 1990, it will form part of the New Territories

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 Circular Road system. Various major sections of Route 6 including the Eastern Harbour Crossing, Kwun Tong Bypass, Tate's Cairn Tunnel and Road T6 linking Tate's Cairn Tunnel to the Tolo Highway are either completed or at an advanced construction stage. This route, expected to be completed in mid-1991, will greatly ease the traffic congestion in the Lion Rock Tunnel. The total cost of the Kwun Tong Bypass is $1.82 billion and for Tate's Cairn Tunnel, $2.65 billion.

  Route 3, another future strategic route which will provide a direct link between the north-western New Territories and Hong Kong Island via Tai Lam Tunnel, Tsing Yi, West Kowloon Expressway and Western Harbour Crossing is under investigation by consultants. A second stage feasibility study to select the alignment of the section of Route 3 from the north-western New Territories to West Kowloon has been completed. A feasibility study for the Western Harbour Crossing also commenced in November 1989.

Improvements to Major Road Networks

On Hong Kong Island, a major project (Route 7) to provide a two-way free-flow facility along Connaught Road from Harcourt Road to Hill Road including the construction of two flyovers at Harcourt Road and Rumsey Street, an underpass at Pedder Street, widening of Connaught Road West and several footbridges were substantially completed in December 1989. The final stage of the Island Eastern Corridor (Route 8) from Shau Kei Wan to Chai Wan was also opened to traffic in October.

In Kowloon, Route 2 will be improved upon completion of work on the Gascoigne Road Flyover in mid-1990. Route 1 has been improved by the completion of the Princess Margaret Road Flyover reconstruction in mid-1989.

  In the New Territories, the remaining sections of the New Territories Circular Road from Pak Shek Au to Au Tau are being constructed in stages and will be completed in 1991. A principal road link with China at Lok Ma Chau, which will connect the New Territories Circular Road by a grade-separated interchange, was completed in December.

  A Tuen Mun to Yuen Long Eastern Corridor and a Yuen Long Southern Bypass have been planned in the north-western New Territories, to provide an eastern continuation of Route 2. The Yuen Long Southern Bypass project will cost $290 million, comprising the construction of a three-kilometre, two-way trunk road to bypass Yuen Long town to the south. Construction is due to start in 1991 for completion in 1993. The Yuen Long-Tuen Mun Eastern Corridor project is a two-way trunk road along the eastern side of Castle Peak Road to connect with the proposed Yuen Long Southern Bypass. Construction will start in 1990 for completion in mid-1993.

Environmental Impact of Road Construction

The environmental impact of new roads is carefully considered at the planning stage by the Highways Department. Where practical, such measures as landscaping works, artificial contouring of surrounding hillsides and the installation of noise barriers are considered. The pre-cast decorative concrete panels applied to the retaining wall of the Gascoigne Road Flyover project and the enclosed-type noise barrier for the section of the future Tate's Cairn Tunnel approach roads near Richland Gardens in Kowloon Bay are two good examples of such measures.

Complaints on Road Openings

 Besides serving as carriageways for 'vehicles and pedestrians, Hong Kong's highways also provide space for utility companies to lay pipes and cables for their services to the public.

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To cope with the demand generated by the pace of development in Hong Kong, utility companies often have to open up the carriageways to maintain their services by the renewal, repair, and enlargement of pipes, cables and ducts. On average 85 new road openings are started every working day. These are co-ordinated and controlled by the Highways Department through a permit system, requiring the work to be done to certain standards and in a limited period of time. In order to co-ordinate these works and to minimise disruption, the department holds monthly meetings with the utility companies, police and the Transport Department through a Road Opening Co-ordinating Committee consisting of officials from the companies and the department.

Tunnels

The Lion Rock Tunnel, which links Kowloon to Sha Tin and the north-eastern New Territories, opened in 1967 with a single tube. Traffic volume was then about 6 200 per day. A second tube was added in 1978. Traffic in this tunnel increased to 102 000 vehicles a day by the end of 1989, and during peak hours traffic volume exceeds the tunnel's design capacity, particularly in the morning rush hour. Various traffic management measures have been introduced in peak periods, including tidal flow, signal-controlled merging and some restrictions on access by goods vehicles. These measures have improved traffic conditions, but longer term relief will be afforded by the opening of Shing Mun Tunnel early in 1990 and the Tate's Cairn Tunnel in 1991.

      The Aberdeen Tunnel, opened in 1982, links the north and south sides of Hong Kong Island. The average daily traffic is 48 200 vehicles.

      The toll-free Airport Tunnel provides direct road access from the central area of Kowloon to Hong Kong International Airport, and crosses underneath the airport 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 44 700 vehicles per day.

      The Cross-Harbour Tunnel, opened in 1972, runs beneath the harbour between Hong Kong Island and Kowloon. An average of 116 800 vehicles used the tunnel each day in 1989. It is one of the world's busiest four-lane facilities. Traffic congestion at the approaches of the tunnel eased in the latter part of the year with the opening of the Eastern Harbour Crossing.

      The Eastern Harbour Crossing, the second cross-harbour tunnel, opened to road traffic on September 21, 1989 four months ahead of schedule. This tunnel links Quarry Bay on Hong Kong Island and Cha Kwo Ling in Kowloon by means of an immersed twin-tube incorporating both road and rail links. By the end of 1989, traffic in this tunnel averaged about 22 700 vehicles per day which represents about 16 per cent of the total daily traffic using the two cross-harbour tunnels.

Traffic Management and Control

At the end of the year there were about 840 sets of traffic signals in operation in the territory, of which 320 were under the control of the Kowloon area traffic system and 170 sets were under the control of the Hong Kong Island area traffic control system.

       With the expansion to Kwun Tong and Wong Tai Sin completed in September 1989, the Kowloon system now covers the whole Kowloon peninsula and the traffic monitoring closed-circuit television covers the road network west of the airport and Kowloon City. The system has been in operation for 13 years, and planning is in hand to replace it in 1993. A consultancy study was commissioned in September 1989 for the investigation and design of the replacement system.

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  The Hong Kong system came into full operation in September 1989 at a total project cost of about $65 million. It controls 170 sets of traffic light signals on the northern shore of the Island from Kennedy Town to Shau Kei Wan. Experiments were carried out with the traffic responsive system called Split Cycle and Offset Optimisation Technique (SCOOT) in parts of Causeway Bay and Central area. Work was also in progress on the im- plementation of the Hong Kong Island Closed Circuit Television System for operation by 1992.

The introduction of computerised traffic control systems to the new towns has also been considered by the Transport Department, and a feasibility study for a new system in Tsuen Wan was commissioned during the year.

Parking

Government has constructed 14 multi-storey carparks. The new Tin Hau and Sheung Fung Street Carparks began operation in August and September respectively, bringing the total capacity to 8 200 parking spaces. These carparks are operated by a private company under a management contract. 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 railway stations. The private sector also operates multi-storey and open-air carparks in commercial buildings, housing estates and open-air lots providing over 50 000 parking spaces. On-street parking is usually metered and is only provided at locations where traffic conditions permit. By the end of the year, there were 14 200 metered spaces throughout the territory, most of which operate between 8 am and midnight from Monday to Saturday at varying rates. In Causeway Bay, Happy Valley, Western, Tsim Sha Tsui and the Peak, where parking demand is high, meter operation has been extended to include Sundays and public holidays to facilitate a better turnover of parking spaces.

Government now encourages the private sector to construct and run public carparks and identification of sites for underground carparks has started.

Licensing

The number of new private cars registered rose from 24 177 in 1988 to 28 097 in 1989, an increase of 16.2 per cent. In 1982, when the total number of licensed private cars was about 190 000, restraint measures were introduced by substantial increases in private car licence fees and first registration tax. Despite this, and the introduction in 1986 of the compulsory private car inspection for six-year-old cars, the total number of licensed cars in December 1989 was 180 184, a growth of 12.2 per cent from the December 1988 total of 160 579.

The total number of goods vehicles in December 1989 was 123 329 as compared with the December 1988 total of 114 330, an increase of 7.9 per cent. Included in this total were 97 605 light goods vehicles which grew 7.3 per cent compared with 1988. These vehicles are increasingly being used as private passenger-carrying vehicles, and further measures are being considered to control their growth and use.

   At the end of 1989, the total number of licensed vehicles in all classes was 345 397, an increase of 9.2 per cent over the previous year.

The number of new learner-drivers dropped from 6 100 per month in 1988 to 5 733 per month in 1989.

Since the introduction of the Driving Offence Points System in 1984, 5 753 drivers have been disqualified, 73 053 have been served with warning notices and 291 263 have incurred penalty points for committing offences scheduled under the Road Traffic (Driving-offence Points) Ordinance. The figures for 1989 were 2 125, 21 783 and 45 498 respectively.

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Vehicle Examination

The Transport Department operates four vehicle examination centres to conduct annual re-licensing inspections of all public service vehicles, goods vehicles over 10 years old and vehicles used to carry dangerous goods. Pre-registration and type approval inspections for new goods vehicles and public service vehicles and pre-registration inspections of second-hand imported vehicles of all types are also carried out. The construction of a new computerised inspection centre commenced during 1989 and is expected to be operational in late 1990. This new centre will enable inspection capacity to be increased threefold and enable the department to meet its policy objective of annual inspection of all goods vehicles and trailers.

      The annual testing of private cars at 17 designated car testing centres expanded to encompass all cars manufactured before 1983. 78 600 such cars were inspected in 1989 compared to 71 000 in the previous year.

      Airport service vehicles are inspected within the airport precincts, while franchised buses are checked at their company depots. The high standard of franchised bus maintenance continued throughout the year, and few prosecutions for serious defects were found to be necessary.

A review of vehicle examination activities was conducted to assess whether privatisation of routine inspections could be extended to more categories of vehicles during the next few years. This would free some resources to improve and streamline the performance of the fundamental tasks of providing better controls and support to the automotive trade in Hong Kong.

Road Safety

     Traffic accidents involving injuries decreased by one per cent in 1989. During the year, there were 16 200 accidents, of which 4 112 were serious and 323 fatal. This compares with 16 320 in the previous year (4 290 serious, 290 fatal). In-depth investigations using computerised records were carried out at 152 traffic accident blackspots in order to iden- tify accident causes. Remedial measures were recommended at 124 of these locations. Typically, such measures have been shown to reduce accidents by 28 per cent on average. Accident records were searched to identify sites with unusually large numbers of skidding accidents or accidents during hours of darkness. Seven sites were identified for skid resistant surfacing and nine sites for lighting improvements.

Road safety campaigns continued to play an important role in the reduction of traffic accidents. The major themes of the 1989 campaigns were adult pedestrian safety, particularly the elderly, and promoting road safety for drivers, especially light goods vehicle drivers and those with less than two years' driving experience. Four issues of a Road Safety Quarterly were produced. A series of radio and TV announcements and a TV road safety programme were broadcast.

       The Road Traffic Ordinance and its subsidiary regulations have been amended to extend the traffic control and safety provisions of the ordinance to private roads. From July, drivers, motor vehicles, traffic signs and road markings on private roads were required to comply with the ordinance and subsidiary regulations. A Code of Practice for Private Roads was issued as a guide to estate managers.

      At the end of 1989, the Road Safety Association of Hong Kong operated 216 School Road Safety Patrols and school staff patrols were operated at 207 schools. The Road Safety Council, an advisory body, continued to co-ordinate all road safety matters in the territory.

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Public Transport

Hong Kong's public transport system is notable for its variety of systems and operators and its intensity of service. A network of rail, ferry, bus and other road services extends to almost every part of the territory.

Railways

There are five rail systems, including a heavily-utilised underground metro, a busy suburban railway, a modern light railway, a traditional street tramway and a newly- renovated mountainside funicular. The year saw a number of important improvements to these systems.

Mass Transit Railway

The Mass Transit Railway Corporation (MTRC) operates a three-line metro system comprising 43 route-kilometres with 38 stations served by 671 cars formed into eight-car trains. Trains run at two-minute intervals in the morning peak period on the Tsuen Wan line and on the Kwun Tong line to the west of Kwun Tong. Headways in the evening peak are 2.5 minutes on these lines, while on the Island line 2.5 minute headways are maintained throughout the morning and evening peaks.

  In early August the MTRC opened its Eastern Harbour Crossing extension between Kwun Tong and Quarry Bay, together with a new station at Lam Tin. This extension provides a second railway link beneath the harbour, and has brought much-needed relief to the Nathan Road rail corridor, which had previously been carrying up to 86 000 passengers an hour during the morning peak in the southbound direction between Yau Ma Tei and Jordan stations. Total patronage continued to increase, and by the end of the year the MTRC was carrying 1.97 million passengers a day. In relation to the length of the system this meant that it was the busiest underground railway in the world.

The success of the MTRC depends heavily on interchange arrangements between lines and connections with other modes. There are six stations which offer interchanges between lines, while 67 dedicated feeder bus and green minibus routes help to bring passengers to the railway. Multi-storey car parks are also provided adjacent to the stations at Kwai Fong, Tsuen Wan, Sheung Wan, Tin Hau and Central.

Kowloon-Canton Railway

The Kowloon-Canton Railway (British Section) was opened in 1910 and was double- tracked and electrified in the early 1980s. Formerly a government department, it was vested in the Kowloon-Canton Railway Corporation (KCRC) in February 1983.

  Although the 34-kilometre railway caters for through freight trains to and from China and for four daily passenger trains each way between Kowloon and Guangzhou, it principally provides a suburban service to the new towns of the north-eastern New Territories. This traffic has grown substantially throughout the period since the first electric trains were introduced in 1982, and by the end of the year the KCRC was handling 500 000 passenger journeys daily. Peak period average headways range from five minutes at the northern end of the line to every three minutes south of Sha Tin. Passenger traffic is carried in a fleet of 85 three-car, multiple-unit trains which are now assembled in formations of up to 12 cars. A new station was opened at Tai Wo in May, bringing the number of stations to 13. To cope with rising passenger demand a programme of improvements to other stations continued during the year, providing for platform awning extensions, and additional automatic gates and money-changing machines.

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Domestic train fares were increased by an average of seven per cent from May 1, 1989 and the ordinary adult fare now ranges from $2.00 to $6.00, according to distance travelled. Train patronage is helped by interchanges with other operators. The busiest station is at Kowloon Tong, where connection is made with the MTRC and numerous feeder bus routes. Feeder buses and green minibuses also serve most other stations, and during the year the KCRC introduced increases in the number of its own free feeder bus routes.

      Further improvements are planned for the KCRC in the near future. During the year reconstruction of the Ho Tung Lau workshops began, which, when completed in 1993 will provide better maintenance facilities and accommodation for additional trains. Nine six-car trains will enter service in 1990-1 and another seven will be delivered in 1991-2.

Light Rail Transit

In addition to its main line, the KCRC owns and operates the 23-kilometre Light Rail Transit (LRT) system in the north-western New Territories which commenced operation in September 1988. Initial services comprised five routes with a sixth route introduced in June 1989. There are 41 stops and traffic is handled by 70 light rail cars operated either singly or in pairs. By the end of the year 226 700 boardings a day were handled on the LRT and on its feeder bus services, which are also operated by the KCRC within a transit service area extending from Tuen Mun to Yuen Long. Unusually for Hong Kong, an 'open' fare system is employed, with zonal fares providing free transfers from one route to another and to and from feeder buses.

      The LRT system is constructed largely on roadside reserves, although there is some tramway-style street running. Unfamiliarity with rail operation in and alongside the roads led to a number of accidents during running trials and shortly after the 1988 opening. Consequently a number of measures have been put into effect to improve and make the public more alert to the system.

The system will be further extended by three links in Tuen Mun to be completed at the end of 1991.

Tramways

Electric trams have operated on Hong Kong Island since 1904. Today, Hongkong Tramways operates six overlapping services over 13 kilometres of double track between Kennedy Town and Shau Kei Wan and along almost three kilometres of single line around Happy Valley. The 163 trams comprise the only all-double-deck tram fleet in the world. During the year a rebodying programme continued, and by the year's end over half the fleet had been rebodied or refurbished. Tramway patronage fell slightly during the year to 349 500 boardings daily, and fares remained unchanged since 1983 at 60 cents per adult trip. In March, the depot at Sharp Street was closed, being replaced by a new stabling depot at Sai Wan Ho and also the new Whitty Street depot and the workshops in Sai Ying Pun.

Funicular

Hong Kong's other 'tramway' is actually a cable-hauled funicular railway operated from Garden Road in Central to Victoria Gap by the Peak Tramways Company. The 1.4-kilometre line began operation in 1888 and climbs 373 metres on gradients as steep as one-in-two. The service caters largely for sightseers but also serves Peak district commuters.

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The year saw major modernisation work on the funicular, and the line was closed for six weeks in the summer. The modernised line was re-opened in early August with a new haulage system, semi-automatic operation and two new twin-set tramcars built in Switzerland. The new equipment offers more capacity and a faster ride, resulting in increased ridership from an average of 7 156 passengers a day before modernisation to 10 800 daily since re-opening.

Road Passenger Transport

Despite the growth of rail services, road passenger transport still accounted for two- thirds of all public transport journeys. Of the journeys made by road, over half were on franchised buses, with the remainder being handled variously by non-franchised buses, green minibuses, public light buses and taxis.

Franchised Buses

The standard and capacity of franchised bus services continued to improve through effective planning and co-ordination. There are three franchised bus companies which together carried 3.5 million passenger boardings a day on a network of 340 regular routes.

The largest bus operator is the Kowloon Motor Bus Company (KMB), which ran 227 bus routes in Kowloon and the New Territories in addition to 21 cross-harbour routes operated jointly with the China Motor Bus Company (CMB) and one cross-harbour route of its own. KMB also operates 'Airbus' services to and from the airport, comprising two routes to Hong Kong Island and one within Kowloon.

The KMB fleet at the end of the year comprised 2 849 registered vehicles, including 2 729 double-deck buses, 31 single-deckers, 26 full-size coaches and 63 small coaches. As well as further expanding its fleet of air-conditioned small coaches the company continued to experiment with an air-conditioned double-deck bus, and during the year an order was placed for 20 air-conditioned double-deckers. Expansion of the network continued, much of this being in the new towns of the New Territories. During the year three new express services, six intra-new-town services and nine routes to Kowloon were introduced. In 1989 the company carried 975 million passengers and operated 201 million vehicle-kilometres, compared with 1081 million passengers and 215 million vehicle-kilometres the previous year. The company's franchise extends until August 31, 1997. KMB's fare increase of 19 per cent was introduced in January 1989.

Bus services on Hong Kong Island are provided by the China Motor Bus Company, which operates 84 island routes and, jointly with KMB, 21 cross-harbour routes. At the end of 1989 CMB's fleet comprised 1 004 double-deckers and two single-deckers. These vehicles carried 299 million passengers and travelled 50 million vehicle-kilometres during the year compared with 317 million and 53 million respectively in 1988. The company continued to expand its fleet of three-axle double-deckers during the year, 44 were added and 42 more were under construction or on order. In January 1989, the company's franchise was extended until August 31, 1993. The fares were increased by an average 20 per cent in July 1989.

  The New Lantao Bus Company (NLB) operates seven regular and two recreational routes on Lantau Island. NLB's fleet comprised 56 buses at the end of the year, of which 13 were double-deckers. During the year the company carried 8 200 passengers on an average weekday, but on Sundays and public holidays recreational travel raised average ridership to 20 000. During the year the company called for tenders to construct a new depot at Mui Wo and it hopes to complete this in 1990.

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Minibuses

Hong Kong's minibuses are licensed to carry a maximum of 16 seated passengers. There were 6 750 minibuses in 1989. Of these, 4 350 were public light buses (PLB), and 2 400 private light buses. The PLBs are authorised to carry passengers at separate fares. The private light buses are only authorised to carry group passengers and the collection of fares is not permitted.

The operation of PLBS is regulated by a passenger service licence. Those in green livery provide services according to official schedules. In 1989, there were 1 295 of them operat- ing on 170 approved routes, each with fixed fares and time-tables. They carried 695 000 passengers a day. Red PLBs operate without a schedule. They do not have fixed routes, timetables and fares. In 1989, there were about 3 046 red PLBs which carried 1 065 000 passengers daily.

In line with government policy to convert more PLBs to operate on scheduled routes, 14 new scheduled routes have been identified in 1989. A new green minibus selection exercise would be conducted in 1990 for competitive bidding by minibus operators.

Taxis

The quota governing the maximum number of taxis that may be licensed in the urban area and the New Territories was increased following a review of the operation of the trade and demand for taxis in 1989. At the end of 1989, there were 14 600 urban taxis, 2 738 New Territories taxis, and 40 Lantau taxis, carrying an average of 1 045 700, 175 500 and 1 100 daily passengers respectively.

       During the year, new licences were issued for 200 urban taxis and for 100 in the New Territories.

In 1989, fare increases ranging from 11 per cent to 20 per cent were approved on all three types of taxis. The operating boundary of New Territories taxis was relaxed so that they could serve Ma On Shan new town.

Non-franchised Bus Operators

      Residents' services were introduced in 1982 to meet the transport needs of relatively isolated residential areas without adequate access to franchised bus services. Residents' organisations may request a non-franchised bus operator to apply for such a service, which is then vetted and authorised under the operator's passenger service licence. Residents' services must operate in accordance with approved schedules of service, which also specify the routeing, timetable, stopping place, and, in some cases, the fares. Most of these services operate during peak hours. A licence is normally valid for one year and may be renewed if there is a continuing need for the service.

At the end of the year, there were 25 residents' services carrying 28 000 passenger trips a day. Vehicles used on these services varied from small 24-seat coaches to double-deck buses; during the year double-deck air-conditioned coaches were introduced on routes from a housing development in Sha Tin and an innovation was introduced by serving breakfast on board.

       Apart from the scheduled residents' services, non-franchised buses and light buses operate to serve the needs of factory employees, tourists and schoolchildren on a contract hire basis. At the end of December 1989, the licensed fleet of non-franchised buses totalled 2 600 vehicles, of which 18 were double-deckers.

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Ferries

 Ferry services are still an important way of crossing the harbour, and essential for regular and recreational trips to and from Hong Kong's outlying islands. The majority of ferry travel is provided by two franchised operators - the Hongkong and Yaumati Ferry Company Limited (HYF) and the Star Ferry Company Limited.

  The Star Ferry Company operated 14 vessels across the harbour and, during the year, it carried 40 million passengers on its four routes. An 11 per cent fare increase was approved, effective from July 2, 1989.

  In 1989, the parent company of HYF was re-named Hong Kong Ferry (Holdings) Company Limited. HYF owned 76 vessels and operated 26 ferry services, including passenger and/or vehicular services across the harbour, services to outlying islands, and vehicular charter services to Lantau. They carried 199 700 passengers and 13 800 vehicles daily. An average 19.5 per cent fare increase was approved in November 1989.

  In 1989, the patronage of the company's cross-harbour ferry services continued to be eroded by new cross-harbour bus routes and the Mass Transit Railway. With the extension of the MTR Kwun Tong line across the harbour to Quarry Bay in August 1989 and the addition of new cross-harbour bus routes via the Eastern Harbour Crossing in September, there was further competition for cross-harbour travel. The further development of HYF's inner harbour ferry services has been examined by the Transport Department.

  In addition to franchised ferry routes, nine minor ferry services were operated to or between outlying islands by six licensed operators. These were supplemented by kaitos, or local village ferry services, which were licensed to serve remote, coastal settlements. During the year, 123 kaitos were operated by 103 operators.

Port Development and Shipping Services

The port of Hong Kong has a sheltered, natural deep-water harbour and is navigable throughout the year. It is Hong Kong's most important natural resource.

Today Hong Kong is one of the world's busiest ports. Vessels of all shapes and sizes criss-cross the crowded harbour. During 1989 a total of 228 500 ships and craft used the waters of the port. This equates to one arrival or departure every 2.3 minutes. Ocean-going ships from more than 200 lines, flying the flags of 70 countries, trade between Hong Kong and world ports.

  In addition to administering the port, the Marine Department is responsible for all aspects of Hong Kong's maritime affairs. The department employs 1 636 staff. In global terms, costs are fully recovered by fees and charges and the annual revenue and ex- penditure in 1989 was about $800 million.

There has been a trend by many governments to disengage from direct delivery of services to the public. The Hong Kong Government has always taken the view that it should not generally undertake activities which can be done commercially and thus more appropriately by the private sector. In many ways Hong Kong leads the world in this respect and the port is a good example.

  The Marine Department is therefore not a Port Authority in the accepted sense, and many of the port facilities are privately owned and operated. The principal purpose of the department in relation to the port is to ensure that conditions exist for ships to enter port, work their cargoes and leave as quickly and safely as possible. The department must also consider overall port planning and development and reconcile as far as possible the often conflicting interests of terminal operators, port users and land interests.

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       The Director of Marine is the Pilotage Authority and is advised by the Pilotage Advisory Committee. The Pilotage Authority has widespread powers regarding the operations and dues charged by the pilots, although the pilots themselves operate in the form of a private company. Tugs are also privately owned and operated.

The decision was taken in 1981 to proceed with a phased programme of compulsory pilotage. In 1985 this was applied to vessels of 10 000 tons plus. In 1987 this was further extended to vessels of 5 000 tons plus. The final phase is expected to come into effect sometime in 1990, when all ships of a certain gross registered tonnage, yet to be specified, will be required to engage the services of a Hong Kong-licensed pilot when navigating in the pilotage area.

Co-operation and consultation with the shipping industry has always been an important factor in Hong Kong's success. The Port Committee advises the Director of Marine on port policy. The Port Operations Committee is concerned with the everyday operation of the port. The Container Terminal (Land Use) Committee deals with all land-related issues relevant to container terminals. These committees are attended by a cross-section of ship- ping, government, commercial and port interests.

In 1989, some 18 900 ocean-going vessels and 93 600 river-trade vessels called at Hong Kong and loaded and discharged more than 86 million tonnes of cargo. This included 62 million tonnes of general goods from ocean-going vessels, of which 50 per cent was containerised cargo.

A variety of harbour craft play a significant role in the efficient running of the port. During the year over 1 700 lighters and 400 motor cargo boats transported cargo to and from ocean-going ships moored at the anchorages and harbour buoys in mid-stream in the harbour, and private or public cargo working areas ashore. Floating heavy-lift cranes of up to 350 tonnes lifting capacity provided cranage service to handle heavy cargo with weights exceeding the capacity of ships' gear. Tugs were available round the clock to assist berth- ing and unberthing operations. Waterboats and fuel-oil barges provide replenishment if necessary to prepare the ships for voyages ahead. Transportation of ships' agents, crew, stevedores and repair gangs to and from ships in the harbour and service for delivery of provisions are available from various public landings around the harbour.

The Marine Department provides a free service for collecting daily domestic refuse from ships. At a nominal charge, the department's contractor also provides a service to collect and dispose of trade refuse from ships.

The port of Hong Kong handled 4.44 million TEUS (20-foot equivalent units) in 1989. Expansion at Kwai Chung container port continued apace with Terminal 6 being completed in May providing a 24-berth terminal on 29 hectares. Meanwhile work on Terminal 7 was also proceeding ahead of schedule with the first berth becoming operational late in 1989 and completion due in 1990. This will provide another three berths on a land area of 31.5 hectares.

With the success of an 18.6-hectare multi-storey container freight station and godown constructed on Terminal 3, other operators are also progressing with similar expansion plans. These multi-storey facilities maximise land use.

Public cargo handling facilities administered by the Marine Department are provided at Wan Chai, Western District, Sheung Wan, Yau Ma Tei, Kowloon Bay, Kwun Tong, Sham Shui Po, Cha Kwo Ling, Chai Wan, Tsuen Wan, Rambler Channel, Tuen Mun and Ap Lei Chau. Lighters, motor cargo boats and river trade coasters use these areas to receive and deliver cargo to and from lorries or to bridge the sea-land interface. Public cargo handling facilities are in great demand and are highly utilised. Waiting time at the areas

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 substantiated the government's policy of provision of additional public cargo working areas throughout the territory to maintain and improve swift and efficient internal cargo movement.

  Other wharves and terminals provided and operated by private enterprise are capable of accommodating vessels up to 30.5 metres in length with draughts up to 16.5 metres.

  During 1989 the government appointed a multi-disciplinary team of international con- sultants to carry out a Port and Airport Development Strategy Study (PADS). The main purpose of the study was to provide a long-term strategy to ensure that the port and air- port facilities provided for Hong Kong by the year 2011 are in line with the demands of both air and shipping traffic. The second purpose was to address the more short-term demand for additional container terminals and to ensure that they are planned so that they do not compromise the long-term strategy.

  As Hong Kong's existing port and airport are close to maximum capacity the PADS study recommended major port development, in hitherto unused parts of Hong Kong. The proposals make provision for the establishment of facilities to handle growth in break-bulk cargo, in addition to containerised cargo.

  (Details of the Port and Airport Development Strategy are illustrated in the end-paper map at the end of this Report.)

  The China Ferry Terminal at Tsim Sha Tsui was opened in early November 1988 and most China services now operate from there. Following public demand, a limited number of services to Macau started operating from the China Ferry Terminal in the spring and after a slow start, are gaining in popularity. Passenger throughput from June onwards declined and for the year ending December 31, 1989, was about 10 per cent less than expected.

  At the Macau Ferry Terminal in Central, passenger growth remained steady at five per cent per annum. A service to Shekou, China, has operated successfully from Central during the year. It is intended that more services to China will operate from the Macau Ferry Terminal in the coming months.

  During the year, 12.6 million passengers were carried between Hong Kong and Macau and 2.9 million between Hong Kong and China, by dynamically-supported ferries and conventional ferries operating from Central, Tsim Sha Tsui and Sham Shui Po.

  The Marine Department provides and maintains 75 mooring buoys within the port of Hong Kong for ships to work cargo in the stream. These moorings are classified as 'A Class' and 'B Class' and are suitable for vessels up to 183 and 137 metres in length respectively. Many of these are special typhoon moorings to which vessels may remain secured during cyclones, so improving efficiency and reducing operational costs.

  Immigration and quarantine facilities for vessels calling at Hong Kong are available on a 24-hour basis at the Western Quarantine Anchorage. At the Eastern Quarantine An- chorage, these services are available only between 6 am and 6 pm daily and, in the case of the quarantine service, only on request through the Port Communications Centre. These services, including advance clearance, may be applied for by radio.

All navigation buoys in Hong Kong coastal waters conform with the International Association of Lighthouse Authorities Maritime Buoyage System, and those marking major fairways are lit and fitted with radar reflectors. Aids to navigation in the harbour and its approaches are constantly being improved to ensure greater maritime safety.

The implementation phase of the Hong Kong Vessel Traffic System (VTS), which commenced in January 1989, was completed late in 1989. Upon completion, the VTS, whose purpose is to improve the safety of and expedite navigation within the waters

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of Hong Kong, was put into a preliminary voluntary participation mode intended to last for a period of 12 months, by which time participation will be mandatory in accordance with new legislation which will augment existing provisions. The VTS replaced and took over the functions of the Port Communications Centre, including its control functions.

      The department's launches patrol the main harbour area and its approaches. They are in continuous radio contact with the Vessel Traffic Centre, thereby enabling them to respond to any emergency and fulfil the executive functions of the duty officer in the centre. Well-equipped fleets of fire boats, tugs and marine police vessels are also readily available to respond to emergencies in the harbour.

The Marine Department, by international agreement, is the Maritime Search and Rescue Co-ordinator for the area of the South China Sea north of latitude 10°N and west of longitude 120°E, excluding the immediate coastal waters of neighbouring states. The Maritime Rescue Co-ordination Centre can be manned at any time on receipt of an emergency message through the various emergency communications channels which are continuously monitored, and a full search and rescue mission can then be activated and run by staff fully trained in search and rescue techniques. Various search and rescue units are available in the form of vessels, aircraft (both fixed and rotary wing), and additional assistance can be obtained from the Rescue Co-ordination Centre in the region.

      Bunkering facilities within the port are readily available to all vessels at wharves, oil terminals, or from a large fleet of bunkering barges. Fresh water can also be provided at alongside berths, or from a private fleet of fresh-water boats.

      The port has extensive facilities for repairing, dry-docking and slipping all types of vessels, including oil rigs. Vessels of up to 40 000 tonnes deadweight and 230 metres in length can be accommodated. A large number of minor shipyards are available to undertake repairs to small vessels, and are also equipped to build and maintain sophis- ticated patrol craft and pleasure vessels.

Hong Kong is a prominent centre for shipowning, ship financing and ship management activities. Most local shipowners and connected businesses are represented by the Hong Kong Shipowners' Association, whose members control a significant percentage of the world's tonnage. At the end of 1989, the association members' fleet stood at 1330 ocean-going vessels totalling 64.5 million deadweight tons or 35.9 million gross registered tons, some 10 per cent of which is registered with the port of Hong Kong. The association is either a member of or works closely with all significant international maritime bodies to contribute and share in major developments concerning merchant shipping worldwide. Its membership stands at 175 local companies which employ over 20 000 persons. The association has undertaken a major role in preparation for the new autonomous Hong Kong Register of Shipping.

      The regulatory control, safety standards and international certification of ships registered in Hong Kong is the responsibility of the Shipping Divison of the Marine Department.

      Hong Kong remains a British port of registry, with a total fleet of 6.4 million gross registered tons on the register last year. Statutory surveys for these vessels are undertaken worldwide by surveyors of the Shipping Division for the issue of certificates in accordance with the requirements of international conventions relating to maritime safety and pollution prevention as promulgated by the International Maritime Organisation and International Labour Organisation. The division also provides a similar service to United Kingdom and foreign ships visiting Hong Kong.

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  A plan-approval and survey service is also provided for local shipping, including one of the world's largest fleets of high-technology fast passenger boats (dynamically-supported craft comprising jetfoils, hydrofoils, side-wall hovercraft and jetcats). With minor exceptions, vessels plying within the waters of Hong Kong need to be licensed under the Shipping and Port Control Ordinance and these too are inspected and issued with certificates. A major review of the procedures and requirements for local craft was under- taken during the year, which will be developed into a rationalised approach to the safety and control of the many disparate types of craft operating in Hong Kong.

  The Examination Section conducts a wide range of examinations for persons requiring certificates of competency for service on vessels of all sizes and types operating in international and local waters. The section also monitors all aspects of training at approved establishments for the acquisition of various maritime qualifications recognised by the Hong Kong Government and required by international conventions.

  A current major concern of the government and Hong Kong shipowners is the falling recruitment of Hong Kong seafarers. This is being examined by many sectors of the local shipping community to safeguard the future of the shipping industry.

  As an important centre for the recruiting of seafarers, the Marine Department Seamen's Recruiting Office and the Mercantile Marine Office register and supervise the employment of about 5 000 active seafarers on board some 650 ships of many flags. Considerable attention has been given to provide more comprehensive training for Hong Kong seafarers and, in this respect, the permanent Seamen's Training Centre at Tai Lam Chung in the New Territories provides pre-sea training courses for new entrants, and in-service training for seamen to comply with the requirements of the International Convention on Training and Certification of Seafarers.

  As a British port of registry ships registered in Hong Kong presently adopt the same standards in key areas of construction, safety and manning as those registered in the United Kingdom. This is generally accomplished by the extension of the United Kingdom legislation to Hong Kong. Until now, Hong Kong has relied on the United Kingdom Department of Transport to determine shipping policy and for the formulation and implementation of international conventions including those drawn up by the Inter- national Maritime Organisation.

Reliance on the United Kingdom for shipping administration cannot continue beyond 1997 and the Sino-British Joint Declaration provides for the future Hong Kong Special Administrative Region to maintain a shipping register under its own legislation. It is therefore necessary to reform the existing legal and administrative systems concerning registration and shipping, to ensure that Hong Kong has its own register.

  The general principles for the new Hong Kong shipping register were agreed in 1986 by the Sino-British Joint Liaison Group. A Steering Group, with representatives from the government and all sectors of the local shipping industry, was formed in March 1987 to advise on detailed proposals for the establishment of the new shipping register and detailed proposals on legal and administrative aspects of the register, technical standards, and training and certification of seafarers have been submitted to the Hong Kong Government. Drafting the legislation for the new shipping register has begun and the register is expected to open as planned in the latter part of 1990.

  The Marine Department Technical Policy Division is responsible for the development of technical standards and legislation relating to the establishment and administration of the new Hong Kong shipping register. This includes computerisation of the register and the development of technical policy necessary to ensure that the standards of the relevant

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international conventions are translated into legislation and applied to Hong Kong ships. The Technical Policy Division also provides representation for Hong Kong at technical conferences on matters including maritime safety, pollution and manning, in association with representatives invited from Hong Kong Shipowners' Association.

The enactment of the United States' Tax Reform Act 1986 on foreign shipping has posed problems for both the existing and future Hong Kong shipping register as well as for a large number of Hong Kong shipowners. The Act imposes tax on all foreign shipowners whose ships trade with the United States. To overcome these problems, the Hong Kong Government has entered into an agreement with the United States for reciprocal tax exemption on shipping income. The agreement was signed in August 1989 and will take effect retrospectively from January 1987.

Civil Aviation

At the opening session of the Legislative Council in October, the Governor announced the government's intention to proceed with plans to develop a replacement airport at Chek Lap Kok off the north coast of Lantau Island, in concert with plans for future port and urban development. The target date for the opening of the new airport is June 1997.

This announcement followed consideration of the results of a number of consultancies and studies which were completed during 1989. The findings of the Kai Tak Development Potential Consultancy indicated that even with a large-scale expansion scheme the existing airport would not be able to meet forecast air traffic demand much beyond the mid-1990's. Further studies were commissioned to establish the preferred site for a replacement airport. The Alternative Replacement Airport Sites (ARAS) Consultancy established that a two-runway airport could feasibly be developed on a reclaimed artificial island in the Western Harbour area of Hong Kong west of Lamma Island. However the Chek Lap Kok Master Plan Review Consultancy confirmed the findings of earlier studies which proposed Chek Lap Kok as the preferred location for a replacement airport for Hong Kong.

      (Details of the Port and Airport Development Strategy are illustrated in the end-paper map at the end of this Report.)

      At the Hong Kong International Airport, which is administered by the Civil Aviation Department, a number of new works projects were launched to cope with the forecast demand in traffic.

To enable the airport to accommodate projected growth the government has accepted in principle the recommendations of a consultancy study on the capacity and development potential of Kai Tak Airport. The consultants recommended a comprehensive package of improvements and the introduction of 'demand management'. As a result a phased implementation programme was initiated to provide a broad range of expanded facilities to handle up to 24 million passengers a year.

To meet the forecast requirement for aircraft parking positions, work commenced in September 1989 on an extension to the cargo and long-term aircraft parking facilities. The first phase, which is expected to be completed in September 1990, will provide three additional B747 parking positions. Meanwhile, work on the extension of the passenger aircraft parking apron was completed in September 1989, providing additional parking spaces for two B747 jets or up to six smaller aircraft.

      Work commenced in November to construct a further two floors on the existing multi-storey carpark. This would provide an additional 500 car parking spaces by mid-1991.

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  An advanced computerised radar data processing and display system to enhance the efficiency of the Hong Kong air-traffic control services was commissioned in April. A set of new air-traffic control simulators to match the new system was brought into use in October.

  A second air cargo terminal has been under construction by the Hong Kong Air Cargo Terminals Limited (HACTL) during 1989. With its completion scheduled for the middle of 1991, it will more than double the existing air cargo-handling capacity of about 720 000 annual tonnes.

In June 1989, Common Use Terminal Equipment (CUTE) for passenger check-in was fully installed in the passenger terminal. The introduction of CUTE has improved check-in processing and provided flexibility in check-in counter utilisation.

  Improved passenger facilities were provided with the opening of a new restaurant and snack bars, together with other retail facilities in the Stage V extension to the passenger terminal.

In November, a 'Disabled Aircraft Recovery System' was delivered. It comprises a series of sophisticated, self-powered trailers which will significantly enhance the ability of the Civil Aviation Department to speedily remove an aircraft disabled on the runway.

  Planning work continued on major long-term improvements to the passenger terminal building. Work is expected to commence in April 1990 and will include refurbishing of the air-conditioning, check-in desks and the departure baggage system.

The latest version of the B747, the 400 series, arrived at the Hong Kong International Airport in March. The aircraft is notable by its wingspan of 211 feet, an increase of 16 feet over the standard B747.

On May 21, after the passage of Typhoon 'Brenda', all air traffic records were broken when the arrival of the previous day's diverted and rescheduled flights, added to the normal scheduled traffic, generated 385 aircraft movements and 60 853 passengers in an 18-hour period.

Passenger throughput and cargo traffic continued to grow in 1989. There were 16.2 million passengers, representing an increase of six per cent over the total of 15.3 million in the previous year. General cargo, including manufactured goods imported, exported and re-exported by air, totalled 730 000 tonnes compared with 694 000 tonnes in 1988. The value of airborne goods totalled $234,196 million. Viewed against Hong Kong's total trade in imports, exports and re-exports, imports by air made up about 20 per cent, exports by air about 29 per cent and re-exports by air about 16 per cent in value terms. The United States remained the major market for exports and re-exports by air, accounting for 42 per cent and 20 per cent respectively.

An increase of 8.4 per cent in aircraft movements was recorded, bringing the annual total to 94 300. More than 80 per cent of the aircraft calling at Hong Kong were wide- bodied types.

The year saw the re-introduction by Air Niugini of scheduled air services between Port Moresby and Hong Kong in March, the takeover of British Caledonian Airways' services to Hong Kong by British Airways at the end of March, and the takeover of Flying Tigers in August by Federal Express.

Throughout 1989, Cathay Pacific Airways (CPA) continued to develop its frequency and capacity to major cities, commencing scheduled services to Manchester in October. To cope with the increasing scale of its operations, CPA acquired three L1011s, two B747-400s and one B747 freighter. By the end of 1989, its fleet comprised 17 L1011s, eight B747-200s, six B747-300s, two B747-400s and three B747 freighters.

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Hong Kong Dragon Airlines (HDA) commenced scheduled services to Dhaka and Kathmandu in February. The airline continued to operate scheduled services to Phuket, Utapao and Kagoshima and non-scheduled passenger services to a number of cities in Asia. In May the company acquired its fourth B737.

      Air Hong Kong (AHK) acquired a second B707 freighter and continued to operate non-scheduled cargo services between Hong Kong and a number of destinations, includ- ing Bangkok, Singapore, Melbourne and Sydney. In November, the airline commenced a scheduled all-cargo service to Manchester.

The Hong Kong/Brunei Air Services Agreement, the fourth in a series of air services agreements which Hong Kong aims to conclude in the coming years, was signed in Hong Kong on January 9, and entered into force.

      Subsidiary legislation was made under the Civil Aviation (Aircraft Noise) Ordinance for the control of noise emitted by aircraft engines and aircraft movements at night. The new legislation came into force in November.

      In 1989, the Air Transport Licensing Authority granted a total of 10 licences to Hong Kong airlines: four to Cathay Pacific Airways, two to Hong Kong Dragon Airlines and four to Air Hong Kong. Together with those granted in previous years, this meant that, at December 31, Cathay Pacific Airways held licences to operate scheduled services to 57 cities in 29 countries, Hong Kong Dragon Airlines was licensed to serve 48 cities in eight countries and Air Hong Kong was licensed to operate scheduled all-cargo services to 15 cities in 11 countries.

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HIGH priority is given by the Hong Kong Government to the fight against crime and the maintenance of public order. This is reflected in the work of the Fight Crime Committee under the chairmanship of the Chief Secretary, which provides advice and recommenda- tions on areas of public concern and for the maintenance of law and order.

  Operationally the Royal Hong Kong Police Force is responsible for crime prevention and detection, and the maintenance of public order.

  In anti-narcotics operations the police maintain close liaison with the Customs and Excise Department. The latter also maintains links with overseas customs authorities, and plays a major part in combatting smuggling and enforcing the Copyright Ordinance.

  The Independent Commission Against Corruption enforces the Prevention of Bribery Ordinance and promotes greater community awareness of the evils of corruption.

  The Correctional Services Department administers the penal system and runs cor- rectional and rehabilitative programmes. The department manages closed centres and detention centres for Vietnamese refugees and boat people.

  In the crowded areas of Hong Kong, fire fighting is not an easy task. The Fire Services Department, nevertheless, continues to work efficiently on fire protection, fire fighting and rescue work, and ambulance service.

Fight Crime Committee

In 1989, the Fight Crime Committee continued to reflect the high priority given by the government to the fight against crime. The committee and its sub-committees gave advice on a wide range of issues, such as tougher measures to counter organised crime, corporal punishment, approaches to juvenile crime and young offenders, and regulation of the security industry.

  The committee continued to follow up on the action required arising from the recommendations in the discussion document Options for the Changes in the Law and in the Administration of the Law to Counter the Triad Problem. The Triad Renunciation Scheme was formally launched on December 8, 1988, and it has produced a positive response from potential renouncers. From the inception of the scheme up to the end of 1989, a total of 2 467 enquiries and 644 applications were received, and a total of 150 genuine triad mem- bers had successfully renounced their triad membership. The administration of the Triad Renunciation Tribunal will be streamlined so that applications can be processed faster and further publicity will be arranged to attract additional triad renouncers.

  Amendments to the Gambling Ordinance were put before the Legislative Council to provide for heavier penalties on people running illegal gambling operations. Amendments

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First page of colour section and left: Some of the thousands of Vietnamese boat people who arrived during the year in crowded Hong Kong.

Below: Whitehead Detention Centre, at Sha Tin, was constructed specially to house some of the influx.

To help with the overflow of Vietnamese boat people, a tented camp occupies the RAF runway at Sek Kong.

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Both pages: Facilities available to the boat people include medical clinics and dental

services, language courses and their own kitchens.

Overleaf: Faced with the slow rate of resettlement overseas and the protracted stay in Hong Kong camps, some boat people choose to return to Vietnam.

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to the Crimes Ordinance were also put before the Legislative Council to provide for legislative control on nuisances associated with prostitution. The introduction of organised crime legislation is being examined to combat organised crime syndicates more effectively.

The committee endorsed the proposal to abolish judicial corporal punishment in Hong Kong. Action is being taken to repeal all legislation giving the courts power to give sentences of corporal punishment. Extensive publicity was launched against triad and juvenile crime and on home security.

The problem of juvenile crime continued to receive the close attention of the committee. The Young Offender Assessment Panel continued to give advice to the courts on the correctional programmes most likely to reform convicted juveniles and young people. During the year, three rehabilitative courses at the Outward Bound School were arrang- ed for inmates of Correctional Services Department and Social Welfare Department institutions.

      The development of the Integrated Law and Order Statistical System progressed smoothly in 1989. By integrating information on offences and offenders kept by the Police Force, the Judiciary, the Correctional Services and Social Welfare Departments, the system will provide comprehensive data on the criminal justice system and on recidivism. A mini- computer system was installed and computer programmes have been developed. Data collection, input and processing started early in 1989. Statistics on reported crimes and arrests are now available, while data on other aspects of the criminal justice system will be produced by phases starting from early 1990.

      With advice from the Security Association, draft legislation is being prepared to replace the Watchmen Ordinance and to provide a framework for the regulation of the industry as a whole. Amendments to the Summary Offences Ordinance were enacted to provide better control over faulty burglar alarms, thereby saving police manpower and reducing noise nuisance.

The District Fight Crime Committees continued to play a vital role in the fight against crime at district level. They monitored the state of crime and law enforcement in the districts and helped foster community awareness of the need to prevent crime and community participation to combat crime. They also organised a large number of fight crime activities to complement the central government publicity campaigns and continued to maintain close links with the central committee.

Police Force

The year was a particularly eventful one for the Royal Hong Kong Police Force, the dominant features being the massive public demonstrations and processions in the wake of student pro-democracy events in China and escalating problems related to the ongoing Vietnamese boat people (VBP) issue.

Following the events on the mainland, the months of May and June saw processions and demonstrations on an unprecedented scale throughout the territory. The focal points of most of these processions and demonstrations were the New China News Agency (NCNA) building in Happy Valley and Government House. Mass rallies were held at Victoria Park, Chater Garden, the racecourse in Happy Valley and a number of other locations in Kowloon and the New Territories.

      Although these public processions caused major traffic problems and considerable inconvenience to the public at large, they were generally well organised and, as a result of assistance from the police who deployed in large numbers to assist with crowd and traffic control, did not significantly affect public order.

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   One ugly incident did occur during a slow-drive protest along Nathan Road, when gangs of youths and known bad characters attempted to dominate an otherwise peaceful protest. The situation deteriorated into a minor disturbance in which the Police Tactical Unit used tear smoke to disperse crowds. Thirty-eight people were arrested for a variety of offences and 14 were subsequently charged.

   The continued influx of Vietnamese boat people (VBP) required a major commitment of resources by the police. In addition to providing an effective Marine Police screen, under- taking escorts for VBP movements and dealing with incidents in the various detention centres, the Police Force was called upon to run a number of the camps and now manage or guard four detention centres requiring a daily deployment of 643 officers.

   One of the most serious disturbances involving VBP occurred in August on Tai A Chau which was introduced as a forward reception centre at the end of May. This resulted in police evacuating the island temporarily when an angry mob of some 1 000 Vietnamese attacked about 50 unarmed police officers resulting in 23 injuries to police personnel. Two Police Tactical Unit companies and other Marine Police elements regained control of the island the following day in a swiftly-mounted air and sea operation.

   A tented VBP detention centre at Sek Kong, also managed by the police, was another scene of violent fighting between North and South Vietnamese on several occasions.

   With regard to illegal immigration from China, the policy changes introduced by the Hong Kong Government in mid-1988 had a deterrent effect and the number of illegals intercepted by security forces during 1989 decreased. Action against illegal immigration was maintained with greater emphasis being placed on the employment of illegal im- migrants by local employers.

   In November, the force was heavily committed to security arrangements, and crowd and traffic control for the visit to Hong Kong by Their Royal Highnesses Prince Charles and Princess Diana.

   In December, Deputy Commissioner of Police Mr Li Kwan-ha became the first Chinese officer appointed to head the force following the departure on retirement of Mr Raymon Anning.

Crime

  The overall crime rate increased by 3.3 per cent in 1989, with 81 808 cases reported to police compared with 79 184 the previous year. Due to revision of the counting rules, the 1988 figures for reported crime (79 859) and overall detection (46.5 per cent) have been amended. Violent crime continued to rise and a total of 17 721 cases were recorded, an increase of 12.7 per cent over 1988. There were 6 480 crimes committed by juveniles, a rise of 734 cases compared with the previous year.

The overall detection rate was 47.9 per cent, against 46.9 per cent in 1988.

   A total of 43 684 people were arrested for criminal acts, an increase of 2 090 persons over 1988. Of the total number of persons arrested, 40 772 were prosecuted and the remainder were cautioned and discharged under the Superintendent Discretion Scheme (SDS).

Organised and Serious Crime

The Organised and Serious Crimes Group continued its operations against armed robbery gangs, triad societies and organised crime syndicates. During the year, five armed robbery gangs were arrested resulting in the seizure of 11 firearms, one hand grenade and the recovery of stolen jewellery valued at $3.4 million. Another investigation into a robbery of 238 valuable antiques was successful with the arrest of five persons and the recovery of stolen

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property valued at $13.4 million, which included the Tang Dynasty Horse. Two syndicates specialising in the theft of high-valued cars were arrested and 14 Mercedes Benz valued at $5 million were recovered from Malaysia, Singapore, Thailand and Hong Kong.

      There were 40 crimes involving the use of genuine firearms, representing an increase of 16 cases against the previous year. Cases involving pistol-like objects numbered 238, well up on the previous year's 179 cases. Altogether 69 genuine firearms were seized, against 51 seized in 1988.

      Robberies and attempted robberies against goldsmiths, watchshops and jewellers increas- ed and a total of 72 cases were recorded, which accounted for a property loss of $69 million.

Commercial Crime

During 1989 emphasis was given by the Commercial Crime Bureau to the investigation of fraud within the financial and manufacturing sectors. Documentary fraud and dishonoured cheque cases featured prominently, while a number of successful prosecutions were ob- tained for misuse of locally-issued credit cards.

      Continued action by the bureau's Counterfeit and Forgery Division resulted in the neutralisation of a syndicate involved in the use of forged passports to support illegal entry into Canada by residents of the People's Republic of China.

       A further three groups, involved in the production of banknotes, credit cards and gold coins, were also identified and neutralised. The seizure of master negatives used to produce forged Standard Chartered Bank $1,000 banknotes, the arrest of two major figures connected to the production of high quality counterfeit credit cards, and the neutralisation of a gang responsible for producing counterfeit renminbi, together with United States currency, provided a successful end to the year.

Narcotics

A ninth successive bumper opium crop harvested in the Golden Triangle resulted in a worldwide glut of heroin. Although significant seizures were made throughout the year, the abundance of heroin available in the region led to steadily declining prices and purity.

       No. 4 heroin became the exclusive starting material for the manufacture of the most commonly-consumed No. 3 heroin. This occurred due to an increase in the production of No. 4 heroin in the Golden Triangle for worldwide consumption and a resulting decline in the production of the less-refined heroin base, previously used as a starting material.

Major successes were achieved against highly-organised international trafficking groups, due primarily to long-term investigations and an increased level of liaison and co-operation with overseas law enforcement agencies. Several large and sophisticated syndicates were neutralised and significant quantities of heroin seized in a number of countries, including Australia, Canada, China and the United States.

       In September, officers of the Narcotics Bureau made a single case seizure of 420 kilo- grams of highly-refined heroin, known as No. 4 heroin, which is the largest single seizure ever made in the territory.

In July 1989, the Drug Trafficking (Recovery of Proceeds) Ordinance was passed into law. This legislation provides new powers for the tracing, freezing and confiscation of assets of convicted drug traffickers. It enables law enforcement agencies to interrupt the cycling of drug money both locally and on the international front.

       Some 1 191 kilograms of opiate drugs including No. 3 and No. 4 heroin were seized compared with 879 kilograms in 1988. There were 9 608 prosecutions for narcotics offences compared with 11 560 in the previous year.

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Crime Prevention

The Crime Prevention Bureau continued to expand the range of services it offers to the community in response to all types of prevalent crime. Particular emphasis was given to the fields of architectural liaison and juvenile-related crime, including shop theft.

In January, the bureau launched 'Robotcop' (a computerised robot) and during the year 89 presentations were given in schools, shopping arcades and at police station open-days throughout the territory, resulting in considerable public interest.

In September, well-publicised new procedures were introduced throughout Hong Kong governing the manner in which police would respond on a priority basis to intruder alarms, and legislation to reduce the environmental impact of audible alarms was also proposed. Officers of the Intruder Alarm Inspection Unit of the bureau attended 31 scenes of crime where alarm systems had been attacked and the unit also conducted examinations of systems producing an unacceptable level of false signals.

The subject of legislation governing various fields of security industry activity was pursued by the Hong Kong Government in consultation with the Police Force and the Security Association of Hong Kong, with the aim of providing users of security equipment or services with safeguards.

The bureau continues to promote public awareness of crime and of the counter-measures available. This is carried out in a variety of ways, including campaigns, displays, seminars and site inspections of premises at risk. In this regard the bureau works in close liaison with the Police Public Relations Branch and the Information Services Department in addition to District Fight Crime Committees and a wide variety of private organisations, to mount effective publicity programmes.

Crime Information

The Police Operational Nominal Index Computer System, which is maintained and operated by the Criminal Records Bureau, continued to provide invaluable back-up to police front-line formations and handled some 8 858 enquiries each day.

The Identification Bureau continued to play an important role in crime investigation and detection by providing services to the force in relation to fingerprint technology and forensic photography.

Funging of the introduction of a computer-assisted fingerprint identification system was approved by the Finance Branch. The system will lead to the more speedy identification of offenders from fingerprints left at scenes of crime. The first phase of the project involves the conversion of 180 000 scenes of crime fingerprint records to the computer system which is anticipated to be operational by mid-1990.

During the year, staff of the Scenes of Crime Section of the bureau attended 26 993 crime scenes to examine fingerprints. Staff of the Advanced Technology Unit of the bureau handled 356 cases, using advanced chemical methods and laser technology to detect fingerprints which would not otherwise have been discovered. Identification of a total of 785 persons in connection with 834 cases resulted.

The Main Fingerprint Collection holds the fingerprints of 666 467 persons who have been convicted of criminal offences in Hong Kong. In 1989, 82 974 arrested persons' fingerprints were checked, resulting in 34 230 persons being identified as having previous convictions. Searches were also carried out on 81 013 sets of fingerprints for vetting

purposes.

The Certificate of No Criminal Conviction Section processed a total of 57 339 applications during the year.

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      The field of forensic photography also entered a new era through the introduction of high-speed automatic film processing and printing facilities. The Photographic Section of the bureau produced 162 259 monochrome photographs and 809 175 colour prints and slides in 1989.

Ballistics and Firearms Identification

     Officers of the Ballistics and Firearms Identification Bureau handled 296 cases compared with 235 cases in 1988. Altogether, 93 commercially-manufactured firearms were seized as well as 20 home-made firearms, a disturbing increase over the 20 commercial weapons and 17 home-made weapons seized in 1988.

      The microprocessor-operated indices in use in the bureau are being expanded and now cover various aspects of firearms technical investigative techniques. Indices in use and under preparation include an outstanding shooting crimes index, case information retrieval index, a rifling characteristics file and an indexing method for the filing and recovery of abstracts from technical publications.

Interpol

The International Criminal Police Organisation, or Interpol, was established in 1914 and has police forces from 147 countries as members.

      The Hong Kong Interpol Bureau, which was formed in September 1960, works closely with police forces throughout the world as well as with various government departments and with consulates and commissions in Hong Kong. The bureau has a small investigation unit which undertakes minor enquiries on behalf of other member countries. Requests for extradition are also processed by the bureau.

       Two officers from the Hong Kong police are permanently seconded in rotation to the Interpol General Secretariat in Lyons, France, and close liaison is maintained with the secretariat through them.

Public Order

There was one isolated outbreak of public disorder in June. This was limited to the Mong Kok area of Kowloon and was quickly brought under control.

       During May and June, large numbers of officers were deployed to police a series of massive public processions, meetings and concerts organised in connection with the pro- democracy movement in China and subsequent events in Beijing. Police resources to cover these demonstrations were tightly stretched but it is not without significance that, apart from the Mong Kok incident, throughout this very tense period there was no disorder and no crimes were reported arising from the demonstrations.

Officers of the Police Tactical Unit (PTU) were deployed for regional duties guarding and escorting Vietnamese boat people and to deal with outbreaks of violence in the detention centres.

Despite the many calls on the PTU throughout the year, training continued in accordance with the force programme. A total of 1 700 officers from the rank of constable to superintendent received training in internal security tactics and crowd control at the PTU base in the New Territories.

Routine training with PTU staff and district internal security units continued through the year. In addition a series of short refresher courses were run for officers of the district internal security companies.

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Illegal Immigration from China

In 1989, combatting illegal immigration remained a priority for the security forces. Resources devoted to this problem included an average of 756 police officers each day and the regular tasking of military and immigration officers. During the year a total of 5 452 illegal immigrants from China were arrested as they attempted to enter Hong Kong. In addition 10 389 who had actually made their way into the territory were subsequently located and arrested.

The surge of illegal immigration which occurred in the spring of 1988 was not repeated this year and the arrest rate averaged 1 320 per month as compared to 1 749 in 1988 and 2 225 in 1987. Although these figures are encouraging, political and economic events have, in the past, led to sudden and dramatic increases in illegal immigration and the police must remain constantly alert to the possibility of a new influx.

The introduction of new identity cards in 1987, which are more difficult to forge and easy to check, has greatly assisted in maintaining the pressure on those illegal immigrants who do evade capture on entry and all identity cards will be of the new type by the end of 1991.

The widening of the criteria for criminal prosecution of illegal immigration offences coupled with the imposition of custodial sentences in some areas has restricted the opportunities for illegal immigrants to find employment. This has reduced the attraction of Hong Kong for the would-be illegal immigrant.

Vietnamese Influx

The influx of Vietnamese boat people (VBP), which had prompted special measures to be taken in 1988, continued to pose problems in 1989. Monthly arrival rates of over 9 000 in both May and June were especially worrying. The vast majority of Vietnamese were from the North and had left for economic rather than political reasons.

   Since June 1988, all VBP have been held in detention centres pending a screening process to determine their status in accordance with the 1951 United Nations Convention. All VBP arriving in the territory are advised of this policy and informed that they are free to leave. However, if they elect to stay they are warned that if classified as economic migrants they will be detained pending repatriation to Vietnam.

   A total of 34 116 VBP and 231 ex-China Vietnamese illegal immigrants arrived during 1989.

On December 31, the total number of Vietnamese stood at 56 045 of which 7 092 were kept in open camps, 4 930 in closed centres and 44 023 in detention centres. Resettlement accounted for 4 754 and 1 665 births were recorded.

Marine Police

With its 10-year expansion plan now complete the Marine Police initiated a programme to replace the older vessels in its fleet of some 150 craft. A major feature was a worldwide market survey to identify a suitable vessel to replace Police Launches No. 1 and 2 which have been in service since 1963, and 1971-vintage Vosper 78-foot patrol launches.

The year brought challenges in dealing with an increasing number of boat people from Vietnam. It tested the Marine Police to the limit in terms of manpower, launches and equipment and also involved personnel having to guard VBP at temporary detention centres located at Stonecutters Island and Tai A Chau.

Traffic

The number of licensed vehicles and the resulting traffic density in terms of vehicles per kilometre of road increased over the previous year by 9.2 per cent and 6.5 per cent

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respectively, highlighting yet again the need for positive traffic control together with increased effort in the field of road safety education.

       Road safety campaigns mounted throughout the year put emphasis on improving the road sense of adult pedestrians, and young inexperienced cyclists and drivers. The Road Safety Exhibition Centre at Police Traffic Headquarters in United Centre, Queensway, the Road Safety Town at Sau Mau Ping, the newly-opened Sha Tin Road Safety Park, and the Road Safety Mobile Centre were all regularly visited by schools and similar organ- isations. Another Road Safety Town on Hong Kong Island is expected to be ready by early 1990.

A sponsored road safety campaign, known as the 'Constable Care' Road Safety Programme, aimed at children aged 8-12, was launched in the 1988-9 school year and generated considerable interest.

During 1989, there were 15 932 traffic accidents causing personal injury, a decrease of 2.4 per cent against the previous year. Provisional figures show that there were 337 fatalities and 20 886 casualties.

Community Relations

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For the second consecutive year, the Fight Crime Campaign focused on two areas which were of continuing concern the triad menace and home security - and, additionally, reintroduced the subject of juvenile crime.

Aiming to break down public resistance in reporting all aspects of triad activity, the anti-triad campaign was an extension of last year's effort. Apart from encouraging young people to report triad activities, parents and guardians were reminded of their respon- sibilities for ensuring that young persons under their control were positively supervised. Television and radio were extensively used throughout the campaign and a new Television Announcement of Public Interest (TV API) was produced.

The Neighbourhood Watch Scheme, which encourages families to take an active interest in each other's security by forming groups within buildings, entered its seventh phase. A total of 107 022 households in 572 buildings took part in this phase setting up 10 379 watch units.

Hooliganism and shoptheft were the subjects particularly emphasised in the anti- juvenile crime campaign. So far as hooliganism is concerned the campaign set out to dissuade juveniles from becoming involved in crime while at the same time reminding parents of the importance of proper parental care and control. Although the level of shop- theft dropped considerably in 1988 compared with 1987, this campaign was continued into 1989. While basically directed at juveniles, it also carried a message for adults. Both themes were promoted through police liaison with schools, police TV programmes, Junior Police Call (JPC) activities, TV specials and a new handout booklet.

Public support in the fight against crime continued to be recognised under the Good Citizen Award and Good Citizen of the Year Award Schemes in which cash awards and certificates are given to people who have courageously assisted the police to thwart crime or arrest criminals. During the year 114 people received the Good Citizen Award, making a total of $218,000 in awards, and another two people were awarded a total of $20,000 as Good Citizens of the Year.

The public continued to make full use of the police hotline to pass on crime information and 475 arrests were made as a direct result of their telephone calls.

The claim of the Junior Police Call to be the largest police-youth organisation in the world was further substantiated when the 500 000th member to join since its inception

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in 1974 was handed a membership card by the Commissioner of Police during the 15th anniversary celebrations.

JPC provides its members with healthy recreational pursuits as well as involving them in a wide variety of community services. To commemorate the outstanding performance of JPC members in community service, an award scheme, sponsored by a leading bank, is held annually to select the best member, leader, council and school club.

The Mini-Olympics, an annual JPC sports festival, encourages healthy competition in swimming, basketball, football, table-tennis and athletics, and the eighth JPC Summer Youth Camp was again held at the YMCA Youth Village at Wu Kwai Sha in August with 700 residential campers and 800 day campers taking part. The camp formed part of the 1989 Summer Youth Programme and the theme was 'Fight Youth Crime'.

Four regular television programmes jointly produced by the Police Public Relations Branch and Radio Television Hong Kong continued to enjoy good audience ratings.

Crime Watch, a monthly TV programme presented on the Chinese channels on both TV stations, features reconstructions of unsolved crimes and seeks assistance from the public through the use of telephone hotlines. Police 15, a 15-minute programme, and Police Report, a 5-minute programme, are aired respectively on the Chinese and English channels every week. Both programmes offer simple crime prevention advice as well as appealing for witnesses to crime to come forward. The fourth programme, a 15-minute weekly programme, is a youth slot primarily for the benefit of JPC members but at the same time serving as an informative youth programme. The Voice of JPC, a 30-minute Chinese weekly radio programme, also disseminates messages about fighting crime and civic education.

Training

Recruit inspectors continue to undergo a 36-week course while the recruit constables' initial course lasts 24 weeks. These courses cover criminal law, social studies, police and court procedures, drill and musketry, first aid, life-saving skills, self-defence, and, for overseas inspectors, an eight-week course in colloquiai Cantonese. Recruit traffic wardens undergo a six-week course covering traffic legislation and procedures. The wide range of specialist and continuation training courses for uniform branch officers continued throughout the year.

The Detective Training School also continued to hold 12-week Standard Criminal Investigation Courses (SCIC) for inspectors, NCOs and constables. These courses were attended by a small number of officers from the Immigration Department, Customs and Excise Department, Macau and the Seychelles.

All officers undergoing SCIC training receive specialist instruction in disaster victim identification techniques and while on the course form the Disaster Victim Identification Unit which would be deployed in the event of a major disaster.

Other than the standard courses, continuation training, as well as advanced and specialist training courses, were held to meet the demands of crime formation officers or senior uniform branch officers who have crime units under their command. A pilot course was also run for officers who may be required to deal with victims of sexual assault or child abuse.

  Junior, intermediate and senior command courses continued to provide management training and decision-making skills for inspectors, chief inspectors and superintendents.

Specialist courses were also arranged with outside educational institutions to cater for specific job-related training needs, such as catering, outdoor activities, radar, navigation,

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fire-fighting and first-aid. In addition, computer and commercial crime courses were arranged for the Management Services Wing and Commercial Crime Bureau.

       The Police Scholarship Scheme continued to provide opportunities for selected in- spectorate officers to obtain degrees and sponsored officers also attend part-time diploma courses at the Hong Kong Polytechnic and City Polytechnic. Officers attended command and development and specialist training courses in the United Kingdom, Canada, the United States, New Zealand and Malaysia.

       The Civil Service Training Division continued to run English, Cantonese and Mandarin language courses for the force. Last year saw the introduction of Vietnamese language training.

Police Cadet School

During its 16 years of operation, 4 196 cadets have graduated from the Police Cadet School. Of this number, 3 891 joined the Police Force, 44 the Fire Services, 76 the Customs and Excise Service and 58 the Correctional Services Department.

        In accordance with a decision taken in 1988 to close the Police Cadet School because of an anticipated decreasing number of suitable Form III school leavers, the Dodwell's Ridge Camp ceased operating during the year and Fan Gardens will close in late March 1990.

Complaints Against Police

The Complaints Against Police Office (CAPO) investigates all complaints from the public concerning the conduct and behaviour of members of the Police Force - including civilian staff and auxiliary police officers. The investigation of all complaints against police is monitored by the Police Complaints Committee.

The decrease in complaints recorded in 1987 and 1988 reversed slightly in 1989 when 3 234 complaints were lodged. This represents an increase of 0.5 per cent from the 3 219 complaints received in 1988. A total of 32 police officers were disciplined and six charged with offences resulting from complaints. The rate of substantiated complaints was 3.2 per cent against 1.3 per cent classified as false. Complaints of assault, neglect of duty and conduct/manner made up the majority of the complaints, being 74.5 per cent of the total.

At the beginning of 1989 a system of informal resolution with limited application was introduced by CAPO for a trial period. Following evaluation it is hoped to extend the scheme on a phased basis to the force as a whole.

In addition to investigating complaints, CAPO has a preventive role and is responsible for educating the force on complaint trends and how they can be prevented. Throughout the year, lectures and seminars on complaint prevention continued to be organised for junior police officers with the aim of improving public relations and reducing situations of conflict with members of the public.

Planning and Development

Construction of Phase I of the new Police Headquarters, a six-storey building designed to accommodate specialist units, was completed in December 1989. Planning for Phase II, a 32-storey tower block, is well advanced. The New Territories Regional Headquarters at Tai Po was also completed during the year.

Construction of Phase I of the new Police Tactical Unit Headquarters at Fanling was substantially completed and construction of Phase II commenced.

Major construction work began on five other projects: Ma On Shan District Head- quarters and Divisional Police Station; Tai Hing Divisional Police Station at Tuen Mun;

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Tsuen Wan District Headquarters and Tsuen Wan West Divisional Police Station; Junk Bay District Headquarters and Divisional Police Station; and Waterfront Divisional Police Station.

   Work continued on the expansion of the Tai Lam Chung Marine Base which is scheduled for completion early in 1990.

Communications

The contract for the new Integrated Communications System was awarded in December 1988 and installation of equipment on the hilltop transmitter and receiver sites commenced during 1989. The system will replace certain existing radio networks and extend the portable and land mobile communication service to areas currently without adequate coverage. The first phase is scheduled for completion by September 1990.

The system also provides for the replacement of the present telephone exchange equipment with modern digital switches. At the end of the year, seven exchanges had been replaced.

Information Technology

In line with the approved Information Technology Strategy, the Information Technology Branch continued to grow with the creation of 34 additional staff posts and a com- mensurate expansion of office accommodation.

The Enhanced Computer Assisted Command and Control System project is now showing tangible signs of progress. The new Regional Command and Control Centre (RCCC) in Kowloon was completed in time to permit the delivery of the computers and associated equipment in October 1989.

   The year saw the conclusion of the design contract for the new RCCCs and the Kowloon site is now equipped with the specially-designed consoles and lighting system. The special-to-project computer terminals were also delivered to Kowloon and these provide facilities for the operators unsurpassed anywhere. Building and fitting-out work is con- tinuing at the new RCCCs in the other land regions.

   Financial approval was given for the replacement of the Police Operational Nominal Index Computer System, the development of the Major Incident Investigation and Disaster Support System, and the pilot study on the feasibility of the Station Information Com- munal System.

   Work on the Computer-Assisted Fingerprint Identification System continued. The project underwent its final stages of contract negotiations in late-1989. It will become operational in 1990.

   The Criminal Intelligence Computer System has been in full operation since May 1989. It provides fast and easy retrieval of criminal data and facilitates complex intelligence analysis.

Twenty additional microcomputers with word processing functions were provided to various formations during the year.

Transport

  During the year, 96 vehicles were added to the force's transport fleet, which now totals 2 117 vehicles. In line with a vehicle standardisation policy, Landrovers and Ford Transit vans are being replaced by the Leyland Sherpa.

   The Police Driving School will be relocated in the near future from Kai Tak to a site in Sau Mau Ping to make way for further expansion of the airport's facilities.

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Licensing and Societies Registration

The number of applications for licences, permits and registrations, for which the Commissioner of Police is the authority, continued to increase steadily. By the end of the year 20 193 applications for registration as watchmen, 201 applications for the granting of arms licences and 500 other applications had been received.

       A total of 306 applications for registration or exemption from registration were received by the Registrar of Societies. At end-1989 there were 4 505 registered and 752 exempted societies.

The police view applications for a number of licences issued by the Commissioner of Television and Entertainment Licensing and the Urban and Regional Councils. The premises so licensed are visited and inspected by the police. Under this category, there were 3 090 liquor-licensed premises, and a total of 930 amusement game centres, public dance halls, table-tennis saloons, skating rinks, billiard saloons and mahjong or tin kau schools.

       Efforts have been made to ensure that the fees for licences and permits fully reflect the actual costs involved in the licensing system. This will be a continuing exercise.

Police Dog Unit

      Police dogs are currently trained at Yuen Long in the New Territories. A variety of basic and advanced courses are run following which the dogs are deployed territory-wide. Duties include general patrol, tracking and drug detection.

       In 1989 the unit had 82 dogs on strength. However, this figure is expected to increase as part of the force's phased expansion programme to meet the demands of border patrol and explosive detection duties following the withdrawal of the British Army Garrison prior to 1997.

Personnel

At the end of the year, the force establishment totalled 26 980 disciplined posts, a decrease of 230 against the corresponding figure in 1988. In addition, there are 5 362 civilians repre- senting 19.8 per cent of the overall establishment.

During 1989, 6 324 applicants applied to join the force as constables. The number of constables appointed was 1 237 and of these 21 per cent were women. A total of 202 were appointed as police inspectors, of whom 62 were direct entry local appointees, 67 were direct entry overseas appointees and 73 were junior police officers appointed through the 'potential officer' selection scheme.

The recruitment targets for 1989 remained at a high level to cater for the continued expansion of the force and to compensate for the projected increase in wastage. The scheduled intake targets for the year experienced a shortfall of 1 073 for constables and 41 for inspectors.

Promotions

Promotion prospects in the force remained excellent. 21 gazetted officers were promoted to senior superintendent and above, 30 chief inspectors to superintendent, 87 senior inspectors to chief inspector, 146 sergeants to station sergeant and 580 constables to sergeant. In addition, 17 exceptionally-experienced station sergeants were advanced to the rank of inspector.

Exchange Scheme

The year saw the commencement of the fourth round of the Superintendent of Police Exchange Scheme between Hong Kong and the United Kingdom. Under the scheme,

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  officers are seconded to Hong Kong from British police forces for a period of two years where they undertake full operational duties as divisional commanders. Similarly, super- intendents from Hong Kong are seconded to the three participating United Kingdom forces. The scheme has proved to be of great value in terms of experience for those involved, to such an extent that it has been increased in frequency to an annual exercise. This means that at any one time there are twelve officers involved.

Consultation

The Police Force Council, the Commissioner's principal consultative forum, had a particularly busy year dealing with issues arising from the final report of the Review Committee on Disciplined Services Pay and Conditions of Service and the run-up to 1997, in addition to conducting normal council business.

   Personnel Branch has an ongoing responsibility for liaising with the Police Sub- Committee of the Standing Committee on Disciplined Services Salaries and Conditions of Service and its secretariat.

   During the year several submissions were made in respect of allowances payable to the force, pensions, medical examinations and various other subjects. A job evaluation exercise commenced early in August covering, initially, the gazetted ranks. Several on-the-job visits were arranged for members of both the police sub-committee and the full standing committee, to provide members with a better understanding of the nature of police work.

Welfare

The welfare organisation within the force was initiated by the inclusion of a welfare fund under the Police Force Ordinance in 1948. An early development, some three years later, was the establishment of a number of primary schools for police children. Other areas covered in those early years were the promotion of force sporting activities and spon- sorship of police children's education.

   In 1967, two trusts for police children were established with voluntary donations from members of the public and the Royal Hong Kong Jockey Club. Funds from these trusts are regularly committed to assist in the education of police children.

   The range of services provided by the Welfare Branch has expanded more rapidly in recent years and the branch now provides a wide range of services including personnel welfare, catering, sports and recreation, psychological consultation and assistance on retirement for all members of the force and their families.

During the year, social work staff made 5 566 casework visits and conducted 4 572 casework interviews in the four regional welfare offices and three sub-offices. A series of two Family Life Education programmes was organised to promote safety in the home, skills in financial management and parental skills for officers and their families. A total of 3 657 children of regular and auxiliary police officers were awarded bursaries from the Police Children's Education Trust and the Police Education and Welfare Trust to assist them at various stages of their education.

   The Police Sports and Recreation Club at Boundary Street and the Police Officers' Club at Causeway Bay experienced very high attendance rates throughout the year, and their resources were particularly stretched at public holidays and on other festive occasions.

   Highlight of the sporting calendar came in July when 33 of the force's leading sportsmen participated in the 3rd World Police and Fire Games held in Vancouver, Canada. The team competed in nine sports and achieved impressive results winning 21 medals.

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      A psychological counselling service has been provided for all force members and their families. Mental health and stress management programmes have been run to help officers to cope with the high stress and demands of police environment. Force psychologists are also involved in teaching officers various psychological skills relevant to their daily operations.

      Resettlement programmes are also organised by the force and resettlement officers are available to police and civilian officers of all ranks who have reached the age of 52. Assistance is given to retired officers and civilians in obtaining further employment upon leaving the force.

Police Museum

The Police Museum, open to members of the public since November 1988, has become a popular visiting spot especially during the weekends. With a total area of 560 square metres it is housed in the former Wan Chai Gap Police Station and includes four exhibition galleries: the Orientation Gallery, the Narcotics Gallery, the Triad Societies Gallery and the Current Exhibition Gallery.

Royal Hong Kong Auxiliary Police Force

The Royal Hong Kong Auxiliary Police Force is manned entirely by volunteers from all walks of life. Its current strength is 5 385, of whom about 11 per cent are women officers. The role of the force is to assist the regular police in day-to-day constabulary duties and to provide additional manpower when needed for such emergencies as major disasters or public disorder.

      During 1989, the force was called upon to provide 72 personnel each day for guard duties at refugee camps set up to house the large influx of Vietnamese boat people. Additionally, all auxiliary police formations shared the burden with their regular counterparts for crowd control duties for the emotionally-charged processions in Hong Kong during May and June in the wake of the student uprising in China.

      Throughout the year, the average daily turnout of auxiliaries for normal constabulary duty was 777 officers.

Police Complaints Committee

The Police Complaints Committee, set up in 1986 to replace the former UMELCO Police Group, is an independent group appointed by the Governor. Its main function is to monitor and review the investigation by the Complaints Against the Police Office (CAPO) of the Royal Hong Kong Police Force, of complaints made against the police by the public. The chairman and two vice-chairmen of the committee are drawn from the Office of Members of the Executive and Legislative Councils (OMELCO). Committee members include eight Justices of the Peace, the Attorney General or his representative and the Commissioner for Administrative Complaints.

During the year, the committee endorsed 2 675 complaint cases, after being satisfied that each case had been thoroughly and impartially investigated by the CAPO. The committee also proposed a number of changes to police practices, procedures and instructions arising from the reviewing of these complaint cases, with a view to improving the effectiveness of the complaint system and assisting the Commissioner of Police in minimising public complaints against the police.

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Customs and Excise Department

During the year, a major re-organisation of the Customs and Excise Department was carried out. The objectives were to give the department the right organisation to deal with challenges in the 1990's, to change the partially-geographical organisation to a more functional one to make senior officers more accountable for their decisions, to put more resources into intelligence gathering and analysis, and to provide operational commanders with the best information available through the development of risk management techniques.

As a result, the department is now organised into four major branches - the Head- quarters Branch, the Operations Branch, the Investigation Branch and the Trade Controls Branch, with the addition of a Civil Secretariat.

Revenue Protection

Several innovations to simplify control procedures under the Dutiable Commodities Ordinance were introduced during the year. These included changing the tobacco duty system from a weight basis to a unitary basis; the adoption of a specific duty rate for beer to replace the system based on the degree of original gravity of the wort - which is a solution obtained by infusion from malt, fermented to form beer; the abolition of licensing requirements for the sale of duty-paid cigarettes, alcoholic liquors, motor spirit and motor diesel oil, and abolition of the permit requirements for the import and export of composite products containing dutiable commodities.

Anti-Narcotics Operations

The department continued to co-operate closely with the police, overseas customs authorities and other law enforcement agencies in the prevention and suppression of illicit trafficking in narcotics and other dangerous drugs.

   During the year, 635 kilograms of opiate drugs and cannabis were seized, including 132 kilograms of heroin, 104 kilograms of opium and 399 kilograms of cannabis. A total of 1 089 persons were charged with drug offences.

   There was a significant upsurge in the quantity of cannabis smuggled into Hong Kong. In March 1989, a record seizure of 291 kilograms of herbal cannabis was made from two consignments of containerised cargo, and in August another consignment of 76 kilograms was seized.

A total of nine drug smugglers with high-grade heroin were intercepted at the airport prior to departure for North America and Europe. As a result of joint operations with overseas law enforcement agencies, eight persons were arrested abroad with a total seizure of 15 kilograms of No. 4 heroin valued at $76 million.

Drug Trafficking (Recovery of Proceeds)

On September 1, 1989, the Drug Trafficking (Recovery of Proceeds) Ordinance was enacted. The ordinance provides for the tracing, confiscation and recovery of the proceeds of drug trafficking, and for a new offence of assisting drug traffickers to retain these proceeds. Enforcement of the ordinance is the joint responsibility of the department and the police. A new unit, comprising customs investigators and professional accountants, was established to carry out the investigation and prosecution work.

Anti-Smuggling Operations

Following the re-organisation of the department and the abolition of the regional management structure, anti-smuggling operations became the joint responsibility of the

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four commands in the operations branch. These are divided into the Ship Search and Cargo, Airport, Marine and Land Enforcement, and the Control Points commands. A task force has been established also to provide operational support to the operations branch as a whole.

      In 1989, the department detected 201 smuggling cases under the Import and Export Ordinance and arrested 266 persons with $67 million worth of goods seized. Smuggling activities between Hong Kong and China increased during the year, smuggled goods seized being mainly cigarettes and video-cassette recorders.

Intellectual Property Rights Protection

The department continued to play an active role in the protection of intellectual property rights. During the year 112 persons were charged under the Copyright Ordinance and 768 persons were charged under the Trade Descriptions Ordinance. The total value of pirated and counterfeit goods seized amounted to $131 million.

Significant headway was made in containing the problem of computer software piracy. Due to increased enforcement activities, sales of pirated computer software and manuals in a particularly notorious area in Sham Shui Po have been greatly curtailed.

Music and book piracy, which was effectively suppressed during the past few years, showed no sign of revival but there were indications that pirated video cassettes were becoming a greater problem.

During the year, the department seized a total of 34.5 million cigarettes, in three separate consignments, all of which bore forged trademarks.

Customs Co-operation Council (CCC)

The Customs Co-operation Council, of which Hong Kong is a separate member, was established to improve and harmonise international customs operations and thus facilitate international trade.

      During the year, the department continued to participate in the council's Permanent Technical Committee, the Enforcement Committee and regional liaison meetings.

A CCC regional liaison office has been established in Hong Kong since December 1987. The office, which is managed by the department, is a central body for the co-ordination of customs intelligence on drug-related matters within the Economic and Social Commission for Asia and the Pacific region.

Ozone Layer Protection

On July 1, 1989, the Ozone Layer Protection Bill became law. The new ordinance gives effect to Hong Kong's international obligations under the 1985 Vienna Convention for the Protection of the Ozone Layer and the 1987 Montreal Protocol on substances that deplete the ozone layer. The responsibility of the department under the ordinance is to control the importation and exportation of substances that deplete the ozone layer, and of products containing or made with these substances.

Ivory Trade in Hong Kong

To fulfil its obligations under the Convention on International Trade in Endangered Species (CITES), Hong Kong imposed a moratorium on the import of raw ivory on June 16, 1989, pending a decision of the Conference of the Parties to CITES. A special task force was established in the department to enforce this.

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Independent Commission Against Corruption

The Independent Commission Against Corruption (ICAC) fights corruption on three fronts: investigation, prevention and education.

International inter-agency co-operation is essential if effective action is to be taken against corruption which crosses all forms of borders and boundaries. This was evidenced during the year when officers from England, the United States, Australia, China, Egypt, Mexico, Swaziland and Tanzania visited the commission. In November, the Commissioner and heads of the ICAC's three departments delivered key speeches at the Fourth Inter- national Anti-Corruption Conference which was held in Sydney.

The ICAC is independent of the Civil Service and the commissioner is directly responsible to the Governor. But there are certain ways in which the commission is subject to external advice and monitoring. The Advisory Committee on Corruption, whose members include leading citizens and senior government officials, provides guidance on policy matters. Each of the three functional departments of the commission - Operations, Corruption Prevention and Community Relations - is also guided by an advisory body with members drawn from various sectors of the community. Complaints against the commission are handled by the ICAC Complaints Committee comprising five members of the Executive and Legislative Councils and a law officer. A total of 16 such complaints received during the year were thoroughly investigated.

Operations

The Operations Department is the investigative arm of the commission. It receives and investigates reports of suspected offences under the Prevention of Bribery Ordinance, the ICAC Ordinance and the Corrupt and Illegal Practices Ordinance.

Of the 2 423 corruption reports received by the department in 1989, 866 were made by members of the public who personally visited the commission's offices, 931 by telephone, 435 by letter and 191 from government departments. While a number of reports were made anonymously, 68 per cent of those making reports identified themselves.

Investigations into these reports resulted in 187 convictions and 139 people being cautioned. At the end of the year 114 cases were awaiting trial and 877 investigations were still in progress.

Separate elections were held in Hong Kong for the Legislative, Urban and Regional Councils, and the District Boards during the 12-month period ending in March 1989. These elections generated 126 complaints to the ICAC and resulted in 16 people, including five District Board members, being prosecuted. Another 63 people were cautioned for minor infringements of the Corrupt and Illegal Practices Ordinance. As a result of the experience gained, the commission submitted to the Secretary for Constitutional Affairs a report calling for legal and procedural amendments before the next round of elections in 1991.

Five task force teams continued their investigations into suspected complex commercial corruption cases. The cases concerned alleged criminality involving many hundreds of millions of dollars, requiring worldwide enquiries and extradition proceedings.

Apart from reporting their suspicions and fears of corruption, the public has come to regard the Operations Department as a conduit for general grievances and as a source of assistance. In 1989, the department received 996 reports which were not corruption- related and of these 694 were referred to other government departments for action.

To avoid protracted legal arguments over the admissibility of suspects' statements, the department embarked on a year-long experiment of videotaping interviews of suspects with

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a specially-equipped room in March. The results of the experiment, the first in Hong Kong, are encouraging so far.

The department is also in the process of computerising its data and this is expected to be fully operational in 1992.

Corruption Prevention

The Corruption Prevention Department reviews procedures which could be conducive to corruption in government departments and in public bodies, and recommends changes where necessary. Free confidential advice is also available to private organisations or individuals on request.

During the year, the department conducted 65 detailed examinations of specific activities of government departments and public bodies, covering policy, law, procedures and management controls. Problems identified ranged from those which caught the inter- national spotlight to those which were confined to a small voluntary welfare agency.

The studies conducted could be broadly classified into two categories, people-related and work-related. Major studies under the first category included those on Vietnamese boat people, narcotics and the Judiciary. With the large number of Vietnamese boat people in Hong Kong and the need to establish whether they were genuine refugees or not, the department advised on safeguards against abuses of the screening system. It also work- ed closely with the Correctional Services Department on procedures to ensure the safe- keeping of property belonging to boat people. On the worldwide problem of narcotics, the department worked closely with the Customs and Excise Department to ensure that procedures for checking imports for the presence of any narcotics were as secure as possible. As a result of detailed studies and liaison with the Judiciary, additional senior posts were created to help strengthen the day-to-day administrative support services for the courts. With the co-operation of the legal professional bodies to prevent touting, the public at large were provided with greater publicity about court procedures and how to obtain legal representation.

The second category of studies ranged from work-oriented projects to financial control systems. Work projects covered subjects like control of building development, supervision of construction works, building of New Territories small houses, control of unauthorised structures, and approval of water supply. The finance-related studies examined systems such as the operations of the government central tender board, the control of subventions granted to both large and small social welfare agencies, and ex-gratia payments under the Kowloon Walled City clearance scheme and under the waste control scheme. Relatively smaller financial systems which affect the daily life of the public were not overlooked and the procedures for collecting bus fares and controlling admission to the Ocean Park were also examined.

The department had been closely involved in a number of environmental protection programmes that gathered momentum during the year. A major concern was that there should be a reasonable legislative framework to enable enforcement officers to operate effectively with minimum opportunities for corrupt approaches. Where compensation was payable to people affected by these programmes, the department worked closely with the government to ensure that only those genuinely affected were paid.

In response to an increasing number of requests for assistance from the private sector, the department's Advisory Services Group organised corruption prevention seminars for management, and studied areas of concern to companies, covering such matters as purchasing and stock control. The group also assisted companies to draw up guidelines for

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their employees and provided advice, written or verbal, on ethical business practices and points of law.

The department took part in a number of discussions and seminars with Chinese officials and business cadres, both in China and in Hong Kong. Case studies were used to demonstrate management weaknesses which could lead to corruption. These contacts in turn provided the department with some first-hand knowledge on business practices and corruption law in China, enabling it to better advise Hong Kong businessmen on corruption-related matters when doing business in China.

Community Relations

The Community Relations Department is responsible for educating the public on the evils of corruption, harnessing public support in the fight against corruption, and, in the long term, seeking to promote proper social values and a greater sense of civic responsibility in the community. The department operates through two divisions, the Liaison Division and the Media and Education Division.

A new strategy was adopted by the department to enhance the effectiveness of its liaison programme. The main features included placing greater emphasis on publicity-oriented programmes designed to reach the largest possible number of targets, setting up task force teams dedicated to plan and co-ordinate liaison efforts with the private sector, and encouraging the public to initiate and organise activities to spread anti-corruption messages among themselves or to the wider community.

A total of 16 800 liaison activities and 204 special liaison programmes were conducted by the commission's 11 local offices in 1989, reaching some 432 300 people broadly categorised as civil servants, public and private sector employees, young people, and the general public. Against the background of a continual rise in corruption reports concerning the private sector in the past few years, the department maintained its momentum in liaising with those trades and industries with a high incidence of reported corruption. The task force teams made considerable headway in explaining the spirit and provisions of the Prevention of Bribery Ordinance and in appealing for positive action against corruption.

In order to enhance the involvement of different sectors of the community to actively promote the theme of anti-corruption, a Community Participation Programme was im- plemented. More than 40 organisations from business and social service sectors as well as local communities initiated anti-corruption publicity programmes with subsidies from the ICAC.

The Towards a Fuller Life territory-wide programme continued to be a popular major event. The programme promoted the positive aspects of life through a series of activities culminating in a musical show telecast at prime time to capture the maximum viewership. Music records and cassettes on songs with the theme of a fuller life were also produced for distribution to youth organisations, educational institutes and public libraries.

Encouraging young people to be fair and honest in their dealings with others is a good basis for anti-corruption education. Teaching materials produced by the department assist teachers to discuss moral issues with their students through lively and imaginative activities. These teaching materials had been in use for a number of years. To achieve a broader and more effective usage of ICAC material in schools, the department launched a new, three-year promotion strategy. This involved visits by ICAC officers to primary and secondary schools throughout the territory to introduce the range of available materials, their rationale, content and methodology. Other supportive measures included production

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of newly-designed materials in large quantities, the publishing of an ICAC periodical for schools and better use of market surveys to ascertain user needs.

      To further educate the public against the evils of corruption and promote better understanding of the work of the ICAC, the department produced a 13-episode televi- sion drama series. Entitled Vanguard, each episode contained a separate story adapted from completed ICAC investigations. This was the fifth drama series produced by the department and was telecast in a weekday prime-time slot. It was rated among the top 10 programmes on television, showing that a substantial publicity impact had been achieved.

      On the advertising front, the department continued to emphasise the importance of corruption prevention in the commercial and industrial sectors. This was done mainly through television advertising. For further publicity, the department started a direct mail campaign aimed at small factories and companies. The reporting of corruption was also encouraged through an ICAC hotline promotion campaign.

Government Laboratory

The Forensic Science Division of the Government Laboratory provides scientific and technical support to those government departments enforcing law and order. The laboratory handled more than 80 000 samples in 1989, collected from a wide spectrum of criminal activities including homicides, sexual assaults, poisoning and drugs, forgeries and fatal accidents.

       Armed with sophisticated instruments like the scanning electron microscope and the Argon-ion Laser, and with special expertise in different activities such as arson in- vestigations and blood spatter examinations, the laboratory played a vital supportive role in the fight against crime. The growing significance of forensic evidence has resulted in a constantly-increasing demand for the service and, to cope with the heavier workload, modern instrumentation as well as advanced methodology are utilised.

Recent developments in molecular biology have led to another profound and powerful technique of personal individualisation: DNA profiling. The laboratory and the two universities in Hong Kong jointly started to explore the application of this technique to the local population in the latter part of 1989 and its routine introduction into forensic casework is expected in 1990.

Document experts of the laboratory have continued to face a heavy workload from commercial fraud, forgery and counterfeiting. Their achievements over the past few years in the development work in Chinese handwriting comparison were recognised by the award of the P. W. Allan medallion by the Forensic Science Society in the United Kingdom for excellence in handwriting research.

Laboratory expertise in road accident reconstruction had been called upon frequently by the police Traffic Division both in accident investigation and in the training of specialist police officers. The laboratory has been appointed as the examination authority in Hong Kong for the City and Guilds Institute, London, for traffic accident reconstruction.

       During the year, laboratory staff attended over 600 crime scenes for evidence collection and scene examination and lectured extensively to all client departments in their law en- forcement training courses.

Correctional Services

The Correctional Services Department administers a wide range of programmes for adults, young offenders, drug addicts and the criminally insane. Broadly, three categories

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  of service are provided - custodial, after-care and industries. In addition, the department manages closed centres and detention centres for Vietnamese boat people.

   At the end of 1989 the department was managing 19 correctional institutions, three halfway houses, a staff training institute, an escort unit, two closed centres and seven detention centres for Vietnamese refugees and boat people. Policy guidance and admin- istrative support is provided from its headquarters. There were 6 544 staff looking after 11 455 inmates, 33 974 Vietnamese refugees and boat people, and 3743 persons under after-care supervision.

   During the year, there was a significant increase in the number of Vietnamese boat people and Chinese illegal immigrant workers in custody. This imposed strains upon existing accommodation, staffing and other resources. Long-term planning to meet the shortfall in accommodation includes the proposed construction of a new prison in the New Territories.

Male Offenders

Prisoners are assigned to an institution according to their security rating, which takes into account, among other things, the risk they pose to the community, and whether or not they are first offenders.

There are 11 prisons for adult male prisoners, including:

• four of maximum security: Stanley Prison, Shek Pik Prison, Siu Lam Psychiatric Centre and Lai Chi Kok Reception Centre;

three of medium security: Ma Po Ping Prison, Tung Tau Correctional Institution and Victoria Prison; and

four of minimum security: Tai Lam Correctional Institution, Pik Uk Prison, Tong Fuk Centre and Ma Hang Prison.

   Stanley Prison and Shek Pik Prison house prisoners serving long sentences or life imprisonment. Siu Lam Psychiatric Centre accommodates the criminally insane and those requiring psychiatric treatment. Adult males awaiting trial or remanded in custody during court hearings are detained at Lai Chi Kok Reception Centre which also has a separate section for male civil debtors. Victoria Prison houses illegal immigrants pending repatria- tion to China and a special section at Ma Hang Prison has been set aside for geriatric prisoners. All convicted prisoners who are medically fit are required by law to work.

Young Male Offenders

The department operates four correctional programmes for young male offenders under the Prisons, Training Centres, Drug Addiction Treatment Centres and Detention Centres Ordinances.

   The maximum security Pik Uk Correctional Institution operates as a reception centre, training centre and prison for young offenders under 25 years of age who are also detained in this institution for pre-sentence reports on their suitability for admission to the depart- ment's young offender programmes.

   Cape Collinson Correctional Institution houses those between the ages of 14 and 17, and Lai King Training Centre, those between 18 and 20 years who have been sentenced to the training centre programme.

Lai Sun Correctional Institution on Hei Ling Chau accommodates young prisoners aged between 14 and 20. To cope with the increased penal population, a portion of Sha Tsui Detention Centre was gazetted in April 1989 to accommodate young prisoners between 14 and 20 years of age.

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       A very effective detention centre programme is carried out at the medium security Sha Tsui Detention Centre. There are two sections, one for young offenders aged between 14 and 20 and the other for young adults between 21 and 24. The detention centre programme emphasises strict discipline, strenuous training, hard work and a vigorous routine.

       Young male offenders released under supervision from the detention or training centres or under the Pre-release Employment Scheme are placed in Phoenix House. Residents in this halfway house must go out to work or attend full-time school in the daytime. Young offenders identified as having special needs who have been discharged from a training centre or detention centre are required to stay in the house for up to three months before they are permitted to live at home or in other places while continuing under after-care supervision.

Female Offenders

        Adult females serve their sentences in the New Territories at Tai Lam Centre for Women. The institution also has sections for remand prisoners and those undergoing drug addiction treatment. Most of the women are employed in an industrial laundry which provides services to government departments and public hospitals.

       Female offenders under 21 years of age are held at Tai Lam Gap Correctional Institu- tion. There are separate sections for training centre inmates, drug addiction treatment centre inmates, young prisoners and remands.

       Bauhinia House serves as a halfway house for girls released under supervision from the training centre or under the Pre-release Employment Scheme.

Drug Addiction Treatment

Drug addicts found guilty of an offence punishable by imprisonment may be sentenced under the Drug Addiction Treatment Centres Ordinance to a drug addiction treatment centre. They can be detained for two to 12 months depending on their progress. In-centre treatment is followed by 12 months' statutory after-care supervision.

       Male addicts are treated at Hei Ling Chau Addiction Treatment Centre. Female adult addicts receive treatment at Tai Lam Centre for Women and the young at Tai Tam Gap Correctional Institution.

       The drug addiction treatment programme aims to detoxify, restore physical health and, through the application of therapeutic and rehabilitative treatment, wean addicts from their dependence on drugs. There is also intensive follow-up after-care supervision during which time supervisees may be recalled for further treatment should supervision conditions be contravened.

Assistance is also given to addiction treatment centre inmates with post-release employment and accommodation. Temporary accommodation is available at New Life House, a halfway house for those who are in need of such support immediately following release.

Young Offender Assessment Panel

The Young Offender Assessment Panel, comprising staff from the Social Welfare and Correctional Services Departments, was established in April 1987 to provide magistrates with a co-ordinated view on the most appropriate programme for a particular young offender. At present the service is confined to Central and North Kowloon Magistracies and the Juvenile Courts. The panel has proved to be effective in handling young offenders under the age of 25.

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Education and Vocational Training

Offenders under the age of 21 attend educational and vocational training classes conducted by qualified teachers. Textbooks compiled by the department are used to provide inmates with more suitable and practical learning material matching their maturity in personality growth and development.

   Adult offenders attend evening classes on a voluntary basis run by part-time teachers from the Adult Education Section of the Education Department. Self-study packages and external correspondence courses are also available for those interested.

Both young and adult offenders are encouraged to take part in public examinations organised by the City and Guilds of London Institute, Pitman Examinations Institute, London Chamber of Commerce and Industry, and the Hong Kong Examinations Authority. Inmates also sit for the Hong Kong Certificate of Education examinations as school candidates.

Medical Services

All institutions have their own medical units providing basic treatment, health and dental care, including radiodiagnostic and pathological examinations as well as prophylactic inoculations. Inmates requiring specialist treatment are either referred to a visiting con- sultant or transferred to public hospitals.

Siu Lam Psychiatric Centre and the psychiatric observation unit at Lai Chi Kok Reception Centre treat prisoners with mental health problems and offer psychiatric consultations and assessments for inmates referred by other institutions and the courts.

Ante-natal and post-natal care is provided within institutions for female inmates but babies are normally delivered in public hospitals.

Psychological Services

Psychologists and specially-trained officers provide a wide range of counselling services for prisoners and inmates with emotional difficulties, behavioural or personality problems. In-depth reports are prepared on request to assist the courts in their sentencing and the department in assessing an offender's suitability for particular programmes. Research projects are undertaken to improve treatment programmes and reduce recidivism.

Visiting Justices

Justices of the Peace appointed by the Governor visit penal institutions and the centres for Vietnamese boat people, either fortnightly or monthly, depending on the type of institution. They investigate complaints, inspect diets and report on living and working conditions. They may also advise the Commissioner of Correctional Services on the employment of prisoners and work opportunities after release.

After-care Services

After-care plays an important role in inmates' re-integration into the community after release and helps them to lead industrious and law-abiding lives. This service is currently available to inmates from training, detention and drug addiction treatment centres, young prisoners, and adult prisoners released under the Release Under Supervision and Pre- release Employment Schemes.

After-care begins immediately following admission into an institution. Each inmate is interviewed by an after-care officer who then proceeds to establish a sound relationship with the inmate and his family.

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      Inmates are further assisted, through individual and group counselling, to gain more insight into problems arising from their social inadequacies. They are helped to become better prepared to cope with difficulties upon release, including the finding of suitable accommodation, a job or school placement.

After-care officers contact supervisees regularly after release, providing them with appropriate assistance and guidance, and ensuring that supervision requirements are strictly complied with. A breach of supervision conditions may result in recall for further training.

      The success of the programmes is measured by the percentage of supervisees who complete supervision without reconviction and, where applicable, remain drug-free. At the end of 1989, the success rates were 94.2 per cent for the detention centre inmates, 66.2 per cent for male training centre inmates, 93.2 per cent for female training centre inmates, 86.4 per cent for young male prisoners and 88.9 per cent for young female prisoners, 70.4 per cent for male drug addiction treatment centre inmates and 76.7 per cent for female drug addiction treatment centre inmates.

Release Under Supervision

The Release Under Supervision and Pre-release Employment Schemes have been in operation since July 1988. Prisoners who have served not less than half or 20 months (whichever period is the longer) of a sentence of three years or more may apply for release under the supervision of the department's after-care officers. Under the Pre-release Employment Scheme, prisoners who are serving a sentence of two years or more, and are within six months of completing their sentence, may apply for release. If their applications are successful they then work and live in a designated hostel under the supervision of after-care officers for the balance of their sentences. Prisoners who breach supervision conditions may be recalled to serve the remainder of their sentences. Up to the end of 1989, there were 171 applications for the Release Under Supervision Scheme and 322 for the Pre-release Employment Scheme. So far only nine prisoners were released by the Governor under the Release Under Supervision Scheme and 32 under the Pre-release Employment Scheme upon the advice of the Release Under Supervision Board.

Correctional Services Industries

Correctional Services industries aim to keep prisoners gainfully employed, thereby reducing the risk of unrest through boredom and lack of constructive activities. The industries also save public revenue by providing products and services to government departments and subvented organisations at reasonable prices.

      Prisoners are paid for their work and earnings can be used to make purchases from the canteen. But more importantly, industrial production helps prisoners to acquire the habit of doing useful work.

      The industries run a number of trades, the largest being laundry and garment making. Other major trades include silk-screening, printing, envelope-making, bookbinding, shoe-making, fibreglass-work, metal-work, leather-work, precast concrete and carpentry. The commercial value of goods and services provided for the year is estimated to be $210.1 million.

Closed Centres and Detention Centres

The Correctional Services Department has been responsible for the management of closed centres for Vietnamese refugees since the establishment of the first centre in July 1982.

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During the year, the department administered three closed centres at Sham Shui Po and Tuen Mun. With the introduction of the screening policy for Vietnamese boat people on June 16, 1988, the department has managed seven detention centres at Chi Ma Wan, Hei Ling Chau, Nei Kwu Chau, Cape Collinson, Sham Shui Po, Green Island and Whitehead.

Under the screening policy, the boat people in detention centres are interviewed by immigration officers to determine their status. Those deemed to be refugees are transferred to closed centres, while the others remain in the detention centres as illegal immigrants pending repatriation to Vietnam.

Voluntary agencies operating in conjunction with the United Nations High Com- missioner for Refugees (UNHCR) continue to provide services to refugees in closed centres. The department is working closely with the UNHCR and Security Branch on the gradual liberalisation of the closed centres. Services such as educational classes and work programmes for Vietnamese boat people and illegal immigrants in detention centres are provided by the Correctional Services Department.

Staff Training

The department's Staff Training Institute provides training for both new and serving officers. All recruit assistant officers and officers go through a 26-week orientation training programme, followed by a further five weeks of training prior to completion of probation. The syllabus includes a study of the laws of Hong Kong, foot-drill, self-defence, weaponry, riot-drill, first-aid, criminology and penology, basic psychology and social work.

Development training and job-oriented courses are provided throughout the year to all serving officers to update their professional knowledge, prepare them for promotion and equip selected officers for duties in specialised fields such as counselling, after-care, nursing, psychological services and physical education. Weekly in-service training is carried out within institutions to cater for the needs of individual institutions.

Society for the Rehabilitation of Offenders

The Society for the Rehabilitation of Offenders, Hong Kong, is a voluntary organisation founded in 1957 as the Hong Kong Discharged Prisoners' Aid Society. It provides care and supervision for ex-offenders who are given non-custodial sentences and persons released from prisons. Services provided include casework, group work, counselling, hostel accom- modation, employment guidance, recreational activities as well as care for those who have a history of mental illness.

Fire Services

During the year, the Fire Services Department responded to 23 138 fire calls, 15 154 special service calls, 235 955 emergency and 192 004 non-emergency ambulance calls. Fires caused 48 deaths, and injured 620 people, including 39 firemen. A total of 2 330 persons were rescued and hundreds of others were led to safety by Fire Services personnel.

Buildings and Quarters

In line with government policy to provide an emergency response to all areas within minimum set times according to the category of risk, one new fire station and two ambulance depots were commissioned in 1989. These were Kotewall Fire Station, Tsuen Wan Ambulance Depot and Wong Tai Sin Ambulance Depot. Cheung Chau Fire Station and Ap Lei Chau Fire Station were reprovisioned to improve services on Cheung Chau Island as well as Ap Lei Chau. There are now 58 fire stations, 25 ambulance depots/ stations and five fireboat stations in the territory. Forty-two rank-and-file married quarters

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were purchased and occupied during the year and planning was in hand for the provision of about 1 400 additional married quarters for firemen and ambulancemen at selected sites.

Fire Prevention

The department is responsible for formulating and enforcing fire-safety regulations. It also advises and assists all sections of the community with regard to fire protection measures generally and in the abatement of fire hazards. Besides updating and reviewing existing fire-safety legislation and codes of practice, the Fire Protection Bureau plays an important role in educating the public on fire prevention. In addition to the annual publicity campaigns, a total of 388 lectures/talks were given during 1989 to a total audience of 11 770 from different sectors of the community. Furthermore, exhibitions and demonstra- tions were held during the year to further educate the public on fire-safety aspects. The 7 996 fire-hazard complaints received from members of the public indicated the level of public concern about fire hazards and a growing awareness of the services provided by the department. Direct prosecutions on obstruction to means of escape and indiscriminate blocking of fire exits in multi-storey buildings amounted to 305 convictions in 1989 with total fines of $0.9 million.

       Fire Services personnel made 66 910 inspections of all types of premises and issued 6 703 abatement notices for the removal of fire hazards in 1989. There were 850 prose- cutions during the year for non-compliance with abatement notices and for summonses, resulting in fines amounting to about $2.5 million.

      All new building plans are vetted by the department, which specifies the requirements for built-in fire protection and advises on related matters. Some 8 070 new building plans were processed during the year. The department is also responsible for carrying out research into matters associated with fire safety.

Ambulance Services

The Fire Services Department operates the government ambulance service with a strength of 2 043 in all ranks of uniformed staff, and 154 civilian employees. The service operates 235 ambulances and ambulance-aid motorcycles from 25 ambulance depots or stations throughout the territory and from many fire stations. During the year, 235 955 emergency calls and 192 004 non-emergency calls were handled, involving 536 300 people and representing an average of 1 173 calls every 24 hours. This was an increase of 1.5 per cent in the number of calls compared with the total for 1988. Facilities on ambulances are constantly reviewed and all ambulances are equipped with analgesic apparatus, piped oxygen, inflatable splints, special stretchers and incubator-carrying capability.

To provide swift and high-quality ambulance services to the public, an expansion programme to increase both the personnel and fleet by five per cent annually is well under way.

Appliances and Workshops

The department has some 700 modern operational appliances and vehicles fitted with up-to-date fire-fighting and rescue equipment to ensure that fast and efficient fire-fighting and rescue operations can be carried out. In 1989, some 120 new or replacement appliances and vehicles of various kinds were put into service. The nine mini-appliances purchased specially for outlying islands proved to be successful. The department is constantly evaluating new products from different parts of the world to see if they could be used in Hong Kong.

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To maintain its fleet of fire appliances and rescue equipment, the department operates four workshops one on Hong Kong Island, two in Kowloon and one in the New Territories. A new workshop in Kowloon Bay is under construction and is expected to become operational early in 1990.

Communications

Installation of the Second Generation Mobilising System is progressing smoothly in the Fire Services Headquarters Building and is expected to come into operation in 1990. Costing more than $90 million, this new computer-based system will monitor the location and status of fire engines and ambulances at all times. When an emergency occurs, the system will recommend which fire stations and appliances to alert, and will display the position and readiness of vehicles already on the road. The time taken to handle incoming emergency calls and despatch the fire appliances will thus be cut to well under 60 seconds in most cases.

In order to improve the coverage of the present fire services radio system, the installation of three additional hilltop radio repeaters at Castle Peak, Shek Uk Shan and Pottinger Peak is underway. The cost for this project is around $2.8 million. These three radio repeaters will be in use early in 1990.

Staff Training

All recruits except those in the specialist communications ranks of senior fireman (control) and senior firewoman (control) are trained at the Fire Services Training School at Pat Heung in the New Territories. The courses vary in content and last from three 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 centre.

During the year, 363 recruits completed initial training. The school also conducted basic courses on fire fighting and on the use of breathing apparatus for government departments and private organisations. Some 563 people attended these courses during the year. A total of 331 ambulance personnel completed refresher courses at Cheung Sha Wan Ambulance Depot. Fire protection courses were conducted at Fire Services Headquarters for 35 senior station officers and station officers. The Driving Training School conducted courses for 955 officers and other ranks.

Establishment and Recruitment

The uniformed establishment of the department at the end of 1989 totalled 7 020. The number of civilian staff of the department increased to 705. Recruitment exercises were held, resulting in the appointment of 25 officers, 252 firemen, eight ambulance officers and 196 ambulancemen. Standards are high and on average only about 10 per cent of all applicants are accepted for appointment.

Immigration Department

The Immigration Department plays an important role in maintaining law and order in Hong Kong.

Immigration Control

Through examination at control points and vetting of visa applications, undesirable persons including international criminals, terrorists and other persona non grata are 262 detected and refused entry into Hong Kong. In 1989, 42 793 such travellers and persons

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not in possession of proper documentation were refused permission to land and 1733 applicants were refused visas.

Detection of Forged Travel Documents

      Continuous efforts are required to guard against the use of forged travel documents and identity cards by illegal immigrants and travellers. The security features of Hong Kong travel documents and identity cards have been refined to make them difficult to forge. Intelligence on forgery is collected and quickly disseminated, and special operations are mounted against forgery syndicates.

Frequent contacts are made with other local and overseas law enforcement agencies and consulates. During the year, a total of 1 183 forged travel documents were detected, representing an increase of 2.51 per cent, compared with 1 154 in 1988.

Interception of Wanted Persons

During the year, 68 218 persons were intercepted at immigration control points and immigration and registration of persons offices. Of these, 553 were wanted in connection with murder cases, 1 723 were suspected robbers, 31 301 were involved in the trafficking of dangerous drugs and 33 612 were involved in other criminal offences. In addition, 76 known or suspected terrorists were identified at points of entry.

Illegal Immigration

Frequent checks are conducted at suspicious locations, including construction sites, factories, restaurants and other places of employment. Illegal immigrants are prosecuted and sentenced to imprisonment before they are repatriated to their place of origin. With the aid of the Identity Card Information System, round-the-clock record checks enable law enforcement officers to verify the authenticity of identity cards.

       In 1989, a total of 17 611 illegal immigrants were apprehended and repatriated. Em- ployers of illegal immigrants were also prosecuted and fined and, in serious cases, custodial sentences were imposed.

       However, the number of impersonation cases where illegal immigrants resort to the use of an identity card belonging to another person in order to remain in Hong Kong has increased considerably in recent years. In 1989, 433 such cases were detected. To combat this growing problem, the Registration of Persons Ordinance and Regulations were amended during the year to raise the penalty on illegal transfer of identity cards and on the illegal use of another person's identity card. Under the amended law, possession of an identity card belonging to another person without reasonable excuse was also made an offence. This is to deter racketeers from selling other people's identity cards to illegal immigrants.

Investigation and Prosecution of Immigration Offences

During the year, a total of 6 532 charges were laid against persons who had committed various immigration offences. Apart from illegal immigration, these offences included illegally remaining, breach of condition of stay, making false statements or representations, and conspiracy in the use and supply of forged documents.

Deportation and Removal

The Immigration Department is responsible for the application, issue and execution of deportation and removal orders. During the year, 5 254 persons who were convicted of

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 possessing or trafficking in dangerous drugs, deception, theft and other criminal offences were considered for deportation and subsequently 138 were deported from Hong Kong. In addition, 3 956 persons were removed from Hong Kong under removal orders. These included 3 724 illegal immigrants and 232 persons who had breached their condition of stay.

Civil Aid Services

The Civil Aid Services (CAS) is an auxiliary emergency measures organisation whose main role is to support other regular government services in any emergency situation. It is financed by government and has an establishment of 3 725 uniformed and disciplined adult volunteers, 3 232 cadets and 123 permanent staff.

Role and Responsibilities

With heavy emphasis on coping with natural disaster and performing civic duties, the tasks of the service are numerous and far-reaching. The volunteers are trained to perform counter-disaster duties during tropical cyclones, when landslips and flooding occur, to search for and rescue persons trapped in collapsed buildings, to fight forest fires and to patrol country parks, to manage refugee camps, to combat oil pollution at sea, assist the police in crowd control and incident management and to perform first-aid, casualty handling and evacuation, and to carry out difficult mountain rescue operations. On any weekend or public holiday it is normal for over 500 volunteers to be on duty. The Tactical Force is on a 90-minute call out throughout the year.

Civic Duties

The service is also very heavily committed to perform civic duties in normal times. During the year, adult volunteers helped to organise and provide crowd control, communication and marshalling services in charity fund-raising walks, government campaigns, charity drives and at other public functions.

Vietnamese Boat People

With the continual influx of Vietnamese boat people into Hong Kong from April 1988, it was necessary to rapidly mobilise CAS volunteers to assist in setting up new refugee centres and to manage them initially until handing over to other services. Under CAS management were the Harbour Reception Centre and the Argyle Street Detection Centre. The two centres had a population of over 3 700 Vietnamese.

  The setting up of new centres in a very short space of time required a great deal of expertise by permanent staff and volunteers. The centres required complete reprovisioning of accommodation, security fencing, toilets, showers, electricity and water supplies. It was very pleasing to record the CAS was able to meet all these demands.

  The effect on personnel working in these centres was physically and psychologically exhausting. Duties were performed under very hot, humid, unpleasant and difficult conditions. A great deal of control and patience was exercised by all personnel.

Service Training

Service training is divided into centralised courses and unit training, both of which are designed to promote and maintain the operational efficiency of the service. The centralised courses in 1989-90 comprised a wide variety of subjects. Besides normal counter-disaster courses, first-aid, fire-fighting and conventional rescue instruction was given, the aim being

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to train adult volunteers in disaster control and management during large-scale emer- gencies and at civic functions.

Overseas training was organised for both permanent staff and volunteer officers. In 1989-90 two officers were sent to the Australian Counter Disaster College in Victoria for disaster-management training.

Training Facilities

The CAS has two main training centres and two training camps. The two training centres located on Hong Kong Island and in Kowloon have rescue ranges with simulated smoke rooms and facilities for rescue from confined spaces, towers for practising rescue from height and classrooms for indoor instruction.

      The 20-hectare training camp at Tsing Lung Tau which incorporates an old Chinese village dating back 260 years was completely rebuilt several years ago and has now been furnished and equipped with farming equipment of the period. The camp facilities include a swimming pool, a jogging track, a rope initiative course, a soccer field, camping sites and rescue range areas.

The new camp at Tai Tan, Sai Kung, is to provide training facilities for anyone wishing to take part in all forms of waterborne activities. The camp, after being completed in April 1989 with basic facilities, will be further developed to include a hard court for parades, camping areas and a swimming training pool. These projects are planned for completion in 1990-91.

Cadet Corps

The Cadet Corps is organised into 30 units located throughout the territory. From mid-1987, 220 females were enrolled in the corps. Cadets enter at the age of 12 to 14 and then undertake a series of training courses. Tuition includes training in basic mechanical and electrical engineering, carpentry and fibreglassing, printing and bookbinding as well as training in photography and interior design. The cadets are trained in countryside preservation, first-aid, crowd-control psychology, road safety, rock climbing, orienteering, expeditions and trekking. They are encouraged to participate in the Duke of Edinburgh Award Scheme and in 1989, eight cadets qualified for Silver Awards and 60 for Bronze Awards. At 18, the cadets leave the corps and may join the Adult Services.

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 10 aircraft: two twin-engined Beech Super King Airs, a Britten-Norman Islander, four Slingsby Firefly trainers and three Aerospatiale Dauphin twin-engined helicopters. With an establishment of 140 permanent staff and 165 volunteers comprising aircrew, engineers and admin- istrative staff, the RHKAAF can operate round-the-clock for seven days a week during an emergency. A total of about 3 650 hours have been flown during the year.

      In 1989, the RHKAAF responded to 220 requests for emergency medical evacuation and rescues. Some of these requests came from the local fleet of about 5 000 fishing boats, many of which now have high-frequency radios enabling them to call for assistance when necessary. Sixty search and rescue operations were carried out, involving both helicopters and fixed-wing aircraft. During the dry season, the Dauphins assisted in over 92 fire-fighting operations and dropped over 1 725 tonnes of water on bush and forest fires in areas inaccessible to conventional fire-fighting appliances.

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The Police Force and the Correctional Services made frequent use of helicopters for training and operational purposes. Helicopter flights were routinely provided to transport engineering staff to hilltops to carry out maintenance and repair work at communications repeater stations. During the year, about 7 600 government officers were flown to various areas in the course of their duties. Flying services were also provided to give official over- seas visitors an overview of the territory.

The Super King Airs maintained regular offshore patrols in connection with anti-illegal immigration operations and were also heavily employed in support of the Buildings and Lands Department's continuing need for aerial surveys, photography and map-making. The Fireflys and Islander provided pilot training for the squadron's own volunteers and student air-traffic controllers.

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TRAVEL AND TOURISM

HONG KONG'S out-bound travel business is carried out by some 1000 travel agents who are licensed by the Registrar of Travel Agents, under the Travel Agents Ordinance. The ordinance provides the statutory framework for self-regulation of the out-bound travel industry. In order to be licensed, a travel agent must be a member of the Travel Industry Council of Hong Kong.

The council is an approved representative of travel agents and tour operators in Hong Kong. It comprises six association members, namely, the Hong Kong Association of Travel Agents Limited, the Federation of Hong Kong Travellers Limited, the International Chinese Tourist Association Limited, the Society of IATA Passenger Agents Limited, the Hong Kong Taiwan Tourist Operators Association Limited and the Hong Kong Association of China Travel Organisers Limited. The council regulates member travel agents by means of a number of codes of practice and occasional directives. Members who breach the rules of self-regulation risk losing their council membership, and their licence to operate.

Out-bound travellers on tours are covered by a scheme that offers a high degree of protection. Licensed travel agents are obliged to contribute one per cent of their out-bound tour fares to the Travel Industry Council Reserve Fund, which was established in 1988. If a licensed travel agent should collapse, travellers may claim compensation from this fund for up to 70 per cent of tour fares paid, by producing receipts marked to indicate payment of the one per cent levy.

During 1989, no major travel agents collapsed. The Reserve Fund collected $29,222,423 in 1989, and the total collected so far is $38,342,804. The Reserve Fund paid out $3,608,721 in compensation in 1989, and has paid out $8,484,624 in total since its inception.

Tourism

Some 5.4 million visitors came to Hong Kong in 1989, a decrease of 4.1 per cent over 1988. As a result, the tourism industry earned an estimated $36,000 million during the year, an increase of 10 per cent over the 1988 figure.

The visitors came primarily from Japan (21.9 per cent), Taiwan (21.1 per cent), the USA and Canada (14.5 per cent), South-east Asia (13.3 per cent), Western Europe (13.3 per cent), Australia and New Zealand (5.6 per cent) and South Korea (3.1 per cent).

Hong Kong Tourist Association

The Hong Kong Tourist Association (HKTA) is a statutory body set up in 1957 to develop Hong Kong's tourism industry, which today is the territory's third-largest earner of foreign

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exchange. It furthers the development of the territory as a travel destination, promotes the improvement of facilities for visitors, markets Hong Kong's visitor attractions overseas and advises the government on matters relating to tourism. These aims amount to op- timising the returns on investment in developing the tourism product.

The Chairman of the HKTA and the members of its board of management are appointed by the Governor. The HKTA receives an annual subvention from the govern- ment to assist it in furthering its objectives. It also derives funds from membership dues, the sale of publications and souvenirs, and from tours.

In December 1989, the association had 1 782 members, comprising airlines, hotels, travel agents, tour operators, retail, restaurant and other visitor service establishments.

   The HKTA's head office is on the 35th floor of Jardine House in Central District on Hong Kong Island. In 1989, the Information and Gift Centre was relocated from the head office to the basement of the same building. That centre, along with similar centres at the Star Ferry Concourse in Kowloon and on the ground floor of the Royal Garden Hotel in Tsim Sha Tsui East, as well as an HKTA information counter at the Hong Kong International Airport, assisted 1.36 million visitors. The association also operates hotline telephone services in both English and Japanese, and set up in 1989 a new Mandarin- speaking hotline in recognition of the growing importance of the Taiwanese market. Together, these hotlines handled 46 700 enquiries from visitors during the year. The association monitors the calls to provide further insight into visitors' interests and spending patterns. The information service operated by the association now offers assistance for visitors in eight languages, including Korean. In 1989, the HKTA distributed 8.01 million pieces of literature in six languages to visitors upon arrival.

The HKTA's marketing strategies are designed to attract higher-yield visitors to Hong Kong and to encourage visitors to stay longer in the territory. The emphasis is on increasing the amount of money spent in the territory and encouraging visitors to return. A major marketing campaign overseas was implemented in the second half of the year, with the theme 'Stay an Extra Day in Hong Kong'.

The HKTA issued regular statements overseas to assure potential visitors to Hong Kong that the territory was a dynamic and attractive tourist destination. In addition, the association worked closely with the Hong Kong Hotels Association and initiated in 1989 a special 'Six Nights for the Price of Four' summer package for 37 of the territory's hotels.

Overseas marketing of Hong Kong as a travel destination is carried out primarily through 15 overseas offices of the HKTA, located in Auckland, Barcelona, Chicago, Frankfurt, London, Los Angeles, New York, Osaka, Paris, Rome, San Francisco, Singapore, Sydney, Tokyo and Toronto. The association also has an agreement with Hong Kong-based Cathay Pacific Airways whereby the airline acts as its information agent in an additional 42 cities around the world.

The HKTA arranged familiarisation trips for 2 000 travel agents and briefed a further 1 140 visiting travel trade personnel in 1989, with the aim of encouraging them to include Hong Kong in their tour itineraries. It also organised and co-ordinated the Hong Kong tourism industry's participation in 19 major overseas trade promotions, such as the World Travel Market in London in November-December. In addition, it assisted 1 000 overseas media representatives with their reports about Hong Kong.

In 1989, the association continued to promote Hong Kong as a year-round travel destination, marketing its unique blend of East and West and wide variety of attrac- tions. The 'Hong Kong Dragon Boat Festival - International Races 1989', organised by the HKTA in June for the 14th consecutive year, received wide international cover-

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Previous page: City of contrasts, with traditional double-decker trams shuttling past the modern shopfronts of Pacific Place, in Queensway.

Built to resemble a luxury liner, this commercial complex at Whampoa Garden, on the site of the old Whampoa Docks, houses a department store, swimming pool, restaurants, cinemas and, on the top deck, a children's play area.

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Below: The lure of shopping in Hong Kong attracts millions of tourists every year.

Right: The night market in Temple Street offers bargains of all descriptions and is a favourite haunt for tourists and local people.

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Left: Car shows are part of the programme of attractive events staged in the atrium of the Landmark building in Central. Below: Fashion takes to the catwalk at the Pacific Place shopping plaza.

Overleaf: Modern design and pleasant surroundings set the tone for shopping in this public housing estate at Sha Tin.

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TRAVEL AND TOURISM

     age through a special Visnews television clip which was picked up and screened around the world. A total of 22 overseas teams took part in the 1989 international races, and the 'Row for Charity' races raised a record HK$1,050,000 for the Community Chest of Hong Kong.

The '1989 Hong Kong Food Festival' organised by the HKTA, was held from August 13 to September 13. The festival's highlights included four Special Interest Tours which were especially created: the 'Morning Tea and Tai Chi Tour', the 'Gourmet-Guided Market Visit and Cooking Class Tour', the 'New Territories Culinary Experience Tour' and the 'Country Banquet Tour'. An exhibition entitled 'Rice - More than A Simple Grain' was staged during the Food Festival period in three shopping complexes in Hong Kong. The Hong Kong Food Festival culinary awards were presented for the second time and a panel of 11 internationally-renowned authorities on food were flown in especially to judge the practical classes. A public exhibition of Chinese and Western display-class entries was open to the public. In addition, some 30 hotels and 50 independent restaurants organised special culinary-related events during the month, while the celebrations in Lan Kwai Fong in Central were extended to become the 'Fourth Lan Kwai Fong Street Festival', lasting a week.

      In October, the first 'Hong Kong Waiters' Race' was organised, with the Hong Kong Hotels Association, to encourage greater camaraderie among the waiting staff of the industry. The event attracted 272 participants from 46 hotels and restaurants, running in six different race categories. A large portion of the participation fee was donated to the Hong Kong Polytechnic to establish a travel scholarship for hospitality management students.

      In 1989, a new Special Interest Tour called the 'Housing Tour and Home Visit', was launched for groups of visitors who wish to see more of the lifestyle of Hong Kong's people. The tour included a visit to the Government Home Ownership Scheme's model flats, a slide show about public housing estates in Hong Kong, a visit to 'dry' and 'wet' markets and an estate commercial centre, a visit to a local family and a social service organisation, a dim sum lunch, and a visit to the popular Wong Tai Sin Temple. A new 'Yau Ma Tei Walk' guide was published in 1989.

      Another tour introduced in 1989 by the association is the 'Heritage Tour'. This gives visitors the opportunity to visit four traditional, historical monuments in the New Territories.

Other tours run in 1989 were 'The Land Between' tour of the New Territories, the 'Come Horseracing' tour and the 'Sports and Recreation' tour, which enabled visitors to use the facilities of the Clearwater Bay Golf and Country Club, and special Festival tours, such as the Yuen Siu Festival, the Tin Hau Festival and the Cheung Chau Bun Festival.

      With the completion of the Convention and Exhibition Centre, the Cultural Centre and many new hotels, Hong Kong is much better equipped to host conferences and exhibitions. The association's Convention and Incentive Travel Bureau stepped up promotion in this area and business has grown from 15 international events in 1976 to 500 in 1989. Incentive travel has also increased from less than 200 groups in 1982 to 480 in 1989. Conferences and incentive travel are high-yield business as these visitors stay twice as long and spend three times as much as the average visitor.

      The HKTA continued to emphasise the importance of training in the service industries to maintain Hong Kong's high reputation in this area. Its Industry Training Department continued the Effective Selling Skills certificate programme for staff in the retail trade, as well as courses designed specifically for tour co-ordinators and restaurant service staff

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and certificate programmes in customer service. To enhance the high standards of professionalism among Hong Kong's tour co-ordinators, the '1989 Hong Kong Tour Co-ordinator of the Year' campaign was organised from May to July, during which more than 6 000 nominations were received from visitors. From these, the top 20 tour co-ordinators were selected and the Grand Award winner and five winners of an Award for Outstanding Performance were chosen.

   To encourage greater courtesy among front-line staff in the industry, the HKTA continued its programme of 'Hong Kong Cares' courtesy awards. The major courtesy programme for 1989 was the industry-wide 'Hong Kong Cares' Travel Industry Courtesy Campaign, launched in October. Additional programmes earlier in the year concentrated on retail assistants and establishments, with more than 3 300 nomination forms received from visitors during the promotion period. The top 20 nominees chosen were interviewed by a panel of judges who then chose the winner of the Grand Courtesy Award and two winners of a Courtesy Award of Excellence. The top 20 retail establishments which received the highest number of nominations received the 'Hong Kong Cares' Award for the Most Outstanding Retail Establishment.

   For the 22nd year, the association organised the Student Ambassador Programme whereby 100 students who are going overseas to further their studies in tertiary institutions take part in a month-long programme comprising lectures, tours and special visits designed to increase their awareness of various aspects of Hong Kong and enable them to talk confidently and accurately about their home.

   The association continued to publish regular reports on the performance of the industry, and to conduct its 'Visitors Survey', which monitors changes in the basic demographics of all visitors, their activities, spending patterns and their attitudes towards Hong Kong's tourism facilities. Major research publications which the HKTA produces include: 'A Statistical Review of Tourism', 'Report on Tourism Receipts', 'Visitor Arrival Statistics', 'Visitor Profile Report', 'Hotel Room Occupancy Report', 'Hotel Supply Situation', 'Hong Kong Hotel Industry Report' and 'Airline Statistics'.

   In 1989, five new hotels opened, bringing the total number of rooms in Hong Kong to 27 269. This reflects the continuing confidence that the private developer is placing in the future of Hong Kong's tourism industry.

18

THE ARMED SERVICES

THE Armed Services based in Hong Kong form a multinational Garrison, 38 per cent Hong Kong Chinese, 43 per cent Gurkhas and 19 per cent British servicemen and women.

In addition Hong Kong has its own locally-enlisted regiment of part-time soldiers, the Royal Hong Kong Regiment (The Volunteers).

The Commander British Forces is in overall command of the Royal Navy, Army and Royal Air Force elements which make up the garrison. The garrison consists of three Royal Navy patrol craft, an infantry brigade of one United Kingdom and three Gurkha battalions, and support troops which include one regiment each of Gurkha engineers, signals and transport, and an Army Air Corps squadron equipped with Scout helicopters. The Royal Air Force provides medium-lift air support with a squadron of Wessex helicopters. Among the supporting units there is an Army Maritime Troop with three landing craft (RCLs) which have become well known to residents of outlying islands as the transporters of everything from men to earth-moving equipment.

      The role of the garrison is to demonstrate sovereignty and safeguard the conditions which have helped Hong Kong to flourish, thus underlining the United Kingdom's stated commitment to the territory.

      A significant part of the garrison's work is devoted to preventing illegal immigration by land or sea. The Royal Navy patrols Hong Kong waters, and every infantryman can expect to spend one day in four on the land border throughout his tour. For two weeks every year the Volunteers also take on border duties.

Military resources are available to assist in the event of natural disasters or other tragedies. The garrison automatically comes to a higher state of alert whenever a typhoon threatens the territory. Emergency communications are set up and troops are placed on standby for tasks such as clearing landslips or assisting in the rescue of civilians trapped by floods. The RAF's Wessex helicopters are especially useful in this role. A wide range of stores and equipment is always on hand for disaster relief.

      Royal Navy patrol craft are manned and engines kept running throughout the storm so that the vessels are ready to respond instantly to calls for assistance.

      For smaller-scale emergencies, the Royal Navy operates Hong Kong's only recom- pression chamber to treat divers who have surfaced too quickly. The Navy also has its own clearance diving team which can assist the Police and the Fire Services Department in underwater tasks.

       RAF helicopters are a familiar sight during the dry season, especially in country parks where they are used to fight fires and rescue injured trekkers in addition to their primary role of moving troops or Royal Hong Kong Police on training exercises.

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   During the year the garrison played its part, with various government departments, in helping to receive and accommodate the influx of Vietnamese boat people. The western end of RAF Sek Kong was set aside for use as a temporary camp to house some 7 000 people and the Lo Wu training camp was made available to provide further accommodation. The United Kingdom battalion - the 1st Battalion, the Duke of Edinburgh's Royal Regiment was responsible for providing initial shelter on the Soko Islands and then went on to provide the bulk of the labour force to erect marquees at Sek Kong. Gurkhas provided the manpower to dismantle the tents when Typhoon Gordon threatened and put them back up again after it had passed. At the same time Chinese, Gurkha and British person- nel of the Gurkha Transport Regiment moved the bulk of the 7 000 Vietnamese housed at Sek Kong to typhoon-proof accommodation in a joint operation with the Royal Hong Kong Police.

   The Army's landing craft, helped by Royal Navy ferries, moved well over 55 000 Vietnamese to different locations while also providing a daily supply of fresh water to boat people on the Soko Islands - a task often entailing up to 14 hours at sea for the Chinese and British crews.

   The garrison is primarily a military fighting force and, as well as the active part it plays in the community, it has a responsibility to maintain military skills and standards. This involves a busy training programme throughout the year with combined exercises involving all three services and the Royal Hong Kong Regiment.

   The garrison also makes a contribution to the peace and stability of the region as a whole by taking part in Five Power Defence Arrangement exercises. Hong Kong-based units also play host to detachments of the Armed Forces from some Commonwealth countries during liaison visits to the territory.

   Hong Kong people contribute in many ways to the efficiency and operation of the garrison. The financial contribution is governed by the Defence Costs Agreement between Hong Kong and the United Kingdom, renegotiated in terms that will last until the departure of the garrison in 1997.

   Equally important is the wide range of skills that local people bring to the garrison. Hong Kong soldiers, who serve with the Army's Defence Animal Support Unit on the border, make a significant contribution to border security. This unit never leaves the border and during 1989 its dogs passed the 13 000 mark in the number of illegal immigrants caught since 1979. Hong Kong provides for the garrison many skilled drivers and cooks who have won international acclaim in their different fields. The motor cycle display team of 29 Squadron, Royal Corps of Transport, has thrilled audiences in Britain, while the Royal Navy cooks have regularly won awards at international catering competitions. Local uniformed personnel serve at sea, ashore, in offices, workshops, stores and medical centres. Local civilian staff are also a vital part of the garrison, providing skilled professional services as nurses, financial managers, executive officers, clerks, photographers and computer specialists.

Just as the community plays an important part in the garrison, the garrison itself takes an active role in community affairs. In addition to displays and open days, smaller groups of servicemen were involved during the year in over 270 projects as diverse as assistance in beach cleaning, repainting homes for the elderly, teaching handicapped children to swim and arranging a Christmas party for underprivileged youngsters.

Throughout the year 800 young people attended youth camps of one to two weeks' duration where they had a valuable opportunity to develop confidence, self reliance and team spirit. Fifteen groups of Sea Cadets spent training weekends on Stonecutters Island,

THE ARMED SERVICES

while Air Scouts and members of the Hong Kong Air Cadet Corps received flying experience with the RAF at Sek Kong.

      On Sunday mornings scores of local children enjoy a range of mini-sports on the playing fields of Stanley Fort, the home of the United Kingdom battalion, while most of the fixtures played on the garrison sports field at So Kon Po involve civilian clubs.

Military experts help with training and facilities for the sports parachutists of Hong Kong, RAF experts annually advise and assess local mountain rescue teams, and budding sailors are trained by men of the Royal Navy.

      The range of differing nationalities which make up the garrison provides a mixture of cultures unique among British Forces deployed abroad. This helps to link the garrison firmly to the life of the community through its contribution to a stable and secure en- vironment for everyone.

Royal Hong Kong Regiment (The Volunteers)

The Royal Hong Kong Regiment (The Volunteers) is a light reconnaissance regiment of part-time volunteers. Its role, though primarily one of security, includes reconnaissance, anti-illegal immigration 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 and forms part of 48 Gurkha Infantry Brigade.

      The regiment has an establishment of 946 volunteers and 54 permanent staff, including nine regular soldiers on loan from the British Army, one of whom is the Commanding Officer. The volunteers come from all walks of life and are of various nationalities, although over 97 per cent are Chinese.

      The regiment is composed of four reconnaissance squadrons, a home guard squadron, a training squadron and a headquarters squadron. In May, a total of 124 recruits successfully completed six months' training.

In addition, a women's troop with a strength of 60 volunteers provides support in various duties, including anti-illegal immigration operations as searchers and interpreters. The regiment runs a junior leaders' corps of 300 boys, aged from 14 to 17, training in youth activities and leadership.

The Regimental Headquarters is located in Happy Valley on Hong Kong Island where the volunteers have been based since 1950. The regiment does not have a training camp of its own and shares the training facilities of the British Army in Hong Kong.

      The training commitment is two evenings and one weekend each month as well as centrally-organised regimental training, such as regimental camps and exercises. Regimental camps, the highlight of the year's training, normally take place over seven days each in April/May and November. For the border camps which took place in November 1988 and May 1989, the regiment relieved the regular British Army of its anti-illegal immigration duties and captured a total of 121 illegal immigrants on these two occasions.

       Each year, selected volunteers are sent for overseas training and on attachments in the United Kingdom. All officer cadets have to undergo thorough military training at the Royal Military Academy, Sandhurst, before they receive commissions as Second Lieutenants.

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IN Hong Kong, freedom of expression is exercised and enjoyed in all forms of news reporting and editorial comment.

The dynamism of Hong Kong's print and electronic news media, with its wide coverage and sharp focus on local and international events, fits well with the vibrant life-style of the people of Hong Kong.

Major news topics in dramatic, eventful 1989 were undoubtedly headed by the events of May and June in the People's Republic of China, and their immediate and longer-term implications for Hong Kong. Other subjects that attracted considerable editorial comment included the influx of Vietnamese boat people, increasing emigration from Hong Kong, the campaign for right of abode status in Britain and environmental pollution.

The availability in Hong Kong of the latest in telecommunications technology helps to ensure a constant flow of up-to-the-minute information, and this, together with increasing interest in Hong Kong affairs, attracts international news media representatives to establish their regional bases here.

About 100 news agencies, newspapers with international coverage and readership and overseas broadcasting corporations have offices in Hong Kong. Regional publications produced here have flourished, reflecting the territory's position as a financial, industrial, trading and communications centre.

Catering to the people are more than 60 daily newspapers, nearly 600 periodicals, two private television companies, one government radio-television station, one commercial radio station, and one radio service station for the British Forces. To keep abreast of the latest technology, the government has approved the establishment of a cable television network in Hong Kong, starting in 1991.

The news media also play a significant role in the territory's precautionary measures against sudden climatic threats, alerting, informing and advising the public in the event of approaching typhoons or rainstorms.

Rapid advances and innovations in the communications field have enabled the Hong Kong Government to expand its information services. In keeping with this trend, and to promote community participation and civic education, the government now produces and contributes to an increasing number of public affairs programmes on radio and television.

Information Policy

The Information Co-ordinator in the Chief Secretary's Office has overall policy responsibility for the government's relations with the media, while the Information Services Department is the executive agency for implementing that policy. The main aim is to keep

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the media fully informed of all the government's plans and policies so that the general public are kept aware of the government activities which affect their lives. Apart from formulating policy on information and related matters, the Information Co-ordinator also advises the government on the presentation of its policies, the planning and im- plementation of major government publicity campaigns and on public relations matters generally, both within Hong Kong and overseas.

Information Services Department

The Information Services Department - known also as GIS, the Government Information Services - provides the link between the administration and the information media and, through them, the people of Hong Kong.

The News Division

The work of GIS is carried out by several divisions. The News Division disseminates a great variety of government information, including policy statements and official announcements, through its teleprinter and facsimile networks which are directly linked to leading newspapers, news agencies and radio and television stations. Telex and inter- national facsimile equipment in the division facilitates the speedy exchange of information with overseas offices.

       Information issued to the media in the form of press releases is compiled in a Daily Information Bulletin which is published in both English and Chinese. The News Division also operates a 24-hour Press Enquiries service, handling an average of 20 000 questions each month. In addition, the division is responsible for organising and conducting press conferences, including the year-round meet-the-media sessions by heads of government departments. Another media service team is responsible for planning and providing press facilities for public functions attended by top government officials and VIP visitors from

overseas.

      During emergencies such as typhoons, a co-ordination centre is set up in the newsroom to disseminate up-to-date information to the media to keep the public informed of latest developments. Apart from those officers mobilised to man the centre, others are deployed to various government departments dealing with the emergency situation, to help con- tribute to the minute-by-minute flow of information.

The Public Relations Division

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, as well as opinions voiced on radio and television. Other publications include Opinion, a weekly review of Chinese editorial comment, and special reports on media coverage of subjects of particular interest to the government.

      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 departmental units sub-division co-ordinates the operation of the 26 information and public relations units in government departments. These units issue press releases, arrange press conferences and site visits and answer many media enquiries concerning

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 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 overseas public relations sub-division (OPRS) assists in the government's publicity efforts overseas and produces and distributes promotional material worldwide. This includes The Week in Hong Kong, a newsletter mainly on trade and economic matters, feature articles and newsclips for radio and television. Assistance is provided for visiting journalists requiring information and interviews with government officers, and close liaison is maintained with news agencies and overseas journalists based in Hong Kong. This year, the unit assisted 341 overseas journalists and 63 other visitors, distributed 51 features, and produced 15 video items for television.

The Publicity Division

The Publicity Division embraces the creative, publishing and promotional resources of the department. Its ambit includes photography and film-making, an extensive photographic library, the staging of exhibitions, the design of books, leaflets and posters and the design and placement of all government advertising. GIS produces a wide variety of publications ranging from leaflets and fact sheets to the Hong Kong Annual Report and other full-colour books. Sales of government publications totalled more than $31.1 million in 1989, compared with $31.8 million in 1988. The main emphasis of publishing activity continued to lie with information material for free distribution. During the year some 708 items totalling over 8.2 million copies were given out to the public. These included leaflets advising on procedures for obtaining a wide range of government services, together with fact sheets covering 58 topics, which are updated annually with the latest statistics.

  The Publicity Division also organises and implements all government campaigns and publicity programmes. It educates the public on major issues of concern and creates public awareness of civic responsibilities through posters, films, exhibitions and other promotional material. Road Safety, Crime Prevention, Civic Education, Home Safety, AIDS and the Issue of New Identity Cards continued to be accorded major campaign status, as were Anti-Narcotics, Fire Prevention, Environmental Protection, Easy Travel Scheme and Industrial Safety. A new campaign was organised to promote parental responsibility and greater awareness of the requirements for proper child care. Publicity was also introduced to stress the need to preserve and appreciate Hong Kong's cultural heritage.

The Press

Hong Kong's flourishing free press consists of 63 newspapers and 598 periodicals, which have a high readership. The registered newspapers include 47 Chinese-language dailies and two English-language dailies. A number of news agency bulletins - Chinese, English and Japanese - are also registered as newspapers.

Of the Chinese-language dailies, 40 cover mainly general news, both local and overseas, while others cover solely entertainment, especially television and cinema news, and one concentrates on finance. The larger papers include Chinese communities overseas in their distribution networks, and some have editions printed outside Hong Kong, in particular in the United States, Canada, Britain and Australia.

Hong Kong is the South-east Asian base for many newspapers, magazines, news agencies and the electronic media. Among the international news agencies with offices in

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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, as well as the Asian Wall Street Journal and the International Herald Tribune.

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 newspaper proprietors. It is empowered to act in matters affecting the interests of its members. The Hong Kong Journalists Association, founded in 1968, is the only territory-wide trade union for local journalists. It seeks to recommend better training, pay and conditions in journalism, and advises its members in the event of disputes with employers. As an active member of the International Federation of Journalists, it plays a significant role in the international press freedom movement, particularly in the Asia-Pacific region. 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.

The Journalism Training Board provides up-grading courses for working journalists. With an allocation of some $200,000 from the Vocational Training Council, the board conducted six courses in 1989, the most popular being the annual Journalism Symposium. Two experienced journalists from Malaysia and the Philippines were invited to give a two-day seminar on 'Newsroom Management' as part of the symposium.

       In collaboration with the Hong Kong Polytechnic, the board conducted a survey to monitor the training needs for reporters. The information obtained helps in the formu- lation of future training plans.

       Following the recommendations of a recent manpower survey, the Vocational Train- ing Council established an Advertising, Public Relations and Publishing Training Board during the year.

Hong Kong's Image Overseas

Overview

One of the main objectives of the government's information policy is to project a proper image of Hong Kong to overseas communities.

       In this task, the Information Co-ordinator's office maintains close contact with the government's overseas offices, and consuls-general and commissioners of foreign countries in Hong Kong. Influential politicians, parliamentarians, government officials and busi- nessmen from countries with close relations with Hong Kong are invited to visit Hong Kong. Suitable programmes of visits and briefings are drawn up for them.

Programmes of overseas speaking arrangements for senior government officials and prominent local personalities are also co-ordinated by the Information Co-ordinaor's office. Suitable platforms are arranged for them to speak for Hong Kong before targetted audiences including editorial boards of overseas press in North America, Australia, Japan, the United Kingdom and other European countries.

In view of the widespread international interest in some of the major issues confronting Hong Kong, all these activities by the government have been significantly stepped up. They are also complemented by other activities such as participation in international seminars and cultural events, placement of articles in overseas newspapers, and where appropriate, programmes organised by the Hong Kong Trade Development Council, the Hong Kong Tourist Association, chambers of commerce and major private sector companies.

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Overseas Public Relations

Hong Kong's overseas public relations efforts are centred round London, North America, Europe and Japan.

London

  The News and Public Relations Unit 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 for Hong Kong journalists based in the United Kingdom. It also provides enquiry and information services for the public about events and developments in Hong Kong. The unit maintains close contact with journalists from both national and regional media, briefs and helps plan programmes for media visiting Hong Kong, and assists visiting journalists from Hong Kong. It organises a panel of speakers of about 100 former government officers and businessmen who have retired to Britain.

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. It also publishes a newsletter, Dateline Hong Kong, which is distributed among organisations and individuals with a close interest in Hong Kong.

The year brought unprecedented media coverage of Hong Kong, peaking with the China crisis but also sustained by the Vietnamese boat people problem and visits to London by the Governor.

The House of Commons Foreign Affairs Committee (FAC) inquiry into the implemen- tation of the Sino-British Agreement on the future of Hong Kong led to heightened interest in developments in the territory. The News Section provided Hong Kong with up-to-the- minute reports of the FAC hearings.

Regular briefings on the Vietnamese boat people issue were also given to the media and assistance provided to journalists who visited Hong Kong to report on the problem.

North America

North America is covered by information units in the government's Economic and Trade Offices located in New York and San Francisco. These offices provide a general news and information service for the media and work with GIS to produce special news releases, features and articles tailored to the needs of American publications.

   Emphasis is placed on regular liaison with representatives of the media in all the major centres, particularly in relation to questions applying to the Sino-British Joint Declaration, the steps being taken to ensure a smooth transfer of sovereignty, and the Vietnamese refugee problem. Hong Kong's role as a major trading partner of the United States, and its status as a free and fair trader, is publicised, as is the danger posed to the territory's economy by protectionist legislation. The role of Hong Kong as an international financial centre and the reforms to the Stock Exchange of Hong Kong are also promoted.

The units monitor the North American news media and provide regular reports and analyses to the government on stories affecting the territory. A number of journalists who visited Hong Kong during the year were briefed and assisted in planning their programmes. Assistance was given to VIP visitors from Hong Kong, both in government and the private sector, including the arrangement of speaking engagements before influential academics, bankers, business and financial executives, investment companies, brokerages and the media.

The offices work with organisations such as the Asia Society to promote greater understanding of Hong Kong and its culture.

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      In order to strengthen public relations efforts in North America, the government appointed the New York firm of Gavin Anderson and Company in 1987 to implement a public relations plan and strategy for Hong Kong. They assist with speaking platforms in North America and with speaking tours for visiting speakers from Hong Kong.

Europe

The Brussels office is responsible, among other things, for the government's publicity efforts in 10 of the member states of the European Community. The United Kingdom and Eire are the responsibility of the London Office. The information section there works closely with GIS to provide material on Hong Kong matters in response to enquiries from the European media and to organise briefings for journalists visiting Hong Kong.

It invites people of influence in member states' governments, the Commission of the EEC and the European Parliament who have shown an interest in Hong Kong to visit the territory, under sponsorship of the Hong Kong government. In addition, it arranges speaking engagements in many EEC countries for senior Hong Kong government officials and representatives of the business community, distributes feature articles and news re- leases to selected media contacts, and offers a more general enquiry and information service to the public.

Japan

The Tokyo office is responsible for government's publicity efforts in Japan. It liaises with Japanese ministries and arranges programmes for Japanese government officials to visit Hong Kong. It also organises speaking engagements for senior Hong Kong government officials in Japan.

Printing and Publishing

The international status of Hong Kong's printing industry has continued to grow steadily in recent years, based upon a reputation for good printing quality, quick and reliable delivery and competitive prices. As a leading centre for printing and publishing, the territory's growth has led to the formation of 3 980 printing establishments, employing 36 414 people, and more than 200 publishing houses, including many from overseas which have set up offices or regional headquarters here. Continued growth of the industry during the year can be attributed to the confidence of employers in the future of Hong Kong, and to the relative depreciation of the Hong Kong dollar against most other currencies which has enabled Hong Kong printers to obtain more orders from overseas. Hong Kong printers are still investing substantially in advanced machinery and equipment and are taking a more positive step in developing the Unites States market.

      The industry constitutes eight per cent of all manufacturing establishments and five per cent of employment in the manufacturing sector. Most of the printing factories (77 per cent) are engaged in general jobbing work, and most of the remainder deal with related work, such as typesetting and bookbinding. There are also 31 newspaper printers.

      Use of the latest technology, especially computerised equipment, has enabled the in- dustry to become highly specialised. The local electronics industry contributes to the plant and equipment of the more sophisticated printing companies and also the publishers, who are becoming increasingly involved in the use of data and word-processing systems for editorial production and stock control.

      The sales and marketing of data and word-processing systems are now handled by more than 100 companies offering over 200 systems. The output data can be converted

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or interfaced with typesetting equipment at realistic cost to provide publishers with the additional benefits of fast and cost-efficient printing. An increasing number of Chinese- language word-processors are being installed to meet demand.

Domestic exports of printed matter increased in value terms by 13 per cent over the previous year. Material printed locally with a total value of $3,017 million was exported, with the United States, China, the United Kingdom, Australia and Taiwan being the main customers. Books and pamphlets, newspapers, journals and periodicals accounted for over 67 per cent of exports of printed products.

Overall, the printing and publishing industries contributed five per cent of the net output of the manufacturing sector.

Telecommunication Services

The basic public telecommunication services are provided under franchises by the Hong Kong Telephone Company Limited and Cable and Wireless (Hong Kong) Limited. The Hong Kong Telephone Company Limited has the exclusive right until June 30, 1995, under the Telephone Ordinance to provide the public telephone service within Hong Kong. Cable and Wireless (Hong Kong) Limited has been granted an exclusive licence until September 30, 2006, to provide a range of public international telecommunication services, including telephone, telex, telegram, basic facsimile, data transmissions and leased circuits.

Within Hong Kong, by December 1989, there were an estimated 3.1 million telephones served by 2.4 million exchange lines. The current telephone density is 54 telephones per 100 population.

The Hong Kong Telephone Company Limited is in the process of modernising the local public switched telephone network. This includes a plan to digitalise by 1993 all the exchanges and transmission facilities. Optical fibres have been used extensively for inter-exchange connections. In parallel, modern signalling techniques are progressively implemented in the network.

In international telecommunications, telephone traffic grew by 32 per cent to 970 million minutes in 1989. International Direct Dialling service is now available to more than 190 overseas destinations. Owing to the increasing popularity of the use of facsimile transmission, the volume of telex traffic dropped by 18 per cent to 68 million minutes in 1989.

Hong Kong is connected to other territories by overland and submarine cables, satellites and terrestrial radio links. The more important cables include the Hong Kong-Guangzhou optical fibre cable, the Singapore-Hong Kong-Taiwan submarine cable and the Hong Kong-Luzon submarine cable. An optical fibre link between Hong Kong, South Korea and Japan is being constructed. Cable and Wireless (Hong Kong) Limited operates a satellite earth station at Stanley with five Standard-A antennas communicating with international satellites over the Indian Ocean and the Pacific Ocean.

The Hong Kong Telephone Company Limited provides a facsimile transmission service using the local public switched telephone network. The number of facsimile lines continued to grow rapidly, reaching 83 500 lines by December 1989. Centrex service, which provides private automatic branch exchange (PABX) features using the public digital exchanges, was launched during 1989. The Telephone Company also operates a public packet- switched data network called Datapak which offers a range of advanced data commu- nication facilities.

Telecommunication services outside the scope of the two franchises granted to the Hong Kong Telephone Company and Cable and Wireless (Hong Kong) are provided on

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a competitive basis. Participating in the provision of competitive public telecommu- nication services are Cable and Wireless (Hong Kong) Limited, licensees of the Public Non-Exclusive Telecommunications Services (PNETS) and public radio paging services. By December 1989, there were 28 licensees of PNETS of various types and 17 licensees of public paging services.

      One of the most important PNETS in Hong Kong is the public mobile radiotelephone service. In 1989, a new system conforming to the Total Access Communications System standard was brought into operation. This brings the number of licensed full cellular systems to four. As of December 1989, there were 87 000 subscribers to the public mobile radiotelephone service.

       Another telecommunication service which is very popular in Hong Kong is the public radio paging service. The number of subscribers increased to 600 000 by December 1989. On a per capita basis Hong Kong probably has the highest rate of subscription to paging services in the world. Paging services for transmitting longer messages and those using Chinese characters have been introduced and are quickly gaining popularity.

       A large number of value-added services have been licensed. These include electronic mail (text-mail and voice-mail), added-value facsimile transmission services (for example, text- facsimile conversion), database access and retrieval and videotex services.

      In 1988, pursuing its policy of permitting greater competition in telecommunications, the Hong Kong Government decided to allow a second telecommunication network in addition to the existing local public telephone network. This new network will be used to carry cable television services and non-franchised local telecommunication services such as data communications and facsimile. In September 1988, the government invited proposals to operate the second network as part of the invitation for proposals to operate cable television services in Hong Kong. Four proposals were received in February 1989. The government decided in August 1989 that the licence to operate the second network would be awarded to Hong Kong Cable Communications Limited which will also be granted the right to operate cable television services. It is planned that the second network will be brought into operation in 1991.

       In Hong Kong, the Postmaster General is the Telecommunications Authority and administers the Telecommunication Ordinance and the Telephone Ordinance which govern the establishment and operation of all telecommunication services. The Postmaster Gen- eral acts as adviser to the government on matters concerning the development of public telecommunication services and has a place on the Broadcasting Authority.

       The Telecommunications Branch of the Post Office supports the Telecommunications Authority in the execution of his functions. One of the most important functions carried out by the branch is the management of the radio spectrum to ensure that it is utilised efficiently. It also co-ordinates with the administrations of adjacent territories to share the radio spectrum without causing radio interference.

       Under the Telecommunication Ordinance, the branch issues licences for all forms of radio communication in Hong Kong. It conducts examinations of radio operating personnel and issues certificates to suitably qualified persons in compliance with the International Radio Regulations. It also inspects radio and radar stations on ships to ensure compliance with the International Convention for the Safety of Life at Sea.

      The branch provides advisory and planning services for the communication re- quirements of government departments and subvented institutions, co-ordinates and regulates the use of radio communication sites, monitors the technical performance of broadcast services and investigates complaints concerning reception quality.

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Postal Services

1989 brought many new milestones for postal services in Hong Kong. Mail traffic continued to increase and reached a new peak of 829.8 million items representing a 11 per cent increase over traffic in 1988. About 7 888 tonnes of letter mail and 4 463 tonnes of parcels were despatched by air, an overall increase of 16 per cent.

Speedpost, which caters for the needs of the Hong Kong business community, continued to grow rapidly. As one of the pioneers of Speedpost service, the Hong Kong Post Office is second only to the United States Postal Service among the top 10 Speedpost administrations in the world. The service is now available to 59 countries, including all Hong Kong's major trading partners, such as Australia, Canada, China, France, West Germany, Japan, Singapore, Taiwan, the United Kingdom and the United States. During the year, over 2.9 million items were handled, an increase of 27 per cent over 1988.

Despite the growth in mail traffic handled, the Hong Kong Post Office has been able to maintain its high standard of service. Except for peak periods, such as Christmas, the Hong Kong Post Office delivers the majority of letters posted locally on the day after posting. Bulk postings or second-class mail take another two to three days to deliver. Two mail deliveries are made on each weekday in the commercial and industrial areas, and one delivery elsewhere.

With the airmail service, letters collected in Hong Kong are delivered to the airport to board departing aircraft on the same day or next day, depending on the time of collection and the availability of flights.

To keep pace with the expansion and development of new towns and to cope with the growth in demand for postal facilities, five post offices were opened during the year, bringing the total number of post offices to 111. Tsat Tsz Mui Post Office was relocated to make way for redevelopment. Tai Kok Tsui Post Office was moved to bigger premises to provide improved services in that area. Major renovation works were carried out at the King's Road Post Office and the Ma Tau Wai Post Office to bring the facilities at these two offices up to modern standards. To cope with the expansion in delivery service, the delivery office in Tuen Mun and the delivery section of Cheung Sha Wan Post Offices were reprovisioned in bigger premises.

The Post Office issued six sets of special stamps in 1989. The first set, comprising four stamps, a souvenir sheet and a stamp folder, was released in January to mark the Year of the Snake. This was the third in the current Lunar New Year series which started in 1987.

The second set, depicting the annual religious festival on the island of Cheung Chau, was released in May. Another set of four stamps featuring various modern paintings and sculptures by four Hong Kong artists was released in July. The fourth set, depicting the life styles of Hong Kong people, was released in September. The fifth set, 'Hong Kong Building for the Future', comprising six stamps, was released in October. It depicted major building or transportation projects completed or being undertaken in 1989.

   The last set, comprising four stamps and a souvenir sheet, was issued on November 8 to commemorate the visit to Hong Kong by Their Royal Highnesses The Prince and Princess of Wales.

To expand the market for Hong Kong stamps and philatelic products, arrangements were made with the Macau and Singapore Post Offices to sell stamps and philatelic products on a reciprocal basis.

The Hong Kong Post Office places great importance on maintaining good relationships with its customers. To further improve this, a Courtesy Campaign was launched during the

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year involving all staff working in the 106 counter offices. Training was given to staff on how to provide better service to the public.

      A new logo was introduced in 1989 to reflect more graphically the functions of the Post Office and to project an image of forwardness, dynamism, speed and efficiency. New uniforms were also designed for postmen, to give them a better and more modern public image.

Looking ahead, the Post Office plans to move further towards mechanisation of its processes. A $109 million mechanised letter sorting system is being installed in the mail processing centres of the General Post Office and the International Mail Centre as well as eight other large district mail delivery offices in the territory. The throughput of this new system will be in the region of 28 000 items per hour. By comparison the throughput of the existing manual system is about 1 000 items per hour per sorter. The new system will be fully operational in 1990, by which time the Hong Kong Post Office will have achieved a new milestone in that it will be operating the only mechanised sorting system in the world which sorts mail items directly without requiring the sender to use a post code or zip code.

      The Post Office is also looking into the possibility of applying new technology to automated counter transactions, and of using a new type of stamp vending machine to improve efficiency and service to the public outside office hours.

Broadcasting Authority

The regulation of wireless television and commercial sound broadcasting is the respon- sibility of the Broadcasting Authority, a statutory body established in September 1987. The authority has 12 members, nine representing a cross-section of the community and three government officials. Its major functions are to administer the provisions of the Television Ordinance for television broadcasting and the provisions of the Telecommunication Ordinance for commercial radio broadcasting. It is also closely concerned with all aspects of broadcasting standards.

       During the year the authority advised the government on the terms and conditions under which a new licence for the Hong Kong Commercial Broadcasting Company Limited (Commercial Radio) should be granted, and in addition recommended that a second licence for commercial radio broadcasting should be granted in 1990. It also advised on the conditions for inviting proposals for cable television. The authority conducted a comprehensive inquiry into a suitable system of cable television for Hong Kong and the legislative, technical and regulatory framework for its implementation and carried out a detailed examination and assessment of all cable television proposals submitted.

The authority formed a working group in May 1988 to review the Codes of Practice on programme, advertising, and technical standards for television. The group subsequently recommended changes to the codes on the family viewing policy, repeats of feature films and children's programmes. Following the extension of the authority's jurisdiction to cover commercial radio broadcasting in August, the working group also started a review of the provisions of the Codes of Practice on programme and advertising standards on radio.

Complaints Committee

Complaints relating to the television industry are considered by the Complaints Committee of the authority. During the year, 903 complaints were received, representing an increase of 75 per cent in comparison with 515 in 1988. Most of the complaints were made through the committee's 24-hour complaints hotline. They were primarily concerned with the quality and standard of television programmes. During the year, the authority, acting on the

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recommendations of the committee, issued 34 warnings to the two television stations and imposed two fines.

Television

Television viewing continued to be Hong Kong's prime leisure activity in 1989, with more than 97 per cent of households owning one television set or more. Forty per cent of them also owned a video cassette recorder. Television Broadcasts Limited (TVB) and Asia Television Limited (ATV), each of which broadcasts one Chinese and one English- language service, transmitted an average of 580 hours of programming per week, an increase of about 29 per cent compared with 1988.

Commercial Broadcasters

It was a year of major growth and development for the television industry. Following the renewal of the licences of both television stations (TVB and ATV) for a period of 12 years up to December 2000, competition in programming as well as for human resources was very keen. New programme schedules were frequently introduced to test the market. There was also an increase in the production of programmes which would be attractive to both the local audience and overseas markets, in the form of video productions made in Cantonese. During the year, television productions in general became more diverse and sophisticated with increased technical proficiency.

Serialised dramas were still popular and remained the staple fare on the Chinese services, family soap operas and police stories being the favourites. Other genres like situation comedies, one-off dramas, costume sword-plays and docu-dramas were also well received by viewers.

Feature films, telemovies and chat-shows related to the entertainment world also enjoyed growing popularity. Late night magazine programmes catering for a more mature audience continued to gain viewership.

The year saw an increase in the production of locally-made current affairs programmes and information programmes with a strong local interest. These programmes were welcomed by viewers and constituted some of the most heavily-watched television programmes.

An area of tremendous expansion was in the use of satellite feeds to provide live coverage of major regional and international events. One station introduced a nightly six-hour magazine programme live via satellite on its English language service. This programme, beginning shortly after midnight, covered American and international news and current affairs.

Light entertainment and sport continued to provide periodic highlights in the regular programme schedules, with variety and music specials, game shows, beauty pageants, talent contests and live coverage of international sports events.

Improvements in television transmission coverage continued to be made. Two new transposer stations were completed, bringing the total number in Hong Kong to 21. Current plans are for additional transposer stations to be built at a rate of two each year until all areas in Hong Kong with a population of 2 000 within a radius of three kilometres can receive satisfactory television signals. To standardise and improve the quality of the transmission signals, separate antennae systems were replaced by combined broad-band antenna systems in 10 out of the 21 existing transposer stations. The ultimate aim is to replace the existing separate antennae systems in the remaining transposer stations with combined broad-band antenna systems.

COMMUNICATIONS AND THE MEDIA

Radio Television Hong Kong (Television)

During 1989, Radio Television Hong Kong (RTHK), which uses the transmission services of the two commercial stations, continued to produce 12 hours of public affairs television programmes each week.

Policy guidelines for RTHK require its programmes to provide a channel of communi- cation between the government and the public in order to promote civic responsibility and identity, to serve minority interests and in general to educate, entertain and inform. The programmes fall basically into six categories: current affairs, drama, information and community services, variety and games shows, children's and youth programmes, and general educational productions.

Starting in April 1989, the Chinese channels of the commercial television stations each allocated to RTHK a half-hour prime-time slot during weekdays. The arrangement was aimed at offering a better-balanced programme mix to the public.

The increasing pace of change in both the local and international political scenes called for more attention and coverage in these areas. Series of special discussions, debates and documentaries were produced for showing in prime-time. The programme Common Sense continued to explore issues of public concern and the on-going Today-in-LegCo provided an up-to-date insight into the work of the legislature.

      The English side of current affairs this year focused on two special themes: Seven Days, a magazine package on the political and economic scene, and All About Us, an investigative series on Hong Kong's environment and heritage.

      A children's drama series centred on the way a young family deals with children growing up. Film Drama was presented in a docu-drama format.

Variety shows such as Climb the Lion Rock and concert-format Central and Western Carnival were produced to promote a healthy life-style and civic responsibility. The large-scale event, Talent Quest for the Disabled, returned to pay tribute to the performing talents of the disabled. Game and quiz shows also featured prominently during the year.

As in the past, RTHK was responsible for producing programmes on important annual and one-off events. In mid-1989, RTHK contributed technical support to the BBC production of a studio discussion, Hong Kong - A Matter of Honour, providing live communication between the Hong Kong and British panellists discussing Hong Kong people's right of abode in the United Kingdom.

In educational programmes, language learning expanded its horizons. A new series of Everyday English in which situational English is taught through songs and drama was produced for broadcasting at prime-time. In addition, a completely new series of Putonghua Through Songs and Movies was produced.

      RTHK's Educational Television Division and the Education Department continued to produce curriculum-based and special educational programmes for schools. The government's Educational Television Service, which utilises the transmission facilities of the commercial television stations for eight hours every weekday during school term time, was watched by 610 000 schoolchildren of primary three to secondary three levels. The programmes were produced by RTHK and were devised and written by specialist Education Department staff, who provided schools with programme literature and followup work.

Cable Television

During the year the government took the decision to license Hong Kong's first cable television (CTV) system. Proposals for the establishment of the system were invited in

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  September 1988 and on the closing date of February 28, 1989 - four proposals had been received. These proposals were carefully evaluated by the Broadcasting Authority and the government, with assistance from consultants employed to advise on the financial and technical aspects. In August it was announced that the government had accepted the offer of Hong Kong Cable Communications Limited, a consortium of local and overseas interests, to establish the CTV system.

   By the end of the year work on the legislation and licences necessary to govern the CTV system was well in hand, and is expected to be finalised in the early part of 1990. Following enactment of the legislation and the issue of licences, the consortium will start the construction of the system as part of an investment that is expected to top $4 billion.

   The broadcasting facilities and cable network are expected to take about five years to complete, although cable broadcasting will start as early as 1991. Upon completion most of Hong Kong's population will have access to CTV. The service will eventually comprise over 20 channels of news, entertainment, music, sports, educational and other programmes. In addition, a number of channels will be reserved for government use, and may be utilised by organisations such as the Open Learning Institute.

   A multi-channel CTV system will increase the range of broadcasting services available to the public, and provide opportunities for televising events which would not otherwise be covered by the existing TV stations. CTV will also be able to serve the various minority groups in Hong Kong. The government expects that the increased competition in TV broadcasting will contribute to the development of the industry.

   The CTV network, which will employ a high proportion of state-of-the-art fibre optic technology, may also be used for the provision of non-franchised telecommunications and interactive services, to be provided by the consortium with the approval of the Telecommunications Authority.

Sound Broadcasting

  Radio news reporting came into its own with the dramatic events in Beijing in April, May and June. RTHK and Commercial Radio excelled in providing up-to-the-minute news coverage, at times adapting their normal programme schedules to cope with the pace of developments and the intense interest of their Hong Kong listeners.

   Ten radio channels were broadcasting in Hong Kong up to October 1989 - five operated by RTHK, three by the Hong Kong Commercial Broadcasting Company (Commercial Radio), and two by the British Forces Broadcasting Service (BFBS). In late 1989, a new Traffic Channel was established. A new channel for Chinese-language cultural programmes came into operation, increasing the number of RTHK channels to seven.

   During the year, a new VHF transmitter network was completed providing seven territory-wide FM stereo services to replace the original fragmented coverage. Three services are operated by RTHK on the new network and two by the existing Commercial Radio, while two have been reserved for a new commercial broadcaster expected to be licensed in 1990. AM services were also re-organised with two new channels coming into operation. Under its new licence, Commercial Radio was authorised to broadcast one service on AM. The second licensee will also be able to operate one service on AM.

Radio Television Hong Kong (Radio)

  RTHK, a publicly-funded station, is charged with providing balanced and objective broadcasting services to inform, educate and entertain the people of Hong Kong. Its news and public affairs programmes aim to provide fast, accurate and in-depth news reports to

COMMUNICATIONS AND THE MEDIA

keep listeners abreast of important news and events. The Director of Broadcasting is RTHK's editor-in-chief.

      RTHK maintained its international links with overseas radio stations. Apart from the British Broadcasting Corporation, the Chinese Programme Service co-produced pro- grammes with radio stations in Singapore, Australia and North America. In this way, Chinese communities abroad were kept informed of the developments in Hong Kong and vice versa.

RTHK now broadcasts 1051 hours a week. Its main Chinese and English services, Radio 1 and Radio 3 respectively, operate 24 hours a day. The station has developed an individual identity for each of its channels.

Radio 1 provides news bulletins and summaries on a half-hourly basis between 6 am and 11 pm and hourly throughout the night. It broadcasts regular traffic reports and financial reports during the day. During the year, the channel joined hands with World Vision to launch the Heart to Heart mission which resulted in 2 000 sponsors adopting children all over the world.

       Radio 2 has acquired popularity primarily as a music channel for young people. It also broadcasts financial news and its magazine programmes have been strengthened to attract a more diverse audience. The channel helped promote major summer youth activities through its Solar Project and also organised the 12th Top Ten Chinese Gold Songs pre- sentation to promote local music talents.

Radio 3, RTHK's news and information channel for the English-speaking community, continued to cover both local and overseas events.

Intensive coverage was given on the pro-democracy demonstrations in China. Other key events included the Foreign Affairs Committee hearings, the debates on Hong Kong in the House of Commons and the House of Lords, the campaign for the right of abode for Hong Kong citizens in the United Kingdom, the continuing influx of Vietnamese boat people, the Basic Law and the movement towards democracy.

      Radio 4, the bilingual channel for fine music and the arts, covered major music and arts events throughout the year. In co-operation with other cultural organisations, the Academy for the Performing Arts and the Urban and the Regional Councils, the channel broadcast concerts and recitals at various venues throughout the territory, while Artists in Residence concerts were also held in the RTHK studios.

      Radio 5, which relayed the BBC World Service from 6 am to 7 am and again from 5 pm to 2.30 am daily, extended its broadcasting time from 5 pm to 6 am. Outside these hours, it broadcast minority interest and cultural programmes in Chinese including Chinese opera, provincial music and programmes in Putonghua. Plans went ahead for the two services sharing Radio 5 to be divided into two seperate Channels (Radio 5 and Radio 6) at the beginning of the New Year.

      The new Radio 6 broadcasts minority interest and cultural programmes in Chinese, including Chinese opera, provincial music and programmes in Putonghua. Programmes for the elderly and those in Chinese classics and arts were also produced.

       Radio 7 is the new Traffic Channel established on November 27, 1989. This bilingual channel gives the most up-to-date traffic information, weather reports and news about emergency situations which may affect daily life in Hong Kong.

Commercial Radio

Commercial Radio was awarded a new licence to continue its commercial broadcasting operation for another 12 years. After a long wait, the changeover to FM broadcasting for

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its two Chinese services was effected towards the end of 1989. There were healthy gains in the station's listening figures.

   All three services of Commercial Radio (two Chinese and one English) continued the tradition of up-to-the-minute news with bulletins every half-hour.

All three services of Commercial Radio continued to do their best to entertain as well as to keep listeners informed. CR 1 maintained its strong public affairs image by injecting more civic-consciousness programmes including a special Know the Law programme during August, and a young writers' competition in November. The station was flooded with entries to the 'I Love Hong Kong' slogan-writing competition in February.

   CR 2, the youth station, continued to develop local culture by promoting local pop songs, organising a special concert by new generation artists in the Coliseum in July, and a special concert for local song-writers in October. This channel was also active in promoting environmental protection and other public service campaigns.

   The creation of an Angel of the Road character to give traffic information in an un- conventional and entertaining style has given spark to an otherwise dull and unin- teresting information segment.

The English Service pursued excellence by again winning awards at the International Radio Festival of New York.

British Forces Broadcasting Service

The British Forces Broadcasting Service (BFBS) is part of the radio division of the Services Sound and Vision Corporation, a world-wide organisation providing entertainment, in- formation and training films, video, television and radio services for the British Forces, under contract to the Ministry of Defence.

BFBS provides two radio services designed for the particular needs of the Gurkhas and British Forces serving in Hong Kong, Brunei and Nepal.

Nepali programmes, broadcast for 90 hours each week from Sek Kong in the New Territories, cater for the interests of the Brigade of Gurkhas, providing music and features reflecting daily life with the Brigade in Hong Kong as well as in Nepal and Brunei. News reviews, sport, quiz programmes and audience participation phone-ins help to complete the service.

The English-language service broadcasts 24 hours a day with most of the programmes coming from the main studio complex in Sek Kong. However, the news and speech orientated lunchtime programme Roundabout Hong Kong comes from the BFBS studio at HMS Tamar.

   The BFBS satellite enables the station to broadcast such major programmes as BBC Radio Four's The World This Weekend and BBC Radio Two's Sport on Two as well as other major sporting and State occasions.

   The production centre in London has the brief of keeping its overseas listeners in touch with home and provides specialist programmes on a variety of subjects involving many of Britain's premier broadcasting personalities.

Future Role of Radio Television Hong Kong (RTHK)

  Legislation which will allow RTHK to operate as a corporation under a board of governors was under preparation. It is planned to phase in financial and administrative changes which will ultimately allow RTHK to operate on a more independent basis. This will enable RTHK to respond more flexibly to changes in the broadcasting market in Hong Kong resulting from increased competition.

COMMUNICATIONS AND THE MEDIA

Film Industry

Despite the growing popularity of video clubs, the widespread ownership of video cassette recorders and a 12 per cent increase in cinema admission prices, cinema-going remained a popular leisure activity. Attendance in 1989 totalled 59 million, compared with 66 million in 1988. The number of cinemas also increased from 133 in 1988 to 152 in 1989. The new cinemas have about 400-500 seats each. Some complexes comprise several mini-cinemas offering greater choice to cinema-goers.

       While imported films continue to be popular, good quality local films are still favoured by most cinema patrons. Locally-produced films totalled 156 (including eight co- productions with other territories), compared with 139 (including four co-productions) in 1988. Action films and comedies continued to dominate the market. The biggest box-office hits for the year included Mr Canton and Lady Rose which grossed $34 million; Mr Coconut ($31.2 million), All About Ah Long ($30.9 million) and Indiana Jones and The Last Crusade ($24.3 million).

Films are classified into three categories: approved for exhibition to persons of any age (Category I); to be advertised as 'not suitable for children' (Category II); and to be exhibited only to people aged 18 years or over (Category III). Classification standards are based on the results of regular surveys of community views. A statutory panel of advisers, comprising about 200 members of the public, assists in the classification process by reflecting.community views on the standards which should be adopted.

       During the year, 1 771 films intended for public exhibition (including films for cine-clubs and cultural organisations) were submitted for classification. Of these, 232 were classified Category I (two with excisions), 392 Category II (40 with excisions) and 582 Category III (331 with excisions) and 563 were exempted.

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EVERY major faith is practised in Hong Kong with complete freedom.

   Here, among communities of different ethnic and cultural backgrounds, Buddhist monasteries and Taoist temples co-exist with Christian churches, mosques, and Hindu and Sikh temples. All major religious bodies have established schools which offer religious teachings besides a general education.

Traditional Festivals

Traditional Chinese festivals are occasions for family union and feasting.

   There are five major Chinese festivals, all of which are statutory public holidays. First and foremost is the Lunar New Year, when visits and gifts are exchanged between friends and relatives, and children receive 'lucky' money. The Ching Ming Festival in the spring- time is the traditional occasion for visiting ancestral graves. The Dragon Boat Festival is celebrated on the fifth day of the fifth moon in early summer with dragon boat races and by eating cooked rice wrapped in lotus leaves.

   The Mid-Autumn Festival falls on the 15th day of the eighth moon, when gifts of mooncakes, fruit and wine are exchanged, and adults and children alike carry colourful lanterns to the parks and countryside at night under the full moon. The Chung Yeung Festival is on the ninth day of the ninth moon, and is celebrated by large crowds climbing hills in remembrance of an ancient Chinese family which fled to the top of a high mountain to escape from plague and death. Family graves are also visited on this day.

Buddhism and Taoism

  Buddhism and Taoism, the leading Chinese religions, maintain a strong hold on the population, especially among the older folk. Ancestral worship is also widely practised as advocated by Confucianism which, though not truly a religion, teaches a moral code based on human relations.

   Hong Kong has more than 360 Chinese temples. Some temples are centuries old, built by fishermen or old settlers. Due to the short supply of land some temples are established inside multi-storey buildings to cater for the spiritual needs of smaller circles of city dwellers.

   All temples are required to be registered under the Chinese Temples Ordinance. The Chinese Temples Committee manages some 40 public temples and the income, from donations by worshippers, is used for the preservation and restoration not only of public temples but also privately-owned temples of historical value. Most of the large temples and monasteries are open to the public.

RELIGION AND CUSTOM

       Each temple is dedicated to one or two deities enshrined in the main hall, with side halls housing subsidiary deities. Since Buddhism and Taoism are both accepted as traditional Chinese religions, Buddhist and Taoist deities may be honoured together within one temple. Leading deities include Buddha, Kwun Yum (the Buddhist Goddess of Mercy), and Lui Cho (a Taoist god).

       There is also a diversity of deified mortals traditionally worshipped as a result of their performance of actual or mythical feats. Foremost among these is Tin Hau, the Queen of Heaven and Protectress of Seafarers, worshipped originally by the fishing population but now by others in the community as well, reflecting Hong Kong's dependence on fishing and on sea trade. There are at least 24 Tin Hau Temples in Hong Kong, the most famous being the one in Joss House Bay, which is visited by tens of thousands of worshippers each year at Tin Hau Festival on the 23rd day of the third lunar month.

       Other deified mortals include Kwan Tai, the God of War and Righteousness; Pak Tai, Lord of the North and Patron of Cheung Chau Island; Hung Shing, God of the South Seas and a weather prophet, and Wong Tai Sin, a Taoist deity, in whose honour a temple built 68 years ago in north-eastern Kowloon in traditional Chinese architectural style enjoys great popularity. Dedicated to the Gods of Literary Attainment and Martial Valour, the Man Mo Temple in Hollywood Road on Hong Kong Island, run by the Tung Wah Group of Hospitals, a charitable organisation, is also very popular. The Che Kung Temple at Sha Tin in the New Territories, dedicated to a general in the Sung Dynasty, is visited by tens of thousands of worshippers during Chinese New Year.

Protestant Community

The presence of the Protestant community dates back to 1841. The earliest established denominations were the Anglicans, the Baptists, the Congregationalists, the Lutherans and the Methodists.

In the 149 years since the first Protestant church came into being in Hong Kong, the Protestant community has grown to 256 000 in 710 congregations among the 52 denominations and independent churches. The largest denomination in Hong Kong is the Baptist, followed by the Lutheran. Other major denominations are the Adventist, the Anglican, the Christian and Missionary Alliance, the Church of Christ in China, the Methodist and the Pentecostal. With their emphasis on youth work, many congregations have a high proportion of young people. Since the seventies, the number of independent churches has increased significantly due to the strong evangelical zeal of the lay Christians.

The Protestant church runs three post-secondary colleges, 122 secondary schools, 141 primary schools, 146 kindergartens, seven hospitals, 21 clinics, 176 social service centres, 20 homes for the elderly, three schools for the deaf, 10 training centres for the mentally handicapped, 18 theological seminaries and Bible institutes, 16 Christian publishing houses and 57 Christian book shops. There are also five international hotel-type guest houses operated by the YMCA and the YWCA.

There are 36 para-church agencies and various Christian action groups which have been established to minister to the needs of the Protestant community and also to respond to current issues and concerns in Hong Kong society at large. The church is also involved in overseas aid, supporting emergency relief and development projects in third world countries. The 'Five Loaves and Two Fish Campaign' sponsored by the Hong Kong Christian Council was the first overseas aid project in Hong Kong.

There are two ecumenical bodies which facilitate the co-operative work among the Protestant churches. The oldest of the two, dating back to 1915, is the Hong Kong Chinese

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 Churches Union. About 245 congregations make up the membership of the Churches Union. The Churches Union publishes the newspaper Christian Weekly, which has a wide circulation among the Protestant congregations. The second co-operative body is the Hong Kong Christian Council, formed in 1954. The Christian Council bases its membership on the major mainline denominations and ecumenical services bodies. It is committed to building closer relationships among all churches in Hong Kong as well as with churches overseas, and to stimulating local Christians to play a part in the development of Hong Kong society. It also seeks to serve the wider community through member agencies such as Hong Kong Christian Service, the Christian Industrial Committee, the United Christian Medical Service, the Alice Ho Miu Ling Nethersole Hospital, and the Christian Family Service Centre. The council runs 'Alternative Tours' each Wednesday which give both visitors and residents an opportunity to see how the church is serving the community.

  In the area of social concern, the Protestant community has played an active role in arousing public interest in the democratic development of Hong Kong and in the drafting of the Basic Law. It has supported such issues as labour welfare and the guarantee of human rights in Hong Kong in the future.

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 Cheng-chung Wu, was consecrated in 1975, and was made Cardinal in 1988.

  About 255 600 people, or five per cent of the population, are Catholics. They are served by 342 priests, 80 brothers, and 731 sisters. There are 60 parishes and 36 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. It uses the same scriptures and has similar ecclesial communions in the universal Church throughout the world, with which it maintains close fellowship. The assistant 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 285 Catholic schools and kindergartens which have about 312 400 pupils. There is the Catholic Board of Education to assist in this area. The medical and social services include six hospitals, 10 clinics, 17 social centres, 12 hostels, 27 homes for the aged, one home 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 benefited 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 Communications Office acts as an information and public relations channel for the diocese.

RELIGION AND CUSTOM

Muslim Community

There are about 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, which is managed by the Islamic Union of Hong Kong, can accommodate 700 people but up to 1 500 if necessary, by using other available space in 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 a congregation of about 2 000 and has in addition to the three prayer halls, a community hall, a medical clinic and a library.

There are two Muslim cemeteries, both on Hong Kong Island - one at Happy Valley and the other at Cape Collinson, Chai Wan. The cemetery at Cape Collinson also has a mosque.

       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 repre- sentatives of four Muslim organisations, namely the Islamic Union of Hong Kong, the Pakistan Association, the Indian Muslim Association and the Dawoodi Bohra Asso- ciation, is responsible for the management and maintenance of mosques and ceme- teries. 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 12 000 members of Hong Kong's Hindu community are centred on the Hindu Temple in Happy Valley. The Hindu Association of Hong Kong is responsible for the upkeep of the temple, which is also used for meditation periods, yoga classes and other community activities. Naming, engagement and marriage ceremonies are performed at the temple according to Hindu custom. Religious music sessions, discourses and recitals are conducted every Sunday morning and Monday evening. The Sunday sessions are regularly attended by members of the community. Every Sunday a free community meal is served at the temple.

      The 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, Dussehra and Diwali. Various linguistic groups among the Hindus organise additional festivals and prayer meetings on occasions of special significance to their group.

Other important services rendered by the temple are to administer the last rites and arrange for cremation and related ceremonies. The temple is also responsible for the upkeep of the Hindu crematorium at Cape Collinson, and operates a free Sunday clinic, which is open to all.

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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 at 371 Queen's Road East, Wan Chai, Hong Kong. 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 Guru) and Baisakhi (birthday of all Sikhs).

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' on 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. There is also a Jewish cemetery, which is located in Happy Valley. The Recreation Club serves Kosher meals prepared under rabbinical supervision from 8 am to 10 pm.

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RECREATION AND THE ARTS

     LEISURE activities play an important part in improving the quality of life by making people's lives richer and more enjoyable.

With the completion of more recreational facilities, the people of Hong Kong have a wider choice as to how to spend their leisure time. A large number of them take part in or watch the many sporting events that are regularly held. Many others spend their weekends in the countryside, on beaches, or in swimming pools.

On the cultural side, the Hong Kong Cultural Centre at Tsim Sha Tsui on the tip of the Kowloon peninsula was opened by Their Royal Highnesses the Prince and Princess of Wales on November 8, 1989, celebrated with a month-long international arts festival. Administered by the Urban Council, the Hong Kong Cultural Centre represents a new landmark in Hong Kong's cultural scene and is expected to become a beacon for the performing arts in Asia.

With increasing public interest in cultural activities, the City Hall continues to be one of the centres of cultural life in Hong Kong.

As for other arts centres, the Ngau Chi Wan Civic Centre and the Sheung Wan Civic Centre were also well patronised during the year. Construction is nearing the final stages on a third community arts centre, the Sai Wan Ho Civic Centre, which should be com- pleted in mid-1990.

Urban Council

The Urban Council plays an important role in providing a wide range of recreational and cultural facilities in the urban areas of Hong Kong. The Urban Services Department, the executive arm of the Urban Council, manages a total open space of 575 hectares. Other than parks and playgrounds, major recreational facilities provided by the council include stadia, sports grounds, swimming pools, beaches, indoor games halls, tennis courts, squash courts, hockey grounds and football and rugby pitches.

Among the new facilities added to the council's extensive range of sporting and recreational venues in the last year are two free-standing indoor games halls in Chai Wan and Kowloon Park. These facilities bring to 28 the total number of indoor games halls provided in the urban areas. In addition, the second stage of the Carpenter Road Park and the first stage of the Lai Chi Kok Park were completed.

The new Kowloon Park, which is a $300 million project donated by the Royal Hong Kong Jockey Club, was opened on February 1, 1989, by the Governor.

The completion of Kowloon Park marked a new era in the development of major parks by the council. The redeveloped park provides a wide range of interesting facilities for

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visitors. Its swimming pool complex consists of outdoor fun pools and a heated indoor Olympic-standard swimming pool with sophisticated timing and scoring equipment as well as an adjustable pool floor. Other major features include a large air-conditioned indoor games hall with spectator seating sufficiently large to host most recognised indoor games, a piazza, a loggia, a bird lake, a sculpture walk, water features and modern children's playgrounds.

The new electronic scoreboard at the Hong Kong Stadium became fully operational in March 1989. This sophisticated scoreboard can be used for a variety of scoring systems. It can also display safety information, messages and advertisements to meet the needs of both the hirers and the audience.

Work on the new Museum of Art progressed smoothly and should be completed in 1991. Recladding work on the Space Museum continued while planning is in hand for a garden and an underground carpark.

The superstructure of the Museum of Science and Technology in Tsim Sha Tsui East was topped-out in July 1989 and construction is due to be completed in 1990. The first phase of the development comprises a four-storey museum containing purpose-built interactive exhibits, a large central piazza and a landscaped garden linked with the surrounding area by an above-ground walkway system.

Work on the extension building of the Museum of History in Kowloon Park was completed in early 1989, providing an additional 1 000 square metres of flexible exhibi- tion space.

With a budget of $5.5 million, the council, through its Sports Subvention Office, pro- vided financial support to sports and recreation events jointly presented with governing bodies of sports and other organisations. The 210 programmes promoted in the year in- cluded urban and territory-wide competitions such as leagues and championships, grass- roots training courses, sports promotion schemes, spectator events and special projects such as school sports, the annual Festival of Sport, and sports activities for the disabled and elderly. Some 270 000 people took part in these activities, which attracted many spectators.

  The council allocated a budget of $9.7 million to promote community-based recreation and sports programmes for the public through its 10 recreation, amenities and sports district offices, and 10 district fitness centres. In 1989, the council organised a total of 6 163 recreation and sports programmes for 218 974 people. Among these were 1 473 courses under the learn-to-swim scheme for 27 707 participants, and 3 546 fitness and dance activities for 94 601 people.

In addition to the above community-based programmes, a variety of recreation and sports activities like indoor archery, bowling, hiking and orienteering were organised for the 135 388 campers at Lei Yue Mun Park during the year.

Regional Council

The Regional Council provides a wide range of recreational and sports facilities in the New Territories, serving more than two million people. The Regional Services Department, being the executive arm of the council, manages the council's facilities.

  In 1989, three major indoor recreation centres were completed at a total cost of $87.65 million. This brings the total number of indoor recreation centres to 13 in the Regional Council area, offering purpose-built facilities for various sports including basketball, volleyball, badminton, table-tennis, squash and gymnastics.

RECREATION AND THE ARTS

      One major building project completed in the year was the $63 million Tso Kung Tam Park Stage I, an outdoor recreation centre in Tsuen Wan. Also completed on schedule was the Stage II re-development of the Sai Kung Outdoor Recreation Centre at a cost of $26 million. Facilities provided in these outdoor centres include air-conditioned dormitories and canteens, swimming pools, games halls and playgrounds for various ball games.

      Other major facilities for which site formation has started are the Tai Po sports complex, the Sai Kung swimming pool and sports complex, three additional recreation centres and the Yuen Long Town Park estimated to cost $414.5 million.

      The council is responsible for the management and maintenance of 510 hectares of open space, providing such facilities as parks, sports grounds, soccer pitches, basketball courts and playgrounds. The upkeep of some 110 hectares of amenity plots and soft landscape along public roads and highways also comes under the council's jurisdiction. In 1989, over 318 000 trees, shrubs, palms, creepers, ground covers and seasonal flowers were planted by the council to beautify the environment.

      One of the council's primary objectives is to encourage more use of leisure time and the development of healthy leisure pursuits. A wide range of recreation and sports activities is organised by the council at the district level for people from all walks of life. Basic instruction courses are run on sports, camp programmes, excursions, fun days, sports competitions and fitness programmes as well as special recreation and sports programmes tailor-made for the young, the elderly and the disabled. In 1989, some 5 045 community- based recreation and sports programmes were held, attracting 221 000 participants. Many of these programmes were jointly organised with other local organisations and sports bodies, such as district boards and district sports associations.

      The council offers subsidies to sports and community bodies for the organisation of various programmes. During the year, subsidies amounting to $1.8 million were allocated in support of 142 projects, benefiting 126 604 people.

      The council operates two holiday camps and three water sports centres. Over-night accommodation is provided in these centres for the public to enjoy peace and quiet in a rural environment, away from the hustle and bustle of city life. Apart from meeting recreational needs, the water sports centres also provide training for beginners. This year 88 600 day users and 121 000 over-night campers used the facilities provided by the council at the Lady MacLehose Holiday Village, Sai Kung Outdoor Recreation Centre, Tai Mei Tuk Water Sports Centre, Chong Hing Water Sports Centre and the Jockey Club Wong Shek Water Sports Centre.

      During the year, the council's district festivals subsidy scheme, which was designed to support large-scale district-wide recreational, sporting and cultural events in the community, was well used by the districts. About $4.82 million was allocated to the nine districts in support of their festive celebrations.

Beaches and Swimming Pools

     Hong Kong's most popular form of summer recreation, by far, is swimming. During the year, some 13.9 million people visited the beaches and another 5.2 million used the public swimming pools managed by the Urban Council and the Regional Council.

There are at present 42 gazetted bathing beaches, 12 on Hong Kong Island managed by the Urban Council and 30 in the New Territories managed by the Regional Council. Facilities provided at these beaches range from changing rooms, toilets, showers, first-aid posts, lookout towers, light refreshment kiosks to picnic areas and other ancillary facilities. The water quality of these beaches is regularly checked and made known to the public.

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   The Urban Council embarked on a series of replenishment and renovation projects to improve the facilities of the major beaches on the southern part of Hong Kong Island. They include the re-sanding of Repulse Bay Beach and South Bay Beach; the re- development study of Repulse Bay Beach; the construction of service buildings for Stanley Main Beach and Shek O Beach; the feasibility studies on the construction of a promenade joining Repulse Bay Beach to South Bay Beach and possibly another one at Stanley, and the re-sanding of other beaches.

   The re-sanding of Repulse Bay Beach and South Bay Beach was completed in June 1989. About 200 000 cubic metres of new sand were deposited onto the Repulse Bay Beach, and 40 000 cubic metres onto the South Bay Beach, thus doubling the sand areas of both beaches. The new sand for the projects was dredged from an area off Tsing Yi Island.

   There are 22 public swimming pool complexes managed by the two councils, 14 in the Urban Council area and eight in the Regional Council area. The competition pools in these complexes are built to international standards. There are six public swimming pool projects under planning in the urban area and 12 in the New Territories.

   The two councils regularly organise learn-to-swim classes to promote water safety. During the year, 1913 swimming classes and training programmes were held, attracting 39 000 participants.

   The two councils also offer assistance to promote the formation of life-guard clubs at their swimming venues. Apart from providing opportunities for the public to learn life-saving skills and to take part in community service, these venue-based life-guard clubs serve to maintain a steady supply of voluntary life-guards to augment the councils' regular life-guard service. At the end of the year, 20 life-guard clubs were operating at swimming pools and bathing beaches managed by the two councils.

Hong Kong Cultural Centre

  Funded by the government and the Urban Council, the Hong Kong Cultural Centre is built on a choice waterfront site at the tip of the Kowloon peninsula. It provides world-class facilities for the Urban Council's various performances and functions and for hire by the public.

   On November 5, 1989, the Governor, Sir David Wilson officiated at the Handing-over Ceremony of the Hong Kong Cultural Centre and attended the premiere performance of its Opening Festival, An International Celebration of the Arts. The month-long opening festival featured top international and local artists and performing companies. Three days later, the Prince and Princess of Wales officiated at the Opening Ceremony of the Hong Kong Cultural Centre. The Royal couple unveiled a plaque and also attended a special performance of the London Bach Choir with the Hong Kong Philharmonic Orchestra at the concert hall. From November 5, 1989, to the end of the year, 146 698 people including many overseas visitors attended a wide variety of performances at the Cultural Centre.

   The Hong Kong Philharmonic Orchestra is now housed in the centre along with the Urban Council's Cultural Presentations Office, the Festivals Office and the URBTIX Central Booking Office.

City Hall

The City Hall, opened in 1962, continues to be one of the Urban Council's major cultural centres and retains its popularity as an urban centre for the performing and visual arts in Hong Kong.

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      It was the major venue for the 13th Hong Kong International Film Festival and the International Arts Carnival - both Urban Council events - and the 1989 Hong Kong Arts Festival. Other performances by local and international artists were also presented there by the council, various cultural organisations and impresarios.

Facilities in the City Hall complex, which has a total area of 11 000 square metres, include a 1 480-seat concert hall, a 467-seat theatre, an exhibition hall and Chinese and Western restaurants in the Low Block. The High Block accommodates the Hong Kong Museum of Art, an exhibition gallery, a 116-seat recital hall, two committee rooms, a public library and a marriage registry. The two blocks are connected by the Memorial Garden.

      During the year, 402 000 people attended 842 performances in the concert hall, the theatre and the recital hall. In addition, 95 exhibitions were held in the exhibition hall and the exhibition gallery.

Town Halls

The Regional Council manages six civic centres within its region.

      The Tsuen Wan Town Hall, opened in 1980, was the first civic centre in the New Territories. The three-storey cultural complex houses a 1 424-seat multi-purpose auditor- ium, an exhibition gallery, a cultural activities hall, a lecture room and a conference room.

The Sha Tin and Tuen Mun Town Halls, which were opened in 1987, were modelled after the Tsuen Wan Town Hall but have more sophisticated facilities. Their spacious stages and side stages have won praise from producers of sophisticated dance and theatrical performances. Each of these two new town halls has a dance studio and a music studio which are very popular for training. Activities held in these studios range from ballet, dance and martial arts classes to orchestra and choir rehearsals. Both town halls are conveniently located in the town centre, and are well-served by public transport.

The three smaller civic centres managed by the Regional Council are the Tai Po Civic Centre, North District Town Hall in Sheung Shui and Lut Sau Hall in Yuen Long.

During 1989, some 1 180 performances were staged at these civic centres for over 492 000 persons and 90 exhibitions were held at the exhibition galleries of the three major town halls.

Community Arts Centres

The Ngau Chi Wan Civic Centre, the Urban Council's first fully-fledged community arts centre, serves as a focal point for the promotion of culture and the arts in the Kowloon East region. The centre has 443-seat theatre, an exhibition hall, 90-seat lecture room, two art studios, two music practice rooms and a dance practice room. The centre's theatre was booked for 242 days, featuring 189 performances before audiences of 51 700, and the exhibition hall was used for 224 days attracting 20 300 people during the year.

      Completed in December 1988, the Sheung Wan Civic Centre is the second fully-fledged community centre and has a 515-seat theatre, a lecture hall, an exhibition hall, a rehearsal hall, a dance practice room, four music practice rooms and two art studios. The centre is a focal point of cultural activities for residents in the Central and the Western regions. The Urban Council's performing companies - the Hong Kong Chinese Orchestra, the Hong Kong Repertory Theatre and the Hong Kong Dance Company - are housed in the centre. During the year, 73 300 people attended 349 performances in the theatre and the lecture hall. In addition, the exhibition hall was booked for 215 days and the practice facilities were used for 9 373 sessions.

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   To further enhance the development and promotion of the arts in various districts, a third community arts centre, the Sai Wan Ho Civic Centre, is expected to be completed in mid-1990. Conveniently located on top of the Sai Wan Ho MTR Station, the new centre will consist of a 489-seat theatre, a multi-purpose cultural activities hall, three specially-designed art studios for ceramic, painting and print-making classes and two music practice rooms. It will serve Eastern District residents.

Ko Shan Theatre

The Ko Shan Theatre is the only purpose-built semi-open air theatre in Hong Kong. It has 3 000 seats of which 2 000 are in the open.

   Equipped with sophisticated lighting, sound and projection systems, it is suitable for a wide variety of cultural and entertainment events. Popular Cantonese operas are fre- quently staged.

During the year, 98 900 people attended 151 performances in the theatre.

Indoor Stadia

The Hong Kong Coliseum and the Queen Elizabeth Stadium, both under the management of the Urban Council, are multi-purpose indoor stadia. During the year, some 400 presentations were held at the two venues drawing a total attendance of 1 807 000.

   The 12 500-seat inverted-pyramidal Hong Kong Coliseum was the venue for a wide variety of concerts by overseas and local artists, sports events, family entertainment, cultural activities, exhibitions and conferences. In 1989, a Hong Kong superstar set a record by staging 38 consecutive concerts to entertain a total audience of 408 500.

   The 3 500-seat Queen Elizabeth Stadium offers an ideal alternative for staging medium-sized productions. The wide spectrum of events presented ranged from sports competitions, trade fairs, music concerts and variety shows to ceremonial and religious functions. Its ancillary facilities, including badminton, squash, volleyball and basketball courts, table-tennis play areas, gymnasia and committee rooms, cater for the general public and were used by 192 000 people during the year. The Queen Elizabeth Stadium is also the home base of the Amateur Sports Federation and Olympic Committee of Hong Kong and its 25 affiliated national sports associations.

Hong Kong Arts Centre

  Hong Kong Arts Centre is an independent, non-profit-making organisation founded in 1977 to promote arts and culture. Its main source of funding comes from corporate sponsorship, donations from benevolent individuals and rental income.

   In its 13th year of operation as an important community resource, it continues to present a wide range of cultural activities, including drama, dance, music, film and the visual arts, in a way which is comprehensible, accessible and fulfilling to the public. These activities, with their emphasis on education and appreciation, their outreach to the community and their encouragement of local artists, enjoyed much public support. Already well over 700 000 patrons have passed through the centre's doors during the year.

   Altogether, 875 performances were staged in the centre's three auditoria - the Shouson Theatre, the Recital Hall and the Studio Theatre. A further 84 exhibitions were placed on view in the Pao Sui Loong Galleries. The two rehearsal rooms, art and craft studios, music practice rooms and other areas were used for 590 arts-related classes and courses.

   Highlights of the year included a youth drama project, a children's summer arts festival, an international sculpture project and a photographic symposium.

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RECREATION AND THE ARTS

Cultural Presentations

The Urban Council invited overseas and local artists to present a balanced programme of music, opera, drama, dance, film shows and other forms of art in 1989, and a total of 360 performances in 123 programmes were organised for a total audience of 204 656.

The highlight of the year was the month-long Hong Kong Cultural Centre opening festival, An International Celebration of the Arts, in November 1989. The festival was opened by world-renowned soprano Jessye Norman and the Hong Kong Philharmonic Orchestra. Other top international artists and groups participating in the festival included Dame Joan Sutherland, Ivo Pogorelich, Yo-Yo Ma, Isaac Stern, Emmanuel Ax, John Williams, Anne Sophie-Mutter, the Cologne Opera, the Boston Symphony Orchestra, the Royal Danish Ballet, the National Theatre of Great Britain and the London Bach Choir. Sharing the platform were local groups and artists such as the Hong Kong Chinese Orchestra, the Hong Kong Repertory Theatre, the Hong Kong Dance Company, the Chung Ying Theatre, the Chor Fung Ming Cantonese Opera Troupe, the Hong Kong Children's Choir, and pianists Nancy Loo, Eva Lue, Gabriel Kwok and Tam Ka-kit. The festival presented 86 performances in 29 programmes, attracting a total audience of 100 470.

In addition, the Urban Council presented the Finnish Radio Symphony Orchestra led by Jukka-Pekka Saraste, the Allegri String Quartet, the New York Philharmonic Orchestra under the baton of Zubin Mehta, Aaron Rosand, Joseph Silverstein and Fou T'song. The new dance stars who won the Tao Li Trophy of China thrilled local audiences. Locally, a series of concerts, opera performances and lectures on A Retrospective of Tang Disheng's Works were a tremendous success. The opera production Norma created a cultural occasion in the territory.

With the opening of the Hong Kong Cultural Centre, the Urban Council will endeavour to present more world-class programmes for the people of Hong Kong and to provide additional performing opportunities for local artists and groups.

The Regional Council presented a variety of cultural programmes by local and overseas artists at its six civic centres. Highlights of the year included the Cantonese Opera Parade, the New York Philharmonic Orchestra, Les Ballets Jazz de Montreal, Chor Fung Ming Opera Troupe, a Guitar Recital by Narciso Yepes, a Guzheng Recital by Wong Chang- yuan, the Cultural and Educational Association of the New Towns Limited, Ballet du Nord, the Hong Kong Ballet and the Hong Kong Philharmonic Orchestra.

A total of 650 cultural performances were presented, attracting 296 000 people. The Regional Council also provided opportunities for non-profit-making arts groups to perform free of charge in its venues.

Entertainment Programmes

The Urban Council organised 360 entertainment programmes of different types throughout the urban areas in parks, playgrounds, gardens, community halls, commercial plazas and civic centres during the year. Most of the programmes were free and were attended by more than 128 000 people.

The council staged a series of Cantonese Operas by renowned local opera singers. A total of 12 500 people attended 20 shows during the year.

In addition, the council organised large-scale territory-wide events, including the Lantern Festival, the Hong Kong Dragon Boat Festival, the Summer Fun Festival, the Mid- Autumn Lantern Carnival and the Christmas Carnival. Over 539 700 people attended these

programmes.

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The Regional Council continued to organise free entertainment programmes in com- munity halls and open-air venues. There were 340 performances, attended by about 186 000 people.

Computerised Ticketing

  URBTIX, the Urban Council's computerised ticketing system, has a capacity for issuing 4.4 million tickets annually. During the year, both the software and hardware of the system were up-dated to speed-up the issuing of tickets at URBTIX outlets and provide better service to the public. In August a new box-office was opened at the Hong Kong Cultural, Centre. In addition, an automatic call distribution system was installed at its central booking office to enhance the telephone booking service.

   In operation since 1984, the URBTIX system provides a comprehensive range of postal, telephone and counter booking services not only for the council's cultural, entertainment and sports events but also for hirers of council venues, the Regional Council, Hong Kong Arts Centre, Hong Kong Academy for Performing Arts and events in some commer- cial venues.

Hong Kong Repertory Theatre

  Established by the Urban Council in 1977, the Hong Kong Repertory Theatre continued to win enthusiastic support from local audiences. Under its Artistic Director Dr Joanna Chan, the company offered a seasonal repertoire of one martial arts play, one Chinese contemporary work, four translated Western works, two original plays and one revival. During the year, six major productions and three minor productions were staged - all in Cantonese.

The company gave 107 performances including free lecture demonstrations at schools and district community centres, attracting 41 970 people. It organised the annual Drama Festival in July.

The highlight of the year was the company's North American tour of Crown Ourselves with Roses to San Francisco, Toronto and New York in June, winning high acclaim and good media coverage and drawing an audience of about 5 600. Its production of Matchmaker in the Hong Kong Cultural Centre opening festival in November was equally successful.

Hong Kong Chinese Orchestra

Founded in 1977 by the Urban Council, the Hong Kong Chinese Orchestra is Hong Kong's only professional Chinese music orchestra. As one of the leading Chinese orchestras in the world, the company has explored new frontiers in music by experimenting with new techniques and styles. It continues to expand its repertoire by commissioning local, mainland and overseas composers to undertake new compositions and arrange- ments. In 1989, the 85-member orchestra gave 116 performances under the baton of Music Director Mr Kuan Nai-chung as well as local, mainland and overseas guest conductors, attracting a total audience of 93 000.

   The orchestra opened the 1989 Hong Kong Arts Festival in January. In February, it performed in Macau at the invitation of the Macau Government. The orchestra gave three concerts including an ensemble performance in the Hong Kong Cultural Centre opening festival in November 1989.

Besides regular and subscription concerts, the orchestra presented ensemble concerts, participated in district arts festivals and presented free outreach performances at civic centres, district community arts centres and schools.

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To further widen the audience base and enhance international recognition, the orchestra recorded two records which were released in August and September respectively.

Hong Kong Dance Company

The Hong Kong Dance Company, founded by the Urban Council in 1981, is the only professional dance company in Hong Kong to present traditional and Chinese folk dances and new dance dramas choreographed on Chinese and Hong Kong themes. Under the artistic directorship of Ms Shu Qiao, the 40-member company presented five major productions in 27 performances, attracting 10 600 people. Apart from major productions, the company also gave free lecture demonstrations and performances at civic centres, schools and district community centres attracting 17 300 people.

       The year's highlight was a bold innovation, the concurrent staging of five dances in two different versions of the 50's and 80's in one production entitled Chinese Classical Dance Present and Past. Presented in the Hong Kong Cultural Centre's Studio Theatre as part of its opening festival in November the show was warmly received by the audience.

Hong Kong Philharmonic Orchestra

The Hong Kong Philharmonic Orchestra continued to attract large audiences in 1989. In mid-year, the orchestra moved to its new home at the Hong Kong Cultural Centre and began to present concerts at its new concert hall. During the year, 66 public concerts were presented to an audience of 111 298.

        David Atherton succeeded Kenneth Schermerhorn as the Music Director in September. He was assisted by Principal Guest Conductor Kenneth Jean and Resident Conductor Yip Wing-sie.

       In 1989, the orchestra co-operated with many artists and performing groups. Guest conductors included Donald Johanos, Jorge Mester, Alexander Rahbari and Richard Bradshaw. Distinguished artists appearing with the orchestra included Barry Tuckwell, Dmitri Alexeev, Sergei Edelman, Barry Douglas, Joaquin Achucarro, Peter Donohoe, Imogen Cooper and Rafael Orozco. Accompaniment was provided to the opera pro- duction Norma, the Hong Kong Ballet and the programmes in the Hong Kong Cultural Centre opening festival featuring international stars Jessye Norman, Dame Joan Sutherland and John Williams and groups such as the Bach Choir of London and the Royal Danish Ballet.

        The orchestra continued with its ambitious audience development programme. About 25 free concerts were played for some 26 967 students. Fringe activities were organised for the Friends of the Philharmonic whose membership grew to over 2 500. A Creative Music Workshop and meet-the-artist sessions were organised. The newsletter Upbeat appeared regularly, reporting and supporting the orchestra's activities.

       In April, the Urban Council took up the sole public funding responsibility of the orchestra which used to receive financial support from the council and the government.

Hong Kong Arts Festival

Over 700 local and visiting artists from 13 countries took part in the 17th Hong Kong Arts Festival which ran from January 28 to February 26, 1989. A wide spectrum of programmes covering music, dance, drama, visual arts and entertainment was offered in 122 perform- ances. This was complemented by a major scale Bauhaus Exhibition as well as film shows, talks and master classes.

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World-renowned artists and performing groups, including the Vienna Philharmonic Orchestra, the Ninagawa Company from Japan, the Abbey Theatre from Dublin, pianist Alicia de Larrocha, guitarist Paco Pena and jazz musician Toots Thielemans, played to packed houses. Equally well received were the Hebei Clapper Opera Troupe from China, the Samul Nori Drummers from Korea, the Lar Lubovitch Dance Company from the United States and the special series of mime and visual theatre from France and Belgium.

   Local groups also played a prominent part in the 1989 Arts Festival, with performances given by the Hong Kong Philharmonic Orchestra, the Hong Kong Chinese Orchestra, the Hong Kong Ballet, the Hong Kong Dance Company, the Hong Kong Repertory Theatre and the Chung Ying Theatre Company.

Once again manifesting the policy of broadening the horizons of local audiences, the 1989 festival featured performances of foreign language theatre, early music and South American music - activities rarely available in Hong Kong at other times of the year.

Overall, the festival achieved the very high attendance figure of 88 per cent. A total of over 100 000 people attended the performances and exhibitions.

Hong Kong Festival Fringe

Since its founding seven years ago, the Hong Kong Festival Fringe has developed from an annual open arts festival into a successful year-round operation that gives the emerging artists of Hong Kong the opportunity to hone their skills and create new works.

Manned by a small and dedicated staff and open throughout the year, the Fringe Club provides artists with free venues for performances and exhibitions. Its facilities include a 100-seat theatre, several rehearsal studios, a bar with an exhibition area, a pottery workshop, a shop and offices.

The Fringe Club arranges performances, exhibitions and classes on a monthly basis. In residence there are the Fringe Theatre Workshop and Mime and Movement Laboratory and they perform frequently in a broad range of venues. A very active outreach programme chalked up over 220 shows and special projects last year.

The Festival Fringe 1989, staged for three weeks in January and February, was attended by some 275 000 people.

Hong Kong International Film Festival

The annual Hong Kong International Film Festival is now firmly established as one of the major non-competitive film events in the film world.

The 13th festival, held from March 23 to April 7, 1989, provided a feast of high quality films from all over the world. A varied programme of feature films, animations, short films and video programmes was presented during the 16-day event. Included were works by internationally-known veteran film-makers Jean-Luc Godard, Manoel de Oliveira, Agnes Varda and Jacques Demy as well as by acclaimed young film-makers such as Pedro Almadovar, Aki Kaurismaki and Percy Adlon.

Following the success of the Central Asian Cinema Retrospective in 1988, a Georgian Cinema Retrospective was presented which featured 21 films dating from the 20s to the 80s by brilliant directors from the tiny republic in the Soviet Union. Apart from this, the Asian programme included productions by young talents such as Wu Ziniu's Evening Bell (Silver Bear Award, 1989) and Mira Nair's Salaam Bombay (Camera d'Or, 1989).

Phantoms of the Hong Kong Cinema was the topic of the Hong Kong Cinema Retrospective. It comprised a total of 28 films representing a conglomeration of horror or ghost story movies over a span of five decades. One distinguished feature was the selection

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of several films adapted from the same story but made by different directors at different times and with different approaches.

As well as screening films, the festival arranged a Stills and Posters Exhibition, discussion sessions with film-makers as well as a seminar on the Phantoms of the Hong Kong Cinema. The entire festival attracted almost 100 000 film-goers.

International Arts Carnival

The International Arts Carnival was the eighth annual summer festival organised by the Urban Council to encourage the interest of children and young people in performing arts and to provide them with entertaining and educational cultural programmes during their summer vacation.

The programme included five overseas and three local groups in a wide variety of art forms such as children's musicals, black light theatre, magic, masque and puppetry. Thirty-nine original and exciting performances were staged at the City Hall and Sheung Wan Civic Centre. Two outdoor funfairs were held at the Chater Road pedestrian precinct.

A poster design competition and a children's arts creation contest were held before the carnival to encourage young people's interest in visual arts and crafts. During the carnival period, winners of the two competitions were displayed at an exhibition entitled Arts in Children's Daily Life at the City Hall exhibition hall.

Hong Kong Museum of History

The year 1989 was a momentous one for the Hong Kong Museum of History. Its new extension building was completed early in the year, providing an additional 1 000 square metres of flexible exhibition space. Half the space is used for holding temporary thematic exhibitions while the other half is for a standing exhibition on the History of Hong Kong.

The Human Story exhibition, a joint venture with the Commonwealth Institute in London, was opened on July 1, 1989, as the inaugural exhibition for the new building. This was widely acclaimed for its educational value. It told the story of mankind's origins and development by drawing together accumulated knowledge in anthropology, geology, astronomy and computer science, and featured computer graphics, life-like figures and dioramas, maps and cultural artefacts. The Museum of History is the first museum outside Europe to present the exhibition which was attended by 250 000 visitors.

The standing exhibition History of Hong Kong - A Brief Introduction reopened in January and remained open throughout the year. In the meantime, preparatory work progressed well for the comprehensive permanent Hong Kong History exhibition, which will illustrate the transformation of Hong Kong from a fishing village into a modern metropolis and cover the development of Hong Kong from the neolithic age to the present time. Much information and visual material were collected through research projects on oral history, local industry, local education, local costumes and history of the Japanese occupation. The projects received encouraging support from the public. Fabrication work for the permanent exhibition will begin in early 1990 and it is scheduled to open in the autumn.

The museum's educational programmes continued to be popular. Weekend programmes which included lectures, film/video shows and demonstrations on subjects covered by the scope of the museum, were held from March to September and attracted a very high attendance. Special interest groups were impressed by live demonstrations of traditional handicrafts held from October 1989 to February 1990. To complement the Human Story exhibition in which archaeology occupies a very important part, two special workshops on

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local archaeology were held in October and December for teachers and university students. All classes were oversubscribed.

The thematic travelling exhibitions to schools and institutes remained extremely popular. Converted from a 200-year-old Hakka house, the Law Uk Folk Museum in Chai Wan will be opened in January 1990. A branch of the Museum of History, the folk museum comprises two houses, the renovated original village house furnished as a period house for the display of rural furniture and farming implements and a one-storey annex building featuring the history of the development of Chai Wan with special reference to the Law family whose ancestors from North China settled in Chai Wan 200 years ago.

   The Lei Cheng Uk Branch Museum, where the current exhibition Han Tombs in Guangzhou is on display, attracted 43 000 visitors.

Hong Kong Space Museum

An exhibit renewal programme for the Hong Kong Space Museum will be completed late in 1990. A total of 55 exciting new exhibits, most of which are participatory, will be provided to replace existing ones at a cost of $20 million.

Work on recladding the Space Museum was implemented. The first stage, comprising the re-tiling of the horizontal section of the museum to harmonise with the Hong Kong Cultural Centre, was completed at the end of the year. Work on the second stage, the metal cladding of the dome surface and reconstruction of the pool, will begin in 1990.

During the year, major attractions in the museum's Space Theatre included three Omnimax film shows, The Great Barrier Reef, Grand Canyon - The Hidden Secrets and The Beavers, two sky shows, Wonders of the Worlds and The Comic Perils, and two educational programmes for students, The Magic Sky and Introducing the Solar System. In addition to permanent exhibitions in the museum's two exhibition halls, temporary exhibitions on themes of the shows were also held. These attracted around 2 135 000 people.

The museum also published the 1990 Astro-Calendar, a pictorial book entitled The Starry Sky, 40 sets of new postcards and star maps. Other activities included nine lectures, 10 courses and 20 monthly film shows on astronomy, space science and related topics.

Hong Kong Museum of Science and Technology

Construction of the four-storey Hong Kong Museum of Science and Technology pro- gressed smoothly and the building was topped-out on July 7, 1989. It is scheduled to open in late 1990.

   The museum will have 500 exhibits including the largest energy machine of its kind in the world and the latest exhibition techniques will be used. Nearly half the exhibits are original designs created jointly by the three overseas design teams and museum staff. Most of the exhibits are designed to allow visitors to touch and operate to learn science and technology in an entertaining and dynamic way.

   The museum building will have 13 500 square metres of which 7 500 square metres are exhibition areas and the remainder are public facilities including a 300-seat lecture theatre, a computer room, a laboratory and a bookshop. There will be an exhibition hall dealing with basic science, applied science and life science, a computer hall explaining the concepts and applications of computers and robotics, a communication hall explaining commu- nication technology and an area dealing with the application of different technology in home appliances.

With a view to fostering close co-operation with commerce and industry, the museum has received encouraging and generous sponsorship from leading local corporations.

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       Various activities including film shows and lectures organised by the museum through- out the year were well received, drawing 2 900 participants.

Hong Kong Museum of Art

The Hong Kong Museum of Art presented 12 exhibitions during the year on local and overseas contemporary art, Eastern and Western art, Chinese antiquities and Chinese fine art. They attracted 385 109 visitors and 191 school parties with 8 593 students.

        Four of the exhibitions were organised in association with overseas cultural institutions. They were Power and Gold - Jewellery from Indonesia, Malaysia, and the Philippines with the Smithsonian Institution Travelling Exhibition Service, Imperial Porcelain of the Yongle and Xuande Periods Excavated from the Site of the Ming Imperial Factory at Jingdezhen with the Jingdezhen Museum of Ceramic History, The Reader's Digest Collection of Modern Masters with the Reader's Digest Association Far East Limited, Views from the Jade Terrace: Chinese Women Artists, 1300-1912 with the Indianapolis Museum of Art.

       Significant features of the museum's programme were the organisation of three major art competitions and exhibitions - Tea Wares by Hong Kong Potters, Contemporary Hong Kong Art Biennial Exhibition, 1989 and Contemporary Open-air Sculptures of Hong Kong. The competitions and exhibitions were to promote creativity and interest in art, to encourage public participation and to discover local artistic talents.

        The branch museum, the Flagstaff House Museum of Tea Ware, continued to stage exhibitions on tea drinking and Yixing tea ware. The semi-permanent exhibition of Chinese Tea Drinking was a major attraction. Other exhibitions presented at the museum included the Floral Deities and Chinese Export Porcelain, China de Commande from the Royal Museums of Arts and History in Brussels.

       During the year, the Urban Council received a generous donation of over 30 items of Chinese calligraphy and seals by Jian Qinzhai, an important local artist of the last generation. The donation was honoured in the exhibition Calligraphy and Seal-carving of Jian Qinzhai - donation from Mr Wong Hon-kiu.

        Other than donations from generous individuals, the museum continued to acquire important art objects from local and overseas sources. Important acquisitions included a gilt bronze bodhisattva and a stone Shakya Triad of the 15th century, an important flower painting signed by Sungua and the unique Robert H. Clague Collection of 92 pieces of Chinese glass of the Qing Dynasty (1644-1911).

        To make the Museum of Art more accessible to students and the public, various educational and extension activities were organised. These included gallery demonstrations of Chinese calligraphy, jewellery and pottery making, gallery talks, art lectures and films corresponding to the themes of exhibitions, and small-scale travelling exhibitions to public libraries. A special workshop was organised for teachers to prepare them for conducting student group tours and on-site sketching exercises during the Reader's Digest Collection of Modern Masters exhibition. A series of pottery classes was held during the summer vacation for students learning potting and glazing techniques.

        To further promote local art, the museum expanded the art sale service to include artists whose works were selected for the Contemporary Hong Kong Art Biennial Exhibition, 1989. Work commenced on the construction of a sculpture, ceramic and print centre at the Hong Kong Park to provide fully-equipped studio facilities for trained artists and art students. The centre is scheduled to be completed in 1991.

        Construction of the new Hong Kong Museum of Art at the Hong Kong Cultural Centre at Tsim Sha Tsui progressed well and the new museum should be ready in 1991.

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Conservation Service

  Conservation is an indispensable function of museum work, as it is through conservation that works of art and historical collections are scientifically conserved, restored and protected from damage and deterioration. During the year more than 900 museum objects were given conservation and restoration treatment. In addition, more than 600 organic objects were fumigated to arrest any possible insect infestation or mould growth and conservation service was also extended to cover the new open-air sculptures in the Kowloon Park and others in Tsim Sha Tsui East.

Sheung Yiu Folk Museum

The Sheung Yiu Folk Museum at the nature trail of Pak Tam Chung, Sai Kung, is in its sixth year of operation. The museum, which is also a declared monument, shows a 19th-century Hakka walled village of domestic units, a gate tower, kitchens and pig pens with a display of period furnishings and farming implements. It attracted 82 000 visitors in 1989.

Hong Kong Railway Museum

Housed at the old Tai Po Market Railway Station and opened in December 1985, the Hong Kong Railway Museum is dedicated to the history, development and services of the Kowloon-Canton Railway. It displays the old Tai Po Market Railway Station built in 1913 which is now a declared monument. The station's booking office, waiting hall and signal cabin have been restored for public viewing. Other exhibits include a full-size mock-up of an electrified train carriage, six old historic rail coaches, two inspection trolleys and other rail artefacts. The museum attracted over 320 000 visitors.

Sam Tung Uk Museum

The Sam Tung Uk Museum, converted from an 18th-century Hakka walled village of a Chan clan, was opened to the public in November 1987. The 2 000 square metre museum in Tsuen Wan is also a declared monument, which includes the restored ancestral hall, 12 village houses, a reception hall, an orientation hall, an exhibition hall, a lecture room, and museum offices all converted from village houses. Its adjoining 8 000 square metre open space, incorporating a pond, a gateway and a refreshments kiosk with landscaped sitting-out areas, reflects the rural character of the monument. Period furniture, farming implements, and illustrated thematic displays are featured in the village houses.

Three popular exhibitions on Cantonese Opera costumes, Puppet Theatre in Hong Kong and Guangdong Traditional Carvings were staged in the exhibition hall. The museum attracted over 545 000 visitors.

Horticulture and Landscape Services

The Urban Council now manages some 681 gardens, open spaces and children's play areas, three aviaries and a zoo. These provide considerable scope for 'greening' the city in addition to landscaping the urban highways. During the past year the council planted 13 291 trees, 8993 bamboos, 317 523 shrubs, 3 398 climbing plants, 268 699 ground cover plants and 279 953 seasonal flowers an overall 18 per cent increase over the previous year.

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The council's contribution to the urban landscape is comprehensive. It undertakes a full range of services from design through plant production, planting, maintenance and conservation on land within its statutory control. In so doing it also plays an important and growing role in the education of the public on these matters.

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Through a network of plant nurseries the council had achieved a 90 per cent sufficiency level in plant production, thus ensuring both the availability and quality of stock to meet almost all circumstances. To undertake planting, teams are employed on both sides of the harbour with staff numbers rapidly expanding to meet demands for extra planting. Arboricultural maintenance for both new and mature tree stocks by skilled, technical staff is on the increase. Advice is given to government departments on tree conservation issues.

The scale of park, garden and nursery development provides excellent scope for the public education of people of school age through to senior citizens. To support site visits and lectures the council has produced a number of simple pamphlets with such diverse titles as Plant Propagation and Care, A Key to Common Roadside Trees in Hong Kong and An Educational Tree Walk in Victoria Park.

In addition to playing host to various school, social and gardening groups, the council has been instrumental in the formation of two new horticultural clubs, one in Hong Kong and one in Kowloon. They have now acquired a combined membership nearing 500. With the employment of more full-time educational staff in the coming year, the scope of such activities will grow in content, variety and depth.

Flower shows also serve to arouse public interest. In October 1988, the Urban Council sponsored a floral exhibit at the Second City Flower Show of China held in Beijing. The theme of the exhibit was based on the national flower, the Hong Kong Orchid Tree or Bauhinia blakeana, and drew much favourable comment from visitors. In March 1989, the Hong Kong Flower Show, jointly sponsored by the Urban and Regional Councils, was held in Sha Tin Town Park. This event attracted 1 700 horticultural exhibits and an attendance of over 113 000 people. For the first time exhibits were provided by 15 organisations from eight Chinese provinces and the Netherlands. They joined exhibits from Singapore, Thailand, Australia and South Africa to add an international flavour to the show and promise exciting future expansion of the event.

Zoological and Botanical Gardens

The Hong Kong Zoological and Botanical Gardens, managed by the Urban Council, are the oldest and probably the most popular public gardens in Hong Kong. Situated on a 5.35 hectare site at the foot of Victoria Peak overlooking Government House, the gardens contain a wide variety of botanical and zoological features.

       The gardens were constructed between 1861 and 1871 and are divided by Albany Road. The Old Garden, located to the east of the road, houses an extensive bird collection while the New Garden, opened in 1871, is home for the mammals. The horticultural contribu- tion, which is mainly located in the Old Garden, is enhanced by extensive planting inside the zoological enclosures.

The mammal collection includes Jaguars, Red Pandas, Bornean Orang-utans, Golden- headed Lion Tamarins, Golden Lion Tamarins, Emperor Tamarins, Red-cheeked Crested Gibbons, Siamangs, Green Acouchis, Orange-rumped Agoutis, Prevost's Tree Squirrels, Indian Porcupines, Goodfellow's Tree Kangaroos, Lion-tailed Macaques, Ring-tailed Lemurs, Common Squirrel Monkeys, Short-beaked Echidnas, and Spotted Linsangs. Most species of mammals, including the Lion Tamarins, Gibbons and Orang-utans, have been successfully bred in the gardens, which now actively participate in the International Breeding Programme for Endangered Species. A senior veterinary officer was appointed in August 1989 to care for and develop the Urban Council's zoological collection.

The bird collection, which is among the best in Asia, concentrates on rare or endangered species. More than 1 000 specimens representing about 300 species are housed there. With

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the increasing difficulties in the sale or transfer of zoological stock between countries, greater emphasis has been placed on the breeding of stock within the gardens. In this respect an excellent record has been achieved in recent years, including success with White-naped Crane, Count Raggi's Bird of Paradise, Victoria Crowned Pigeon, White- Winged Wood-duck, African Pygmy Goose, all the world's six species of Peacock Pheasant and the highly-endangered Rothschild's Myna.

   The horticultural collection includes trees, palms, and shrubs representing more than 550 species. Colourful displays of seasonal flowers can be found at the Fountain Terrace garden which was reconstructed in 1985. This formal garden has a large fountain as the central feature and the landscaped surrounds include more than 400 species of medicinal plants assembled with the assistance of the Chinese Medicinal Research Institute. A new local orchid collection has now been established in the garden and will be expanded in the coming years.

   Victoria Park, too, has an interesting collection of plants and birds. The collection from the old Kowloon Park was expanded to include new and attractive items following its redevelopment to coincide with the reopening of the park in 1989. Among the many new features, the bird lake has proved to be highly popular. Further ranges of bird and plant exhibits will be provided in Hong Kong Park and possibly in other locations under consideration. The potential of the gardens as a training and education centre is gradually being realised and with strong public support this aspect of the service is likely to see rapid expansion from 1990 onwards.

Major Parks

The Urban Council has an extensive building programme for large modern parks. In addition to the new Kowloon Park, this programme includes Hong Kong Park and Lei Yue Mun Park.

   The construction of Hong Kong Park has started and is expected to be completed in 1991. The project is a joint venture between the Urban Council and the Jockey Club, which has donated a substantial amount towards the total cost and which has been entrusted with the responsibility for project management of the construction of the park in liaison with the council. The park will have a large greenhouse, a walk-in aviary, an indoor games hall, a visual arts centre, landscape areas and lakes as well as other features. The existing Teaware Museum and Squash Centre will be part of the park.

   Meanwhile planning work continues on Lei Yue Mun Park, which occupies the old Lei Yue Mun Army Barracks site and is probably the most ambitious park in the building programme. The whole development project is expected to be completed by 1995. Part of the scenic site has now been brought into operation as the first holiday village in the urban area. Day and overnight campers at the village can enjoy a wide range of indoor activities such as gardening, fencing, American pool, archery, ball games, trail-walking, cycling and playground activities. When completed, the new park will include museums, animal enclosures and other activities suitable for all age groups.

Public Libraries

The Urban Council's public libraries continued to grow in 1989. The year saw the opening of Lung Hing Public Library and the Fa Yuen Street Public Library which replaced the Wong Tai Sin Public Library and the Mong Kok Public Library in rented premises. A specialised Arts Library was scheduled for opening in January 1990 in the Hong Kong

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Cultural Centre in Tsim Sha Tsui. Two new mobile library vans were put into service to replace the old ones. The total number of libraries in the urban areas, including the two on wheels, is 29.

Facilities provided by the libraries include lending services for adults and children, newspapers and periodicals, audio-visual services, students' study rooms as well as a wide range of extension activities and block loan services to non-profit-making organisations and penal institutions. Comprehensive reference services, reading machines for the blind and microcomputers are provided in the Kowloon Central Library and the City Hall Public Library. Databases on 'Compact Disc - Read Only Memory' and current awareness services are made available at the two reference libraries for the effective retrieval of current information.

The Reading Programme of the libraries, launched in 1984, was re-organised to include new activities to encourage participation. In 1989, 7721 readers joined the reading programme and read 218 339 books. A recommended reading competition was held for programme members. The eight top prizewinners were awarded a tour to Singapore in July to visit cultural and educational facilities and exchange reading experience with young people there.

Two Creative Writing in Chinese competitions were organised. Winning entries were published to provide healthy reading for the public and encourage the publication of good quality reading materials. So far, the Urban Council libraries have printed 40 books, four of which were published during the year.

The competition for the Best Produced Books in Hong Kong was organised jointly with the Hong Kong Trade Development Council to give recognition to the high standards of books printed and published in Hong Kong. Twenty winning entries were exhibited at the Frankfurt Book Fair in West Germany in October and the World Print Pack Exhibition and Conference at the Hong Kong Convention and Exhibition Centre in December.

In response to popular feedback and community needs, a year-round monthly programme of literary talks was organised to replace the annual Chinese Literary Week. The programme for the year was launched in August with a two-day seminar on the theme of The Development and Appreciation of Contemporary Chinese Poetry. The monthly week- end talks on various literary forms and topics of general interest were held at the City Hall Public Library. These were well received and were attended by 5 955 people.

In addition to large-scale library extension activities, regular events organised by the libraries include book exhibitions, interest clubs, subject talks, children's hours and library visits. In all, some 1.8 million people took part in the library extension activities.

The library collection was further increased to 2.4 million items. This included 2 329 843 books and 128 289 items of audio-visual materials. The libraries also subscribed to 4 107 local and overseas newspapers and periodicals.

More than 8.1 million books and 327 165 audio-cassette tapes were lent out during the year while 16.3 million books were read in the libraries. A total of 190 451 enquiries were handled and 720 295 reference books were consulted.

The Regional Council is also expanding its library services and facilities to meet the ever-growing demand by users in the region. To date, it runs 21 static libraries and two mobile libraries which hold a total of 1.2 million books and 70 000 items of audio-visual materials.

During the year under review, the council's second central library in the town centre of Tuen Mun was completed. The library is a four-storey free-standing building in the town's cultural complex. It has an area of 3 150 square metres and an initial stock of 200 000

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books and audio-visual items. Its facilities include a junior library, an adult library, a reference library, an audio-visual library, a newspapers and periodicals sections, a students' study room and an extension activities room.

Plans for the council's third and main central library, to be located in Tsuen Wan, are still on the drawing board. Apart from functioning as a central library for reference and information and audio-visual services, it will also provide supporting services for other libraries in the whole of the council area. In addition, it will be the administrative headquarters of the Libraries Section. Sited north of Tsuen Kam Centre at Sai Lau Kok Road in the town centre, it will be within walking distance of Tsuen Wan MTR station and the bus terminus at Nam Fung Centre. Covering an area of 3 750 square metres, the library will provide a comprehensive range of library facilities and services for members of the public.

The provision of district libraries and services is not limited to the more-populated new towns. Remote areas have not been forgotten and are well catered for. Being equipped is a third mobile library to serve the frontier areas of Ta Kwu Ling and Sha Tau Kok. Plans are also in hand to purchase a vehicle-borne detachable unit to serve the reading needs of people in rural areas.

Over the next 10 years, three more district libraries will be set up in Ma On Shan, Tin Shui Wai and Junk Bay according to population build-up and new town development. The provision of books and audio-visual materials in libraries will at the same time be strengthened in phases with a projected expenditure of $83.5 million, through raising the targetted provision of 0.7 item of library material per capita by 1990-91 to one item per capita by 1997-8.

Another area that the council is now actively looking into is library automation since usage rate has grown with population growth and book stock and other materials have increased enormously. Computerisation will enhance the day-to-day operation of libraries in such areas as circulation control, cataloging and acquisition of stock. It will help save manual labour to a great extent. Another important function will be the ability to provide accurate management information on reader profiles and usage patterns.

To promote the services of libraries, extension activities in the form of competitions, book exhibitions, talks, interest clubs, and story hours have been organised throughout the year for people of various age groups, backgrounds and interests. In 1989-90, a total of 1 380 566 people took part in these activities.

To assist students in their studies and examinations, study rooms with a total of 798 seats are provided in the Sha Tin Central Library and in the district libraries of Tsuen Wan, South Kwai Chung, North Kwai Chung, Yuen Long and Sai Kung. To meet the needs of students, the opening hours of these study rooms were extended between March 16 to June 30 with each study room opening daily from 7.30 am to 9.30 pm, including public holidays and weekly library closing days.

Sport and Recreation

Despite Hong Kong's largely urban environment, opportunities for sport and recreation are not lacking in the territory. No place is far from green countryside and there are 21 Country Parks covering over 40 per cent of the total land area. Nearly nine million visits were made to these parks during 1989. They are most popular during the cool, dry months of October to April. For those wishing to stay longer in rural surroundings, over 40 holiday camps managed by voluntary agencies and the two municipal councils provide

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overnight accommodation and recreational facilities, indoors and outdoors, for campers. Last year, these camps were used by over 500 000 people, mainly the younger age groups. Sports facilities such as swimming pools, multi-purpose games halls and stadia of various sizes abound although they are more evenly provided in the New Towns than the old urban areas where there is little land for such development.

       Hong Kong international sports successes were highlighted at the 9th Commonwealth Table-Tennis Championships in Cardiff, in which Miss Chai Po-wah won the gold medal for the Women's Singles, defeating fellow team-mate Miss Chan Tan-lui who clinched the silver medal. The two then joined forces to win the Women's Doubles and the Women's Team event. Meanwhile, the Hong Kong men helped to win the gold and bronze medals in the Mixed Doubles as well as taking the bronze medal in the Men's Team event and Men's Singles.

       This achievement heralded the opening of a new era in sports development in Hong Kong. In April, 1989 the Governor-in-Council approved the establishment of a statutory body, to be known as the Hong Kong Sports Development Board to promote and develop sports and physical recreation in Hong Kong, succeeding the Council for Recreation and Sport which has been the advisory body to the government in this area since 1974. Among other things, the council advised on the disbursement of government funds to sports associations, amounting to over $11 million in 1989, including support towards Hong Kong's participation in the 1990 Commonwealth Games. The council administered other funds such as the Sir David Trench Fund for Recreation and the Sports Aid Foundation. With the help of the latter fund, which was set up with a $15 million grant from the Royal Hong Kong Jockey Club, two promising young Hong Kong athletes are currently studying sports-related subjects overseas. On November 1, 1989, a Provisional Hong Kong Sports Development Board was established to take over the work of the Council for Recreation and Sport. The statutory board will come into being on April 1, 1990.

Outward Bound School

The Hong Kong Outward Bound School is a private registered charity of a world-wide network of such schools, providing year-round land and sea-based stress-challenge personal development programmes.

In recent years there has been a growing recognition by corporations that the training offered by the school is an effective team-building and training strategy for older adults, resulting in a marked increase in the demand for 'adult challenge' and 'contract courses'.

       The training is held on the school's training ship, the brigantine Ji Fung (Spirit of Resolution), and from the residential base in Tai Mong Tsai, Sai Kung.

       The purpose of each course is to improve the trainees' self-awareness, self-confidence, resourcefulness, leadership and communication skills. Trainees include employees of major corporations and smaller businesses, as well as students and young people, including the handicapped and socially deprived.

       In 1989 the school experienced an active, productive and safe year, operating all its courses almost at capacity. On average there were 11 courses each month with about 108 students in residence at any one time.

       A milestone in the year was the conducting of two international courses which took the Ji Fung down to the Kinarut Outward Bound School in Sabah and back. Sixty trainees representing 11 nationalities visited three countries, completed a 1 300-mile voyage across the South China Sea, and gained valuable international exposure.

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The Hong Kong school was commissioned to monitor and advise in the development of the new Outward Bound School in Japan.

School facilities were improved with the completion of two new accommodation blocks containing six staff flats, financed by a Bradbury Trust donation. In addition, the entire equipment complex was overhauled, the ropes course renovated and trainee equipment significantly upgraded to meet greater use.

Expansion plans include providing a permanent annex capable of housing an additional 36 trainees in Wong Wan Chau in Double Haven and the possible development of a separate sailing centre at Tai Mong Tsai.

Adventure Ship

The Adventure Ship Huan has been providing underprivileged and handicapped young people in Hong Kong with skill and character training for 12 years. Since 1977, about 50 000 young people have benefited from Adventure Ship programmes. In 1989 some 5 500 youths took part.

Huan is a 27.5 metre, three-masted Chinese junk, probably one of the largest sailing junks in the world.

Adventure Ship Limited is a registered charity largely supported by the Community Chest and the Jockey Club. Volunteers provide their services free to the organisation enabling training activities to be provided at a fraction of their real cost. As a result, thousands of young people are able to participate in activities which, otherwise, they could not afford.

Ocean Park

Ocean Park, Asia's largest oceanarium and fun park located on the south side of Hong Kong Island overlooking the South China Sea, has just completed a further major development, a $70 million crafts village called Middle Kingdom.

Another development will be a shark aquarium due to open to the public in mid-1990. During the year more than two million visitors went to Ocean Park and Water World, an all-time record.

The park comprises headland and lowland areas, linked by a cable car system. Access to the headland may also be made by means of the world's longest covered outdoor escalator from Tai Shue Wan.

  The park's attractions include six 'thrill rides', with one of the longest and fastest roller coasters in the world. There is also the Ocean Theatre, featuring killer whales, dolphins and a high diving show. Other major attractions are the Wave Cove with sea lions, seals and penguins and the Atoll Reef, one of the world's largest aquaria.

In the lowland area Water World, the first water playpark of its kind in Asia, provides summer visitors with a variety of water activities. Also in the lowland area is a Golden Pagoda housing over 100 species of goldfish, Cine 2000, a Greenhouse Complex, a Butterfly House with some 1 500 butterflies, and a Children's Adventure World.

  The aviary in Tai Shue Wan is now home to more than 2 000 birds, making up 150 species, and has a bird theatre, exhibition hall, parrot garden and flamingoes.

Jubilee Sports Centre

The Jubilee Sports Centre is a centre of sporting excellence for producing international- class athletes and coaches, providing positive leadership, top quality facilities, technical resources and fostering good international relations. It has operated independently since 1987, with an endowment of $350 million from the Jockey Club.

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       To raise the performance standard of sports in Hong Kong, the centre has appointed world-class head coaches and coaches in badminton, fencing, gymnastics, rowing, soccer, squash, swimming, table-tennis and tennis. The coaches work closely with governing bodies of sport in training national teams and potential elite athletes.

The centre has an ambitious sports scholarship programme and offers coaching, facilities, dietary advice, sports science, sports medicine, overseas training and support for education and employment. In 1989 over 100 elite local athletes received scholarship support from the centre.

In conjunction with staff of the Chinese University of Hong Kong, the centre's Sports Science Department provides sports science and sports medicine support for local athletes. In 1989 scientific tests were conducted for over 200 elite athletes.

       The centre continued to host teams from overseas in 1989. To help raise the standards of local athletes, top coaches and international athletes spent periods of attachment at the centre.

To improve its facilities it has been decided to convert the existing indoor sprint training track into additional residential accommodation, and to extend the sports resource centre and the sports science/medicine facility. This will be completed in early 1990.

Summer Youth Programme

The Summer Youth Programme is a territory-wide project organised annually during the summer months for children and youths aged between 6 and 25. Comprising recreational and educational programmes as well as social service activities it helps them to develop their skills, appreciate inter-human relationships, get to know the community in which they live and enhance their sense of responsibility to the community.

For the 1989 programme the central theme was 'Share the Fun, Serve the Community', and was officially launched on July 1. About 12 000 activities were organised and 1.5 million young people took part in the programme between July and September. Over $23 million, of which nearly $10 million was donated by the Jockey Club, was spent on the programme. The balance was made up by the government, district boards, the Urban Council, Regional Council, private donations and participants' fees. Ten outstanding volunteers were awarded Outward Bound Scholarships and attended an 18-day course on board the vessel Ji Fung.

Responsibility for co-ordinating the programme rests with the Summer Youth Pro- gramme Committee which advises on the appropriation of funds and the implemen- tation of the various activities. The District Co-ordinating Committees are responsible for the planning, implementation and allocation of funds for district activities.

Youth Hostels

The Hong Kong Youth Hostels Association is a registered charity providing outdoor leisure opportunities for young people, particularly the 18 to 26 age group.

The chain of eight hostels run by the association in Hong Kong is away from the urban areas and mostly situated in scenic places. Although three of the hostels are old converted buildings, the others are purpose-built and two have won architectural awards for design excellence. Of the three older hostels, the one sited near the Plover Cove Dam is now in course of redevelopment at a cost of about $6 million.

Expenses of the association are met by membership fees and overnight charges. Membership also entitles holders to make use of over 5 000 youth hostels around the world and many members use this facility to travel widely, economically and safely.

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Culture Division

The Culture Division of the Recreation and Culture Branch is responsible for the formulation and co-ordination of government policies on culture, including the perform- ing and visual arts, monuments and libraries. With the advice of the Council for the Performing Arts, it administers the disbursement of government subsidies to various performing arts organisations and individuals, and generally caters to the aspirations of the arts scene in Hong Kong.

The division also runs the Books Registration Office and the Antiquities and Monu- ments Office, and provides the secretariat of the Council for the Performing Arts as well as the Antiquities Advisory Board.

Council for the Performing Arts

The Council for the Performing Arts was established in 1982 to advise the government on the development and needs of performing arts in Hong Kong. It comprises 14 appointed and two official members. The council has five committees, covering the areas of development and finance, music, dance, drama and arts services. The Arts Services committee was newly formed in the year to cover the full range of arts administration and logistics, as well as technical arts.

On the advice of the council, five performing arts organisations, the Chung Ying Theatre Company, the Hong Kong Ballet, the City Contemporary Dance Company, the Hong Kong Arts Festival and the Hong Kong Festival Fringe, received general support grants totalling almost $23 million in 1989-90. Also, funds amounting to around six million were awarded to other local performing arts groups as grants for individual projects or as Seeding Grants. The council has high hopes for the new seeding grant concept which is designed to assist the development of promising performing groups towards profes- sional status.

Since 1984, the council has been operating a report-writing scheme whereby a pool of specialists in various performing arts forms are appointed to report on public performances in Hong Kong, providing a valuable pool of information to the council on standards attained in this field. The council places considerable importance on the views of these assessors and arranged a seminar in July which gave them a chance to suggest improve- ments to the working of the scheme.

The council is now planning another major seminar, on business sponsorship of the arts. This will enable representatives of the corporate sector and the leading performing companies to hear the views of overseas experts and to explore the considerable mutual benefits to be derived from well-thought-out sponsorship packages.

Chung Ying Theatre Company

Stepping into their 10th year, the Chung Ying Theatre Company started 1989 with a change in leadership. Under the direction of new Artistic Director Chris Johnson, the company further expanded its work in Theatre for Young People. Peacemaker, a play for 4 to 8-year-olds, launched the company's new season in April. The production toured schools and was staged in the Arts Centre as well as Town Halls such as Tsuen Wan, Tai Po and Tuen Mun. In addition, two new productions for young audiences toured schools in the spring and the autumn - Susumu's Story for 9 to 13-year-olds and Windigo for audiences aged 14 and upwards. Susumu's Story was also presented as part of the International Arts Carnival in the summer.

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The company continued to run drama workshops for children and adults in 1989. The addition of an Education Officer to the staff greatly enhanced the company's link with the schools in promoting educational activities and workshops.

       The earlier part of the year saw two successful runs of Rosencrantz and Guildenstern are Dead, a Cantonese version of Tom Stoppard's witty play, which was well received in January in the Hong Kong Arts Festival and during its re-run in June. Also at the Shouson Theatre at the Arts Centre was the farewell performance of Pinocchio, the delightful puppet who won the hearts of audiences young and old.

Breaking new ground, the company's Comic Trilogy in September, a presentation of three one-woman plays, gave individual actresses the challenging opportunity to explore this particular genre. Focus on the full company returned at the end of the year with the specially commissioned musical Fated Night, staged as part of the opening festival programme of the Hong Kong Cultural Centre.

Hong Kong Ballet

The year proved to be one of significant achievement for the company, befitting the celebration of its 10th anniversary. The company has now grown to 30 dancers, with internationally-renowned guest artists and a standard of performance and presentation which is acclaimed by press and public.

       At the 1989 Arts Festival, Hong Kong Ballet presented two very ambitious works, Concerto (choreographed by Sir Kenneth MacMillan), and Cheri by Peter Darrell, starring Galina Gamsova. Both were very well received. The Hong Kong Philharmonic Orchestra accompanied the ballet in these works.

The next major season was in June, again at the Lyric Theatre of the Hong Kong Academy for Performing Arts. It was appropriately entitled Celebrations and displayed the wide range of the company's repertoire from classic (Concerto Barocco, by Balanchine) to modern works (Jardi Tancat, by Duato and All the Sun Long by Hong Kong Ballet's Artistic Director, Garry Trinder). A special guest in the season was Renee Robinson from the Alvin Ailey Dance Theatre, dancing Ailey's famous solo Cry.

In September, the company presented a full-scale production of Swan Lake, produced by Andre Prokovsky and sumptuously designed by Peter Farmer. The Hong Kong Philharmonic Orchestra accompanied the ballet, and from America Valentina and Leonid Kozlov appeared as guest artists, as did Susan Hogard of the English National Ballet. The season included a gala performance and reception in aid of the ballet.

The company took its production of Swan Lake to the new towns of Tuen Mun and Sha Tin for the Regional Council, which also engaged the company for smaller performances at other venues in the New Territories.

A Christmas production of The Nutcracker saw the ballet performing for the first time at the new Hong Kong Cultural Centre's Grand Theatre. This glittering production has become a firm favourite with Hong Kong audiences of all ages.

City Contemporary Dance Company

In 1989 the City Contemporary Dance Company celebrated its 10th anniversary with three special dance programmes between March and August: 10th Anniversary Retrospective, X Isle Isle X and Hell Screen. These featured innovative dance works by the company's two artistic directors, Willy Tsao and Helen Lai, and the prominent New York choreographer Sussan Deihim.

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In September, the company visited the Cultural Centre of the Philippines where it performed Winterreise, Spotlight, and Insomnia.

Another full-length dance production, Wanderings in the Cosmos by Willy Tsao, followed in the grand opening of the Hong Kong Cultural Centre in November.

   The company has continued to organise a wide range of educational dance programmes including performances in colleges, secondary and primary schools, and dance workshops, lectures and classes. Its own dance school, housed at its headquarters in Wong Tai Sin, continued to attract many dance enthusiasts as students. Meanwhile, the company's City Contemporary Theatre continued as a significant centre for experimental theatre and dance productions.

Altogether, the main company and the dance education unit gave 150 performances during the year, including 105 school shows, at venues ranging from the Lyric Theatre of the Academy for the Performing Arts to community centres and school halls.

Hong Kong Academy for Performing Arts

The Hong Kong Academy for Performing Arts, offering professional training in the disciplines of dance, drama, music and technical arts, held its third graduation in June for 107 graduates. The Governor, who is President of the academy, conducted the ceremony.

   Probably the largest of its kind in South-east Asia, the annual International Festival of Dance Academies and its associated International Dance Conference was held for the fourth time from July 17 to 21. This year, over 200 student dancers from Manila, New York, Rome, Sumatra, Taipei and Hong Kong were invited to participate in master classes in the daytime and give performances in the evenings at the academy. Another major presentation by the School of Dance was the 89 Graduation Concert at which the dance graduates were presented in each style of concertation: ballet, Chinese dance and modern dance.

The School of Drama had another prolific year with a total of seven productions, all presented in Cantonese. They included Eugene O'Neill's The Emperor Jones, William Shakespeare's The Tempest, Neil Simon's Biloxi Blues, Larry Kramer's The Normal Heart, Joe Orton's What the Butler Saw, Peter Shaffer's Equus and Dale Wasserman's Man of La Mancha. The historical range of the plays gave students the experience of performing in works from Elizabethan to modern times.

In April, the School of Music presented its first Cantonese opera Noye's Fludde by Benjamin Britten. A series of nine summer evening concerts known as The Young Professional Musicians Platform was organised to encourage and foster the talents of current and past academy students and to provide a public performing platform for the most-talented local musicians.

   The staff and students of the School of Technical Arts provide the technical support to all academy productions. Areas include theatre design, costume making, scenery construc- tion, property making, lighting and sound. Together with the Department of Television, the school offers a thorough training programme of technical arts that is unique in Asia.

The academy had a total of 381 full-time students, 218 part-time students and 303 junior students for the academic year 1989-90.

Music Office

The Music Office has played an active and important role in providing instrumental music training and promoting interest in music among young people in Hong Kong.

RECREATION AND THE ARTS

Music training classes for 4 010 young people aged from 6 to 23 were held in the eight music training centres located in various districts in the territory. Under the Instrumental Music Training Scheme, 790 classes for both Western and Chinese music were run in the year. Aural and theory training were provided to complement instrumental tuition. In addition, master classes and seminars were conducted by visiting overseas musicians, including Professor Phyllis Young on cello, Jeffrey Campbell on piano, the Carmina Quartet on chamber music, Robert Skelton on violin, and Antony Hopkins on music appreciation.

A musical instruments hire scheme enabled the trainees to acquire musical instruments for home practice at a small monthly rental. When the total sum paid meets the purchase cost, the instrument becomes the property of the trainee.

An integral part of the instrumental music training is orchestral and band training for trainees who have attained an acceptable standard. During the year, the office managed one youth symphony orchestra, five youth string orchestras, six youth Chinese orchestras, six youth symphonic bands and one children's symphonic band. The office has two instructors' orchestras, one Chinese and one Western, and two choirs. Whenever possible, the groups are given the opportunity for cultural exchange with visiting musicians as well as orchestras and bands.

       The Hong Kong Youth Symphony Orchestra, which is made up of the best talents in the Music Office, had a successful annual concert in April.

The office organises a programme of international music exchange to foster international understanding and to widen young musicians' horizons. Such activities provide local and overseas youth music groups with the chance to rehearse and perform together and an opportunity for cultural and musical exchange. In 1989, visiting youth groups included the New South Wales Conservatorium Chorale, the Long Island Youth Orchestra, the Hakata Girls' High School Wind Band, and the Narashino High School Wind Band.

In July, the 25-member Hong Kong Youth Strings went on a concert tour of California. This was the first time that young musicians from the Music Office had visited the United States. The group performed in Los Angeles, Palo Alto and San Francisco. The tour enabled the young cultural ambassadors to bring string music and friendship to American audiences.

Each summer the office organises a music camp to provide intensive music training for young people over a period of two weeks. This year, the camp was held at the Lei Yue Mun Park and over 400 young musicians were able to benefit from the expert tuition provided by eight musicians from China, Australia, the United Kingdom and the United States, as well as to enjoy a programme of recreational and social activities.

       Other activities included exhibitions of musical instruments, music lectures and music appreciation sessions. Music competitions were arranged with a number of local arts organisations and government departments. These activities are usually organised on a district basis, aiming at educating and cultivating new audiences in music performances.

A major activity of the Music Office is the Music for the Millions concert programme, which introduces music to new audiences. Concerts are given by the office instructors' orchestras, bands and ensembles in schools, playgrounds, hospitals, shopping malls and community halls. During the year, 261 concerts were staged for over 151 850 people.

Jockey Club Music Fund

The Hong Kong Jockey Club Music Fund was set up in December 1979 with a donation of $10 million from the club for the promotion and development of music, dance and other

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related activities. It is a non-statutory trust fund, administered by a board of trustees of 12 members. The fund awarded 133 grants and eight scholarships totalling $1.9 million in 1989, enabling young people to study music and dance abroad and also assisting local schools and organisations to acquire musical instruments and dance equipment.

Books Registration Office

The Books Registration Office is responsible for the enforcement of the Books Registration Ordinance (Chapter 142), which stipulates that all publishers should submit copies of all new publications to the office for registration. These books are dispatched to depository libraries for permanent preservation after processing. The details of the registered books are then published quarterly in the Hong Kong Government Gazette.

   In 1989, the office registered a total of 7 140 books - 4 534 in English, 2 520 in Chinese, and 86 in other languages. 6 094 periodicals were also registered.

   In order to assist the publishing trade in Hong Kong, the office acts as an agent for the International Standard Book Numbering System. During the year, 106 publishers' identifiers have been issued at the request of publishing houses.

Antiquities and Monuments Office

The Antiquities Advisory Board, established by law in 1977, is headed by an appointed chairman and has 14 members drawn from a variety of disciplines, such as archaeology, history, architecture, anthropology and geology. Two sub-committees deal with the two major aspects of its work, historical buildings and structures, and archaeology and palaeontology. A third sub-committee was established during the year to handle education and publicity work, an area on which the board is placing increasing emphasis.

   Under the guidance of the board, the office continued an active programme of recording, protecting, preserving and restoring the archaeological and historical heritage of the territory and informing the public about heritage preservation.

   Several more historic buildings, including Flagstaff House, the former French Mission Building on Battery Path and Law Uk (a Hakka house at Chai Wan), were added to the list of gazetted monuments during the year. Emergency repairs were carried out at the Yeung Hau Temple near Yuen Long and the Hau Kui-shek Ancestral Hall in Fanling. The Royal Hong Kong Jockey Club has pledged $2 million for the full restoration of the Kun Ting Study Hall, an important 18th century building.

With the help of students from the two universities, the territory-wide survey of historical villages and structures continued throughout the summer in the north-east frontier areas. A survey of pre-war buildings in the urban areas was also embarked on and this year efforts concentrated in chosen localities within Central and Western, Wan Chai, Mong Kok, Yau Ma Tei and Kwun Tong districts to tie in with the urban renewal schemes being studied by the Land Development Corporation.

   During the year, a rescue excavation was carried out at Lung Kwu Tan by the office in co-operation with the Institute of Chinese Studies of the Chinese University of Hong Kong. The excavation unearthed significant finds dating back to the late Neolithic period. These included artistic objects (such as polished quartz rings), coarse corded pots and a wide range of stone implements like hammers, grinding stones, crystal flakes and splinters. There was also a possible late Neolithic burial. These finds shed light on the life of prehistoric people of the New Territories.

22

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EN

ON June 5, World Environment Day, the government published a White Paper, Pollution in Hong Kong - A Time to Act, setting out its plans to combat pollution and achieve a more wholesome environment.

       This chapter begins with a description of the natural environment and some of the environmental problems that face us, and then highlights the progress that took place last year in tackling these problems. An account of related services such as the meteorologi- cal, geophysical and oceanographic services provided by the government completes the chapter.

Climate

Hong Kong's climate is sub-tropical, tending towards temperate for nearly half the year. During November and December there are pleasant breezes, plenty of sunshine and comfortable temperatures. Many people regard these as the best months of the year. January and February have rather more cloud, with occasional cold fronts followed by dry northerly winds. It is not uncommon for temperatures to drop below 10°C in urban areas. The lowest temperature recorded at the Royal Observatory is 0°C, although sub-zero temperatures and ice occur at times on high ground and in the New Territories.

       March and April can also be very pleasant except for occasional spells of high humidity. Fog and drizzle can be particularly troublesome on high ground exposed to the south east, and air traffic and ferry services are occasionally disrupted by reduced visibility.

May to August are hot and humid with frequent showers and thunderstorms, par- ticularly during the mornings. Afternoon temperatures often exceed 32°C whereas at night, temperatures generally remain around 26°C with high humidity. There is usually a fine dry spell in July which may last for one to two weeks, or even longer in some years.

       September is the month during which Hong Kong is most likely to be affected by tropical cyclones, although gales are not unusual at any time between May and November. On average, about 30 tropical cyclones form in the western North Pacific or China Seas every year, and about half of them reach typhoon strength (maximum winds of 118 kilometres per hour or more).

       When a tropical cyclone is about 700 to 1 000 kilometres south east of Hong Kong, the weather is usually fine and exceptionally hot, but isolated thunderstorms sometimes occur in the evenings. If the centre moves closer to Hong Kong, winds increase and rain can become heavy and widespread. Heavy rain from tropical cyclones may last for a few days and subsequent landslips and flooding sometimes cause more damage than the winds.

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The mean annual rainfall ranges from around 1 200 millimetres at Waglan Island to more than 3 000 millimetres in the vicinity of Tai Mo Shan. About 80 per cent of the rain falls between May and September. The wettest month is June, when rain occurs about two days out of three and the average monthly rainfall at the Royal Observatory is 431.8 millimetres. The driest month is December, when the monthly average is only 25.3 millimetres and rain falls only on about five days in the month.

Severe weather phenomena that can affect Hong Kong include tropical cyclones, strong winter monsoon winds, and thunderstorms with associated squalls that are most frequent from April to September. Waterspouts and hailstorms occur infrequently, while snow and tornadoes are rare. Climatological data are given in Appendix 45.

Topography and Geology

The topography of Hong Kong is characterised by steep granitic and volcanic mountains. Much of the footslope terrain is blanketed by debris flow deposits and other forms of colluvium transported by erosion and mass movement from the hillsides. Some 40 per cent of the landmass is volcanic in origin, about 20 per cent is granitic, 15 per cent is colluvial and almost 10 per cent is alluvial in nature. The highest peak is Tai Mo Shan (957 metres) located in the central New Territories, and there are four peaks which exceed 750 metres, all on Lantau Island. Victoria Peak, the highest on Hong Kong Island and best known as a major tourist attraction, is ranked 18th in the territory with an elevation of 554 metres.

   The territory lies on the edge of the ancient Sinian landmass formed more than 600 million years ago, and which now extends from Shandong in northern China to the Gulf of Hainan. The geological strata forming the landmass were deposited beneath the sea but were subsequently folded and faulted in mountain-building earth movements. A second period of mountain building, beginning about 160 million years ago, was accompanied by explosive volcanic activity that resulted in the deposition of thick layers of ash and lava and intrusion of large granitic bodies. The mountains formed from these deposits were subsequently eroded, with the material washed from the slopes deposited in the valleys, plains and shallow seas.

From the beginning of the Quaternary period, about two million years ago, the lower-lying areas of the region were exposed as sea levels fell due to water being trapped in the expanding polar ice caps. Warming of the climate and melting of the polar ice then caused a rise in sea level and the consequent inundation of low-lying areas. About 100 000 years ago, Hong Kong was surrounded by broad plains crossed by rivers depositing sands and gravel. The plains were gradually inundated as sea levels rose further about 15 000 years ago, and ended when the sea reached more or less its present level about 6000 years ago.

The erosion of the hills accelerated following destruction of the natural vegetation during the widespread colonisation of the area during the Song Dynasty (960-1279). Hong Kong's rocks are generally deeply weathered and much of the terrain is prone to landslips. More than 20 per cent of the terrain in the territory shows evidence of instability.

Generally, the granitic and volcanic rocks can be excavated quite easily for use as reclamation material. Sand and gravel dredged from offshore areas are also a valuable resource. Hong Kong has few mineral resources, although deposits of lead, zinc, quartz, beryl and graphite have been mined in small quantities, and iron and tungsten were once extracted in significant amounts. Only kaolin is currently worked within the territory. Granites in Hong Kong have long been quarried for building purposes, and are now used as aggregates.

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The natural landscape in the urban areas has been extensively modified as a result of site formation associated with development. Many of the natural granitic hills have been removed, and the material used as fill for the various reclamations. Almost 4 000 hectares of the developed land is reclamation.

Much of the undeveloped terrain in Hong Kong consists of steeply-sloping ground where soils are thin and nutrient deficient. These soils support only grassland or shrubland, except in protected valleys where small areas of broad leaf woodland survive, or in water catchments and country parks where re-afforestation has succeeded in establishing pines and deciduous trees.

An important agricultural area is the alluvial plain around Yuen Long in the north-west New Territories. These alluvial lowlands probably formed within the last 33 000 years, and some areas are still prone to flooding. More than 5 000 hectares of floodplain occurs in the territory and much of it is located in the Yuen Long district. The natural deposition of sediment is continuing around the Deep Bay area, where brackish fish ponds have been established successfully in areas that once were mudflats, mangrove swamps or salt-water rice paddies.

As Hong Kong lacks large rivers, lakes or underground water supplies, reservoirs have been constructed in larger valleys such as Shek Pik, Tai Lam Chung, and in coastal areas such as Plover Cove and High Island, where embayments and channels have been enclosed by large dams. In most instances, the catchment areas of the reservoirs have been designated as country parks.

New geological maps are being produced at a scale of 1:20 000 by the Geological Survey of Hong Kong, located within the Geotechnical Control Office, and maps for more than 60 per cent of the territory have been published. Detailed geological mapping will also lead to the publication of 1:5 000 scale maps. Information about the terrain is also contained in the 55 maps and 12 Reports of the Geotechnical Area Studies Programme. Published documents are available through the Government Publication Sales Centre.

Wildlife

The physical and climatic environment of Hong Kong provides woody and grassy habitats for a wide variety of native animal and plant life. Under the pressure of urbanisation, larger animal species are rarely seen, but reptiles and amphibians, birds and many kinds of insects are common.

Most of Hong Kong's countryside is protected by the Forests and Countryside Ordinance, the Wild Animals Protection Ordinance, the Country Parks Ordinance, and the Animals and Plants (Protection of Endangered Species) Ordinance.

One of the most important sites in Hong Kong for wildlife is the Mai Po Marshes. A restricted area under the Wild Animals Protection Ordinance and managed by the World Wide Fund for Nature (Hong Kong), it is an internationally significant site for migratory and resident birdlife. Its 380 hectares of mudflats, shrimp ponds and dwarf mangroves provide a rich habitat, particularly for ducks and waders. More than 250 species of birds have been observed in this area, and at least 110 of them are rarely seen elsewhere in the territory. Yim Tso Ha, also a restricted area, is the largest egretry in Hong Kong. Five species, the Chinese Pond Heron, Night Heron, Cattle Egret, Little Egret, and the rare Swinhoe's Egret, nest there regularly. More than 1 000 egrets can be found there between April and September, the nesting season. Egretries are also found at Mai Po Village, A Chau, Jim Uk, Tsim Bei Tsui and Wu Shek Kok.

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   Although traditional fung shui woods near the old villages and temples are increasingly affected by development, they continue to provide a very important habitat for many birds. Sightings in wooded areas include an assortment of warblers, flycatchers, robins and bulbuls.

   Of the larger indigenous animals, the Chinese Pangolin (Scaly Anteater) which grows to a length of about one metre and is protected by horny scales, is still seen occasionally. Areas around the Kowloon reservoirs are inhabited by monkeys that originated from those that either were released or had escaped from captivity. There are breeding groups of both Long-tailed Macaques and Rhesus monkeys. Smaller mammals are common, with the Grey Shrew and the House Shrew being numerous in some rural areas. The Chinese Porcupine, with its strikingly coloured black and white quills, is still present in parts of the New Territories and Hong Kong Island.

   Wild pigs were once sufficiently scarce to warrant protection by law, but their numbers have increased to such an extent that they occasionally damage crops, causing farmers to complain. Consequently, special culling exercises have been organised by the Police Force to reduce this threat to crops. Occasional reports are still received of sightings of less common species such as the Leopard Cat, Ferret Badger, Eastern Chinese Otter and Barking Deer. However, the increasing obtrusion of human activity into the countryside means an uncertain future for these species.

   Snakes, lizards and frogs are plentiful in Hong Kong. There are also various species of terrapins and turtles, none of which is common. Most of the local snakes are not poisonous and death from snakebite is rare. The poisonous land snakes are: The Banded Krait, with black and yellow bands; the Many-banded Krait, with black and white bands; Macclelland's Coral Snake, which is coral red with narrow, black transverse bars; the Chinese Cobra and the Hamadryad or King Cobra, both of which are hooded; the rare Mountain Pit Viper; the Red-necked Keelback with vermilion neck; and the White-lipped Pit Viper or Bamboo Snake. The Bamboo Snake is bright green and less venomous than others, but it is not easily seen and strikes readily if approached. The Hamadryads, Kraits and Corals prey almost exclusively on other snakes.

   Several species of sea snakes, all of which are venomous, are to be found in Hong Kong waters. However, they have never been known to attack bathers. An amphibian of special interest is the Hong Kong Newt, which has not been recorded elsewhere in the South-east Asian region.

   There are more than 200 recorded species and forms of colourful butterflies, several of which, as caterpillars, cause considerable damage to farmers' crops. These include the two commonly found species of Cabbage Whites, the Swallowtails, and the beautiful but less common Small Blue. Among the many local moths are the giant silkworm moths, including the Cynthia, Fawn, Atlas and Moon. The Atlas has an average wing span of 23 centimetres and the Moon, 18 centimetres.

   Of the local plant bugs, two are especially noted for their colour and shape. They are the rare and beautiful spotted Tea Bug, which has been recorded only on hilltops and the Lantern Fly which has delicately coloured wings and a remarkably long forehead. Dragon and damsel flies are common, as are wasps and metallic-coloured beetles. Of particular interest is the giant Red-spotted Longhorn Beetle which feeds on Mountain Tallow and Wood-oil trees. Many other species of Longhorn Beetles infest living or weakened trees, including citrus and pine.

   Since its introduction into Hong Kong in 1938, the African Giant Snail has become a major pest in vegetable crops and gardens. Farmers are also troubled by several types of

THE ENVIRONMENT

slug. One of these, Veronicella, is a large, black slug sufficiently different from the other slugs to be placed in a separate family.

Aquatic Life

Hong Kong lies some 320 kilometres south of the Tropic of Cancer on the southern coast of China. Being at the junction of the vast temperate Palaearctic Japonic zoogeographical region and the huge Indo-Pacific province, Hong Kong possesses very diverse varieties of aquatic animals and plants. There are over 150 commercially important species of fish, crustaceans and molluscs. The types and quantities of aquatic life forms vary according to season and area.

The waters of Hong Kong can be divided into three sectors. Under the influence of the Zhu Jiang (Pearl River), the biggest river in southern China, the western sector is predominantly brackish. The area to the east is more oceanic while the central sector is transitional between brackish and oceanic. In some localities, notably the Tolo Harbour region, pollution associated with recent rapid urban development has decimated the abundance and diversity of aquatic life. Pollution-sensitive organisms such as coral are now found only in a few clean yet remote oceanic areas in the northeast. Nevertheless, various locations still serve as spawning and nursery grounds for many aquatic species, and these in turn attract transient predators such as Spanish Mackerel, Little Tuna, Dolphinfish, Sailfish and Sharks.

A number of shark sightings have been recorded in Hong Kong waters. Most are small to medium in size and hence pose little danger to humans. Bigger sharks have occasionally been sighted in Mirs Bay in the New Territories. Nevertheless, there have been no records of sharks attacking bathers in the past 10 years.

Four species of whale and eight species of dolphin have hitherto been recorded in Hong Kong waters and strandings occur quite frequently. The Black Finless Porpoise and the Chinese White Dolphin are the most common in terms of occurrence and strandings. In 1989, there were 10 strandings involving five Black Finless Porpoises, three Chinese White Dolphins, one Common Dolphin and one Striped Dolphin.

In early July, two bathers were attacked by Moray eels while swimming at the gazetted swimming beach at Deep Water Bay. The victims suffered lacerations and were hospital- ised. A trapping operation was immediately mounted by the Agriculture and Fisheries and the Urban Services departments to safeguard public safety. The operation continu- ed for one week until the threat to swimmers was removed and a total of 16 Moray eels had been caught in the area. The captive eels were later released outside Hong Kong territorial waters.

Plant Life

Situated near the northern limit of the distribution of tropical Asian flora, Hong Kong has an abundant variety of plant life. It is estimated that there are about 2 600 species of vascular plants, both native and introduced.

       Before the introduction of conservation measures, the hillsides were becoming in- creasingly bare of trees as a result of cutting, burning and exposure to the elements. On most, the only cover was coarse grass or scrub. Now, many slopes, especially those in the water-gathering grounds, have been planted with trees of both local and exotic species. These woodlands and other areas of countryside are protected and, in view of the growing numbers of people spending increasing amounts of their leisure time outdoors, they are

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being developed. In addition to making the countryside more beautiful, woodlands are important in the management of water catchments.

Remnants of the original forest cover, either scrub forest or well developed woodlands, are still found in steep ravines. They have survived the destructive influences of man through their location in precipitous topography and the moist winter micro-climate.

Countryside Conservation and Management

The Agriculture and Fisheries Department is the principal government agency responsible for the conservation and management of Hong Kong's countryside. The Forests and Countryside Ordinance provides for the general protection and management of vegetation, and special protection is given to certain plants, including native camellias, magnolias, orchids, azaleas and the Chinese New Year Flower.

The Wild Animals Protection Ordinance prohibits hunting wild animals and restricts the entry of unauthorised members of the public into important wildlife habitats, the Mai Po Marshes and the Yim Tso Ha Egretry.

The Country Parks Ordinance provides for the designation, control and management of the most important areas of countryside as country parks, and enables them to be developed for recreational purposes. It gives particular protection to vegetation and wildlife. There are now 21 country parks, covering over 40 per cent of the land area in the territory.

   Overall enforcement of the ordinances is carried out by nature wardens and park wardens. These officers also provide information at visitor centres and escort groups on guided visits. In addition to general conservation of the countryside, Hong Kong has adopted the concept of identifying and conserving sites of special scientific interest, such as a site where a rare tree or a rare species of butterfly can be found. Forty-nine sites have so far been identified.

Royal Observatory

The Royal Observatory was established in 1883, mainly to provide scientific information for the safe navigation of ships. In the ensuing century, the observatory has evolved in line with the changing needs of the community. It now provides meteorological and other geophysical information, issues forecasts, warnings and weather advice to meet the diverse requirements of the public, shipping, aviation, industry, fishing, recreation, offshore oil prospecting and other special users.

   The observatory operates the official time service for Hong Kong. It also maintains a comprehensive seismological monitoring network, monitors the level of radioactivity and provides services in the fields of hydrometeorology, climatology, astronomy, physical oceanography and applied meteorology.

   The most important function is the provision of weather forecasting services and issuing tropical cyclone, flood and landslip warnings. The Central Forecasting Office issues weather forecasts and warnings to the mass media, ships at sea and fishermen and yachtsmen in coastal waters. Whenever Hong Kong is threatened by tropical cyclones, frequent warnings with advice on necessary precautions are issued and widely dissem- inated. Other warnings include thunderstorms, flooding, landslip, storm surge, fire danger, strong monsoons and frost. Specialised weather services are provided to engineering contractors, public utility companies, public transport operators and other commercial enterprises. The scope of these services covers requirements for the operations within and around the Hong Kong territory and offshore operations in the South China Sea.

THE ENVIRONMENT

Particular importance is attached to the effective dissemination of up-to-date weather information to the public, the media and other users. In 1989, weekly weather programmes were presented on television by forecasters of the Royal Observatory to provide an in-depth discussion of recent weather events. Two special bulletins with weather charts as illustrations were prepared for the press each day. When warranted, live interviews and briefings were given by forecasters over radio and television. For members of the public requiring instant access to weather forecasts or tropical cyclone information, the observatory has implemented a dial-a-weather service. The demand for this service has continued to grow and there are now seven Chinese and one English dial-a-weather lines in operation and on average 4 100 calls are handled daily with up to 460 calls per hour at times. Around one and a half million calls were received in 1989. Tailor-made weather information for special users is supplied through teletype, telex or telefax. The Royal Observatory also provides information to the INFOTEX and INFOFAX, which make available to telex and telefax terminal holders a large variety of routine weather in- formation, including pictorial information such as the daily weather map.

Weather Monitoring and Prediction

To provide a wide range of meteorological services, the Royal Observatory monitors local weather round the clock. Weather observers at the Royal Observatory headquarters, Hong Kong International Airport and Cheung Chau keep a continuous watch on local conditions. Additional observations are made by the Royal Navy at Tai O and by the Royal Air Force at Sek Kong.

       A network of automatic weather stations designed and built by the observatory telemeters weather data to the Central Forecasting Office in the observatory headquarters from Ta Kwu Ling, Lau Fau Shan, Tsing Yi, Sha Tin, Tuen Mun, Aberdeen and Waglan Island. These stations help to provide more localised weather information to the densely-populated new towns. In collaboration with the Guangdong Meteorological Bureau, the observatory operates an automatic weather station at Huangmao Zhou, an island 40 kilometres south of Lantau Island, to monitor vital information when tropical cyclones approach from the south.

       Rainfall information has always been important in Hong Kong because of its relation to water supply and also because of the susceptibility of slopes to landslips in heavy rain. A dense network of about 140 raingauge stations over Hong Kong provides comprehensive coverage for information on rainfall intensity and distribution. In this network, 67 stations are equipped with up-to-the-minute automatic raingauges relaying information for moni- toring flooding and landslips in the territory. Rain intensity within 500 kilometres of Hong Kong is monitored with a digital radar system which also produces objective short-term rainfall estimates at selected places. A lightning detection system locates cloud-to-ground lightning within a range of about 130 kilometres and a spheric recorder is used to register thunderstorm activity within about 100 kilometres.

Besides land-based observations, upper-air atmospheric conditions can be measured by radiosondes carried by balloons launched at King's Park Meteorological Station. For a hemispheric overview of weather systems, hourly high resolution satellite cloud pictures are received in Hong Kong from the Japanese Geostationary Meteorological Satellite. The availability of hourly imageries greatly facilitates the monitoring of weather systems, especially when they are in close range.

       For the real-time monitoring of floods in the north-west New Territories, water-level and rainfall information at Kam Tin has been relayed directly to the observatory headquarters

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since mid-1988. Tide data are collected from nine gauges in the territory and wave data are measured at Waglan Island, for operational warning of sea flooding in Hong Kong. For safety of aviation, wind conditions at the airport and its vicinity are monitored continuously by a network of anemometers.

Weather prediction requires constant meteorological data exchange with other countries through dedicated international meteorological telecommunication circuits. The observa- tory computer system handles messages of about three million characters of coded weather data each day of the year through various links. Weather chart plotting as well as dis- semination of warnings and forecasts have been computerised since 1988.

In recent years, the vagaries of the weather were better understood through experience gained in analysing and interpreting numerical weather prediction models run at the Royal Observatory and major meteorological and research centres. Previously, 24-hour fore- casts were probably the limit for reasonable accuracy. Recently, however, with the use of numerical model outputs, useful weather outlooks beyond the first day were issued when- ever possible and were in the main satisfactory.

The Year's Weather

In 1989, altogether 11 tropical cyclones traversed the South China Sea. Seven of them required the hoisting of tropical cyclone warning signals in Hong Kong. Contributing 439.4 millimetres of rainfall in May, Typhoon Brenda ranked as the 10th-wettest storm on record. Although the rainfall associated with tropical cyclones amounted to 646.4 millimetres, which was 14 per cent above average, the annual rainfall in 1989 was only 1 944.6 millimetres, 13 per cent below the normal of 2 224.7 millimetres.

Although it rained on 19 days in January, the rainfall amounted to only 23.9 millimetres. This is slightly below the normal figure of 26.9 millimetres for January.

February was a very dry month. The total rainfall was only 2.7 millimetres and is the eighth lowest on record for February.

It was drier than usual in March, with a mean relative humidity of 75 per cent, the fifth lowest on record for the month.

With only seven days in April without rain, the total duration of bright sunshine in the month was 71.1 hours which is the ninth lowest on record for April. A trough of low pressure reached the south China coast during the evening of April 22, bringing showers and thunderstorms to the territory. Rainfall was especially heavy in the New Territories where 25 cases of flooding were reported.

May was a very eventful month in terms of the weather in Hong Kong. Rainfall was much above normal and tropical cyclone warning signals were hoisted for the first time in the year. The approach of Typhoon Brenda necessitated the hoisting of the No. 8 Gale or Storm Signal which had not been raised since August 1986. The monthly total rainfall of 771.9 millimetres is the fourth highest on record for May. Most of the rain in the month was associated with an active trough of low pressure at the beginning of the month and with Typhoon Brenda which affected the south China coastal areas from May 19 to 21. On May 2, 104.8 millimetres of rain fell between noon and 1 pm. This is the highest hourly rainfall ever recorded for May. The heavy rain resulted in widespread flooding and landslips over the territory, bringing severe disruptions to road, rail and air transport. Rainfall of 322.8 millimetres on May 20 associated with Typhoon Brenda is the second highest daily rainfall on record for May. During the passage of Brenda a total of six people was killed, one reported missing, 62 injured and 50 people made homeless. In addition, torrential rain associated with Brenda resulted in 100 cases of landslips and 118 cases of

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flooding. At the airport, more than 100 flights were diverted, delayed or cancelled. Bus, tram and ferry services were all suspended.

       In sharp contrast with the previous month, June was exceptionally dry. A total of only 137.5 millimetres of rainfall was recorded against a normal amount of 431.8 millimetres. This is the eighth lowest on record for June. The Strong Wind Signal No. 3 was on display during the approach of Typhoon Dot from June 9 to 10.

Although two tropical cyclones affected Hong Kong in July, the monthly rainfall amounted to only 237.9 millimetres, equivalent to about three quarters of the normal figure of 316.8 millimetres. Typhoon Gordon necessitated the hoisting of the No. 8 Gale or Storm Signal between July 17 and 18. It brought squally showers and abnormally high tides to the territory causing thirteen cases of flooding, mostly in the outlying islands and New Territories. The more severe cases occurred in Tai O where water level rose by more than one metre, and at Ping Ha Road in Yuen Long. During the passage of Gordon, local ferries, buses, trams and ferry services to China and Macau were suspended. At the international airport, 40 flights were delayed, 19 diverted, and 13 cancelled. A trough of low pressure moved southwards across Hong Kong on July 29. The cool air behind the trough caused a drop in temperature the next morning to 21.7°C, the lowest July temperature registered in Hong Kong since records began.

August was warmer and drier than usual. Although eight tropical cyclones occurred in the western North Pacific, none of them affected Hong Kong. The monthly rainfall amounted to only 218.0 millimetres which is about half the normal figure of 413.4 millimetres. The weather was rainy and thundery on August 20. Rain became more frequent and heavy later on August 22 and in Tai Po, an 11-year-old girl and 15-year-old boy were swept away by swift stream currents and later found dead. Ten minor floods were reported in the New Territories and eight in the urban areas. Two minor landslips also occurred, one in Diamond Hill and the other in Tsuen Wan.

On the whole, September was rather warm with the month's mean temperature of 28.1°C being the fourth highest on record for September and the mean minimum temperature, 26.0°C, being the fifth highest.

       October was rather windy with the Strong Wind Signal No. 3 hoisted on three occasions and the Strong Monsoon Signal hoisted on four other occasions. Four typhoons traversed the northern part of the South China Sea during the month.

       November weather was dominated by the Asiatic continental anticyclone and associated monsoon. As a result, the monthly mean atmospheric pressure of 1 019.7 hectopascals in Hong Kong was the fifth highest on record for November, and the Strong Monsoon Signal was hoisted on four occasions.

       There was a sharp contrast between the weather in the first part of December and that in the latter. The first part was characterised by clear sky and brilliant sunshine while the latter was cloudy and rainy. Total rainfall for the month amounted to 40.2 millimetres which was 59 per cent above average for December.

Geophysical, Oceanographic and other Services

The Royal Observatory carries out geophysical and oceanographic studies to provide the technical details required by engineering consultants undertaking major civil or coastal development projects.

During the year, forecasts of waves and swells in Hong Kong waters continued to be made. Microprocessor-based data logging systems were fabricated to store tidal

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information at various stations. Tide levels recorded at all tide stations were analysed with a view to refining tidal predictions in Hong Kong.

To monitor earthquakes and seismicity, a network of three short-period seismometers operates at Cheung Chau, High Island and Tsim Bei Tsui. Long-period seismographs record tremors from all over the world. Strong-motion accelerographs operate at two locations with different soil properties. About 150 earthquakes are detected annually with epicentres within 320 kilometres of Hong Kong.

The observatory operates a caesium beam atomic clock which provides time signals accurate to fractions of a microsecond. A six-pip signal is relayed to Radio Television Hong Kong for transmission.

Environmental Problems

Hong Kong, as a major commercial centre, has inevitably suffered the environmental consequences of industrial development and economic growth. As the Governor stated succinctly at the opening of the 1988-9 session of the Legislative Council, 'One unfortunate by-product of our economic success and population growth has been serious environ- mental pollution . . . I am increasingly convinced that one of our major priorities must be to halt this decline and to do more to improve our environment.'

Water and Wastes

Over the year, the indiscriminate dumping of refuse and the discharge of sewage and trade effluents into coastal waters has marred Hong Kong's image as a beautiful seaport. These effluents and wastes are rich in organic matter which robs the water of its oxygen, causing stagnant, smelly conditions, and also contain nutrients which encourage the development of algal red tides. Unfortunately, some of the red tides are caused by microscopic algae that produce paralytic shellfish poisons. These toxins were detected in some local shellfish during the year and the public were warned not to eat them.

Many of the fast-developing industries, such as textile dyeing and electroplating of metals, discharge harmful effluents into streams and surrounding waters. This endangers marine life and may contaminate the food chain. Further pollution of the waters is caused by the illegal connection of effluent sources to storm-water drains rather than to foul sewers, often causing the drains to become badly corroded.

The New Territories suffer widespread pollution due to livestock waste. Pig and poultry wastes are discharged into streams and rivers, forming an unsightly crust on the surface. Besides the foul smell and unsanitary conditions, the encrustation blocks drains and watercourses, thereby aggravating the flooding of low-lying plains during the rainy season.

   Households and industries in Hong Kong all generate enormous quantities of solid and semi-solid wastes, ranging from domestic refuse and sludges to construction waste and coal ash. The rate of production of all these wastes is expected to continue to increase. These wastes pollute not only the land and water, but also the atmosphere which serves as a receptacle for pollutants like construction dust and exhaust fumes from refuse incinerators. The growing amount of chemical and clinical wastes, decomposing carcasses and other organic matter also poses a formidable task for disposal.

Air

The air quality of Hong Kong is deteriorating, the main causes being the exhaust fumes from incinerators, power stations, factories using high sulphur fuel, and smoky vehicles. In certain weather conditions, the fumes discharged from chimneys form indispersible plumes which frequently result in a layer of brown smog over the city.

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Noise

     Hong Kong is a notoriously noisy city. Excessive noise from percussive piling, drilling and rock breaking is an undesirable by-product of the territory's vigorous construction activities. Traffic noise disturbs residential areas and the proximity to Kai Tak Airport of large public and private housing estates inevitably means that residents are exposed to high noise levels.

Protecting the Environment

Administrative Framework

The Planning, Environment and Lands Branch (PELB) was established on September 1, 1989, for better administration of government policy on environmental and planning issues. The Secretary for Planning, Environment and Lands seeks advice on major policy initiatives from the Environmental Pollution Advisory Committee (EPCOM), whose members are appointed by the Governor and are mainly experts in environmental affairs or prominent and informed members of the community.

The Environmental Protection Department (EPD), established on April 1, 1986, is the principal executive body on environmental matters. In contrast to previous fragmented responsibilities, EPD has multidisciplinary teams able to tackle all kinds of pollution problems and to develop environmental protection strategies for the whole territory. It recommends to the secretary policy initiatives and proposals for new or amended legislation, undertakes environmental planning and the assessment of development plans, the enforcement of pollution control legislation, the planning and development of waste disposal facilities and the monitoring of all aspects of the environment.

Other departments also contribute to environmental protection. The Drainage Services Department was established on September 1, 1989, to centralise the design, construction, operation and maintenance of sewerage and sewage treatment and disposal facilities throughout the territory, with the aim of providing better services in support of the PELB's sewerage programme. The Urban Services Department and the Regional Services Department provide street-cleaning and refuse collection services, the Civil Engineering Services Department oversees the development of landfills for the disposal of waste, the Electrical and Mechanical Services Department operates refuse incinerators, the Marine Department clears floating refuse and takes action against oil spills, and the Territory Development Department is involved in the construction of environmental protection facilities.

Planning against Pollution

In the past, environmental factors were seldom taken into account in land-use planning, and it is only relatively recently that the government has begun to tackle seriously this legacy of inadequate planning. It is obviously important to avoid creating new environ- mental problems as well as clearing up existing problems. The saying 'prevention is better than cure' accurately sums up the philosophy behind environmental planning.

      The process of environmental planning is carried out at various levels. At the broad strategic level, studies such as Metroplan (which will be completed in 1990) aim to examine, analyse and improve the land-use and transport structure of the main urban areas, thereby transforming Hong Kong and preparing the city for the 21st century. In carrying out this study, it was recognised at the outset that environmental factors and the involvement of the Environmental Protection Department were of fundamental importance and that the study should aim to improve not only the efficiency of the city,

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but, more importantly, the quality of life in the city. Environmentally desirable land- use changes recommended by Metroplan include the relocation of Kai Tak airport, the decentralisation of manufacturing industries to areas away from upwind eastern Kowloon, the maximum use of underground electric railways, the relocation or closure of potentially hazardous installations and major air pollution point sources, the reduction or buffering of industrial/residential interfaces, and the provision of suitable sites for sewage treatment plants, refuse transfer stations and refuse collection points.

   Metroplan has also generated some ancillary studies including the study of the use of underground space (SPUN). In the high-density, congested metropolitan area it is very difficult to find suitable sites for essential facilities such as sewage treatment plants and refuse transfer stations. Further reclamation or construction of hillside platforms for more space are inherently problematic from an environmental point of view. The SPUN study has therefore identified a number of potential rock caverns as a way of developing sites which are amenable to safety and pollution control measures.

   Another study at the strategic level is the Port and Airport Development Strategy (PADS). In 1989, PADS examined in considerable depth the environmental implications of the various development options being considered. The principal investigations, involving field studies and extensive use of mathematical models, examined water quality, air quality, aircraft noise, marine mud disposal and sources of fill material. The final choice of the recommended strategies was heavily influenced by environmental considerations.

The year also saw the completion of the strategic level of the Rural Planning and Improvement Strategy which recommended a package of measures aimed at rectifying the widespread environmental and planning problems in the New Territories. These problems result from a complete lack of statutory planning controls outside the urban areas. Another major problem identified is the proliferation of temporary uses and open storage on land which was previously agricultural in nature.

The completion in 1988 of an Environmental Review on the cumulative environmental effects of developments in and around Deep Bay provided the government with valuable guidance on ways to protect this sensitive and valuable part of the territory. A Deep Bay Environmental Management Committee was formed and an action programme drawn up. Many of the action items were put into effect during 1989. For example, a Joint Committee on transboundary pollution was established with the mainland authorities, detailed engineering guidelines were drawn up to minimise the environmental impact of dredging. and associated works in the Deep Bay area, and a buffer zone was established to restrict and control developments around sites of special scientific interest at Mai Po and inner Deep Bay. It is hoped and expected that these initiatives will do much to preserve and protect the important and unique environment of Deep Bay.

One of the major thrusts of planning work is in the area of waste disposal. In August 1989, EPD produced a statutory consultative document, the Draft Waste Disposal Plan for Hong Kong, which outlined existing and proposed waste disposal strategies and facilities. A series of sewerage master plans have been formulated for all the sewage catchments of Hong Kong and details are described in the subsequent section on Waste: Provision of Facilities and Services.

  The Environmental Impact Assessment (EIA) process continued to be applied during 1989 to feasibility studies and individual projects or developments. These included a number of extensive reclamation proposals for areas such as the Tuen Mun and Junk Bay new towns, including the third industrial estate, the north-west New Territories sewerage scheme, the Tolo Harbour effluent export scheme and the eighth container terminal. Other

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individual projects for which EIA studies were carried out included the Kowloon Bay refuse transfer station, the South East New Territories landfill, the Tai Po Towngas plant expansion and power station developments.

During the year, the EIA for the Lamma Island pulverised fuel ash (PFA) disposal strategy reached an important stage, and based on the EIA findings the government was able to decide which of the disposal options was preferred from an environmental point of view. The preferred option included an innovative proposal to fill a quarry site with PFA and restore it to a natural looking hillside - an interesting use of a 'waste' product to provide an environmental benefit.

At a more local level, the Environmental Protection Department continued to provide advice on all local and district planning matters. The advice given is generally based on the guidelines and criteria contained in the Environmental Chapter of the Hong Kong Planning Standards and Guidelines. During 1989 a comprehensive review of the chapter was initiated with a view to updating the guidelines and generally tightening up on the procedures.

       This evolutionary approach to developing a comprehensive environmental planning system based largely on administrative controls has worked well over the last few years, but statutory controls will also be necessary. A review of the Town Planning Ordinance included a number of recommendations with regard to environmental planning. These included provisions to ensure that environmental objectives are given due consideration at all stages of the planning process including the carrying out of planning studies for the purpose of preparing statutory zoning plans, and require that designated categories of developments must be subject to an EIA as part of the approval process. Once the ordinance is revised, the principles and practices of the current environmental planning approach will be given a firm statutory footing.

      Another important area of work in the field of environmental planning is that of risk management. Again, the lack of adequate planning in the past has led to problems and there are several examples of potentially hazardous installations (PHIs) posing a risk to nearby residents. The government is now taking positive steps to ensure that only compatible developments will be permitted in the vicinity of PHIS. To tackle some of the existing problems, a complete reassessment of PHIS on Tsing Yi Island was carried out by independent consultants during 1989. The findings of the study recommended the relocation of the hazardous industries from the eastern side of Tsing Yi to the south west of the island where a mountain ridge forms a natural barrier separating this area from residential developments in the north east.

To provide a feedback mechanism between the government and the public on en- vironmental matters, considerable emphasis is placed on liaison with the District Boards and the operation of the 24-hour complaints hotline. While complaint statistics are useful in targetting particular pollution problems and in the formulation of improvement measures, it is recognised that the figures cannot themselves constitute a reliable measure of either the actual state of the environment or of the public's perception of it.

       The number of complaints received by the hotline in 1989 was around 4638. This represented an increase over 1988 of about 49 per cent, indicating a growing awareness and concern among members of the public. Most of these complaints related to industrial areas such as Kwai Tsing, Kwun Tong and Tsuen Wan, where inadequate planning in the past has resulted in widespread environmental problems. The growing public awareness was also reflected in the increase in the number of general enquiries on pollution matters of about 57 per cent over the previous year to around 9 981. It is anticipated that this trend of

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increasing public awareness will continue in the future and will provide a further impetus to the government, the private sector and the community as a whole to protect and improve Hong Kong's environment.

Legislation and Pollution Control

Water Pollution

In its battle against Hong Kong's widespread water pollution problems, the government has adopted an environmental quality management approach. Community uses of different areas of water are identified, perhaps for commercial fishing, sourcing of community and industrial water supplies, or simply for enjoyment or recreation. Then the quality of water which is appropriate for each use is assessed and water quality objectives are defined for each area of water. To achieve or maintain these water quality objectives, the Water Pollution Control Ordinance (WPCO) was enacted in 1980 for controlling discharges.

The WPCO applies within defined areas called water control zones (WCZs). Tolo Harbour and Channel, notorious for its heavily-polluted water, was the first WCZ to be declared in 1982. This was followed in 1988 by the Southern WCZ, which embraces the southern parts of Hong Kong Island and Lantao and the outlying islands in the southern waters, where there are many swimming beaches. In the past, control over discharges in the Southern WCZ has been limited to domestic sewage, but starting from August 1, 1989, control was extended to all effluents, thereby including the polluting discharges from manufacturing, commercial and construction industries. Resulting from these controls, the water quality of many bathing beaches has improved, and no more beaches were closed in 1989.

In order to preserve the amenity and recreation values of the relatively clean water in Junk Bay and Port Shelter, these regions were declared as WCZs on August 1, 1989. As Junk Bay is a rapidly-developing new town, controls have been implemented at this stage to ensure preservation of the area's water quality. In these new zones, all types of dis- charges are controlled.

In order to enforce the WPCO in these water control zones, EPD has the authority to issue licences and exemptions, and to monitor compliance with the licence conditions and exemption limits. Conditions include controls on the type of discharge, the quantities of polluting substances allowed, discharge locations and treatment requirements. In each WCZ, most new discharges of industrial effluents have to be licensed, as well as domestic wastewaters which are not discharged to a public sewer provided for the purpose.

Unfortunately the legislation allows discharges which exist on the day a WCZ is declared, and which meet certain conditions, to continue without a licence. They may increase by up to 30 per cent above the discharge level at the time the zone was declared. This has meant that the impact of the declaration of the WCZS has been less than that needed to restore the minimum acceptable environmental quality in some areas. The government is now developing a package of measures which, when adopted, will make sure the ordinance achieves its original purpose.

Water quality is further safeguarded by the enforcement of the Dumping at Sea Act 1974 (Overseas Territories) Order 1975. Under this act, anyone who wishes to dump dredged marine spoils or excavated mud unsuitable for reclamation purposes must first obtain a licence from the Director of Environmental Protection. The spoil may then be dumped in designated areas.

Endowed with a deep harbour, Hong Kong is frequented by vessels ranging from small lighters to large ocean-going ships. In order to protect the waters from discharges from

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ships, the International Convention for the Prevention of Pollution from Ships (London) 1973 and its modifying 1978 Protocol, known as the Marpol Convention, was previously applied in Hong Kong through UK Orders in Council. To better suit the local conditions, a local law, the Merchant Shipping (Prevention and Control of Pollution) Ordinance replaced the various Orders in Council. Enforced by the Director of Marine, it governs the pollution prevention required on board ships.

      To tackle the problem of pollution of inland waters by livestock wastes, controls provided in the Waste Disposal (Amendment) Ordinance 1987 and subsidiary regulations in 1988 continued to be progressively applied. By the end of 1989, most of the areas under Phase I of the three phases of control had been brought under control.

       In order to assist farmers to understand and comply with the new controls, a Code of Practice was published and detailed technical advice made available upon request. A demonstration waste treatment facility has been developed, and practical waste treatment systems set up at nine selected farms by a government-appointed consultant to demonstrate four treatment techniques under working farm conditions. Livestock waste collection services are provided by the government.

Air Pollution

As pollutant emissions from stationary sources are one of the main causes of air pollution in Hong Kong, the Air Pollution Control Ordinance (APCO) was enacted in 1983 to control such emissions. Since then, significant progress has been made in the control of air pollution from stationary sources. The ordinance empowers the Director of Environmental Protection to issue notices requiring the abatement of air pollutant nuisances, modification or repair of chimneys or plants, prohibition of the use of unsuitable fuels, or provision of information. During the year, 1 594 air pollution complaints were investigated, 197 notices were served and 73 prosecutions for non-compliance with the requirements of such notices were initiated.

       The ordinance applies to Air Control Zones (ACZS) declared throughout the territory. Following the declaration of the first two ACZS covering Victoria Harbour and Tsuen Wan-Kwai Chung in December 1986, a further eight such zones covering the remainder of the territory were gazetted in 1989. The same Air Quality Objectives gazetted in January 1987 for the first two zones were also adopted in these new zones.

       Under this ordinance, regulations were enacted at different times to deal with specific air pollution problems. The Air Pollution Control (Fuel Restriction) Regulations were enacted in January 1989 to prohibit the use of liquid fuels with a sulphur content greater than one per cent in the eastern part of the New Territories, with the exception of Sha Tin where only gaseous fuels are allowed. In order to facilitate the enforcement of these regulations, a complete survey of fuel consumers in these areas was first conducted by the EPD. Since sulphur-containing fuel is widely used in the territory, there are plans to extend the regulations to prohibit the use of industrial fuel oil with a sulphur content greater than 0.5 per cent by weight by 1990.

       The Air Pollution Control (Specified Processes) Regulations were enacted in October 1987. These regulations operate in conjunction with the relevant provisions of the Air Pollution Control Ordinance and provide control of certain industrial processes called 'specified processes' which may cause serious air pollution. Anyone wishing to start operating a new specified process requires a licence from the EPD. The licence will specify how noxious or offensive emissions must be controlled and made harmless before their discharge into the atmosphere. However, specified processes which existed before October

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2, 1987, were exempted from this licensing requirement provided that EPD is notified of their existence. During the year, seven exemptions were granted and 15 applications for licences to conduct specified processes were processed.

Other regulations for stationary emission sources include the Air Pollution Control (Smoke) Regulations which restrict dark smoke emission from stationary combustion sources, and the Air Pollution Control (Furnaces, Ovens and Chimneys) (Installation and Alteration) Regulations which require the submission of plans and specifications for the installation or alteration of fuel-using equipment thereby ensuring appropriate design.

   The worldwide concern about the depletion of the ozone layer prompted the enactment of the Ozone Layer Protection Ordinance in 1989. This ordinance brought into effect the international obligations contained in the 1985 Vienna Convention for Protection of the Ozone Layer and the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer. Brought into force on July 1, 1989, this ordinance prohibits the manufacture of CFCs (chlorofluorocarbons) and halons, and controls in stages the import and export of these substances through a registration and licensing system. Licensing control of CFCs was implemented on July 1, 1989, and will be followed by the control of halons by January 1, 1990.

To promote a better understanding of the legislation, a set of six bilingual guides to the Air Pollution Control Ordinance and Regulations have been produced in layman's terms. These guidebooks are distributed, free of charge, to industrialists and to all interested bodies. The Air Control Group of the EPD also provides general technical advice to industry to assist in achieving compliance with legislative requirements. During the year, such advice was given on 906 occasions and helped to rectify a significant proportion of localised air pollution problems, without recourse to legal action.

The enforcement work is further facilitated by the development of an Enforcement Management System (EMS), which analyses data arising from survey and enforcement activities. The system emphasises management control of enforcement functions and establishes standardised methods of processing data. It utilises electronic data processing techniques for compiling and retrieving emission source information. The ultimate objec- tive is to provide timely pollution source information to meet various enforcement needs.

Apart from enforcement work, studies were conducted on the control of particulate emissions and malodour. Construction activities account for some 30 per cent of all total suspended particulates emitted in the territory. Current practices and controls in the construction industry are being examined with a view to developing suitable codes of practice and, if necessary, legislative controls. To complement this work, the Air Control Group has set up an odour panel for dealing with odour assessment and control.

In the control of asbestos, existing legislation is primarily aimed at protecting the health of workers dealing with the substance. However, the government also sees a need to protect the general public more adequately by introducing further statutory controls over the emission of asbestos fibres into the environment and it has employed a specialist consultant to develop detailed proposals for the legislative controls and the measures required to implement them. In the proposals, it is planned to introduce licensing provisions for controlling the activities of asbestos removal contractors in 1990.

A comprehensive control strategy is being developed for vehicle emissions. Proposals include the introduction of regulations that enable more effective control of smoke emissions from vehicles, and that require all imported vehicles, both diesel- and petrol-engined, to comply with the most stringent international emission standards. The supply of lead-free petrol for use in Hong Kong is also being proposed for the first half of

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      1991. During the year, the government's Vehicle Emission Testing Centre in Kowloon tested 16 639 vehicles of which 11 862 passed and 4 777 failed the examinations. 498 vehicle licences were cancelled after the vehicles were not presented for examination. A proposal has been made to increase smoky vehicle testing by designating private car testing centres for this

purpose.

Noise Pollution

Following the enactment of the Noise Control Ordinance in July 1988, three statutory Technical Memoranda were passed in December 1988 and the Noise Control (General) Regulations and Noise Control (Appeal Board) Regulations were passed in January 1989. The Director of Environmental Protection was appointed as the Noise Control Authority in February. An Appeal Board was set up in the same month to ensure that the provisions of the ordinance are applied in a fair and reasonable manner.

       Noise from general construction work during the restricted hours of 7 pm - 7 am or any time on a general holiday is controlled by a construction noise permit system administered by the EPD with effect from August 17, 1989. Assessment of an application for a permit is based on the noise standards and procedures contained in the Technical Memorandum on Noise from Construction Work other than Percussive Piling. The number and type of powered mechanical equipment to be used is restricted, and whenever practicable, only silenced equipment is permitted to be operated in restricted hours.

Percussive piling is prohibited at night and on holidays. Noise from percussive piling during daytime is controlled by a similar construction noise permit system with effect from November 17, 1989. The period of operation is restricted to three, five or 12 hours depending on the severity of the disturbance caused by the percussive piling to the neighbouring area. The assessment required for the issue of a permit follows the noise criteria and procedures contained in the Technical Memorandum on Noise from Percussive Piling. However, such assessment is subject to appeal under certain conditions. As an alternative, contractors can use quieter piling methods which would cause less noise disturbance in exchange for longer working hours.

       Noise emanating from industrial or commercial premises was controlled with effect from November 1989 by means of noise abatement notices, which are issued whenever noise emissions from such premises are found to exceed the criteria set down in the Technical Memorandum for the Assessment of Noise from Places other than Domestic Premises, Public Places or Construction Sites, or are found to be generally annoying. The re- quirements of a noise abatement notice are subject to appeal under certain conditions.

Noise from domestic premises and public places, commonly known as neighbourhood noise, is controlled by the police on a subjective assessment basis. The police are also empowered to carry out enforcement action on breaches of the construction noise per- mit system.

Since the commencement of the major provisions of the Noise Control Ordinance, the EPD processed a total of 848 and 175 applications for construction noise permits for general construction work and percussive piling respectively. Also 32 advisory/warning letters and two noise abatement notices were served when 140 complaints were dealt with by the EPD on noise emanating from industrial or commercial premises.

In addition, before the implementation of the Noise Control Ordinance, 1530 permitted-work-permits were issued by the Director of Civil Engineering Services under the now-repealed provisions of the Summary Offences Ordinance for the control of construction noise in restricted hours, and 550 complaints and 20 prosecutions on noise

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from ventilating and air-conditioning systems were dealt with by the Regional and Urban Services Departments under the noise provisions of the Public Health and Municipal Services Ordinance in force at that time.

The abatement of aircraft noise is another area the government is tackling. During 1989 the Exemption Orders granted under Section 13(4) of the Summary Offences Ordinance were repealed, followed by the enactment of the Civil Aviation (Aircraft Noise) (Limitations on Operation of Engine and Auxiliary Power Unit) Regulations on November 1, thereby limiting the noise annoyance created by the operation of main engines, auxiliary power units, and landing and taking-off in the evening and at night time.

Wastes: Provision of Facilities and Services

Overall Strategies

Municipal solid waste is forecast to increase by 50 per cent over the next 15 years, and by 2006, an enormous quantity of waste, some 20 000 tonnes, will require collection and disposal each day. To ensure that proper collection and disposal arrangements are made, the Secretary for Planning, Environment and Lands is required under the Waste Disposal Ordinance to prepare a Waste Disposal Plan. The draft plan was submitted to the Executive Council for approval late in 1989.

During 1989, a comprehensive sewage disposal strategy for the whole territory was completed. It includes important non-structural components, such as the effective enforcement of pollution control laws, without which building major new sewage disposal facilities would be useless. The major part of the proposed strategy involves the con- struction of large tunnels linking the main urban areas to treatment plants, and further tunnels leading to an undersea outfall for the treated effluent, some 30 kilometres south of the centre of the city. Ultimately this system could accommodate the sewage from the new towns of the north-east New Territories and even further afield. The treatment to be provided initially will include chemical treatment and high rate sedimentation. Scientists and engineers in the Environmental Protection Department and the Drainage Services Department are now working on the implementation of this strategy.

Sewerage Master Plans

The government is preparing a series of comprehensive sewerage master plans for all the sewerage catchments in Hong Kong. While the sewage disposal strategy deals with how to treat and get rid of the sewage, the complementary master plans deal with how it is collected from the factories and households where it originates and is then piped to the central disposal system. The first sewerage master plans, for East Kowloon and Hong Kong Island South, were completed in June 1989 and the detailed design of new sewerage systems for those areas has started. Studies of Tsuen Wan and Kwai Tsing, and unsewered areas in the Tolo catchment, continued throughout the year and two new studies were started for north-west Kowloon and the Port Shelter area.

Disposal and Treatment Facilities

The main achievements in the provision of municipal sewage treatment and disposal facilities during the year have been the completion of the North Point and Wan Chai East and West screening plants, and facilities to increase the capacity of the Pillar Point screening plant. Design and construction work is in progress on several sewage disposal projects including north-west New Territories, north-west Kowloon, To Kwa Wan and Shau Kei Wan. Design work started at the end of 1989 on an underground secondary

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sewage treatment works for Stanley, a screening plant at Shek O, and a sewage pumping station at Repulse Bay to replace the existing facilities in the area.

       As part of the Tolo Harbour action plan, the treatment processes at the Sha Tin and Tai Po sewage works are being modified to reduce the amount of nitrogen in the effluent. This will significantly reduce the impact the effluents make on the natural environment. A scheme to remove these two effluents entirely from Tolo Harbour to a neighbouring, less sensitive catchment is being designed.

Sewerage improvements needed in both East Kowloon and Hong Kong Island South have been started and will be completed in the next four years.

Primary treatment plants at Deep Water Bay, Repulse Bay and Stanley will be replaced by new facilities as part of the Hong Kong Island South improvements.

Treated sludges from sewage treatment and drinking water production processes will be deposited at sea for a five-year trial period commencing late in 1990. Investigations at sea to ensure that there will be no pollution as a result of this scheme were completed in 1989, and construction of the facilities began. Work should be finished in good time to allow the disposal operation to begin on schedule, thereby removing a considerable pollution load from the Tolo catchment.

Landfills

The waste disposal strategy for municipal solid waste requires the establishment of three very large landfills to replace urban incinerators and small local landfills. These landfills will be served by a network of transfer stations. They will transfer the waste from small refuse collection vehicles to bulk transporters, reducing cost and environmental problems.

Two of the long-term disposal facilities, the West New Territories Landfill and the North-east New Territories Landfill, are now being designed in detail. Environmental impact assessments for both these projects have recommended, among other things, that leachate, a highly-polluting liquid residue from the decomposition of the waste, should be carefully contained within an impermeable lining in the landfill and piped away for treatment and disposal. Extensive laboratory and field experiments have been undertaken to determine the best type of containment liner for the West New Territories Landfill. A similar experimental programme will soon commence for the North-east New Territories Landfill. A proposal to treat leachate from the North-east New Territories Landfill at Shek Wu Hui sewage works is currently under investigation. Detailed design has commenced on the works for the disposal of leachate from the West New Territories Landfill via the proposed North-west New Territories sewage effluent outfall at Urmston Road. A feasibility study and environmental impact assessment is being carried out on a proposal to develop a third regional landfill. This South-east New Territories Landfill is planned to be operational by 1994. The three regional landfills will provide sufficient disposal capacity for Hong Kong's needs over the next 20 years.

Urban development has virtually surrounded several small closed landfills in north- east Kowloon. There is a risk that flammable and possibly explosive gases arising from the decomposition of the waste might migrate to surrounding areas. The government has investigated this problem and found that control facilities should be built both on and around the former Sai Tso Wan landfill. Construction has begun and a further study is in progress to examine the potential for using the landfill gas as an energy resource. Transfer Stations

Almost without exception, the incinerators operating in Hong Kong are poorly located, many being in residential areas. Although electrostatic precipitators fitted to the Lai Chi

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Kok incinerator have resulted in a significant improvement to air quality, it was decided that the most satisfactory solution was to replace it with a transfer station.

The first transfer station is being constructed at Kowloon Bay. The facility has a capacity to handle 1 800 tonnes of mainly domestic refuse each day. This transfer station will be built to the highest environmental standards and waste will be conveyed to landfill in enclosed containers. When the Kowloon Bay transfer station is commissioned in spring 1990, both the Lai Chi Kok incinerator and the Jordan Valley Landfill, which is the last urban landfill, will be closed.

Planning has begun on a second transfer station to be located on Hong Kong Island. This station will be located at the site currently occupied by the Chai Wan Composting Plant, which will be demolished in 1991. The government will be calling for tenders for the design, construction and operation of this transfer station in early 1990. When the station is completed in 1992, the Kennedy Town incinerator, which continues to be an environ- mental nuisance despite the installation of electrostatic precipitators, will be closed. There are also plans for transfer stations in the western part of Hong Kong Island, the West Kowloon reclamation, Sha Tin and Tuen Mun/Yuen Long.

Chemical Wastes

Chemical wastes are a significant source of pollution. Over 100 000 tonnes of chemical waste were produced in 1989 and discharged into the environment via the sewerage and surface water drainage systems. It is intended to control the problem by introducing regulations under the Waste Disposal Ordinance which will enable EPD to exercise 'cradle-to-grave' control over these wastes. To facilitate the proper disposal of these, a chemical waste treatment centre will be developed on Tsing Yi Island. The plant will also serve as a Marpol reception facility for oily waste and noxious liquid substances. An international consortium, specialising in the treatment of chemical wastes, will be awarded a contract for the design, construction and operation of the plant, with a view to full commissioning in 1992.

Codisposal of chemical wastes with municipal or domestic wastes is carried out at the Junk Bay Landfill site, as well as on a more limited scale at the Pillar Point Valley Landfill under a permit system controlled by EPD. The main chemical wastes handled were chemical compounds from industrial production, and asbestos waste arising from building refurbishment and demolition. The permit system is expected to be replaced by regulations under the Waste Disposal Ordinance in 1990.

Monitoring and Investigations

Water Quality

The Environmental Protection Department is responsible for water quality monitoring in the sea, at beaches, and in rivers and streams. It runs a comprehensive programme which involves 66 general marine monitoring stations, 54 seabed sediment stations, 23 typhoon shelter stations, 118 sampling points at beaches, and 60 manual and six automatic sampling points on 10 priority rivers. In addition, special investigations are carried out for various purposes. The results of the monitoring programme are used to detect water pollution problems and to assess the water quality against a series of water quality objectives.

  Generally, water quality in Hong Kong's open marine waters is good. However, pollution problems, exemplified in the form of either oxygen depletion, high bacterial counts or algal blooms exist in some parts of Victoria Harbour (Kowloon Bay, north-west

THE ENVIRONMENT

Kowloon and the Rambler Channel near Tsuen Wan), the inner parts of embayments (Tolo Harbour, Port Shelter, Junk Bay and Deep Bay), and typhoon shelters. Trends of water quality deterioration have been found in some of these blackspots, in particular Victoria Harbour and Tolo Harbour. In Tolo Harbour, red tides occur frequently, sometimes killing the fish.

As shown by the monitoring results, many rivers and streams are heavily contaminated with livestock waste, sewage and industrial effluents. In some cases, bacteria numbers are dangerously high in the river estuaries. Yet, during the year, slight improvements were detected in some watercourses such as Lam Tsuen, Tai Po, Fo Tan and Shing Mun rivers, mainly as a result of the implementation of the WPCO in the Water Control Zones, clearing of squatter areas, and the interception of sewage from villages.

The microbial water quality at many of Hong Kong's beaches has been deteriorating for a number of years. The deterioration was caused mainly by livestock waste and raw or partially-treated sewage entering the sea at or close to the beaches. The increasingly-large number of faecal bacteria in these discharges contaminated the water at many beaches, posing a health risk to swimmers.

In order to determine the risk of swimming at Hong Kong beaches, a ranking system was developed based on the expected rates of gastroenteritis and skin diseases associated with different degrees of faecal pollution of beach water. The degree of faecal pollution is assessed by regular monitoring of the concentrations of indicator bacteria in the beach water and the rankings are determined by examining the results for each beach averaged over the whole swimming season. Under the system, beaches are classified as good, meaning that the expected gastroenteritis and skin symptom rate is zero; acceptable, meaning that the rate is less than ten per thousand swimmers; barely acceptable, meaning that the rate is up to fifteen per thousand; and unacceptable, meaning that the risk rate is higher than this. The new ranking system for beaches has been accepted by the beach management authorities and was first used in 1988. In 1989, the number of gazetted bathing beaches classified as good was 15; acceptable, 18; barely acceptable, seven and unacceptable, two.

In addition to undertaking the annual ranking of beaches, the EPD publishes fortnightly during the bathing season a 'snapshot' of beach water quality. This takes the form of grading the beaches as A (good), B (acceptable) and C (poor). The snapshot is based on the most recent monitoring data and is intended to give the public rapid feedback on the latest water quality at the bathing beaches.

Among the beaches where water quality has declined in past years were some very popular ones on the south side of Hong Kong Island, such as Repulse Bay, Middle Bay and Stanley main beach. They were polluted largely by sewage from private developments (which either did not possess, or did not properly maintain, sewage treatment facilities) and by sewage leaking from defective sewerage. In 1989, 'first-aid' measures were implemented at several of the most affected beaches on Hong Kong Island, such as Repulse Bay and Middle Bay, and the deterioration has been halted. These measures involved mainly the interception and diversion of sewage which flowed into the beaches, as well as repairs to existing sewerage. This success must be considered temporary and lasting improvements will not be achieved until a comprehensive sewerage network is installed.

Improvements were also achieved as a result of the implementation of the livestock waste control scheme. At Angler's Beach and Silvermine Bay, which were graded 'unacceptable' after the 1988 bathing season, the water quality showed a significant improvement during 1989 and these two beaches will be open to swimmers in 1990.

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Wastes

Waste arisings are monitored annually and the information is used to plan future waste disposal facilities. Compared to the 1988 arisings, waste quantities remained steady in 1989 at 13 000 tonnes per day. The quantities of domestic waste and industrial/commercial wastes increased by five per cent and four per cent respectively, while construction waste decreased by 10 per cent. This reflects the continued growth in the industrial/commercial activities and the decline of construction activities in the year.

   The export of waste materials for recycling also showed an increase from 1.15 million tonnes per day in 1988 to 1.22 million tonnes per day in 1989, which is equivalent to 21 per cent of the total municipal waste. This export activity brought about an economic contribution of 2.45 billion dollars.

Air Quality

The EPD operates a comprehensive air monitoring programme throughout the territory. During 1989, the department increased the number of continuous monitoring stations to eight in order to acquire air quality data for planning and control purposes.

The department has further plans to expand the monitoring network to cover the entire territory. Work has started on a full-scale permanent station in Aberdeen to obtain air quality data for the Hong Kong South area. New monitoring stations in Sha Tin and Tai Po are under development. All continuous air quality measurements made at the remote stations are telemetered to the EPD's central computer for processing and reporting.

   In order to facilitate the enforcement of the Air Pollution Control Regulations on specified processes, the EPD procured a mobile Stack Emission Monitoring Laboratory at the end of 1989. This laboratory is deployed in monitoring stack emissions for checking compliance with the licensing conditions for specified processes.

   Ambient sulphur dioxide concentrations in the atmosphere in most industrial areas in 1989 exceeded the Air Quality Objectives (AQOs). Particularly bad areas were Kwun Tong and Kwai Chung. As for nitrogen dioxide, ambient levels were similar to those of 1988 and on a few occasions, the short-term nitrogen dioxide objectives at Kwun Tong stations were exceeded. High levels of both total and respirable suspended particulates were also measured at all monitoring stations, all exceeding the annual AQOs. Hong Kong is not without its problems with acid rain, as high levels of rainwater acidity were recorded on several occasions, and a comparatively high sulphate deposition rate in rain was recorded in industrial areas at Kwun Tong and Kwai Chung monitoring stations. Levels of photochemical oxidant remained low throughout the year.

   In a study of the air quality in road tunnels, the levels of carbon monoxide, nitrogen dioxide, nitric oxide, and other parameters indicated that the air quality in general met the criteria adopted overseas. However, odour as well as high temperatures and humidity in the tunnels have elicited some complaints. In view of this, the EPD has given advice to the Transport Department on ways of improving ventilation and air monitoring facilities inside the tunnels.

Noise Control

  To facilitate enforcement of the Noise Control Ordinance, it is essential that noise measurement equipment and instruments are accurate and reliable. With this in mind, EPD has set up an Acoustic Testing Laboratory which is equipped with an advanced calibration system. This can provide accurate and reliable calibration services for the principal operations required for the enforcement of the ordinance.

THE ENVIRONMENT

Background Radiation

As part of an international network, the Royal Observatory has been monitoring atmospheric radioactivity since 1960 to determine the global air transport of radioactive dust and other contaminants. In response to public concern over the safety aspects of the Daya Bay Nuclear Power Station being constructed about 50 kilometres to the north east of Hong Kong, the Royal Observatory's monitoring activity has been expanded into a Background Radiation Monitoring Programme. The programme aims at establishing an accurate baseline of the background radiation levels in Hong Kong prior to the commissioning of the nuclear power plant so that any future change in radiation levels arising from the operation of the station can be assessed.

In addition to the Central Radiation Laboratory at King's Park, three atmospheric sampling stations have been set up at Yuen Ng Fan, Tsim Bei Tsui and Sha Tau Kok to sample atmospheric particulates and deposition as well as to monitor the direct gamma- radiation levels using high-pressure ionisation chambers. A survey vehicle equipped with radiation monitors is used to perform territory-wide radiological surveys. Extensive alpha, beta and gamma measurements of air, water, soil and foodstuffs are carried out.

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   At the end of 1989, there were 5 812 300 people in Hong Kong, comprising 2 968 500 males and 2 843 800 females. Compared with the population 10 years ago, this represents an increase of 15.7 per cent. The population at the end of 1979 was estimated to be 5 024 700.

   The growth rate of the population averaged 1.5 per cent over the 10-year period, with fluctuations from year to year, mainly because of changes in migration flows. Between 1979 and 1980, in particular, there was a large inflow of legal and illegal immigrants from China. Reflecting this, the average annual growth rate of the population was 3.9 per cent during the period. The average annual growth rate recorded for the period 1981-9 was 1.4 per cent, largely because of a reduction in the inflow of immigrants following revisions in the immigration policy in 1980 and 1982.

   The rate of natural increase in the population dropped steadily over the 10-year period from 12 to seven per 1 000. This was the result of a declining birth rate, from 17 per 1 000 in 1979 to 12.2 per 1 000 in 1989, and a stable death rate, at about five per 1 000.

With its land area of only 1 074 square kilometres, and 5 812 300 people, Hong Kong is one of the most densely-populated places in the world. The overall population density per square kilometre was 5 385 in 1989. The figure conceals wide variations between different areas in the territory. The density in the metropolitan areas of Hong Kong Island, Kowloon, New Kowloon and Tsuen Wan was 20 600 people per square kilometre, while that in the New Territories was 1 800 per square kilometre. As a result of the continuing development of the new towns in the New Territories, designed to alleviate the high population density in the urban areas and to provide better housing and an improved living environment to more people, the population in the New Territories has almost tripled over the past decade.

The age distribution of the population has changed considerably in the last 10 years. In 1979, 26.7 per cent of the population were under 15; in 1989 the figure was 21.8 per cent. The proportion of people aged 65 and above has risen from 6.2 per cent to 8.5 per cent. In line with these changes, the proportion of people of working age (those between 15 and 64) has increased from 67.1 per cent to 69.7 per cent. The dependency ratio the ratio of the young and the aged to people in the 15 to 64 age group - has dropped from 490 per 1 000 in 1979 to 435 per 1 000 in 1989.

-

   The ratio of males to females has also changed. It showed an increase between 1979 and 1981, and a decline thereafter. In 1979, there were 1 074 males to every 1 000 females; in 1981 the figure was 1 084, and in 1989 it was 1 044. The increase in the proportion of males over females during the period 1979-81 can largely be explained by the substantial inflow of immigrants, who were predominantly male.

POPULATION AND IMMIGRATION

The 1986 By-Census showed that 59.3 per cent of the people were born in Hong Kong and most have their family origins in Guangdong Province. People with their origins in Guangzhou, Hong Kong, Macau and adjacent places form the largest community, followed by the Siyi group and the Chaozhou group. The remaining portion of the Chinese population in Hong Kong has origins in other parts of Guangdong and other provinces of China.

Immigration Department

The work of the Immigration Department falls into two main streams, controlling people moving into and out of Hong Kong, and providing travel documents and registration facilities for local residents. The work embraces such diverse fields as the issue of travel documents, visas and identity cards, naturalisation, 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 have entered Hong Kong illegally.

       Immigration policies are framed to limit permanent population growth, thus maintaining the stability and prosperity of the local community, and to control the entry of foreign workers, thus protecting the local labour force from unfair competition. Every effort is also made to streamline immigration procedures for Hong Kong residents, tourists and businessmen and to prevent the entry of undesirable persons and the departure of persons wanted for criminal offences, thereby contributing to the internal security and law and order of Hong Kong.

Immigration Control

     Passenger traffic decreased slightly during the year as a result of the events in China. The total number of passengers moving into and out of Hong Kong was 58.2 million, a moderate decrease of 3.3 per cent compared with 60.2 million in 1988. Movements to and from China dropped by 9.5 per cent, from 36.9 million in 1988 to 33.4 million in 1989. The number of visitors from Taiwan remained steady at about 1.2 million. However, passenger traffic to and from Macau increased from 12 million in 1988 to 12.4 million in 1989.

       During the year, a total of 250 000 residents of China visited Hong Kong, with 130 000 travelling individually and 120 000 travelling in groups, an increase of 10.4 per cent compared with 230 000 in 1988.

       The airport extension project was completed in February 1989. This provided 68 additional immigration counters and enhanced its passenger clearance capacity. To cope with the increasing vehicular traffic to and from China, the new Lok Ma Chau border crossing point, with 14 vehicle examination kiosks and 28 passenger examination counters, was commissioned on December 29, 1989.

The Easy Travel Scheme

Computerisation of immigration control has been fully implemented at all control points. Known as the Easy Travel Scheme, it is designed to streamline and speed up passenger clearance processes at control points and activities in other areas. It has also contributed to the strengthening of immigration control and a higher degree of efficiency.

       Hong Kong residents travelling with their Hong Kong identity cards are no longer required to complete arrival and departure cards. Most of them benefit further by not having to produce their travel documents for Hong Kong immigration examination.

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Population

The population increased by 76 300 during the year to 5.81 million, a growth rate of 1.33 per cent. The increase consisted of a migration balance of 35 300, and of natural growth, that is births minus deaths, of 41 000.

Emigration

The subject of emigration began to attract media and public attention in late 1987 when there were signs that more people were leaving Hong Kong. A government task force was established in May 1988 to ascertain the facts. After putting together evidence from a variety of sources it concluded that 30 000 persons emigrated in 1987 and 45 800 in 1988 compared to a historical average in the early 1980s of around 20 000. The forecast for 1989 was 42 000. The reason for the increase was a combination of factors; on the one hand some people were nervous about Hong Kong's future after 1997 under Chinese sovereignty, while at the same time there were more immigration opportunities available in the more popular destination countries. The task force's research also revealed that, while a disproportionate number of emigrants were well educated and professionally skilled, the total number of such people in the community was continuing to rise.

Legal Immigration

During the year, the number of new arrivals from the mainland remained steady at about 27 300. Of these, 9 565 were wives, 13 216 were children and 937 were husbands of local residents.

Illegal Immigration

Illegal immigration has been a long-standing problem for Hong Kong. A large number of illegal immigrants were found at places of employment. They were prosecuted and sentenced to imprisonment before they were repatriated. Employers of illegal immigrants were also prosecuted and fined and in serious cases, custodial sentences were imposed. In July 1989, legislation was introduced to provide for more effective checks against the employment of illegal immigrants.

During the year, on average, 43 illegal immigrants were arrested each day, compared with a daily average of 57 arrests in 1988.

Personal Documentation

There has been a dramatic increase in the demand for passports and certificates of identity in 1989, particularly during the latter half of the year. Demand for passports increased by 72 per cent to 345 400, inclusive of 49 519 passports issued to persons with the status of British National (Overseas). Demand for certificates of identity also increased by 31 per cent to 167 400. This unprecedented upsurge in the demand for travel documents was believed to be partly attributable to the public's psychological reaction to events in China and to the change in the pattern of vacation destinations from China to other countries.

The demand for re-entry permits for travel to China and Macau continued to drop. Nevertheless, re-entry permits still accounted for 43 per cent of the 910 500 travel documents issued.

Identity cards issued up to June 30, 1987 are being replaced with permanent or ordinary identity cards in a four-year phased programme which began in July 1987. The new cards have no expiry date and, with the agreement of the Chinese government, will remain valid beyond July 1, 1997, and until such time as they are replaced by the future Hong Kong

POPULATION AND IMMIGRATION

     Special Administrative Region Government. In 1989, 1 011 300 identity cards were issued under the replacement programme, 248 841 to new arrivals and persons having reached the age of 11 or 18 and 251 400 to persons who had lost or damaged their cards or whose identity cards required amendments.

Marriages

The registration of marriages, births and deaths is the responsibility of the Immigration Department.

All marriages in Hong Kong are governed by the Marriage Ordinance and the Marriage Reform Ordinance. Under the Marriage Ordinance, at least 15 days' notice of an intended marriage must be given to the Registrar of Marriages. The registrar has discretionary powers to reduce the period of notice if there are special circumstances or to grant a special licence dispensing with notice altogether, but this is done only in exceptional circumstances.

      Marriages may take place at any of the 210 places of public worship licensed for the celebration of marriages, or at any of the 13 full-time marriage registries and three part-time sub-registries located in the main urban districts and rural centres. During the year, 41 644 marriages were performed in the registries and 2 308 at licensed places of worship. All records are maintained permanently in the General Register Office.

      The Marriage Reform Ordinance provides that all marriages entered into in Hong Kong on or after October 7, 1971, shall imply the voluntary union, for life, of one man and one woman to the exclusion of all others, and may be contracted only in accordance with the Marriage Ordinance. It declares valid certain customary marriages and other marriages known as modern marriages provided, in each case, they were entered into before October 7, 1971. The ordinance makes provision for the post-registration of these marriages, and for their dissolution. During the year, 136 customary and 140 modern marriages were post-registered.

Births and Deaths

The registration of births and deaths is compulsory. The General Register Office keeps all records of births and deaths.

      During the year, 72 156 live births and 28 485 deaths were registered, compared with 73 030 and 27 376 respectively in 1988. The figures, when adjusted for under-registration, gave a natural increase in population for 1989 of about 41 000.

      A birth which has not been registered within one year may be post-registered with the consent of the Registrar of Births and Deaths and on payment of a fee of $70. During the year, 384 births were post-registered in this manner.

      Birth registration services in the urban districts are provided by two main birth registries, one on Hong Kong Island and one in Kowloon. There are also six birth registries in the rural areas providing similar services in their respective districts. In the outlying areas and islands, births are normally registered at various rural committee offices by visiting district registrars.

       There are two death registries, one on Hong Kong Island and one in Kowloon. Deaths in the rural areas are registered at local police stations except in Tsuen Wan and Kwai Chung where deaths are registered in a death registry. Apart from registration of deaths, the death registries issue cremation permits and provide services for the booking of cremation facilities. In addition, they issued 1 647 removal permits in 1989 for the purpose of removing dead bodies for burial outside Hong Kong.

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Establishment and Recruitment

At year end, the department had an establishment of 3 546 disciplined staff, 304 more than in 1988. The number of civilian staff was 2 471. During the year, 198 assistant immigration officers and 435 immigration assistants were recruited.

   Approval was being sought for the creation of a new rank of chief immigration assistant to undertake most of the responsibilities carried out by assistant immigration officers. The restructuring, which involved delegation of less complex duties of the immigration officer grade to the immigration assistant grade, enabled officers to concentrate on more important tasks and enhanced the job content and career prospects of the immigration assistant grade, thereby alleviating staff retention problems to a certain extent.

Staff Training

The department provides training for both new and serving officers. Assistant immigration officer recruits undergo a 17-week induction course while immigration assistant recruits undergo an eight-week course. These courses cover law, immigration policies and pro- cedures, drill, physical training, swimming, first-aid and practical attachments. As part of the career development programme, in-service and specialised training is also provided either within the department or in outside organisations. Each year, a number of officers are selected for overseas attachment and training.

During the year, 669 recruits completed their induction training. A further 1 875 serving officers received various types of job-related and continuation training.

Vietnamese Boat People

During 1989, 34 116 Vietnamese boat people arrived in Hong Kong, compared with 18 352 who arrived in 1988 and 3 395 in 1987.

   Prior to June 16, 1988, all Vietnamese boat people (VBP) arriving in Hong Kong were automatically given refugee status and were therefore available for resettlement. During the mid-1980's it became increasingly clear that the great majority of VBP arriving in Hong Kong did not have a well-founded fear of persecution in Vietnam and were therefore not entitled to refugee status. Departures from Vietnam appeared to be motivated principally by the desire for resettlement, rather than asylum, and resettlement countries were becoming increasingly reluctant to take people from Hong Kong. In 1988, 18 352 VBP arrived but only 2 772 were resettled; in 1989, 34 116 VBP arrived and 4 754 were resettled. The Hong Kong Government therefore decided that it could no longer grant refugee status automatically and that a status-determination (screening) procedure should be implemented.

   From June 16, 1988, all VBP arriving in Hong Kong have been subject to screening procedures. These procedures were slightly amended following an agreement between the government and the United Nations High Commissioner for Refugees (UNHCR) in September 1988. They have since been streamlined to cope with the very large case-load of over 40 000 boat people now in Hong Kong.

   The objective in operating the screening and appeals procedures is to identify genuine refugees. In practice this means that a large measure of the benefit of the doubt must be given to Vietnamese claiming refugee status with the result that there are probably a great many more successful claims than would be warranted by a strict application of the UNHCR criteria. The government is committed to the operation of fair status determination procedures and to granting refugee status to all VBP arriving in Hong Kong with a reasonable claim.

POPULATION AND IMMIGRATION

       VBP are first interviewed by an Immigration Assistant to collect personal data. Once this information has been recorded (on a questionnaire agreed with the UNHCR), an Immigration Officer interviews the new arrivals, records their claim to refugee status and makes an initial decision on their status. This decision is reviewed by a Senior Immigra- tion Officer before the applicant is notified of the result. In complex cases where the Immigration Officer is unable to make a decision, the applicant may be re-interviewed and the decision made by a Senior Immigration Officer. In such cases, a Principal Immigration Officer will review the decision before the applicant is notified of it.

Interpreters for the interviews are provided by the Hong Kong Government. The UNHCR has a right of access to any screening interview and their officers may offer advice or comment at any stage.

A notice of determination explaining the decision on the claim to refugee status is given to all persons after screening. If screened-in as a refugee, the applicant is immediately moved to a refugee camp to await resettlement. If screened-out as a non-refugee, the applicant is advised that he/she has a right to review.

If screened-out applicants wish to exercise their right of review, they must submit their cases to the Refugee Status Review Board within 28 days of receiving the notice of determination. On the same day that the status determination decision is made known to the applicants a copy of the complete Immigration Department file is given to the legal consultants operating under the auspices of the UNHCR who will assist appellants in the preparation of their appeals. A further copy of the file is given to the UNHCR to aid them in performing their protection role.

The Refugee Status Review Board is headed by an ex-judge and comprises four panels of two members, drawn from the Civil Service and members of the community. Their task is to review the facts of the case and the Immigration Department's decision. Once the board reaches its decision on the application for review, the appellant is informed of the result by officers from the department.

The UNHCR has played a major role in the development of the screening and appeals procedures in Hong Kong. UNHCR's involvement in the operation of the procedures takes the following forms:

⚫ unlimited access to the pre-screening data collection interviews;

.

unlimited access to all screening interviews;

the right to bring cases of particular concern to the attention of the Hong Kong Government;

⚫ when the first instance decision is made known to the applicant a copy of the

complete Immigration Department case file is given to UNHCR;

using the case file UNHCR will be able to make special representation on behalf of the applicant in cases of particular concern to them;

representatives of UNHCR meet with the chairman and members of the independent Review Board each week to discuss cases of particular concern.

UNHCR are informed of the decision of the Refugee Status Review Board at the same time as the appellants and they are encouraged to start their repatriation counselling work immediately. UNHCR counselling teams and other officials have full access to the non- refugees.

Screening procedures have been completed for 7 897 people in 1989, of whom 587 have been screened-in as refugees and 7 310 have been screened-out. This represents a rate of 7.4 per cent positive first instance decisions. At the appeal stage the position is that in 135 cases

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involving 392 persons the first instance decision has been overturned and in 1895 cases involving 4 562 persons it has been upheld.

   Once screened-out as non-refugees, the VBPs have to be detained in detention centres pending repatriation to Vietnam.

   With the 1650 babies born during the year, the number of Vietnamese refugees, and Vietnamese boat people in Hong Kong at the end of 1989 totalled 12 022 and 43 702 respectively. Among the 12 022 refugees, 4 930 were in closed centres and 7 092 in the open centres.

   Refugees who arrived before July 2, 1982, are accommodated in the Kai Tak Transit Centre, an open centre managed by the Hong Kong Christian Aid to Refugees on behalf of the UNHCR. Refugees in the open centre have complete freedom of movement and are allowed to take up employment. More than 808 of the refugees have been living in the open centre for over eight years.

   Refugees who arrived in Hong Kong after July 1982 continue to be detained in closed centres while awaiting resettlement overseas. These closed centres are managed by the Correctional Services Department pending handover to the UNHCR as open centres. Each of the closed centres is provided with basic facilities such as standard refugee dormitories, dining halls, communal bathrooms, toilets, washing areas and open space for outdoor activities. There is also a medical clinic in each centre manned by either the government or the UNHCR through an operational agency. Dental services are provided by visiting Rotarian dentists funded by the International Rotary.

   Schools, run by voluntary agencies, are provided for school-age children in each of the closed centres. Classroom and workshop facilities are also available for conducting lan- guage and skill-training programmes. Adults can participate in various 'cottage industries' which are income-generating. Co-operative shops have also been set up in some closed

centres.

   Social, educational and recreational activities and skill-training programmes are provided by voluntary agencies subvented by both the government and the UNHCR. The services are co-ordinated by the Education Co-ordinator and the Social Service Co-ordinator appointed by the UNHCR.

   With the implementation of the new screening policy on June 16, 1988, the government announced the gradual liberalisation of the closed camps. It is the government's intention to transform the closed centres into open centres and place them under the management of the UNHCR. A programme was implemented in September 1988 which was designed to provide a period of adjustment for the refugees in order to lessen the impact of the change to open centre status. The first stage of an open centre at Pillar Point in Tuen Mun district was completed in July 1989 and the whole centre opened in December 1989. The major elements of the liberalisation programme are:

Schooling

 Refugee children will study in schools operated under the auspices of the UNHCR through its agents. This programme commenced with an existing school at the Kai Tak open centre and another in Yuen Long. These schools are exclusively for refugee children.

Employment

The UNHCR, through a voluntary agency, has started an employment placement service for refugees in the closed centres. The service will identify employment opportunities for refugees and make arrangements for work placements. Vocational training for some of the refugees will also be organised by UNHCR.

POPULATION AND IMMIGRATION

Recreation

In the early stages, familiarisation excursions and recreational activities outside the centres have taken place in organised groups under supervision by the UNHCR or its agents. As liberalisation progresses, refugees have been permitted to leave the centre without supervision.

Medical Services

The UNHCR has taken over the medical services in some of the refugee camps. Refugees needing hospital facilities will however continue to be sent to local hospitals. The government will continue to provide medical services in the other centres until UNHCR takes over this responsibility completely.

It is hoped that these liberalisation measures and the opening of all the refugee centres will provide refugees with the necessary education, working experience, work and social skills to aid their integration into their ultimate resettlement communities.

All asylum seekers arriving in Hong Kong after June 15, 1988, are accommodated in detention centres pending screening, and all those asylum seekers who have been determined by the screening process as non-refugees will also be detained in these centres pending repatriation to Vietnam.

The conditions under which the asylum seekers and persons determined as non-refugees are detained will be, subject to exceptional security requirement, no more restrictive than those in closed centres prior to June 16, 1988. The detainees are not allowed to leave the centres, except for special trips such as educational excursions for the children or attendance for medical treatment in hospitals. Voluntary agencies continue to operate under the auspices of the UNHCR and provide the necessary social services, including education, recreation, vocational training and workshop activities.

At the end of 1989, there were two closed centres, two open centres, and 12 detention centres. Of the total number of refugees in the centres, 4 740 left during the year for resettlement elsewhere, while 14 chose to accept resettlement in Hong Kong.

The three major resettlement countries were Canada, the United States and Australia, all of which continued to provide an ongoing programme for resettling Vietnamese refugees from Hong Kong. The United Kingdom had resettled 194 refugees from Hong Kong. As part of an international effort to lessen the refugee problem in Hong Kong, Hong Kong itself had agreed to accept 250 Vietnamese refugees of Chinese origin for local resettlement. However, the scheme has met with little response from the refugees. So far, only 121 have taken advantage of this resettlement offer by Hong Kong.

The cost of maintaining the Vietnamese boat people and refugees in Hong Kong came to $471 million in 1989, of which $340 million was spent on detention centres, $122 million on closed centres, and $9 million on the open centres. The UNHCR contributed a total of $50 million towards the upkeep of refugees during 1989.

In September 1988, the government entered into an agreement with the UNHCR under which the UNHCR would be responsible for all costs related to the provision of medical services, food, transport and other services, whereas the government would bear the capital costs of the construction of refugee and VBP centres. In 1989, a total of $472 million was spent on the construction and maintenance of centres.

Some Vietnamese refugees settled in China have subsequently arrived in Hong Kong. They are known as ex-China Vietnamese Illegal Immigrants (ECVIIs). At the end of the year, there were 321 ECVIIS in Hong Kong awaiting repatriation to China.

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24

નાતાલ પર જત, ielter | HISTORY

ON December 19, 1984, the Prime Minister of the United Kingdom of Great Britain and Northern Ireland, Mrs Margaret Thatcher, and the then Prime Minister of the People's Republic of China, Mr Zhao Ziyang, acting on behalf of their respective governments, signed the Sino-British Joint Declaration on the Question of Hong Kong.

Negotiations leading to the signing of the Joint Declaration had begun after a visit to Peking (Beijing) by the British Prime Minister in September, 1982.

   Under the terms of the Joint Declaration, British sovereignty and jurisdiction over Hong Kong will continue to June 30, 1997, and Hong Kong will from July 1, 1997, become a Special Administrative Region (SAR) of the People's Republic of China.

The Joint Declaration provides that for 50 years after 1997, Hong Kong's lifestyle will remain unchanged, and China's socialist system and policies will not be practised in the SAR.

The SAR will have its own government and legislature composed of local inhabitants and will enjoy a high degree of autonomy, except in foreign and defence affairs, which are the responsibilities of the Central People's Government.

So as to ensure a smooth transition to the SAR, the Joint Declaration also provides for the establishment of the Sino-British Joint Liaison Group and the Land Commission. Both sides now meet regularly to conduct consultation on the implementation of the Joint Declaration.

352

A Place from Which to Trade

Hong Kong's history has been one of material and social improvement: the expansion of city and towns by cutting into hillsides, reclaiming the land from, the sea, and the building of homes, schools, hospitals and other forms of public facilities to meet the demands of the growing population.

Yet, in its early days, the territory was regarded as an uninviting prospect for settlement. The population of about 3 650 was scattered over 20 villages and hamlets and 2000 fishermen lived on board their boats in the harbour. Its mountainous terrain deficient in fertile land and water, Hong Kong possessed only one natural asset, a fine and sheltered anchorage. Largely the reason for the British presence that began in the 1840s, Victoria Harbour was strategically located on the trade routes of the Far East, and was soon to become the hub of a burgeoning entrepôt trade with China.

Hong Kong's development into a commercial centre began with its founding as a settlement under the British flag in 1841. At the end of the 18th century the British

HISTORY

dominated the foreign trade at Canton (Guangzhou) but found conditions unsatisfactory, mainly because of the conflicting viewpoints of two quite dissimilar civilisations.

The Chinese regarded themselves as the only civilised people and foreigners trading at Canton (Guangzhou) were subject to residential and other restrictions. Confined to the factory area, they were allowed to remain only for the trading season, during which they had to leave their families at Macau. They were forbidden to enter the city and to learn the Chinese language. Shipping dues were arbitrarily varied and generally much bickering resulted between the British and Chinese traders. Yet there was mutual trust and the spoken word alone was sufficient for even the largest transactions.

Trade had been in China's favour and silver flowed in until the growth of the opium trade from 1800 onwards reversed this trend. The outflow of silver became more marked from 1834, after the East India Company lost its monopoly of the China trade, and the foreign free traders, hoping to get rich quickly, joined the lucrative opium trade which the Chinese had made illegal in 1799. This led to the appointment of Lin Ze-xu (Lin Tse-hsu) in March 1839 as special Commissioner in Canton (Guangzhou) with orders to stamp out the opium trade. A week later he surrounded the foreign factories with troops, stopped food supplies and refused to allow anyone to leave until all stocks of opium had been surrendered and dealers and ships' masters had signed a bond not to import opium on pain of execution. Captain Charles Elliot, RN, the British Government's representative as Superintendent of Trade, was shut up with the rest and authorised the surrender of 20 283 chests of opium after a siege of six weeks.

Elliot would not allow normal trade to resume until he had reported fully to the British Government and received instructions. The British community retired to Macau and, when warned by the Portuguese Governor that he could not be responsible for their safety, took refuge on board ships in Hong Kong harbour in the summer of 1839.

Lord Palmerston, the Foreign Secretary, decided that the time had come for a settlement of Sino-British commercial relations. Arguing that, in surrendering the opium, the British in Canton (Guangzhou) had been forced to ransom their lives - though, in fact, their lives had never been in danger - he demanded either a commercial treaty that would put trade relations on a satisfactory footing, or the cession of a small island where the British could live free from threats under their own flag.

An expeditionary force arrived in June 1840 to back these demands, and thus began the so-called First Opium War (1840-2). Hostilities alternated with negotiations until agreement was reached between Elliot and Qishan (Keshen), the Manchu Commissioner. Lin had been replaced by Qishan after his exile in disgrace over the preliminaries of a treaty.

Under the Convention of Chuenpi (Chuanbi), January 20, 1841, Hong Kong Island was ceded to Britain. A naval landing party hoisted the British flag at Possession Point on January 26, 1841, and the island was formally occupied. In June, Elliot began to sell plots of land and settlement began.

Neither side accepted the Chuenpi terms. The cession of a part of China aroused shame and anger among the Chinese, and the unfortunate Qishan was ordered to Beijing in chains. Palmerston was equally dissatisfied with Hong Kong, which he contemptuously described as 'a barren island with hardly a house upon it', and refused to accept it as the island station that had been demanded as an alternative to a commercial treaty.

'You have treated my instructions as if they were waste paper,' Palmerston told Elliot in a magisterial rebuke, and replaced him. Elliot's successor, Sir Henry Pottinger, arrived in August 1841 and conducted hostilities with determination. A year later, after pushing

353

HISTORY

354

up the Yangtze River (Chang Jiang) and threatening to assault Nanking (Nanjing), he brought the hostilities to an end by the Treaty of Nanking, signed on August 29, 1842.

   In the meantime, the Whig Government in England had fallen and, in 1841, the new Tory Foreign Secretary, Lord Aberdeen, issued revised instructions to Pottinger, dropping the demand for an island.

Pottinger, who had returned to Hong Kong during the winter lull in the campaign, was pleased with the progress of the new settlement and, in the Treaty of Nanking, deviated from his instructions by demanding both a treaty and an island, thus securing Hong Kong. In addition, five Chinese ports, including Canton (Guangzhou), were opened for trade. The commercial treaty was embodied in the supplementary Treaty of the Bogue (Humen), October, 1843, by which the Chinese were allowed free access to Hong Kong Island for trading purposes.

Lease of New Territories

The Second Anglo-Chinese War (1856-8) arose out of disputes over the interpretation of the earlier treaties and over the boarding of a British lorcha, the Arrow, by Chinese in search of suspected pirates. The Treaty of Tientsin (Tianjin), 1858, which ended the war, gave the British the privilege of diplomatic representation in China. The first British envoy, Sir Frederick Bruce, who had been the first Colonial Secretary in Hong Kong, was fired on at Taku (Dagu) Bar on his way to Beijing to present his credentials, and hostilities were renewed from 1859-60.

   The troops serving on this second expedition camped on Kowloon peninsula, as the territory's earliest photographs show. Finding it healthy, they wished to retain it as a military cantonment, with the result that Sir Harry Parkes, Consul at Canton (Guang- zhou), secured from the Viceroy the perpetual lease of the peninsula as far as Boundary Street, including Stonecutters Island. The Convention of Peking, 1860, which ended the hostilities, provided for its outright cession.

   Other European countries and Japan subsequently demanded concessions from China, particularly after Germany, France and Russia rescued China from the worst consequences of its defeat by Japan in 1895. In the ensuing tension, Britain felt that efficient defence of Hong Kong harbour demanded control of the land around it.

-

   By a convention signed in Beijing on June 9, 1898, respecting an extension of Hong Kong territory, the New Territories - comprising the area north of Kowloon up to the Shum Chun (Shenzhen) River, and 235 islands was leased for 99 years. The move was directed against France and Russia, not against China whose warships were allowed to use the wharf at Kowloon City. There, Chinese authority was permitted to continue 'except insofar as may be inconsistent with the military requirements for the defence of Hong Kong'. However, an Order in Council of December 27, 1899, revoked this clause and the British unilaterally took over Kowloon City. There was some desultory opposition when the British took over the New Territories in April 1899, but this soon disappeared. The area was declared to be part of the overall territory of Hong Kong but was administered separately from the urban area.

Initial Growth

The new settlement did not go well at first. It attracted unruly elements, while fever and typhoons threatened life and property. Crime was rife. The Chinese influx was unexpected because it was not anticipated they would choose to live under a foreign flag. The population rose from 32 983 (31 463 Chinese) in 1851 to 878 947 (859 425 Chinese) in 1931.

HISTORY

       The Chinese asked only to be left alone and thrived under a liberal British rule. Hong Kong became a centre of Chinese emigration and trade with Chinese communities abroad. Ocean-going shipping using the port increased from 2 889 ships in 1860 to 23 881 in 1939. The dominance of the China trade forced Hong Kong to conform to Chinese usage and to adopt the silver dollar as the currency unit in 1862. In 1935, when China went off silver, Hong Kong had to follow suit with an equivalent 'managed' dollar.

Hong Kong's administration followed the normal pattern for a British territory over- seas, with a governor nominated by Whitehall and nominated Executive and Legislative Councils with official majorities. The first non-government members of the Legislative Council were nominated in 1850, and the first Chinese in 1880; the first non-government members of the Executive Council appeared in 1896, and the first Chinese in 1926. In 1972, the long-standing arrangement that two electoral bodies - the Hong Kong General Chamber of Commerce and the Unofficial Justices of the Peace were each allowed to nominate a member to the Legislative Council, was discontinued.

       The British residents pressed strongly for self-government on a number of occasions, but the home government consistently refused to allow the Chinese majority to be subject to the control of a small European minority.

A Sanitary Board was set up in 1883, became partly elected in 1887, and developed into an Urban Council in 1936. The intention, at first, was to govern the Chinese through Chinese magistrates seconded from the mainland. But this system of two parallel ad- ministrations was only half-heartedly applied and broke down mainly because of the weight of crime. It was completely abandoned in 1865 in favour of the principle of equality of all races before the law. In that year, the Governor's instructions were significantly amended to forbid him to assent to any ordinance 'whereby persons of African or Asiatic birth may be subjected to any disabilities or restrictions to which persons of European birth or descent are not also subjected'. Government policy was laissez-faire, treating Hong Kong as a market place where all were free to come and go and where the government held the scales impartially.

       Public and utility services developed - the Hong Kong and China Gas Company in 1861, the Peak Tram in 1885, the Hongkong Electric Company in 1889, China Light and Power in 1903, the electric Tramways in 1904 and the then government-owned Kowloon-Canton Railway, completed in 1910. There were successive reclamations dating from 1851 - notably one completed in 1904 in Central District, which produced Chater Road, Connaught Road and Des Voeux Road, and another in Wan Chai between 1921 and 1929.

A system of public education began in 1847 with grants to the Chinese vernacular schools. Later, the voluntary schools mainly run by missionaries were included in a grant scheme, in 1873. The College of Medicine for the Chinese, founded in 1887, developed into the University of Hong Kong in 1911 and offered arts, engineering and medical faculties.

-

       After the Chinese Revolution of 1911, which overthrew the Manchu Dynasty, there was a long period of unrest in China and large numbers of people found shelter in Hong Kong. The agitation continued after Chinese participation in World War I brought in its wake strong nationalist and anti-foreign sentiment - inspired both by disappointment over failure at the Versailles peace conference to regain the German concessions in Shantung (Shandong), and by the post-war radicalism of the Kuomintang. The Chinese sought to abolish all foreign treaty privileges in China. Foreign goods were boycotted and the unrest spread to Hong Kong, where a seamen's strike in 1922 was followed by a serious general strike in 1925-6 under pressure from Canton (Guangzhou). This petered out, though not

355

HISTORY

356

before causing considerable disruption in Hong Kong. Britain, with the largest foreign stake in China, was at that time a main target of anti-foreign sentiment, but in this odious role it was soon to be replaced by Japan.

The 1930s and World War II

During World War I, Japan presented its '21 demands' to China. Then, in 1931, Japan occupied Manchuria and the attempt to detach China's northern provinces led to open war in 1937. Canton (Guangzhou) fell to the Japanese in 1938, resulting in a mass flight of refugees to Hong Kong. It was estimated that some 100 000 refugees entered in 1937, 500 000 in 1938 and 150 000 in 1939 - bringing the population at the outbreak of World War II to an estimated 1.6 million. It was thought that at the height of the influx about 500 000 people were sleeping in the streets.

Japan entered World War II when, on December 7, 1941, its aircraft bombed United States warships at Pearl Harbour and at approximately the same time Japanese armed forces attacked Hong Kong (December 8, 1941, local time). The Japanese invaded Hong Kong from across the mainland border and, subsequently, the British were forced to withdraw from the New Territories and Kowloon on to Hong Kong Island. After a week of stubborn resistance on the island, the defenders - including the local Volunteer Corps - were overwhelmed and Hong Kong surrendered on Christmas Day. The Japanese occu- pation lasted for three years and eight months.

Trade virtually disappeared, currency lost its value, the supply of food was disrupted and government services and public utilities were seriously impaired. Many residents moved to Macau - the Portuguese province hospitably opening its doors to them. Towards the latter part of the occupation, the Japanese sought to ease the food problems by organising mass deportations. In the face of increasing oppression, the bulk of the community remained loyal to the allied cause. Chinese guerillas operated in the New Territories and escaping allied personnel were assisted by the rural population.

   Soon after news of the Japanese surrender was received on August 14, 1945, a provi- sional government was set up by the Colonial Secretary, Mr (later Sir) Frank Gimson. On August 30, Rear Admiral Sir Cecil Harcourt arrived with units of the British Pacific Fleet, to establish a temporary military government. Civil government was formally restored on May 1, 1946, when Sir Mark Young resumed his interrupted governorship.

The Post-War Years

Following the Japanese surrender, Chinese civilians - many of whom had moved into China during the war returned at the rate of almost 100 000 a month. The population, which by August 1945 had been reduced to about 600 000, rose by the end of 1947 to an estimated 1.8 million. Then, in the period 1948-9, as the forces of the Chinese Nationalist Government began to face defeat in civil war at the hands of the communists, Hong Kong received an influx unparalleled in its history. Hundreds of thousands of people - mainly from Guangdong Province, Shanghai and other commercial centres - entered the territory during 1949 and the spring of 1950. By mid-1950, the population was estimated to be 2.2 million. Since then it has continued to rise and now totals 5.7 million.

   After a period of economic stagnation caused by the United Nations' embargo on trade with China, Hong Kong began to industrialise. No longer could the territory rely solely on its port to provide prosperity for its greatly increased population. From the start, the industrial revolution was based on cotton textiles, gradually adding woollens and, in the

HISTORY

late 1960s, man-made fibres and made-up garments. Although the share of total exports held by textiles and clothing has declined over the past 10 years, these still make up around 40 per cent of domestic exports by value. While textiles remain the mainstay of Hong Kong's economy, major contributions are made by electronic products, watches and clocks, plastic goods and other light industries.

       Associated with events in China, 1966 saw mounting tension in Hong Kong which during 1967 developed into a series of civil disturbances affecting all aspects of life and temporarily paralysing the economy. But, by year-end, the disturbances were contained and the community continued its tradition of peaceful progress.

       In development of the post-war years, Hong Kong has continued to build up its role as an entrepôt with its neighbours and trade with China has been no exception. Coupled with tourism, this had led to vast improvements in communications with an increasing number of people entering China from or through Hong Kong, its natural gateway, each year. The territory's major carrier, Cathay Pacific, and the Civil Aviation Administration of China operate scheduled, and a considerable number of charter, services between Hong Kong and cities in China, and a new airline, Hong Kong Dragon Airlines, now operates non-scheduled services to a number of cities in China. The Kowloon-Canton Railway runs, jointly with Guangzhou's railway administration, express 'through' trains between Kowloon and Guangzhou; several direct bus services, including a British and Chinese joint venture, operate different routes into Guangdong and other parts of southern China; and there are several daily ferry services to Guangzhou and other ports in South China. Hoverferries operate on some of these services.

To keep pace with the development, strong emphasis is placed by the government on infrastructural improvements. An estimated $9,900 million is being spent on numerous public works projects in 1989-90, representing about 14 per cent of total public expendi- ture. The territory has been completely transformed into a modern city with efficient road and rail links, tunnels and flyovers, as well as multi-lane highways which have opened up many hitherto remote areas.

       The development of Hong Kong's economic base has enabled the government to increase spending on education, housing, health and social welfare over the years - from $6,760 million in 1979-80 to an estimated $35,610 million in 1989-90.

       Starting with emergency measures to house some 50 000 people made homeless in the Shek Kip Mei squatter fire in 1953, Hong Kong's public housing programme now provides rental and self-owned flats of an increasingly higher standard for about 2.8 million people, or half the population.

       The programme, given impetus by the Long Term Housing Strategy to provide affordable housing for all those in need by the turn of the century, is being implemented by the Housing Authority.

Expenditure on education facilities and improvements for Hong Kong's young and vibrant population has always been one of the major considerations in budget preparations and there are now free and compulsory primary and junior secondary school places for every student up to the age of 15.

       In the field of social welfare, major advances have been made by both the government and voluntary agencies in the past decade, with expenditure increasing from $690 million in 1979-80 to $4,108 million during 1989-90.

The medical and health services are also undergoing vigorous development programmes which will provide three more major acute government hospitals and some 16 additional clinics and polyclinics over the next decade.

357

HISTORY

358

   Over the years, a comprehensive system of labour legislation has been built up for the protection of wages, rest days, statutory holidays, paid annual leave, maternity leave, sickness allowance, severance payment, end-of-year payment, long service payment, employees' compensation, industrial safety and occupational health. Continuous progress has been made in this respect with four items of new or amendment labour legislation having been enacted in the 1988-9 Legislative Council Session. A statutory Occupational Safety and Health Council has also been established to promote higher standards of safety and health for people at work in Hong Kong.

Public Records Office

Set up in 1972 as the central repository for official records, the Public Records Office is now one of the largest local sources of information for historical and other studies relating to Hong Kong. The office currently manages 11 000 linear metres of official records, about 4 000 photographs dating from the 1860s and an extensive collection of maps, local newspapers and official publications. The map collection has been further expanded during the year by the addition of 60 maps and plans of various historic sites in Hong Kong. Another significant addition is the private papers of Sir Cecil Clementi, Governor of Hong Kong from 1925 to 1930.

   The Public Records Office provides a records management service to government departments and makes material available for reference and research to both local and overseas scholars, journalists, students, members of the public and staff of other government departments.

   Records of permanent value are held at the head office in Central District and at one of the two sub-offices at Wong Chuk Hang Road, Aberdeen. Non-current records, many of which will eventually be destroyed, are stored in the second sub-office.

   The increasing awareness of Hong Kong internationally has resulted in further growth over the past year in the number of reference enquiries received by the office, and in the number of individuals conducting research on source materials held. In addition to the publication of a number of books based on these materials, records have been used in the production of television documentaries, films, exhibitions and articles for various newspapers and periodicals.

   Owing to extensive loss and destruction of official records during the Japanese occupation, the bulk of the office's holdings dates from the resumption of British administration in 1945. The loss occasioned by the war has, however, been redeemed to some extent by the acquisition of microfilm copies of certain pre-war British government records relating to Hong Kong. The most significant of these are the despatches exchanged by the Governors of Hong Kong with London from 1842 to the end of 1952.

   Public access to library materials, including the newspaper, map and photograph collections, is unrestricted, but formal approval is required for access to official records. In 1989, 350 applications for access to official records were received, and all of them were approved. Photocopying, microfilming and reading room facilities are available.

Archaeological Background

Archaeological studies in Hong Kong, which began in the 1920s, have uncovered ancient artefacts and other evidence of human activity at numerous sites along the winding shoreline, testifying to events which span more than 6 000 years. The interpretation of these events is still a matter of controversy. Archaeologically, Hong Kong is but a tiny part of

HISTORY

the far greater cultural sphere of South China, itself as yet imperfectly known. In such a context, scholarly debate over definitive interpretations may be expected to continue for many years to come.

      Some writers suggest that Hong Kong's most ancient inhabitants were related to the early horticultural Bacsonian peoples of South-east Asia, themselves successors of late Pleistocene hunter-gatherers known as the Hoabinhian. They urge an underlying continuity of cultural development running throughout the prehistoric periods and perhaps into the historic. More traditional views see in the archaeological remains evidence of powerful influences entering the region from northern cultures, such as the neolithic Longshan and the early northern bronze age cultures which gave rise to China's first historic dynasties, the Xia and the Shang. There are, on the other hand, a growing number of scholars who believe that the prehistoric cultures within the South China region had evolved locally, independent of any major influences from outside the area.

      However, a consensus is growing that the earliest periods, from the close of the 4th millennium BC, must be seen within the framework of a changing environment which experienced sea levels rising from depths as low as 100 metres below the present inexorably submerging vast tracts of coastal plain and establishing a basically modern shoreline and ecology to which human groups present in the area had to adapt or perish.

The stone tools, pottery and other artefacts upon which we must rely for an insight into the lives of Hong Kong's ancient inhabitants are for the most part preserved in coastal deposits. This pattern of coastal settlement points to a strong maritime orientation and an economy geared to the exploitation of marine resources. However, it would be unwise to over-emphasise this point, since the discovery of archaeological remains is influenced by the many factors governing their survival. One such factor, the erosion of the hilly terrain, has been severe, and evidence of some inland settlement, though scanty, is not totally absent.

Recent excavations have revealed two main neolithic cultures lying in stratified sequence. At the lower, oldest levels there is coarse, cord-marked pottery together with a fine, soft fragile pottery decorated with incised lines, perforations and occasionally painted. Chipped and polished stone tools are also present. Current indications suggest a 4th millennium BC date for this initial phase.

      Cord-marked pottery and chipped stone tools continue as long-lived traditions into the higher, later levels in which a new ceramic style decorated with a wide range of impressed geometric patterns appears. In this phase, beginning in the mid-3rd millennium BC, polish- ed stone tools show better workmanship and a proliferation of forms, some with steps and shoulders, features probably connected with improvements in hafting techniques. Ornaments such as rings, some slotted, in a range of sizes were also made, sometimes with exquisite craftsmanship, from quartz and other suitable stones.

      The final phase of Hong Kong's prehistory is marked by the appearance of bronze at about the middle of the 2nd millennium BC. Bronze artefacts do not seem to have been in common use, but a few fine specimens of weapons, swords, arrowheads and halberds, and tools such as socketed axes and fish hooks have been excavated from Hong Kong sites. There is evidence, too, from the Tung Wan site at Shek Pik, Lantau Island, in the shape of pottery moulds, that the metal was actually worked here.

      The pottery of the bronze age comprises a continuation of the earlier cord-impressed and geometric traditions and a new ware, fired at higher temperature leading to vitrification. This so-called hard geometric is decorated with designs many of which are reminiscent of the geometric patterns of the late neolithic, but with their own distinctive style including the well-known 'Kui-dragon' or 'double F' pattern, so characteristic of this period.

359

360

HISTORY

Archaeology is silent on such questions as the ethnic and linguistic affinities of the ancient peoples whose material remains it studies. However, some light is shed on these matters at the beginnings of recorded history, for ancient Chinese literary records speak of maritime peoples occupying China's south-eastern seaboard and known to them as 'Yue'. It is probable, therefore, that some at least of Hong Kong's prehistoric inhabitants belonged to the 'Hundred Yue', as this diverse group of peoples was often called.

Interesting archaeological features, almost certainly made by these people, are the rock carvings, most of which are geometric in style, at Shek Pik, on Kau Sai, Po Toi, Cheung Chau and Tung Lung islands and at Big Wave Bay and Wong Chuk Hang on Hong Kong Island.

The military conquest of South China by the north during the Qin and Han dynasties must have brought increasing numbers of settlers into the region and exerted a variety of influences on the indigenous populations. These events are witnessed by the discovery in excavations of coins of the Qin (221-207 BC) and Han (206 BC-220 AD), but the outstanding monument to this turbulent period must undoubtedly be the fine brick-built tomb uncovered at Lei Cheng Uk in 1955 with its fine array of typical Han tomb furniture and thought to date from the early to middle Eastern Han period.

Archaeological remains from later historic periods are at present poorly known. Recent work has thrown a welcome light on one aspect of life in the Hong Kong of the Tang Dynasty (618-907 AD) through a study of the dome-shaped lime kilns which are an almost ubiquitous feature of the territory's beaches. Lime, a valuable commodity useful for caulking and protecting wooden boats against marine organisms, waterproofing containers, dressing the acid soils of agricultural fields, building and many other purposes, clearly played an important role in the economy of the period.

Strong traditions link Hong Kong with the events surrounding the Mongol incursions and the concluding chapters of the Song Dynasty in the 13th century AD. The Sung Wong Toi inscription, now relocated near the entrance to Hong Kong International Airport, the Song Inscription in the grounds of the Tin Hau Temple at Joss House Bay, caches of Song coins from Shek Pik and Mai Po and celadons of Song type from various sites, especially Nim Shue Wan, Lantau, date from this epoch.

   Recent archaeological studies are beginning to throw fresh light on events in Hong Kong during the Ming (1368-1644) and Qing (1644-1911) dynasties. These include an analysis of considerable quantities of Ming blue and white porcelain collected in recent years from a site at Penny's Bay, Lantau. Preliminary results suggest that this porcelain is very fine quality export ware of the kind which found its ways to the courts of South-east Asia and the West and dates from the first few decades of the 16th century AD. The excavation of the Qing period fort on Tung Lung Island has already revealed fascinating details of the internal arrangements of the fortification and the everyday utensils of a remote garrison during the final stages of Imperial China.

APPENDICES

APPENDICES

123456

Units of Measurement The Executive Council

364

367

The Legislative Council

Urban Council

Regional Council

Overseas Representation in Hong Kong

Hong Kong Representation Overseas

7

368

370

371

372

373

Expenditure on the Gross Domestic Product at Current Market Prices Expenditure on the Gross Domestic Product at Constant (1980) Market

Prices

376

376

8

Gross Domestic Product at Current Factor Cost by Economic Activity Total Government Revenue and Expenditure

377

378

8a

Total Government Revenue by Source (Chart)

380

9

Government Expenditure and the Economy

381

10

10a

11

Consolidated Public Sector Expenditure by Function Consolidated Public Sector Expenditure by Function (Chart) Revenue from Duties

382

383

384

Licence Fees under the Dutiable Commodities Ordinance Miscellaneous Fees under the Dutiable Commodities Ordinance

384

384

234

Exchange Value of the Hong Kong Dollar

385

Money Supply

386

Liabilities and Assets: Licensed Banks

387

Liabilities and Assets: Deposit-taking Companies

388

15

Hong Kong's External Trade by Major Trading Partners

389

16a

Hong Kong's External Trade Analysed by Standard International Trade

Classification Revision 2 (SITC Rev. 2)

390

16b

17

Hong Kong's Domestic Exports of Principal Commodity Groups Number of Establishments and Employment in Manufacturing Industry

Analysed by International Standard Industrial Classification Revision 2 (ISIC Rev. 2)

393

394

18

Number of Establishments and Employment in Principal Manufacturing

Industry Groups

396

362

19

Reported Occupational Accidents

397

APPENDICES

20

Consumer Price Index (A)

398

Consumer Price Index (B)

398

Hang Seng Consumer Price Index

398

21

2222 2222222

Imports of Crops, Livestock, Poultry and Fish

399

Estimated Local Production of Crops, Livestock, Poultry and Fish

400

23

Local Production and Imports of Ores and Minerals

400

24

Categories of Registered Schools

401

School Enrolment

401

25

Overseas Examinations

402

26

27

Students Leaving Hong Kong for Overseas Studies Expenditure on Education

403

403

28

Vital Statistics

403

29

Causes of Death

404

30

Hospital Beds

405

31

Professional Medical Personnel

405

32

The Hong Kong Council of Social Service

406

The Community Chest of Hong Kong

408

33

Number of Quarters and Estimated Persons Accommodated as at

410

March 31, 1989

34

Land Office

411

Considerations in Instruments Registered in Land Office

411

3365

Land Usage

Electricity Consumption, 1989

Electricity Distribution

Gas Consumption and Distribution (Town Gas)

412

413

413

413

Local Sales of Liquefied Petroleum Gas (LPG)

Water Consumption

37

International Movements of Aircraft and Vessels

International Movements of Passengers

413

413

414

414

International Movements of Commercial Cargo by Different Means of

Transport

414

38

Registered/Licensed Motor Vehicles

415

Public Transport: Passengers Carried by Undertaking

415

Public Transport: Passengers Carried by Area

416

Public Transport: Daily Average Number of Passengers Carried by

416

Different Modes of Transport

39

Traffic Accidents

417

Traffic Casualties

417

40

Crime

418

41

Judiciary Statistics

421

42

Correctional Services

422

43

Communications

422

44

Recreational Facilities

423

45

Climatological Summary, 1989

Climatological Normals

423

423

46

Governors of Hong Kong

424

363

364

APPENDICES

APPENDIX 1

Units of Measurement

The Legislative Council enacted a new Weights and Measures Ordinance on July 8, 1987, to replace the legislation made in 1885.

   The new Ordinance, which came into operation in January 1989, provides comprehensively for a modern system of units of measurement and defines the weights and measures that are lawful for use for trade in Hong Kong.

   The government's long-term policy aim is that ultimately only metric units will be used in Hong Kong. However, given Hong Kong's long usage of traditional Chinese and British Imperial units, it is accepted that it will take many years before this policy aim is achieved. Furthermore, Hong Kong's heavy reliance on international trade requires that its industrialists and manufacturers must supply goods to their customers' specifications. Some of Hong Kong's major overseas markets have yet to fully adopt the metric system.

   The definitions of units of measurement, and the units of measurement and permitted symbols or abbreviations of units of measurement lawful for use for trade in Hong Kong are contained in the first and second schedules to the Weights and Measures Ordinance. These are reproduced below.

FIRST SCHEDULE

DEFINITIONS OF UNITS OF MEASUREMENT

PART I

Measurement of Length

(a) Metric Units

(b) Imperial Units

1 kilometre

1 metre

= 1000 metres

1 mile

= 1 760 yards

=

the length of the path travelled by light

1 furlong

= 220 yards

1

in vacuum during a time interval of

299 792 458

1 chain

of a second

1 yard

1 decimetre

= 0.1 metre

1 centimetre

0.01 metre

1 millimetre

= 0.001 metre

(c) Chinese Units

1 chek

= 0.371 475 metre

1 tsun

1 fan

-

0.1 chek

= 0.1 tsun

1 foot

****

= 22 yards

= 0.914 4 metre exactly

yard

1 inch

yard 36

PART II

Measurement of Area

(b) Imperial Units

(a) Metric Units

1 hectare

1 are

1 square metre

1 square decimetre

1 square centimetre

1 square millimetre

100 ares

= 100 square metres

=

an area equal to that of a square each

side of which measures one metre

= 0.01 square metre

= 0.01 square decimetre

= 0.01 square centimetre

#4840 square yards

1 square mile

= 640 acres

1 acre

1 rood

=

1 square yard

=

1 square foot

1 210 square yards

an area equal to that of a square each

side of which measures one yard

square yard

1

square

inch

=

144

square foot

APPENDICES

(a) Metric Units

PART III

Measurement of Volume

a volume equal to that of a cube each edge of which measures one metre

= 0.001 cubic metre

= 0.001 cubic decimetre

1 cubic metre

1 cubic decimetre

1 cubic centimetre

1 litre

1 decilitre

1 centilitre

=

0.01 litre

1 millilitre

=

0.001 litre

= a volume equal to that of a cubic

decimetre

0.1 litre

(b) Imperial Units

1 cubic yard

-

1 cubic foot

ww

1 cubic inch

=

(a) Metric Units

1 hectolitre

=

100 litres

a volume equal to that of a cube each edge of which measures one yard

cubic yard

1 728

cubic foot

PART IV

Measurement of Capacity

(b) Imperial Units 1 gallon

1 quart

= 4.546 09 cubic decimetres

1 litre

=

1 decilitre

a volume equal to that of a cubic decimetre

= 0.1 litre

1 centilitre

= 0.01 litre

1 millilitre

0.001 litre

PART V

=

gallon

1 pint

=

quart

1 gill

=

++pint

1 fluid ounce

pint 20

Measurement of Mass or Weight

(a) Metric Units

1 tonne

1 kilogram

1 gram

1 metric carat

1 milligram

-

1 000 kilograms

= a unit of mass equal to the

international prototype of the kilogram kept by the International Bureau of Weights and Measures

= 0.001 kilogram

=

gram

= 0.001 gram

=

(b) Imperial Units

1 ton

2 240 pounds

1 hundredweight

---

112 pounds

1 quarter

I stone

1 pound

1 ounce

1 dram

1 grain

1 ounce troy

- 28 pounds

= 14 pounds

=

=

"

0.453 592 37 kilogram exactly

pound

pound

256

pound

7000

12

pound

175

(c) Chinese Units

1 picul (tam) 1 catty (kan)

- 100 catties

=

0.604 789 82 kilogram

1 tael (leung)

=

catty

16

1 mace (tsin)

=

catty

160

1 candareen (fan)

catty

1 600

365

366

Metric Units

kilometre

metre

centimetre

millimetre

Metric Units

hectare

APPENDICES

SECOND SCHEDULE

UNITS OF MEASUREMENT AND PERMITTED SYMBOLS OR ABBREVIATIONS OF UNITS OF MEASUREMENT LAWFUL FOR USE FOR TRADE

PART I

Measurement of Length

Imperial Units

km

mile

m

chain

cm

yard

mm

foot

inch

PART II

Measurement of Area

Imperial Units

Chinese Units chek

tsun

ft

in

Reg

yd

fan

ha

are

square mile

a

square metre

acre

m2

square

decimetre

dm2

square yard

square centimetre

cm2

square foot

ft2

square millimetre

mm2

square inch

FR2

yd2

in2

PART III

Measurement of Volume

Imperial Units

cubic yard

Metric Units

cubic metre

m3

cubic decimetre

dm3

cubic foot

cubic centimetre

cm3

cubic inch

litre

L

PART IV

yd3

ft3

in 3

Measurement of Capacity

Metric Units

cubic metre

Imperial Units

m3

gallon

hectolitre

hL

quart

litre

L

pint

millilitre

mL

gill

Metric Units

gal

qt pt

fl. oz

fluid ounce

PART V

Measurement of Mass or Weight

Imperial Units

tonne

t

kilogram

kg

gram

g

carat (metric)

CM

milligram

mg

ton

hundredweight

quarter stone

pound

ounce

cwt

qr

OZ

dram

dr

grain

gr

ounce, troy

oz tr

Ib

}

Chinese Units

picul

catty

tael

mace

candareen

APPENDICES

APPENDIX 2

(Chapter 2: Constitution and Administration)

The Executive Council

Type of

appointment Names of Members on January 2, 1990

Presided over by His Excellency the Governor Sir David WILSON, KCMG

Ex-officio

Members:

The Chief Secretary

The Honourable Sir David FORD, KBE, LVO, JP

Ex-officio The Commander British Forces

The Honourable Major General P. R. DUFFELL, CBE, MC

Ex-officio The Financial Secretary

The Honourable Sir Piers JACOBS, KBE, JP

Ex-officio The Attorney General

The Honourable J. F. MATHEWS, CMG, JP

Appointed The Honourable Dame Lydia DUNN, DBE, JP

Appointed The Honourable Maria TAM Wai-chu, CBE, JP

Appointed The Honourable Allen LEE Peng-fei, CBE, JP

Appointed Dr the Honourable Daniel TSE Chi-wai, OBE, JP

Appointed The Honourable William PURVES, CBE, DSO, JP

Appointed The Honourable J. J. SWAINE, CBE, QC, JP

Appointed The Honourable Mrs Rosanna Tam Wong Yick-ming, JP

Appointed The Honourable CHENG Hon-kwan, OBE, JP

Appointed The Honourable Mrs Rita FAN HSU Lai-tai, OBE, JP

Appointed The Honourable E. B. WIGGHAM, JP

(Secretary, General Duties)

Appointed Dr the Honourable WANG Gungwu

367

368

APPENDICES

APPENDIX 3

(Chapter 2: Constitution and Administration)

The Legislative Council

Type of

appointment Names of Members on January 2, 1990

President:

Ex-officio His Excellency the Governor

Sir David WILSON, KCMG

Members:

Ex-officio The Chief Secretary

The Honourable Sir David FORD, KBE, LVO, JP

Ex-officio The Financial Secretary

The Honourable Sir Piers JACOBS, KBE, JP

Ex-officio The Attorney General

The Honourable J. F. MATHEWS, CMG, JP Appointed The Honourable Allen LEE Peng-fei, CBE, JP

The Honourable Stephen CHEONG Kam-chuen, CBE, JP The Honourable CHEUNG Yan-lung, OBE, JP

Elected

Elected Appointed The Honourable Mrs Selina CHOW LIANG Shuk-yee, OBE, JP Appointed The Honourable Maria TAM Wai-chu, CBE, JP Appointed Dr the Honourable Henrietta IP Man-hing, OBE, JP

The Honourable CHAN Ying-lun, OBE, JP Appointed The Honourable Mrs Rita FAN HSU Lai-tai, OBE, JP Appointed The Honourable Peter POON Wing-cheung, OBE, JP

Elected The Honourable CHENG Hon-kwan, OBE, JP

Elected

Elected The Honourable CHUNG Pui-lam, JP

Elected

Elected

The Honourable Ho Sai-chu, MBE, JP

The Honourable Hui Yin-fat, OBE, JP

Elected The Honourable Martin LEE Chu-ming, QC, JP Elected The Honourable David Li Kwok-po, JP

Elected The Honourable NGAI Shiu-kit, OBE, JP

The Honourable PANG Chun-hoi, MBE

Elected

Elected Appointed

Elected

Elected

Appointed

Elected

The Honourable POON Chi-fai, JP

Prof the Honourable POON Chung-kwong, JP

The Honourable SZETO Wah

The Honourable TAI Chin-wah, JP

The Honourable Mrs Rosanna TAM WONG Yick-ming, JP

The Honourable TAM Yiu-chung

APPENDICES

       Type of appointment

Elected Elected

Names of Members on January 2, 1990

Dr the Honourable Daniel TSE, OBE, JP The Honourable Andrew WONG Wang-fat, JP Appointed The Honourable LAU Wong-fat, OBE, JP Appointed The Honourable G. BARNES, CBE, JP

          (Secretary for Planning, Environment and Lands) Appointed The Honourable Michael LEUNG Man-kin, JP

(Secretary for Transport)

Appointed The Honourable Edward Ho Sing-tin, JP Appointed The Honourable G. T. BARNES, CBE, JP

(Secretary for Security)

Appointed The Honourable R. J. ARCULLI, JP Appointed The Honourable M. G. BARROW, OBE Appointed The Honourable Paul CHENG Ming-fun

Elected The Honourable Michael CHENG Tak-kin, JP Appointed The Honourable David CHEUNG Chi-kong, JP

The Honourable Ronald CHOW Mei-tak

Elected

Appointed

Appointed

Elected

The Honourable Mrs Nellie FONG WỌNG Kut-man, JP The Honourable Mrs Peggy LAM, MBE, JP The Honourable Daniel LAM Wai-keung, JP Appointed The Honourable Mrs Miriam LAU Kin-yee Appointed The Honourable LAU Wah-sum, JP

Elected Dr the Honourable LEONG Che-hung

The Honourable LEUNG Wai-tung, JP

Appointed

Elected

           The Honourable J. D. MCGREGOR, OBE, ISO, JP Elected The Honourable Kingsley SIT Ho-yin Elected The Honourable Mrs SO CHAU Yim-ping, JP Appointed The Honourable James TIEN Pei-chun, JP

Elected The Honourable Mrs Elsie Tu, CBE

Elected Appointed

The Honourable Peter WONG Hong-yuen, JP The Honourable YEUNG Kai-yin, JP

(Secretary for Education and Manpower)

Appointed The Honourable Mrs Anson CHAN, JP

(Secretary for Economic Services)

Appointed The Honourable Peter TSAO Kwang-yung, CBE, CPM, JP

(Secretary for Home Affairs)

(Secretary for Health and Welfare)

Appointed The Honourable Mrs Elizabeth WONG CHIEN Chi-lien, ISO, JP

369

370

APPENDICES

APPENDIX 4

(Chapter 2: Constitution and Administration)

Urban Council

Elected by Urban Council

Elected by Urban Council

Names of Members on January 2, 1990

Chairman:

Mr Hugh Moss Gerald FORSGATE, CBE, JP (A)

Vice-Chairman:

Mr Stephen Lau Man-lung, OBE, JP (A)

Members:

Mr Hilton CHEONG-LEEN, CBE, JP (E)

Mr Brook Anthony BERNACCHI, OBE, QC, JP (E)

The Honourable Mrs Elsie Tu, CBE (E)

Mr Peter CHAN Chi-kwan (E)

Miss Cecilia YEUNG Lai-yin (E)

Dr Philip Kwok Chi-kuen, JP (A)

Mr Joseph CHAN Yuek-sut (E)

Mr PAO Ping-wing, JP (E)

Mr LAM Chak-piu (E)

Mr Frederick FUNG Kin-kee (E)

Mr TONG Kam-biu (A)

Dr Samuel WONG Ping-wai, MBE, JP (A)

Dr Ronald LEUNG Ding-bong, JP (A)

Mr Lo King-man, JP (A)

Mr FAN Kam-ping (A)

Mr Marvin CHEUNG Kin-tung (A)

Mr CHOW Wai-keung (E)

Mr MAN Sai-cheong (E)

Mr CHAN Kwok-ming (E)

Mr Ronnie WONG Man-chiu (A) Miss Victoria CHAN Ying (A) Mrs Eleanor LING Ching-man (A) Mr Paul YOUNG Tze-kong (A) Dr Stan CHEUNG Tsang-kay (A) Mr Jason YUEN King-yuk (A)

Mr MA Lee-wo (E)

Mr Mok Ying-fan (E)

Mr Daniel WONG Kwok-tung (E)

Mr CHAN Tak-chor (R)

Miss Christina TING Yuk-chee (R)

Mr David FONG Pui-sheung (R)

Mr Dickson PANG Kam-fai (R)

Mr Stephen Ho Fei-chi (R)

Mr Ambrose CHEUNG Wing-sum (R)

Mr Albert POON Shun-kwok (R)

Mr Arthur CHAM Yau-tong (R)

Mr FUNG Kwong-chung (R) Mr John Wu Man-keung (R)

Note: (E) = Elected. (A)= Appointed. (R) = Representative.

APPENDICES

APPENDIX 5

    (Chapter 2: Constitution and Administration) Regional Council

Names of Members on January 2, 1990

Chairman:

The Honourable CHEUNG Yan-lung, OBE, JP (A)

Vice-Chairman:

Mr CHAN Wai-yip (E)

Members:

Mr CHAN Lau-fong, JP (R) Mr CHAN Tin-sung (Ex) Mr CHAU Chun-wing (A) Mr CHEUNG Hon-chung (E) Mr CHEUNG Hon-kau (A) Mr CHEUNG Kuen (R) Mr CHONG Chu-choi (R) Mr CHONG Kam-ning (A) Mr Chow Yick-hay (E) Mr CHOY Kan-pui (R) Dr Ho Man-wui, JP (A) Madam Ho On-nei (A)

Mr Tony KAN Chung-nin (E)

Mr LAI Kam-cheung (E)

Mr LAI Kwok-iu (R)

Mr LAU Hon-kit (A)

The Honourable Mrs Miriam Lau (A)

Mr LAU Kong-wah (E)

The Honourable LAU Wong-fat, OBE, JP (Ex)

Mr Liu Ching-leung, JP (Ex)

Mr MA Ning-hei, MBE, JP (A)

Mr NG Ming-yum (E)

Mr NGAN Kam-chuen (E)

Dr PANG Hok-tuen, JP (A)

Mr Almon POON Chin-hung (E)

Mr SIN Chung-kai (R)

Mr TANG Chi-leung (A)

Mr TANG Pui-tat (R)

Mr Tso Shiu-wai (R)

Mr WAN Yuet-kau (R)

Mr WONG Man-tai (E)

Mr WONG Shui-sang (E)

Mr YOUNG Wing-yau, JP (A)

Note: (A)=Appointed. (E) = Elected.

(R) = Representative (District Board). (Ex) = Ex-officio (Heung Yee Kuk).

371

APPENDICES

APPENDIX 6

I. Overseas Representation in Hong Kong

(A) Commonwealth Countries

Countries

Australia

Bangladesh

Barbados

Belize Canada

Cyprus Gambia India Jamaica

Malaysia

Malta

Mauritius

Represented by

Consul-General Commissioner Honorary Consul Honorary Consul Commissioner Honorary Consul Honorary Consul Commissioner Honorary Consul Commissioner Honorary Consul Honorary Consul

(There also is a Senior British Trade Commissioner)

(B) Foreign Countries

Countries

New Zealand Nigeria Pakistan

St. Lucia Seychelles Singapore Sri Lanka

Represented by

Commissioner

Commissioner

Consul-General

Honorary Consul Honorary Consul Commissioner

Honorary Consul

Tonga

Honorary Consul

Trinidad and

Honorary Consul

Tobago

Honorary Consul

Tuvalu

Countries

Represented by

Countries

Represented by

Austria

Consul-General

Italy

Consul-General

Belgium

Consul-General

Japan

Bhutan

Honorary Consul

Jordan

Bolivia

Korea

Consul-General

Consul-General

Honorary Consul Consul-General

Liberia

Brazil

Consul-General

Honorary Consul

Chile

Honorary Consul

Luxembourg

Honorary Consul

Mexico

Consul-General

Colombia

Consul-General

Monaco

Honorary Consul

Costa Rica

Consul-General

Mozambique

Honorary Consul

Cote d'Ivoire

Honorary Consul

Myanmar

Consul-General

Cuba

Consul-General

Netherlands

Consul-General

Denmark

Consul-General

Nicaragua

Honorary Consul

Dominican Republic

Consul-General

Norway

Consul-General

Egypt

Consul-General

Panama

Consul-General

El Salvador

Honorary Consul

Paraguay

Honorary Consul

Finland

France

Gabon

Honorary Consul

Consul-General Honorary Consul

Peru

Consul-General

Philippines

Consul-General

Portugal

Consul-General

Germany Greece

Consul-General

Senegal

Honorary Consul

South Africa

Consul-General

Honorary

Consul-General

Guatemala

Honorary Consul

Spain Sweden

Switzerland

Consul-General

Consul-General

Consul-General

Guinea

Honorary Consul

Thailand

Consul-General

Honduras

Honorary Consul

United States of

Consul-General

Iceland

Honorary Consul

America

Indonesia

372

Israel

Consul-General Consul-General

Uruguay

Consul-General

Venezuela

Consul-General

APPENDICES

II. Hong Kong Representation Overseas

GOVERNMENT OFFICES

Hong Kong Government Office, 6 Grafton Street, London W1X 3LB, England. Tel.: (01) 499-9821 Cable: HONGAID LONDON Telex: 05128404 HKGOVT G Fax: (01) 493-1964

Hong Kong Economic and Trade Office,

37-39 rue de Vermont (1/F), 1211 Geneva 20, Switzerland.

Tel.: (022) 34-43-51

Cable: PRODROME GENEVA

Telex: 04528880 HKGV CH Fax: (022) 33-99-04

British Embassy, Hong Kong Government Office, Avenue Louise, 228, 1050 Brussels, Belgium. Tel.: (02) 648-38-33 Cable: HONREP BRUSSELS Telex: 04661750 HONREP B Fax: (02) 640-66-55

Hong Kong Economic and Trade Office,

British Embassy, 1233 20th Street, N.W., Suite 504, Washington DC 20036, U.S.A.

Tel.: (202) 331-8947

Cable: PRODROME WASHINGTON

Telex: 023440484 HK WSH UI

Fax: (202) 331-8958

Hong Kong Economic and Trade Office,

British Consulate General, 680 Fifth Avenue, 22nd floor, New York, NY 10019, U.S.A.

Tel.: (212) 265-8888 Telex: 023420086 NYHKO Fax: (212) 974-3209.

Hong Kong Economic and Trade Office,

British Consulate General, 180 Sutter Street,

4/F, San Francisco, CA 94104, U.S.A.

Tel.: (415) 397-2215

Telex: 0230171611 HKIND SFO

Fax: (415) 421-0646

Hong Kong Economic and Trade Office,

No. 32, Kowa Building, 2-32 Minami Azabu 5-chome, Minato Ku, Tokyo, Japan.

Tel.: 81-3-446-8099 Telecopier: 81-3-446-8126 Fax: (03) 446-8126

Industrial Promotion Units

Hong Kong Government Industrial Promotion Unit, 6 Grafton Street, London W1X 3LB, England. Tel.: 44-1-499-9821 Cable: HONGAID LONDON Telex: 05128404 HKGOVT G Telecopier: 44-1-493-1964

Hong Kong Government Industrial Promotion Unit, No. 32, Kowa Building, 2-32 Minami Azabu 5-chome, Minato Ku, Tokyo, Japan.

Tel.: 81-3-446-8099 Telecopier: 81-3-446-8126 Telex: 33457 HKETOTYO

Hong Kong Government Industrial Promotion Unit, Avenue Louise 228, 1050 Brussels, Belgium.

Tel.: 32-2-648-3966 Telex: 04661750 HONREP B Telecopier: 32-2-640-6655

Hong Kong Government Industrial Promotion Unit, 180 Sutter Street, San Francisco, CA 94104, U.S.A. Tel.: 1-415-956-4560

Telex: 0230171611 HKIND SFO Telecopier: 1-415-421-0646

Hong Kong Government Industrial Promotion Unit, 680 Fifth Avenue, 22nd floor, New York,

NY 10019, U.S.A.

Tel.: 1-212-265-7232 Telex: 023420086 NYHKO Telecopier: 1-212-974-3209

OTHER ORGANISATIONS

Hong Kong Trade Development Council

Rotenturmstrasse 1-3/8/24, A-1010 Vienna, Austria. Tel.: 222-5339818

Cable: CONOTRADREP WIEN Telex: 115079 HKTDC A Facsimile: 43-222-5353156

2, Vassileos Alexandrou Str. Athen 11634, Greece Tel.: (301) 7246723/4/5 Telex: 219591 GRAD GR. Facsimile: (301) 724-8922

Prinsengracht 771-773 g/f, 1017 JZ Amsterdam, The Netherlands.

Tel.: (020) 277101

Cable: CONOTRAD AMSTERDAM

Telex: 15081 HKTDC NL Facsimile: 31-20-228529

Bockenheimer Landstrasse 93, D-6000

Frankfurt/Main 1,

Federal Republic of Germany.

Tel.: (069) 740161

Cable: CONOTRAD FRANKFURT

Telex: 414705 COFRA D

Facsimile: 069-745124

Postal Address: P.O. Box 17 03 52, 6000 Frankfurt 1

Federal Republic of Germany

373

374

APPENDICES

Brodschrangen 9, D-2000 Hamburg 11,

  Federal Republic of Germany. Tel.: (49)-040-321838

   Cable: CONOTRAD HAMBURG Telex: 214352 CONHA D

Facsimile: (49)-040-32187

Ankara Cad. No. 74, Ankara Han Kat 1, Sirkeci, Istanbul, Turkey.

Tel.: (901) 5114624, 5208050

Facsimile: 901-527-48-65

Swire House, Ground Floor, 59 Buckingham Gate,

London SWIE 6AJ England.

Tel.: (44)-01-828-1661

   Cable: CONOTRAD LONDON SW1 Telex: 916923 CONLON G

Facsimile: (44)-01-828-9976

2 Piazzetta Pattari, 20122 Milan, Italy.

Tel.: (02) 865405, 865715

Cable: HONGTRAD MILAN

Telex: 333508 HKTDCI Facsimile: 39-2-860304

18 rue D'Aguesseau, 75008 Paris, France.

Tel.: (1) 47 42 41 50 Telex: 283098 HKTDC F Facsimile: 33-1-47427744

  Kungsgatan 6, S-111 43 Stockholm, Sweden. Tel.: (08) 100677, (08) 115690

Cable: CONOTRAD STOCKHOLM

Telex: 11993 TDC S Facsimile: 46-8-7231630

Bellerivestrasse 3, 8008 Zurich, Switzerland. Tel.: (01) 383-29-50

Cable: CONOTRAD ZURICH

Telex: 817850 CONZ CH

Facsimile: 41-1-383-08-13

Balmes, 184, Barcelona 08006, Spain.

Tel.: (3) 217-6250

Answerphone night service: (3) 217-6654

Cable: PUBLICRELATIONS BARCELONA 6

(Spain)

Telex: 97862 SARP E Facsimile: (3) 415-47-48

673 Fifth Avenue, 4/F, New York,

N.Y. 10022, U.S.A.

Tel.: (212) 838-8688

Facsimile: 1-212-838-8941

  333 North Michigan Avenue, Suite 2028, Chicago, Illinois 60601, U.S.A. .

Tel.: (312) 726-4515

Cable: CONOTRAD CHICAGO

Telex: 728335 HONG KONG CGO Facsimile: 1-312-7262441

166 World Trade Centre, 2050 Stemmons Freeway, Dallas, Texas 75207, U.S.A.

Tel.: (214) 748-8162

Cable: HONGTRADS DALLAS

Telex: 62279520

Facsimile: 1-214-7426701

Postal Address: P.O. Box 58329

Dallas, TX 75258, U.S.A.

350 South Figueroa Street, Suite #282, Los Angeles, CA 90071, U.S.A.

Tel.: (213) 622-3194/5, 622-0082

Cable: CONOTRAD LOS ANGELES Facsimile: (213) 613-1490

Courvoisier Centre, 501 Brickell Key Drive, Miami, FL 33131, U.S.A.

Tel.: (305) 577-0414 Facsimile: (305) 371-9142

Suite 1100, National Building,

347 Bay Street, Toronto, Ont. M5H 2R7, Canada. Tel.: (416) 366-3594

Cable: CONOTRAD TORONTO Telex: 06218056 HKTDC TOR Facsimile: 1-416-366-1569

Suite 700, 1550 Alberni Street,

Vancouver, B.C. V6G 1A3, Canada.

Tel.: (604) 669-4444 Facsimile: (604) 681-0093

Condominio Plaza Internacional, Primer Alto,

Oficina No. 27,

Edificio del Banco Nacional de Panama,

Via Espana y Calle 55, Panama,

Republic of Panama.

Tel.: 695894, 695611, 695109

Telex: 2989 HKTDCP PG (From U.S.A. 3682989,

From other countries 3792989)

Postal Address: Apartado Postal 6-4510, El Dorado

Panama, Republica de Panama

Osaka Ekimae Dai-San Building, 6/F, 1-1-3 Umeda, Kita-ku, Osaka 530, Japan.

Tel.: (06) 344-5211/4

Cable: CONNOTRADD OSAKA

Telex: J26917 HKTDCT Facsimile: (06) 347-0791

Toho Twin Tower Building, 4/F, 1-5-2 Yurakucho, Chiyoda-ku, Tokyo 100, Japan.

Tel.: (03) 502-3251/5 Cable: CONNOTRADD TOKYO Telex: J26917 HKTDCT Facsimile: (03) 591-6484

Sakae-Machi Bldg., 4/F, 3-23-31 Nishiki, Naka-ku, Nagoya 460, Japan.

Tel.: 052-971-3626 Facsimile: 052-962-0613

APPENDICES

Room 28-A, 28/F, CITIC Building,

19 Jianguomenwai Dajie Beijing,

People's Republic of China.

Tel.: (86)-1-500-32855 Telex: 22927 HKTDC CN Facsimile: (86)-1-5003285

Room 104, 1/F, Shanghai Union Building, 100 Yanan Dong Lu, Shanghai,

People's Republic of China.

Tel.: 264196, 265935 Telex: 30175 TDCSH CN Facsimile: (86)-21-287478

100 Beach Road #33-01, Shaw Towers, Singapore 0718.

Tel.: 65-2937977 Telex: 40125 MEPLAN Facsimile: 65-2962670

       12/F, Quanta Place, 678 Tun Hwa South Road, Taipei, Taiwan.

Tel.: (886) 02-705-9333 Telex: 23288 QUANTA Facsimile: 886-02-705-9222

71 York Street, Sydney, N.S.W. 2000, Australia. Tel.: (02) 298343/6

         Cable: HONGKONREP SYDNEY Telex: AA121313 CONSYD

Facsimile: 61-2-290 1889

Postal Address: G.P.O. Box 3877

Sydney, N.S.W. 2001, Australia

New Juma Al-Majid Building, Dubai Sharjah Road, Dubai, U.A.E.

Tel.: (9714) 665950, 660664

         Cable: MARKETS DUBAI Telex: 46361 MARKET EM

Facsimile: (9714) 667114

Postal Address: P.O. Box 7434 Dubai, U.A.E.

Hong Kong Tourist Association

Suite 1220, 10940 Wilshire Boulevard, Los Angeles, CA 90024, U.S.A.

Tel.: (213) 208-4582 Telex: 023 3711 534 HKTA Fax: (213) 208-1869

Suite 404, 360 Post Street, San Francisco, CA 94108, U.S.A.

Tel: (415) 781-4582 Fax: (415) 781-5619 Cable: LUYU SAN FRANCISCO

Fifth Floor, 590 Fifth Avenue,

New York, NY 10036-4706, U.S.A.

Tel: (212) 869-5008 Telex: 425817 LUYU UI Fax: (212) 730-2605

Cable: USALUYU NEW YORK

333 N. Michigan Avenue, Suite 2400, Chicago, Illinois 60601-3966, U.S.A.

Tel.: (312) 782-3872

Telex: 023 4330404 DITTRENDDDCGO Fax: (312) 782-0864

Suite 909, 347 Bay Street, Toronto, Ontario, M5H 2R7.

Tel.: (416) 366-2389

Fax: (416) 366-1098

5th Floor, 125 Pall Mall, London SW1Y 5EA, England.

Tel.: (01) 930 4775

Telex: 051 8950160 LUYULO Fax: (01) 930-4777

C/o Sergat Italia, s.r.1., Piazza Dei Cenci 7/A, 00186 Roma, Italy.

Tel.: 686-91-12 Telex: 623033 SERGATI Fax: 687-36-44

38 Avenue George V, (53 rue Francois ler, 7e), 75008 Paris, France.

Tel.: 4720-39-54 Telex: 042 650055 ANI F Fax: 4720-37-86

Wiesenau 1, 6000 Frankfurt /M1, West Germany. Tel.: (069)-722841 Telex: 041 412402 HKTAF D Fax: (069) 721244

Apdo. Correos 30266 08080 Barcelona, Spain. Tel.: (93) 661-0627 Telex: 54687 FGC E Fax: (93) 661-4242

4/F, Toho Twin Tower Building, 1-5-2 Yurakucho, Chiyoda-ku, Tokyo 100, Japan.

Tel.: (03) 503-0731

Telex: 0720 2225678 LUYUTO J

Fax: (03) 503-0736

Hongkong and Shanghai Bank Bldg., 4th floor, 3-6-1 Awaji-machi, Chuo-ku, Osaka 541, Japan. Tel.: (06) 229-9240 Fax: (06) 229-9648

13-08 Ocean Building, 10 Collyer Quay, Singapore 0104, Republic of Singapore.

Tel.: 532-3668 Telex: 087 28515 ĽUYUSN RS Fax: (65) 534-3592

National Australia Bank House, 255 George Street, Sydney, NSW 2000, Australia.

Tel.: (02) 251-2855

Telex: 071 24668 HKTASYD AA

Fax: (02) 221-8425

P.O. Box 2120, Auckland, New Zealand. Tel.: (9) 521-3167 Fax: (9) 521-3165

375

APPENDICES

APPENDIX 7

(Chapter 5: The Economy)

Expenditure on the Gross Domestic Product

at Current Market Prices

$ Million

GDP components

1987

1988+

1989‡

Private consumption expenditure

221,756

257,011

285,000

Government consumption expenditure

25,779

30,008

36,271

Gross domestic fixed capital formation

89,272

112,939

129,831

Change in stocks

9,746

9,537

1,654

Exports of goods

378,034

493,069

570,509

less Imports of goods

379,989

501,174

565,238

Exports of services

70,832

85,407

95,138

less Imports of services

46,155

55,192

61,575

Total expenditure on gross domestic product at current

market prices

369,275

431,605

491,590

Per capita GDP at current market prices ($)

65,785

75,969

85,325

Expenditure on the Gross Domestic Product

at Constant (1980) Market Prices

GDP components

Private consumption expenditure

138,489

150,951

155,512

Government consumption expenditure

13,889

14,600

15,447

Gross domestic fixed capital formation

57,172

60,625

61,241

Change in stocks

6,324

5,552

1,502

Exports of goods

247,164

312,379

344,150

less Imports of goods

244,623

309,691

337,145

Exports of services

44,359

50,182

52,122

less Imports of services

33,353

38,679

40,730

Total expenditure on gross domestic product at constant

(1980) market prices

229,421

245,919

252,099

Per capita GDP at constant (1980) market prices ($)

40,870

43,286

43,757

Note:

Provisional estimates.

376

Preliminary estimates.

APPENDICES

Gross Domestic Product at Current Factor Cost by Economic Activity

1986

1987

1988†

$ Million

%

$ Million

%

$ Million

%

1. Agriculture and fishing

2. Mining and quarrying

1,332 0.5

1,358

0.4

1,437

0.3

346

0.1

257

0.1

259

0.1

3. Manufacturing

62,779

22.3 75,761

21.7

84,155 20.4

4. Electricity, gas and water

8,385

3.0

9,691 2.8

10,212 2.5

5. Construction

13,556

4.8 16,400

4.7

20,327 4.9

6. Wholesale, retail and import/export trades,

restaurants and hotels

59,890 21.3 80,720

23.2 101,857

24.6

7. Transport, storage and communication

22,895

8.1

30,309 8.7 37,636 9.1

8. Financing, insurance, real estate

and business services

48,588 17.3

63,365 18.2

76,971 18.6

9. Community, social and personal services

46,778

16.6

52,298 15.0

60,165 14.5

10. Ownership of premises

30,053

10.7

35,901

10.3

41,619

10.1

less imputed bank service charge

13,079 4.7

17,743 5.1 21,049 5.1

Gross domestic product at factor cost

(production-based estimate)

281,523 100.0

348,317 100.0 413,589 100.0

Indirect taxes less subsidies

14,750

18,649

21,451

Gross domestic product at market prices

(production-based estimate)

296,273

366,966

435,040

Gross domestic product at market prices

(expenditure-based estimate)

Statistical discrepancy

300,818

369,275

431,605

- 1.5%

-0.6%

0.8%

Note: Provisional estimates.

377

378

APPENDICES

APPENDIX 8

(Chapter 5: The Economy)

Total Government Revenue and Expenditure

Revenue

Actual

Actual

1987-88

1988-89

$ Million

Original

Estimate

1989-90

Operating Revenue

Direct taxes

Earnings and profits tax

24,772

29,662

33,715

Indirect taxes

Duties

3,389

4,173

4,710

General rates

1,373

1,517

1,625

Internal revenue (Note 1)

9,723

10,423

10,516

Motor vehicle taxes

1,448

1,922

1,925

Royalties and concessions

511

598

686

Other revenue

Fines, forfeitures and penalties

462

495

503

Properties and investments

761

2,152

2,139

Reimbursements and contributions

1,528

1,765

1,644

Utilities:

Airport and air services

999

1,228

1,407

Car parks

5

6

Ferry terminals

113

157

Government quarries

16

14

20

Postal services

Tunnels

Water

Fees and charges

Interest

Total Operating Revenue

Capital Revenue

Direct taxes

Estate duty

Indirect taxes

Taxi concessions

Other revenue

1,240

1,451

1,612

149

161

179

1,003

1,122

1,326

4,804

4,681

5,315

1,372

2,819

4,458

53,555

64,302

71,938

486

447

460

120

69

136

Land transactions

461

365

171

Repayment of loans, donations and other receipts

20

89

72

Proceeds from commercial profit sharing arrangements

|

509

|

Funds

Capital Works Reserve Fund (Land sales and interest)

3,513

6,393

7,040

Development Loan Fund

810

401

632

Home Ownership Fund

1,835

Student Loan Fund

75

83

90

Total Capital Revenue

7,320

8,356

8,601

Total Government Revenue

60,875

72,658

80,539

Note 1: Including bets and sweeps tax, entertainment tax, hotel accommodation tax, air passenger departure tax, Cross Harbour Tunnel passage tax and

stamp duties.

APPENDICES

$ Million

Expenditure

Original

Actual

Actual

1987-88

1988-89

Estimate

1989-90

Operating Expenditure

Recurrent expenditure

Personal emoluments

Personnel related expenses Pensions

Departmental expenses Other charges Subventions-----

Education

Medical

13,500

15,828

16,858

1,496

1,618

1,866

1,350

1,604

1,665

3,557

3,667

3,960

5,545

6,632

8,326

5,349

6,075

6,364

1,342

1,496

1,589

Miscellaneous

593

794

980

Social welfare

637

776

933

University and Polytechnic

1,957

2,308

2,470

Vocational Training Council

403

462

555

Other non-recurrent

185

775

628*

Debt repayment

405

1,000

Additional commitments

3,950

Total Operating Expenditure

36,319

42,035

51,144

Capital Expenditure

General Revenue Account

Plant, equipment and works

385

378

701

Defence Cost Agreement

42

28

34

Capital subventions

676

202

257

Additional commitments

130

Funds

Capital Works Reserve Fund

7,316

10,574

14,490

Development Loan Fund

1,737

416

2,086

Home Ownership Fund (Note 2)

714

Student Loan Fund

77

Mass Transit Fund

1,109

87

125000

76

13383

90

Total Capital Expenditure

Total Government Expenditure

12,056

11,761

17,921

48,375

53,796

69,065

Note 2: The closing balance of the Home Ownership Fund as at 31 March 1988 amounting $2,795 million was transferred to the Housing Authority on

1 April 1988 to form part of the Government's investment in the permanent capital of the Authority.

* Including additional commitments $210 million.

379

APPENDICES

APPENDIX 8A

Total Government Revenue by Source

$ Million

90,000

80,000

共圖

Estimate

170.0

70,000

H

Actual

60,000

50,000

$30,109 million

41%

40,000

$25,258 million

42%

Actual

$34,175 million 43%

30,000

$16,564 million

$18,702 million 26%

$19,598 million

24%

20,000

27%

10,000

$19,053 million

0

31%

$23,847 million 33%

$26,766 million

33%

1987-88

1988-89

1989-90

380

foo

Direct

taxes

ARIES

Indirect

taxes

Other

revenue

APPENDICES

APPENDIX 9

(Chapter 5: The Economy)

Government Expenditure and the Economy

$ Million

Original

Actual

Actual

Actual

Actual

Estimate

1985-86

1986-87

1987-88

1988-89

1989-90

Government Expenditure (see Appendix 8)

Operating Expenditure

30,328

33,704

36,319

42,035

51,144

Capital Expenditure

10,364

8,998

12,056

11,761

17,921

Total Government Expenditure

40,692

42,702

48,375

53,796

69,065

Less: Debt repayment

(48)

(64)

(405)

(1,000)

Equity injection in MTRC

(1,692)

(1,000)

(87)

Equity injection in

Housing Authority

(70)

(1,430)

Grants to Urban/

Regional Council

(98)

(110)

(273)

(273)

38,854

42,528

46,970

53,366

66,362

Add: Other public sector bodies

4,590

5,402

6,666

11,433

12,248

Total Consolidated Public Sector

Expenditure (Note 1)

43,444

47,930

53,636

64,799

78,610

Gross Domestic Product (calendar year)

261,195

300,818

369,275

431,605†

491,590

Growth in GDP

Money terms

5.0%

15.2%

22.8%

16.9%

13.9%

Real terms

-0.1%

11.9%

13.9%

7.2%

2.5%

Growth in Consolidated Public Sector

Expenditure

Money terms

8.9%

10.3%

11.9%

21.0%

19.9% #

Real terms

2.7%

2.6%

3.5%

7.7%

9.0% #

Consolidated Public Sector Expenditure as

percentage of GDP

16.6%

15.9%

14.5%

15.0%

16.0%

Note:

1. The consolidated public sector expenditure comprises expenditure by the Housing Authority, the Urban Council and from 1986-87, the Regional Council, expenditure financed by the Government's statutory funds and all expenditure charged to the General Revenue Account. Expenditure by institutions in the private or quasi-private sector is included to the extent of their subventions. The activities of government departments which are partly financed by charges raised on a commercial basis are also included (e.g. airport, waterworks). But not included is expenditure by those organisations, including even statutory organisations, in which the Government has only an equity position, such as the Mass Transit Railway Corporation and, post 1982-83, the Kowloon-Canton Railway Corporation. Similarly, debt repayments and equity payments are excluded as they do not reflect the actual consumption of resources by the Government.

+ Provisional estimate.

+ Preliminary estimate.

# Compared with 1988-89 Revised Estimates.

381

APPENDICES

APPENDIX 10

(Chapter 5: The Economy)

Consolidated Public Sector Expenditure by Function

Item

Economic

$ Million

Actual 1987-88

Recurrent

Capital

Total Recurrent

Actual 1988-89

Capital

Original Estimate 1989-90

Total

Recurrent

Capital Total

2,885.0

364.9

3,249.9

3,015.4

529.0 3,544.4

3,543.6

777.5 4,321.1

Security

Internal security

5,806.2

421.4 6,227.6

6,996.6

1,124.4 8,121.0

8,666.8

1,177.2

9,844.0

Immigration

455.5

12.2

467.7

582.5

12.4

594.9

728.3

17.8

746.1

Other

560.6

43.6

604.2

679.4

50.5

729.9

800.6

59.5

860.1

Sub-total

6,822.3

477.2

7,299.5

8,258.5

1,187.3

9,445.8

10,195.7

1,254.5 11,450.2

Social Services

Social welfare

2,758.9

96.7 2,855.6

3,632.6

Health

4,192.4

729.0 4,921.4

4,933.2

171.4 3,804.0

739.4 5,672.6

Sub-total

6,951.3

825.7 7,777.0

8,565.8

910.8 9,476.6

4,623.0 271.3 4,894.3

5,873.7 1,127.1 7,000.8

10,496.7 1,398.4 11,895.1

Education

Environment

8,569.2

862.3 9,431.5

9,905.6 1,449.5 11,355.1

11,551.3

1,513.8 13,065.1

62.9

365.2

428.1

97.6

422.0

519.6

135.2

725,8

861.0

Community and external affairs

Recreation, culture and amenities

2,329.3

832.2 3,161.5

District and community relations

311.5

12.7

324.2

Other

219.2

14.3

233.5

2,665.6

427.4

205.8

11.1

1,016.7 3,682.3

438.5

3,087.6 1,350.4

4,438.0

535.3

14.7

550.0

24.1

229.9

245.8

44.3

290.1

Sub-total

2,860.0

859.2 3,719.2

3,298.8

1,051.9 4,350.7

3,868.7

1,409.4 5,278.1

Infrastructure

Transport

Land and buildings

Water supply

Sub-total

969.0 1,906.0 2,875.0

842.0 2,057.9 2,899.9

1,185.8 600.0 1,785.8

806.6 2,259.4 3,066.0

811.1 2,803.7 3,614.8

1,470.2 602.7 2,072.9

948.0 2,954.0 3,902.0

989.5 4,003.5 4,993.0

1,629.1 836.8 2,465.9

2,996.8 4,563.9 7,560.7

3,087.9

5,665.8 8,753.7

3,566.6 7,794.3 11,360.9

Support

6,557.9

795.9 7,353,8

7,064.3

533.2 7,597.5

8,567.0 1,198.5 9,765.5

Housing

2,254.5

4,561.6 6,816.1

3,035.6 6,719.6 9,755.2

3,255.5 7,357.5 10,613.0

Total

39,959.9

13,675.9 53,635.8

46,329.5

18,469.1 64,798.6 55,180.3 23,429.7 78,610.0

382

APPENDICES

APPENDIX 10A

Consolidated Public Sector Expenditure by Function

$ Million

90,000

80,000

70,000

$4,321.1 Estimate million

5%

Economic

$3,544.4

Actual

million

$11,450.2 million

15%

Security

5%

60,000

$3,249.9 Actual

million

6%

50,000

$7,299.5

million

13%

40,000

$9,445.8 million 15%

$22,508.1 million 29%

$19,231.8 million

$14,593.1 million

30%

30,000

27%

Housing and

social

services

Education

$13,065.1 million

17%

$9,431.5

$11,355.1 million

million

17%

20,000

18%

$9,765.5 million

Support

$7,353.8

million 14%

$7,597.5 million

12%

12%

Community,

10,000

external affairs and

$11,708.0 million

$13,624.0

million

0

22%

21%

1987-88

$17,500.0 million

22%

1988-89

1989-90

others

383

APPENDIX 11

(Chapter 5: The Economy)

Revenue from Duties*

APPENDICES

$ Thousand

Actual

Actual

Estimate

1987-88

1988-89

1989-90

Duty on

Imported hydrocarbon oil

1,419,650

1,608,616

1,821,000

Imported intoxicating liquor

710,089

593,565

613,400

Imported liquor other than intoxicating liquor

4,446

5,180

2,520

Imported methyl alcohol

454

513

490

Imported tobacco

637,425

1,234,777

1,390,000

Locally manufactured liquor

254,878

300,603

345,500

Non-alcoholic beverages

180,949

199,161

199,300

Cosmetics

181,046

230,601

246,000

Total

3,388,937

4,173,016

4,618,210

Note: * These figures represent net revenue collected, ie after deducting refunds and drawbacks of duty.

Licence Fees under the Dutiable Commodities Ordinance #

Hydrocarbon oil

1,203

1,394

398

Liquor

5,779

5,853

1,798

Tobacco

1,367

1,400

437

Import and Export

987

Warehouse

120

Miscellaneous

1,137

1,211

442

Total

9,486

9,858

4,182

Note: The Dutiable Commodities (Amendment) (No. 2) Ordinance 1989 came into force on 1 August 1989 whereby composite products containing liquor, hydrocarbon oil or methyl alcohol as an ingredient are excluded from the application of the Dutiable Commodities Ordinance. With effect from the same date, the Dutiable Commodities (Amendment) Regulations 1989 also came into operation whereby separate licences, currently required for each category of dutiable commodities that are being stored, imported or exported, are replaced by one licence to store, and one licence to import and export, one or more categories of dutiable commodities. Moreover, dealer's and retailer's licences for selling goods to which the Dutiable Commodities Ordinance applies are abolished. As a result of these law amendments, a total of 23 872 licences has been abolished.

Miscellaneous Fees under the Dutiable Commodities Ordinance

Denaturing

Bonded warehouse supervision

Total

384

2,551

3,464

2,200

17,275

17,330

18,070

19,826

20,794

20,270

APPENDICES

APPENDIX 12

(Chapter 6: Financial and Monetary Affairs)

Exchange Value of the Hong Kong Dollar

(A) Historical changes in the exchange rate system

grams of fine gold

Par value of

the HK$ in

£1 =

US$I=

SDRI =

HK$

HKS

HK$

December 18, 1946

IMF parities established; Hong Kong dollar is pegged to sterling

0.223834

16.00

3.970

September 18, 1949

Hong Kong dollar devalued pari passu with sterling by 30.5%

0.155517

16.00

5.714

November 20, 1967

Hong Kong dollar devalued pari passu with sterling by 14.3%

0.133300

16.00

6.667

November 23, 1967

         Hong Kong dollar revalued by 10%, including against sterling, but continues pegged to sterling, at new rate

December 18, 1971

0.146631

14.55

6.061

As part of the general currency realignment, Hong Kong dollar and sterling appreciate by 8.57% against US dollar. As a result of USA terminating, in August 1971, the convertibility of US dollar into gold, gold par value no longer has a practical meaning, IMF begins to adopt the SDR as its accounting unit

July 6, 1972

Hong Kong dollar pegged to US dollar following the floating of sterling

February 14, 1973

US dollar devalued; Hong Kong dollar remains pegged,

at new rate

November 26, 1974

Hong Kong dollar allowed to float, ie the government no longer undertakes to maintain a particular rate against any other currency

October 17, 1983

Hong Kong dollar was linked to US dollar, through a new arrangement in the note-issue mechanism, at a fixed exchange rate of HK$7.80=US$1

14.55

5.582

6.061

5.650

6.134

5.085

6.134

(B) Exchange rates of the Hong Kong dollar against several major currencies

9.11

11.27

US$

DM

¥

(HK dollars to one unit of foreign currency)

4.910

7.823

7.811

2.03

2.49

3.18

0.0312

0.0390

SDR

6.012

Effective exchange rate* (24-28 Oct 1983=100)

150.7

112.7

rimir

0.0164

7.668

115.4

8.580

110.3

100.5

100.6

109.3

End of period

1974

11.53

1984

1985

1986

11.48

1987

14.52

7.795

7.760

0.0488

0.0637

1988

14.17

7.808

4.42

0.0626

10.507

1989

12.60

7.807

4.63

0.0544

10.261

Note:

4.01

4.91

9.534

11.009

* The effective exchange rate index is derived from a weighted average of nominal exchange rates of the Hong Kong dollar against the currencies

of 15 principal trading partners.

385

APPENDICES

APPENDIX 13

(Chapter 6: Financial and Monetary Affairs)

Money Supply

$ Million

As at end of year

1987

Foreign

HK$

currency

Total

HK$

1988 Foreign currency

Total

HK$

1989 Foreign currency

Total

Legal tender coins and notes in circulation

Commercial bank issues (A)

26,926

26,926

31,826

31,826

37,286

37,286

The Hongkong and Shanghai Banking

Corporation Limited

22,504

22,504

26,734

26,734

31,264

31,264

Standard Chartered Bank

4,422

4,422

5,092

5,092

6,022

6,022

Government issues (B)

1,841

1,841

2,262

2,262

2,384

2,384

One thousand-dollar gold coins

372

372

372

372

Five-dollar coins

451

451

624

624

6797929

372

679

Two-dollar coins

368

368

493

493

522

522

One-dollar coins

337

337

417

417

433

T

433

Subsidiary coins

311

311

355

355

377

I

377

One-cent notes

1

1

1

1

1

Licensed banks' and deposit-taking companies' holdings of legal tender coins and notes (C)

4,002

4,002

4,210

4,210

5,478

5,478

Legal tender coins and notes in hands of

public (A+B-C)=(D)

24,764

24,764 29,877

29,877

34,192

34,192

Demand deposits with licensed banks (E)

49,061

8,076 57,138 49,381 9,577

58,958 50,992

9,675 60,666

Time deposits with licensed banks (F)

Negotiable certificates of deposit issued by banks (other than those held by banks and deposit- taking companies) (G)

90,820 312,619 403,439 145,637 398,865 544,502 171,725 512,077 683,802

7,653 2,940 10,592

11,219 4,563 15,782

11,665 5,325 16,990

Savings deposits with licensed banks (H)

138,612 42,497 181,109

118,951 56,578 175,529

135,413 57,773 193,186

Deposits with deposit-taking companies (I)

31,049

30,875 61,924 32,775 33,756 66,531 29,511 40,493 70,004

Negotiable certificates of deposit issued by deposit-taking companies (other than those held by banks and deposit-taking companies) (J)

Money supply

Definition 1 (D+E)

888

3,499 4,386

1,213

951

2,164

879

488

1,367

Definition 2 (D+E+F+G+H)

386

Definition 3 (D+E+F+G+H+I+J)

73,826 8,076 81,902

310,910 366,132 677,042

342,847 400,506 743,353

79,257 9,577 88,834 85,183 9,675 94,858

355,065 469,583 824,648 403,987 584,849 988,836

389,052 504,291 893,342 434,376 625,831 1,060,207

APPENDICES

APPENDIX 14

(Chapter 6: Financial and Monetary Affairs)

Liabilities and Assets: Licensed Banks

Liabilities

1987 Foreign

HK$ currency Total

As at end of year

1988 Foreign HK$ currency

Total

1989 Foreign HK$ currency

$ Million

Total

Amount due to banks and deposit-taking

companies in Hong Kong

124,245 197,566 321,811

Amount due to banks abroad

24,809 1,632,839 1,657,648

Deposits from customers

Negotiable certificates of deposit outstanding

Other liabilities

278,494 363,192 641,685

21,113 6,582 27,695

57,126 46,532 103,658

149,007 195,443 344,449

48,304 1,955,791 2,004,095

313,969 465,020 778,989

22,335 7,676 30,012

63,569 65,280 128,849

194,105 216,150 410,255

82,077 2,259,893 2,341,970

358,130 579,524 937,654

23,483 7,536 31,019

74,409 79,039 153,448

Total liabilities

505,786 2,246,711 2,752,497

597,184 2,689,210 3,286,394

732,204 3,142,141 3,874,345

Assets

Notes and coins

3,996

3,996

4,203

4,203

5,467

5,467

Amount due from banks and deposit-taking

companies in Hong Kong

Amount due from banks abroad

128,437 269,710 398,147

25,520 1,468,285 1,493,805

149,581 234,843 384,424

30,811 1,770,582 1,801,393

198,169 248,340 446,508

22,042 1,957,288 1,979,330

Negotiable certificates of deposit held:

Issued by banks in Hong Kong

8,524

2,016 10,541

7,570 1,974 9,544

7,307 1,432 8,739

Issued by deposit-taking companies in

Hong Kong

Issued by banks outside Hong Kong

1,082

206 1,288

99 8,359 8,458

958

114

223 1,181

8,936 9,051

662

114

125

8,000

787

8,115

Loans and advances to customers:

To finance imports to, and exports and

re-exports from Hong Kong

23,318

18,201 41,519

29,104

24,952 54,056

31,873

27,857 59,730

To finance merchandising trade not

touching Hong Kong

Other loans for use in Hong Kong

510

232,769

Other loans for use outside Hong Kong

Other loans where the place of use is not known

Total loans and advances

8,397

2,613

267,607

Bank acceptances and bank bills of exchange held

Floating rate notes and commercial paper held

5,951 6,461

74,308 307,077

249,865 258,262

50,139 52,753

398,464 666,072

1,164 15,627 16,791

7,547 37,906 45,452

1,371

10,211 11,582

313,626 93,068 406,693

10,539 332,755 343,294

4,077 46,778 50,855

358,716 507,764 866,480

1,335 17,063 18,398

8,499 44,005 52,504

1,921 7,670 9,591

426,450 103,570 530,019

8,803 461,329 470,131

5,297 98,237 103,534

474,343 698,662 1,173,005

1,308 21,937 23,245

9,145 45,535 54,679

Treasury bills, securities, shareholdings and

interests in land and buildings

Other assets

27,556

14,391

17,984 45,540

48,017 62,408

27,780 30,843 58,624

18,270 62,324 80,593

29,278 42,485 71,763

23,415 79,293 102,708

Total assets

485,924 2,266,573 2,752,497

607,837 2,678,557 3,286,394

771,250 3,103,095 3,874,345

Number of licensed banks in operation

154

158

165

387

APPENDICES

Liabilities and Assets: Deposit-taking Companies

1987 Foreign

HK$ currency Total

As at end of year

1988 Foreign HK$ currency Total

HK$

1989 Foreign currency

$ Million

Total

Liabilities

Amount due to banks and deposit-taking

companies in Hong Kong

Amount due to banks abroad

Deposits from customers

Negotiable certificates of deposit outstanding

Other liabilities

48,598 114,877 163,475

2,270 141,550 143,820

31,049 30,875 61,924

2,668 4,055 6,722

16,409 72,942 89,351

40,846 75,552 116,397

4,180 123,831 128,011

32,775 33,756 66,531

2,733 1,365 4,098

18,101 78,444 96,545

40,727

1,844 84,565 86,408

71,388 112,115

29,511

2,120

19,176 82,537 101,713

40,493 70,004

757 2,878

Total liabilities

100,994 364,299 465,292

98,634 312,948 411,582

93,377 279,741 373,118

Assets

Notes and coins

6

6

7

7

12

12

Amount due from banks and deposit-taking

companies in Hong Kong

Amount due from banks abroad

908 116,316

44,349 42,986 87,335

117,224

40,178 37,785

77,963

35,299

41,160 76,459

960 124,893 125,852

866

97,763

98,630

Negotiable certificates of deposit held:

Issued by banks in Hong Kong

4,936

1,626

6,562

3,547

1,139

4,686

4,511

779

5,290

Issued by deposit-taking companies in

Hong Kong

698

350

1,048

562

191

754

580

144

725

Issued by banks outside Hong Kong

2 13,713

13,714

9 7,949

7,957

41

4,084

4,125

Loans and advances to customers:

To finance imports to, and exports and

re-exports from Hong Kong

1,213

1,524

2,737

1,342

1,623

2,965

1,690

2,142

3,832

To finance merchandising trade not

touching Hong Kong

28

513

541

Other loans for use in Hong Kong

38,767

Other loans for use outside Hong Kong

1,194

Other loans where the place of use is not known

Total loans and advances

536

41,738

6,841 45,608

53,074 54,268

9,020 9,556

70,972 112,710

51

42,883 6,911 49,794

1,256 36,974 38,230

323 3,622 3,946

45,856 49,842 95,697

711

763

9

828

836

47,243

7,332

54,574

1,492

33,773

35,265

463

3,923 4,387

50,896

47,997

98,894

Bank acceptances and bank bills of exchange held

48

572

620

61

Floating rate notes and commercial paper held

3,717 45,960

49,677

1,001

2,805 34,627 37,432

941

45

775

820

3,013

35,366 38,379

Treasury bills, securities, shareholdings and

interests in land and buildings

Other assets

1,520 35,423 36,942

2,997 36,458 39,455

1,609 24,080 25,689

2,766 31,778 34,545

1,730 18,483 20,213

2,688 26,886 29,574

Total assets

100,918 364,374 465,292

98,359 313,223 411,582

99,680 273,438 373,118

388

Number of deposit-taking companies in operation

267

251

238

APPENDICES

APPENDIX 15

(Chapter 7: Industry and Trade)

Hong Kong's External Trade by Major Trading Partners

Imports

1987

1988

1989

1988-89 Change in

$ Million

Per cent

$ Million

Per cent

$ Million

Per cent

per cent

Source

China

117,357

31.1

155,634

31.2

196,676

34.9

+26.4

Japan

71,905

19.0

93,008

18:6

93,202

16.6

+0.2

Taiwan

33,337

8.8

44,357

8.9

51,587

9.2

+16.3

United States

32,242

8.5

41,347

8.3

46,234

8.2

+11.8

Republic of Korea.

16,959

4.5

26,257

5.3

25,465

4.5

-3.0

Singapore

14,357

3.8

18,462

3.7

22,244

4.0

+20.5

Federal Republic of Germany

10,166

2.7

13,055

2.6

13,591

2.4

+4.1

United Kingdom

11,713

3.1

12,922

2.6

12,965

2.3

+0.3

Italy

6,170

1.6

8,056

1.6

9,901

1.8

+22.9

Switzerland

7,375

2.0

9,130

1.8

9,696

1.7

+6.2

Others

56,367

14.9

76,571

15.4

81,220

14.4

+6.1

Merchandise total

377,948

100.0

498,798

100.0

562,781

100.0

+12.8

Domestic Exports

Destination

United States

72,817

37.3

72,884

33.5

72,162

32.2

- 1.0

China

27,871

14.3

38,043

17.5

43,272

19.3

+13.7

Federal Republic of Germany

14,855

7.6

16,157

7.4

15,689

7.0

-2.9

United Kingdom

12,905

6.6

15,524

7.1

14,638

6.5

-5.7

Japan

9,489

4.9

11,435

5.3

13,028

5.8

+13.9

Canada

5,656

2.9

5,984

2.7

6,299

2.8

+5.3

Singapore

3,880

2.0

5,223

2.4

5,804

2.6

+11.1

Netherlands

4,027

2.1

4,918

2.3

4,756

2.1

-3.3

Taiwan

2,384

1.2

3,460

1.6

4,460

2.0

+28.9

Australia

3,697

1.9

4,172

1.9

4,198

1.9

+0.6

Others

37,673

19.3

39,863

18.3

39,799

17.8

-0.2

Merchandise total

195,254

100.0

217,664

100.0

224,104

100.0

+3.0

Re-exports

Destination

China

60,170

32.9

94,895

34.5

103,492

29.9

+9.1

United States

32,454

17.8

49,483

18.0

72,033

20.8

+45.6

Japan

9,772

5.3

17,418

6.3

22,268

6.4

+27.8

Taiwan

9,685

5.3

14,130

5.1

16,478

4.8

+16.6

Republic of Korea

8,969

4.9

11,764

4.3

13,279

3.8

+12.9

Federal Republic of Germany

5,533

3.0

8,637

3.1

13,121

3.8

+51.9

Singapore

6,481

3.5

8,703

3.2

11,029

3.2

+26.7

United Kingdom

4,271

2.3

6,420

2.3

8,918

2.6

+38.9

Australia

2,913

1.6

4,459

1.6

5,760

1.7

+29.2

Canada

2,502

1.4

3,742

1.4

5,413

1.6

+44.7

Others

40,031

21.9

55,756

20.2

74,615

21.5

+33.8

Merchandise total

182,780

100.0

275,405

100.0

346,405

100.0

+25.8

389

APPENDIX 16A

APPENDICES

(Chapter 7: Industry and Trade)

Hong Kong's External Trade Analysed by Standard International Trade Classification Revision 2 (SITC Rev. 2)

Imports

Section/division

Food and live animals chiefly for food

Live animals chiefly for food

Meat and meat preparations

Fish, crustaceans and molluscs, and preparations thereof

Cereals and cereal preparations

Vegetables and fruit

Others

Sub-total

$ Million

1987

1988

1989

2,254

2,351

2,369

2,952

3,473

4,047

6,121

7,920

7,592

1,995

2,300

2,851

6,449

8,046

8,604

5,759

7,212

7,459

25,530

31,303

32,922

Beverages and tobacco

Beverages

2,355

2,630

3,474

Tobacco and tobacco manufactures

3,105

5,022

6,362

Sub-total

5,460

7,652

9,836

Crude materials, inedible, except fuels

Hides, skins and furskins, raw

2,407

2,156

1,760

Textile fibres (other than wool tops) and their wastes (not manufactured into yarn or fabric)

5,522

6,234

7,124

Metalliferous ores and metal scrap

406

942

1,309

Crude animal and vegetable materials, n e s

4,343

4,968

4,836

Others

2,127

2,742

2,602

Sub-total

14,806

17,042

17,632

Mineral fuels, lubricants and related materials

Petroleum, petroleum products and related materials Others

Sub-total

Animal and vegetable oils, fats and waxes

Fixed vegetable oils and fats

Others

Sub-total

7,218

7,000

10,489

2,254

2,520

2,993

9,472

9,520

13,482

638

759

988

34

27

53

672

786

1,041

Chemicals and related products, ne s

Organic chemicals

4,045

5,138

5,623

Dyeing, tanning and colouring materials

3,659

4,441

4,899

Artificial resins and plastic materials, and cellulose esters and ethers Others

10,921

20,130

17,956

12,055

14,950

15,149

Sub-total

30,679

44,659

43,627

Manufactured goods classified chiefly by materials

Paper, paperboard, and articles of paper pulp, of paper or of paperboard

7.811

9,942

10,791

Textile yarn, fabrics, made-up articles, ne s and related products

57,316

62,969

72,454

Non-metallic mineral manufactures, n es

15,193

20,180

22,101

Iron and steel

7,939

12,139

11,900

Others

19,283

26,530

28,631

Sub-total

107,542

131,760

145,879

Machinery and transport equipment

Office machines and automatic data processing equipment

9,642

14,393

14,984

Telecommunications and sound recording and reproducing apparatus and equipment Electrical machinery, apparatus and appliances, n e s, and electrical parts thereof Others

21,713

32,871

39,567

35,046

52,575

56,862

31,784

43,846

44,791

Sub-total

98,184

143,685

156,204

Miscellaneous manufactured articles

Travel goods, handbags and similar containers

5,912

8,459

10,156

Articles of apparel and clothing accessories

26,031

32,022

44,461

Photographic apparatus, equipment and supplies and optical goods, n e s; watches and clocks Miscellaneous manufactured articles, n e s

20,783

27,467

29,757

21,323

28,747

37,522

Others

9,492

13,318

17,462

Sub-total

83,541

110,013

139,358

Commodities and transactions not classified according to kind

2,061

2,380

2,801

Total merchandise

377,948

498,798

562,781

Gold and specie

18,648

52,076

44,689

Grand total

396,596

550,874

607,470

390

Note:

nes not elsewhere specified.

Domestic Exports

APPENDICES

$ Million

Section/division

1987

1988

1989

Food and live animals chiefly for food

Fish, crustaceans and molluscs, and preparations thereof Cereals and cereal preparations

767

890

819

156

219

275

Miscellaneous edible products and preparations

463

501

518

344

406

485

1,730

2,016

2,097

Others

Sub-total

Beverages and tobacco

Beverages

Tobacco and tobacco manufactures

Sub-total

Crude materials, inedible, except fuels

Pulp and waste paper

Metalliferous ores and metal scrap

Crude animal and vegetable materials, n e s Others

Sub-total

Mineral fuels, lubricants and related materials

Animal and vegetable oils, fats and waxes

Chemicals and related products, ne s

Dyeing, tanning and colouring materials

32/5/

237

321

327

1,294

1,765

2,013

1,531

2,086

2,340

403

473

454

1,203

1,477

1,650

187

131

120

120

126

132

1,912

2,207

2,356

502

521

669

18

71

97

224

374

406

Essential oils and perfume materials; toilet, polishing and cleansing preparations Artificial resins and plastic materials, and cellulose esters and ethers

497

578

551

1,344

2,617

3,586

Chemical materials and products n e s

223

339

425

Others

Sub-total

Manufactured goods classified chiefly by materials

Paper, paperboard, and articles of paper pulp, of paper or of paperboard Textile yarn, fabrics, made-up articles, n e s and related products Non-metallic mineral manufactures, n e s

Manufactures of metal, ne s

Others

223

300

378

ཧཱི།

2,512

།ཏྭཾ།

4,208

5,347

1,349

1,757

1,920

16,005

15,551

16,814

1,055

1,125

1,060

4,510

5.659

5,317

1,238

1,751

1,885

Sub-total

24,157

25,844

26,996

Machinery and transport equipment

Office machines and automatic data processing equipment

9,373

13,897

15,464

Telecommunications and sound recording and reproducing apparatus and equipment Electrical machinery, apparatus and appliances, n e s, and electrical parts thereof Others

14,873

17,319

16,096

14,501

17,498

17,888

4,407

6,389

6,787

Sub-total

43,155

55,104

56,235

Miscellaneous manufactured articles

Sanitary, plumbing, heating and lighting fixtures and fittings, ne s

1,473

1,578

1,282

Travel goods, handbags and similar containers

1,658

1,468

1,271

Articles of apparel and clothing accessories

65,321

67,309

71,874

Footwear

1,448

1,475

1,188

Professional, scientific and controlling instruments and apparatus, ne s

1,012

1,384

1,551

Photographic apparatus, equipment and supplies and optical goods, n e s; watches and clocks Miscellaneous manufactured articles, n e s

15,646

19,317

19,602

29,983

29,911

27,867

Others

668

646

545

Sub-total

117,208

123,087

125,180

Commodities and transactions not classified according to kind

2,529

2,519

2,786

Total merchandise

195,254

217,664

224,104

Gold and specie

Grand total

Note:

nes=not elsewhere specified.

195,254

217,664

224,104

391

Re-exports

APPENDICES

$ Million

Section/division

1987

1988

1989

Food and live animals chiefly for food

Fish, crustaceans and molluscs, and preparations thereof

2,933

4,521

4,232

Vegetables and fruit

2,197

3,311

3,465

Coffee, tea, cocoa, spices, and manufactures thereof

708

1,045

795

Miscellaneous edible products and preparations

557

582

587

Others

1,083

1,664

2,290

Sub-total

Beverages and tobacco

7,477

11,123

11,370

Beverages

550

812

975

Tobacco and tobacco manufactures

1,586

2,879

3,865

Sub-total

2,135

3,690

4,840

Crude materials, inedible, except fuels

Hides, skins and furskins, raw

548

826

675

Textile fibres (other than wool tops) and their wastes (not manufactured into yarn or fabric)

3,674

4,671

4,934

Metalliferous ores and metal scrap

443

1,054

1,262

Crude animal and vegetable materials, n e s

3,289

4,271

4,234

Others

1,030

1,583

1,579

Sub-total

8,984

12,405

12,684

Mineral fuels, lubricants and related materials

Petroleum, petroleum products and related materials

Others

1,183

1,628

3,484

41

49

68

Sub-total

1,224

1,677

3,553

Animal and vegetable oils, fats and waxes

241

271

436

Chemicals and related products, ne s

Organic chemicals

2,246

3,043

3,470

Medicinal and pharmaceutical products

2,336

2,928

3,032

Artificial resins and plastic materials, and cellulose esters and ethers Others

3,746

9,286

8,078

7,037

9,383

9,927

Sub-total

15,364

24,641

24,506

Manufactured goods classified chiefly by materials

Textile yarn, fabrics, made-up articles, ne s and related products

28,332

34,375

42,529

Non-metallic mineral manufactures, n e s

5,176

7,912

10,629

Non-ferrous metals

2,501

4,689

4,255

Manufactures of metal, n e s

3,010

4,238

5,883

Others

6,518

10,849

13,131

Sub-total

45,536

62,063

76,427

Machinery and transport equipment

Machinery specialised for particular industries

5,342

7,651

8,240

Office machines and automatic data processing equipment

4,940

6,732

8,142

Telecommunications and sound recording and reproducing apparatus and equipment Electrical machinery, apparatus and appliances, n e s, and electrical parts thereof Others

11,955

19,858

27,552

15,956

28,661

33,550

7,357

14,524

15,475

Sub-total

45,551

77,426

92,960

Miscellaneous manufactured articles

Travel goods, handbags and similar containers

5,831

8,942

11,823

Articles of apparel and clothing accessories

18,279

24,697

37,281

Photographic apparatus, equipment and supplies and optical goods, n e s; watches and clocks Miscellaneous manufactured articles, n e s

8,163

10,597

13,485

17,884

28,328

42,359

Others

5,272

8,611

13,532

Sub-total

55,429

81,175

118,479

Commodities and transactions not classified according to kind

Total merchandise

Gold and specie

Grand total

838

182,780

2,337

185,118

934

275,405

1,151

346,405

2,816

278,221

1,797

348,203

392

Note:

ne s=not elsewhere specified.

APPENDICES

APPENDIX 16B

(Chapter 7: Industry and Trade)

Hong Kong's Domestic Exports of Principal Commodity Groups

1987

1988

1989

Commodity groups (1)

$ Million

$ Million

$ Million

Percentage

Change 1989 Over

1988

Textiles and clothing

81,326

82,860

88,688

+7

Electronic products (2)

42,048

55,561

55,818

Watches and clocks (2)

13,856

17,346

17,075

--2

Plastic products

13,876

11,847

9,911

- 16

Electrical appliances

5,606

5,460

4,251

-22

Notes:

Total domestic exports(2) of the above 5 groups

146,860

160,512

163,516

+2

As a % of all domestic exports

75%

74%

73%

(1) For a breakdown of Hong Kong's external trade by the Standard International Trade Classification (SITC) Revision 2, the table in Appendix 16A should be referred to. The statistics there are presented according to the complete classification of commodities by SITC Section, and within each Section, by major SITC Division. The table presented here is compiled for the convenience of those readers who may be more interested in domestic exports of certain commodity groups which are commonly referred to but which may not be readily derived from Appendix 16A because each of them cuts across two or more SITC Sections, Divisions or sub-classifications within such Sections and Divisions.

(2) There is some overlapping in the commodity coverage of 'electronic products' and 'watches and clocks'. Some commodity items, such as digital electronic watches, are included in both groups. However, the values of these items are counted only once in the value of 'total domestic exports of the above 5 groups'.

(3) The correspondence between the commodity groups in the above table and the Sections/Divisions in Appendix 16A is as follows:-

(i) The commodity group 'textiles and clothing' shown in the above table corresponds to the total of the divisions 'textile yarn, fabrics,

made-up articles, n.e.s. and related products" and 'articles of apparel and clothing accessories' in Appendix 16A.

The commodity group 'electronic products' in the above table has been obtained by re-grouping some commodity items in the SITC Revision 2. A commodity item is a more refined level of breakdown than the commodity Divisions shown in Appendix 16A. Those items constituting 'electronic products' spread across and are part of several commodity Divisions, namely, 'office machines and automatic data processing equipment', 'telecommunications and sound recording and reproducing apparatus and equipment', 'electrical machinery, apparatus and appliances, n.e.s. and electrical parts thereof, 'professional, scientific and controlling instruments and apparatus, n.e.s.', 'photographic apparatus, equipment and supplies and optical goods, n.e.s.; watches and clocks', and 'miscellaneous manufactured articles, n.e.s.'.

(iii) The commodity group 'plastic products' shown in the above table has been obtained by re-grouping some commodity items from several Divisions, namely, 'Miscellaneous manufactured articles, n.e.s.' and a few others which are collectively shown as 'others' under the Section 'Miscellaneous manufactured articles' in Appendix 16A.

(iv) The commodity group 'watches and clocks' shown in the above table includes mainly items from the Division Photographic apparatus, equipment and supplies and optical goods, n.e.s.; watches and clocks', plus the item metal watch bands which belongs to 'miscellaneous manufactured articles, n.e.s.' in Appendix 16A.

(v) The commodity group 'electrical appliances' shown in the above table is part of the Division 'Electrical machinery, apparatus and

appliances, n.e.s. and electrical parts thereof in Appendix 16A.

* Denotes less than 0.5%.

393

394

APPENDICES

APPENDIX 17

(Chapter 8: Employment)

Number of Establishments and Employment in Manufacturing Industry Analysed by International Standard Industrial Classification Revision 2 (ISIC Rev. 2)

Major group/Group

Food products

Bakery products

Others

Sub-total

Beverages

Tobacco

Textiles (including knitwear from yarn)

No. of establishments

No. of persons engaged

Sep 1987

Sep 1988

Sep 1989

Sep 1987

Sep 1988

Sep 1989

355

597

601

952

941

30

ཙྪིཙྩཎྞཱ ཡ

340

359

6 502

6 323

6 596

584

11 677

11 730

11 132

943

18 179

18 053

17 728

25

4 562

4 422

4 245

6

7

7

1080

1 214

1 166

Bleaching and dyeing

Knitwear from yarn

Others

Sub-total

415

436

437

20 536

20 811

22 486

1 764

1 714

1 598

47 032

44 526

44 369

3 155

3 152

3.159

54 984

51 594

51 371

5334

5302

5 194

122 552

116 931

118 226

Wearing apparel, except footwear and knitwear from yarn

   Garments except knitwear from yarn and leather garments Gloves

7 882

7796

7 262

235 432

227 571

217 070

256

245

217

3814

3 621

2985

Handbags

612

575

498

7 541

6 029

4 865

Others

606

612

554

11 697

10 503

9 955

Sub-total

9 356

9 228

8 531

258 484

247 724

234 875

Leather and leather products, except footwear and

wearing apparel

256

256

220

3 155

2 903

2 398

Footwear, except rubber, plastic and wooden footwear

489

420

404

8 338

7710

5 239

Wood and cork products, except furniture

Rattan articles

104

93

69

688

521

377

Others

806

Sub-total

910

Furniture and fixtures, except primarily of metal

Wooden furniture and fixtures

Others

Sub-total

ཥྞཚོ་ྲ

777

694

3 773

3 523

870

763

4 461

4 044

3 105

3482

948

891

870

5 749

5 130

5 096

324

300

314

2 123

1913

1 783

1 272

1 191

1 184

7872

7043

6 879

Paper and paper products

Containers and boxes of paper and paperboard

1 100

1 131

1 162

9 777

10 314

10 994

Others

540

626

663

5 534

6 285

7 007

Sub-total

1 640

1757

1 825

15 311

16 599

18 001

Printing, publishing and allied industries

3 577

3 811

3 980

33 702

34 486

36 414

Chemicals and chemical products

869

897

882

8 895

8 916

8727

Products of petroleum and coal

3

3

3

183

206

217

Rubber products

Rubber footwear

Others

Sub-total

Plastic products

Plastic toys Others

Sub-total

28

20

10

486

345

172

206

198

196

1 390

1 307

1 438

234

218

206

1876

1 652

1610

1 645

1 516

1 560

39 850

30 675

25 056

4 073

4056

4 061

43 979

41 737

38 501

5718

5 572

5 621

83 829

72 412

63 557

Major group/Group

Non-metallic mineral products, except products of petroleum

and coal

Glass and glass products

Others

Sub-total

APPENDICES

No. of establishments

No. of persons engaged

Sep 1987

Sep 1988

Sep 1989

Sep 1987

Sep 1988

Sep 1989

124

126

116

1 374

1 346

1015

270

301

312

3 589

3 024

3 059

394

427

428

4 963

4 370

4 074

Basic metal industries

Iron and steel basic industries

106

102

115

1 560

1 401

1 449

Others

176

181

151

2019

1979

1953

Sub-total

282

283

266

3 579

3.380

3.402

Fabricated metal products, except machinery and equipment Metal toys

238

245

228

3 022

2 887

2099

Torches, torch cases and parts, except torch bulbs

97

87

92

4 141

3 475

2910

Wrist watch bands

329

343

325

4 030

3.996

3 281

Others

6 146

6 104

5935

51 282

50 802

47 236

Sub-total

6 810

6 779

6 580

62 475

61 160

55 526

Machinery except electrical

Special industrial machinery and equipment, except metal

and wood working machinery

1 347

1 422

1 466

8 $62

9 478

9 289

Office machinery

38

40

40

1 187

1 624

2 439

Others

3 233

3 493

3 822

15 891

17 425

18 632

Sub-total

4 618

4 955

5 328

25 640

28 527

30 360

Electrical machinery, apparatus, appliances and supplies

Electrical appliances and housewares

Electronic machinery, apparatus, appliances and supplies

Sound reproducing and recording equipment and apparatus Others

Sub-total

392

378

389

21 200

17 802

15 471

1 229

1 229

1 222

79 644

85 232

76 600

128

111

96

10 524

7 828

5 663

333

311

318

8 284

7 680

8 633

2082

2 029

2025

119 652

118 542

106 376

Transport equipment

Ship building and repairing-shipyards

Others

Sub-total

58

58

42

4 492

4477

4 326

488

458.

386

8 597

8 181

8 274

546

516

428

13 089

12 658

12 600

Professional and scientific, measuring and controlling

equipment, and photographic and optical goods

Metal cases, dials and parts for watches and clocks except

movements and watch bands

729

789

842

11 236

Watches and clocks, mechanical

36

38

27

883

11 202

989

11 436

621

Watches and clocks, electronic

554

559

651

15 480

14 993

14 753

Others

217

215

171

11 347

10 520

9 000

Sub-total

1536

1 601

1 691

38 946

37 704

35 810

Other manufacturing industries

Jewellery and related articles

888

970

980

13 897

15 119

15 234

Toys other than plastic toys, metal toys and wooden toys

195

179

157

1 909

1 483

1 589

Others

2412

2 363

2 255

18 621

17 317

15 256

Sub-total

3.495

3 512

3 392

34 427

33 919

32 079

Total

50 409

50 606

49 926

875 250

844 575

802 983

395

APPENDICES

APPENDIX 18

(Chapter 8: Employment)

Number of Establishments and Employment in Principal Manufacturing Industry Groups

Industry group(1)

Textiles and clothing

Electronics(2)

Plastics

No. of establishments

Sep 1987 Sep 1988 Sep 1989

No. of persons engaged Sep 1987 Sep 1988 Sep 1989

14 078

13 955

13 227

373 495

358 626

348 236

1 949

1 939

2009

106 835

109 677

99 455

5 718

5 572

5 621

83 829

72 412

63 557

Watches and clocks(2)

1 648

1 729

1 845

31 629

31 180

30 091

Electrical appliances

725

689

707

29 484

25 482

24 104

Total of the above 5 groups(2)

23 564

23 325

22 758

609 792

582 384

550 690

(as a % of the corresponding figure of the whole manufacturing sector)

(47%)

(46%)

(46%)

(70%)

(69%)

(69%)

396

Notes:

(1) For a breakdown of the number of establishments and employment in manufacturing industry by the International Standard Industrial Classification Revision 2 (ISIC Rev. 2), the table in Appendix 17 should be referred to. The statistics there are presented according to the complete classification of industries by ISIC Major Group, and within each major group, by ISIC Group. The table presented here is compiled for the convenience of those readers who may be more interested in the number of establishments and employment of certain industry groups which are commonly referred to but which may not be readily derived from Appendix 17 because each of them cuts across two or more ISIC Major Groups/Groups.

(2) There is some overlapping in the industrial coverage of 'electronics' and 'watches and clocks'. The group 'watches and clocks, electronic' is

included in both groups. However, the figures of these groups are counted only once in the 'total of the above 5 groups'.

(3) The correspondence between the industry groups in the above table and the major groups/groups in Appendix 17 is as follows:-

The industry group 'textiles and clothing' shown in the above table corresponds to the total of the major groups 'textiles (including knitwear from yarn)' and 'wearing apparel, except footwear and knitwear from yarn' in Appendix 17. However, 'handbags' within the latter major group is not included.

(ii) The industry group 'electronics' shown in the above table corresponds to the total of the groups 'office machinery', 'electronic machinery, apparatus, appliances and supplies', 'sound reproducing and recording equipment and apparatus' and 'watches and clocks, electronic' in Appendix 17.

(iii) The industry group 'plastics' shown in the above table corresponds to the major group 'plastic products' in Appendix 17.

(iv) The industry group 'watches and clocks' shown in the above table corresponds to the total of the groups 'metal cases, dials, and parts for watches and clocks except movements and watch bands', 'watches and clocks, mechanical', 'watches and clocks, electronic and 'wrist watch bands' in Appendix 17.

(v) The industry group 'electrical appliances" shown in the above table corresponds to the major group 'electrical machinery, apparatus, appliances and supplies' in Appendix 17. The groups 'electronic machinery, apparatus, appliances and supplies' and 'sound reproducing and recording equipment and apparatus' within the major group are however not included.

APPENDICES

APPENDIX 19

(Chapter 8: Employment)

Reported Occupational Accidents

Cause

1987

1988

1989

Non-

Non-

Non-

Fatal

fatal

Total

Fatal

fatal

Total

Fatal

fatal

Total

Machinery: power driven

24

10 158

10 182

26

9 380

9 406

17

8 857

8 874

Machinery: non power driven

1

254

255

1

203

204

1

192

192

Transport

Explosions or fires

Hot or corrosive substances

Gassing, poisoning and other toxic

substances

40

3369

3409

35

2467

2 502

55

2 329

2 384

18

466

484

5

537

542

11

507

518

5 282

5 282

65

65

65

5 481

5 481

1

5 175

5 176

79

79

4

75

79

Electricity

10

143

153

7

112

119

9

106

115

Falls of persons

38

11 325

11 363

45

8 356

8 401

72

7 890

7 962

Stepping on or striking against

objects

2

22 874

22 876

6

23 723

23 729

9

22 399

22 408

Falling objects

Falls of grounds

Handling without machinery

Hand tools

Miscellaneous

Causes not yet ascertained

Total

6

5 331

5337

13

3 925

3 938

11

3.706

3 717

2

11

13

1

12

13

2

12

14

10 194

10 194

1

12 520

12 521

3

11 821

11 824

7871

7 871

9 186

9 186

8 673

8 673

87

12 934

13 021

76

17 265

17 341

66

16 301

16 367

7004

7004

9 734

9 734

5

9 191

9 196

228*

97 281

97 509

216*

102 980

103 196

265*

97 234

97 499

Note: Figures for 1989 are subject to amendment.

* Including 54 (in 1987), 61 (in 1988) and 50 (in 1989) which were subsequently verified to be outside the scope of the Employees' Compensation

Ordinance because the employees concerned died of natural causes unrelated to work.

397

398

APPENDICES

APPENDIX 20

(Chapter 8: Employment)

Consumer Price Index (A)

(October 1984-September 1985=100)

Annual average

Index for December

Section

Weight

1987

1988

1989

1987

1988

1989

All items

100.00

109.4

117.5

129.4

113.0

121.7

133.5

Foodstuffs

45.48

106.2

116.4

130.8

110.8

120.3

133.8

Housing

15.31

109.9

113.7

121.7

111.3

117.2

125.5

Fuel and light

3.41

92.1

93.1

95.9

92.4

92.8

98.2

Alcoholic drinks and tobacco (for home consumption)

2.57

115.7

123.2

132.7

117.2

125.4

141.8

Clothing and footwear

5.24

113.4

123.7

135.1

120.4

132.6

141.5

Durable goods

5.72

111.3

117.9

121.8

113.2

119.9

122.9

Miscellaneous goods

5.84

115.7

123.2

132.4

119.7

130.9

136.2

Transport and vehicles

6.79

114.7

120.1

134.6

117.1

122.3

139.6

Services

9.64

116.7

127.4

141.9

121.3

133.4

151.1

Note: The C.P.I. (A) covers about 50% of urban households with a monthly expenditure of between $2,000 and $6,499 in the base period 1984-85.

Consumer Price Index (B)

(October 1984-September 1985 = 100)

Annual average

Index for December

Section

Weight

1987

1988

1989

1987

1988

1989

All items

Foodstuffs

100.00

109.5

117.6

129.0

113.0

121.8

133.3

38.92

106.8

117.1

131.9

111.2

121.4

135.6

Housing

20.16

107.6

110.8

117.0

108.6

113.1

120.0

Fuel and light

2.76

92.8

93.7

96.3

92.9

93.4

98.2

Alcoholic drinks and tobacco (for home consumption)

1.67

115.9

123.9

133.8

117.8

126.4

142.5

Clothing and footwear

6.98

114.9

125.8

137.8

122.3

135.3

144.1

Durable goods

5.60

110.5

117.0

121.0

112.5

119.2

121.8

Miscellaneous goods

6.06

115.4

123.2

132.0

119.4

130.1

135.9

Transport and vehicles

6.83

113.5

119.4

133.8

116.1

121.9

138.8

Services

11.02

116.1

127.2

142.0

120.8

133.4

151.0

Note: The C.P.I. (B) covers about 30% of urban households with a monthly expenditure of between $6,500 and $9,999 in the base period 1984-85.

Hang Seng Consumer Price Index (October 1984-September 1985=100)

Annual average

Index for December

Section

All items

Foodstuffs

Weight

1987

1988

1989

1987

1988

1989

100.00

112.5

122.3

135.6

116.6

127.9

142.1

29.98

108.5

118.7

133.5

112.9

123.3

138.0

Housing

25.77

116.4

125.3

139.6

119.3

131.3

147.6

Fuel and light

2.35

94.1

94.9

97.7

93.8

94.9

99.6

Alcoholic drinks and tobacco (for home consumption)

1.20

116.3

126.0

136.9

119.3

129.3

144.6

Clothing and footwear

7.93

113.6

128.1

142.0

122.7

140.8

154.9

Durable goods

5.82

111.5

119.7

125.3

114.3

123.3

126.9

Miscellaneous goods

5.89

115.2

123.6

131.4

119.7

129.7

135.3

Transport and vehicles

7.10

110.5

117.5

131.7

113.6

121.4

137.2

Services

13.96

116.1

128.2

143.6

121.1

134.4

152.0

Note: The Hang Seng C.P.I. covers about 10% of urban households, living in private housing and Home Ownership Scheme flats and with a monthly

expenditure of between $10,000 and $24,999 in the base period 1984-85.

APPENDICES

APPENDIX 21

(Chapter 9: Primary Production)

Imports of Crops, Livestock, Poultry and Fish

Item

Crops

Rice (unhusked)

Unit

1987

1988

1989

tonne

372 588

363 637

406 578

Wheat

tonne

119 237

112 861

124 307

Other cereals and cereal preparations

tonne

466 029

325 225

385 184

Other field crops

tonne

95 680

78 858

82 178

Vegetables (fresh, frozen or simply preserved)

tonne

402 307

445 138

408 155

Vegetables (preserved or prepared)

tonne

206 805

218 664

235 152

Fresh fruits and nuts

tonne

502 330

543 618

563 767

Dried fruits and fruit preparations

tonne

92 216

98 623

93 225

Flowers

Sugar and honey

Coffee

Cocoa

$ thousand

66,702

101,770

122,629

tonne

219 563

309 530

292 105

tonne

5 350

17 889

5 568

tonne

454

9919

1 501

Tea and mate

tonne

18 848

21 046

18 760

Livestock and poultry

Cattle

head

181 637

178 323

167 488

Sheep, lambs and goats

head

16 130

19 836

19 781

Pigs

thousand head

2981

2 923

2 821

Chickens

Other poultry

Live animals

tonne

43 998

44 782

44 708

tonne

28 855

26 440

24 072

tonne

3 362

4 765

4 704

tonne

249 405

283 203

315 077

Meat and meat preparations

Dairy products and eggs

Milk (fresh)

tonne

32 480

Cream (fresh)

tonne

652

35 228

659

39 029

454

Milk and cream (evaporated, condensed, powdered, etc)

tonne

58 524

Butter, cheese and curd

tonne

9 074

62 560

10 066

60 483

9 800

Eggs (fresh)

Eggs (preserved)

thousand

thousand

1 393 558

1 479 168

1 356 193

201 162

181 191

192 738

Fish and fish preparations

Fish (fresh, chilled or frozen)

Marine fish

Freshwater fish

tonne

33 076

46 160

64 019

tonne

38 498

38 240

36 194

Fish (dried, salted or smoked)

Marine fish

tonne

10 644

9 575

8 601

Freshwater fish

tonne

7

120

139

Crustaceans and molluscs (fresh, frozen, dried, salted, etc)

tonne

93 879

119 408

114 537

Fish products and preparations

tonne

7 451

7 871

9 289

Crustacean and mollusc products and preparations

tonne

4 439

4 424

4 446

Oil and fats (crude or refined)

tonne

805

930

1 041

Meals (animals feeding stuffs)

tonne

18 085

29 524

26 812

399

APPENDICES

APPENDIX 22

(Chapter 9: Primary Production)

Estimated Local Production of Crops, Livestock, Poultry and Fish

Item

Unit

1987

1988

1989

Crops

Vegetables (fresh, frozen or simply preserved)

tonne

141 000

132 000

131 000

Fresh fruits and nuts

tonne

Flowers

Other field crops

Livestock and poultry

Cattle

Pigst

$ thousand

2350

67,850

2 020

72,690

3 050

112,550

tonne

1 540

1 590

1 440

head

thousand head

Chickens

tonne

Other poultry

tonne

Dairy products and eggs

Milk (fresh)

tonne

2.200

2000

1 800

Eggs (fresh)

thousand

194 400

180 000

156 100

790

740

460

660

630

536

31.900

28 200

26 200

13 400

14 600

14 900

Fish and fish preparations

Fish (fresh, chilled or frozen)

Marine fisht

Freshwater fish

tonne

tonne

156 900

6 500

165 610

6 640

178 640

5 780

Fish (dried, salted or smoked)

Marine fish

tonne

3 090

2 780

1.890

Crustaceans and molluscs (fresh, frozen, dried, salted, etc)

tonne

34 690

30 380

26 550

Fish products and preparations

tonne

390

390

520

Crustacean and mollusc products and preparations

tonne

430

490

370

Meals (animal feeding stuffs)

tonne

26 100

31 770

32 210

Note: Other field crops include yam, millet, peanut, soybean, sugar cane, sweet potato and water chestnut.

‡ Including local pigs not slaughtered in abattoirs.

† Including cultured marine fish.

APPENDIX 23

(Chapter 9: Primary Production)

Local Production and Imports of Ores and Minerals

Tonnes

Item

1987

Production

1988

1989

1987

Imports 1988

1989

Quartz

2 698

2011

2 267

Feldspar

22 853

11 050

5 152

69 976

85 947

126 087

Graphite

400

Kaolin/feldspar sand

92 504

61 888

44 562

4 104

217 033

2995

4 593

322 299

442 437

APPENDICES

APPENDIX 24

(Chapter 10: Education)

Categories of Registered Schools

As of September

1987

Government

93*

Grant

22

1988

95*

22

Subsidised

918

Private

1 580

Special education

69

Total

2 682

2 658

School Enrolment

1989

96*

917 1 553

71

22 898 1 525

72

2 613

Kindergarten

Private

225 108

214 703

201 750

Primary

Government and aided

482 253

483 232

483 191

Private

53 606

53 279

52 945

Sub-total

535 859

536 511

536 136

Secondary

Government and aided

339 102

347 417

Assisted private

3 852

3 686

355 349 3 357

Other private

142 534

120 981

106 242

Sub-total

485 488

472 084

464 948

Special education

Government and aided

7 999

7 971

8 184

Colleges of Education↑

Government

4 994

4 839

4 645

Approved Post Secondary Colleges#

Private

5 426

5 230

5 049

Adult education and others#

Government

24 265

22 904

21 564

Private

91 154

84 621

85 452

Sub-total

115 419

107 525

107 016

Total

1 380 293

1 348 863

1 327 728

Note: The schools and enrolment refer to both the day and night sections but exclude Universities, Polytechnics, Baptist College and Technical

Institutes.

* Not including the Practical Education Centre opened in September 1986.

† Figures are as at end of October.

# Enrolment statistics for Approved Post Secondary Colleges as well as Adult education and others are as at mid-October of the year.

401

APPENDIX 25

(Chapter 10: Education)

Overseas Examinations

APPENDICES

Examination

Conducted by Hong Kong Examinations Authority:

Entries

1987

1988

1989

Chartered Association of Certified Accountants

Association of International Accountants

14 430

15 242

15 607

575

375

239

Institute of Chartered Secretaries and Administrators

2855

3 030

3 060

Chartered Institute of Management Accountants

910

932

967

London Chamber of Commerce and Industry

111 481

106 500

103 528

Pitman Examinations Institute

35 891

32 183

30 112

Royal Society of Arts

79

91

122

Test of English as a Foreign Language (TOEFL)

19 638

23 123

26 415

University of London - General Certificate of Education

16 898

16 137

13 616

University of London - External Degree

949

1 091

1 161

Associated Examining Board - General Certificate

of Education

8 062

5 272

5 053

Southern Examining Group - General Certificate

of Secondary Education

719

785

University of Cambridge - International General Certificate

of Secondary Education

549

868

Royal Academy of Dancing

4 709

5 111

5 243

Associated Board of the Royal Schools of Music

31 992

34 626

36 457

Chartered Institute of Bankers

5 576

5 988

5 160

Institute of Statisticians

104

95

99

Joint Entrance Examination for Mainland Chinese

Universities

581

511

82

City and Guilds of London Institute

1 317

2 506

2448

Others

10 175

10 808

13 196

Total

266 222

264 889

264 218

Conducted by Hong Kong Polytechnic:

The Engineering Council Examination

1 427

1 096

924

Total

1 427

1 096

924

402

APPENDICES

APPENDIX 26

(Chapter 10: Education)

Students Leaving Hong Kong for Overseas Studies†

Country

Britain

United States

Canada

Australia

1987

4 232

3 679

3 616

1 877

Note: Figures are based on the number of student visas issued as supplied by visa-issuing authorities.

APPENDIX 27

(Chapter 10: Education)

Expenditure on Education

1988

1989

3 856

4 539

4 215

4 855

3 808

5 096

3 147

4 678

$ Thousand

1986-87

School year Aug-July 1987-88

Recurrent expenditure

904,520

1,007,949

1988-89 1,287,298

Capital expenditure

167,882

192,870

400,536

Grants and subsidies

5,174,328

5,756,997

6,724,182

Grants to Universities and Polytechnic (including rates)

2,194,459

2,517,180

3,130,198

University and Polytechnic Grants Committee

(including university student grants)

90,054

69,665

72,658

Total

8,531,243

9,544,661

11,614,872

951,384

941,008

804,092

Education expenditure by other departments

APPENDIX 28

(Chapter 11: Health)

Vital Statistics

Estimated mid-year population

Births:

Known live births

Crude birth rate (per 1 000 population)

Deaths:

1987

5 613 400

69 958 12.5

1988

1989

5 681 300

75 412+ 13.3

5 761 400

69 692 12.2

Known deaths

26 916

27 659+

28 653

Crude death rate (per 1 000 population) Infant mortality rate* (per 1 000 live births) Neo-natal mortality rate* (per 1 000 live births) Maternal mortality rate* (per 1 000 total births)

4.8

4.9

5.0

7.5

7.6

6.9

4.8

4.8

4.5

0.04

0.04

0.06

Life expectancy at birth (years)

Male

74.2

74.4

74.7

Female

79.7

79.9

80.3

Note: Revised figures.

Based on registered deaths.

403

404

APPENDIX 29

(Chapter 11: Health)

Causes of Death*

APPENDICES

1987

1988

1989†

Infective and parasitic

825

859

932

Tuberculosis, all forms

405

388

403

Neoplasms

8 274

8 197

8 638

Malignant, including neoplasms of lymphatic and

haematopoietic tissues

8 258

8 177

8 622

Endocrine, nutritional, metabolic and blood

275

258

272

Diabetes mellitus

232

211

226

Nervous system, sense organs and mental disorders

235

190

207

Circulatory system

7 861

7 946

8 046

Heart diseases, including hypertensive diseases

4 515

4 599

4 790

Cerebrovascular diseases

3 136

3 145

3 048

Respiratory system

4 404

4 798

5 091

Pneumonia, all forms

1 681

2013.

2 133

Bronchitis, emphysema and asthma

533

514

516

Digestive system

1 088

1 122

1 259

Peptic ulcer

24

20

27

Chronic liver disease and cirrhosis

310

302

334

Genito-urinary system

1 217

1 243

1 243

Complications of pregnancy, childbirth and the puerperium

3

3

4

Skin, subcutaneous tissues, musculoskeletal system and

connective tissues

63

52

51

Congenital anomalies

246

228

221

Certain conditions originating in the perinatal period

237

248

248

Symptoms, signs and ill-defined conditions

647

681

661

Injury and poisoning

1 584

1 551

1 611

All accidents

785

743

852

Suicide and self-inflicted injuries

624

579

577

Unknown

Total deaths

2

26 959

27 376

28 486

Note:

 Based on registered deaths. † Provisional figures.

APPENDIX 30

    (Chapter 11: Health) Hospital Beds

APPENDICES

Category of hospitals

Government hospitals*

12 252

Government maternity homes/clinics

379

Government-assisted hospitals

9 540

9 577

Private hospitals

2 660

1987

As at end of year

1988

12 302

385

2 749

1989

12 352

363

9 537

2 763

Private nursing/maternity homes

65

44

44

Total

24 896

25 057

25 059

Note:

* Including correctional institutions and drug addiction treatment centres.

APPENDIX 31

(Chapter 11: Health)

Professional Medical Personnel

As at end of year

In Government service

1987

1988

1989

1987

Medical - Doctors

1 568+

1 643†

1 700+

5 484*

Total registered

1988

5 785*

1989

6 025*

Interns on provisional register

223

213

240

223

214

242

Externs on provisional register

104

70

58

104

71

58

Dental - Dentists

162

165

163

1 240*

1 346*

1 431*

Dental hygienists

4

5

6

73

79

83

Nursing - Registered nurses (general)

6 229

6 332

7981

16 159

16 991

18 058

Registered nurses (psychiatric)

817

859

1 029

1 046

1 124

1 162

Registered nurses

(mental subnormal)

10

10

Registered nurses (sick children)

2

2

3

Enrolled nurses (general)

1 414

1 412

1 597

5 764

6 123

6 406

Enrolled nurses (psychiatric)

387

412

545

464

502

520

Midwives - Midwives (without

nursing qualification)

249

236

222

981

981

981

Pharmacy and Poisons - Pharmacists

66

62

62

62

623

646

680

Note: Annual re-registration is required only for doctors, dentists and pharmacists.

† Including unregistrable medical officers.

Including the professional medical personnel on both the local and overseas lists.

405

406

APPENDICES

APPENDIX 32

(Chapter 12: Social Welfare)

(A) The Hong Kong Council of Social Service

Member Agencies

Aberdeen Kaifong Welfare Association (Community

Centre)

Action Group for Aid to the Mentally Retarded Against Child Abuse

Agency for Volunteer Service

American Women's Association of Hong Kong

Limited

Asbury Village Community Centre of the Methodist

Church, Hong Kong

Association for Engineering and Medical Volunteer

Services

Association for the Advancement of Feminism

Baptist Assembly

Baptist Oi Kwan Social Service

Birthright Society Limited

Board of Studies in Social Work, The Chinese

University of Hong Kong

Boys' and Girls' Clubs Association of Hong Kong

Boys' Brigade, Hong Kong

Breakthrough Counselling Centre

Canossian Mission (Welfare Services)

Caritas - Hong Kong

Catholic Women's League

Causeway Bay Kaifong Welfare Advancement

Association

Chai Wan Areas Kaifong Welfare Advancement

Association (HK) Limited

Chai Wan Baptist Church - Social Service Centre China Coast Community Limited

Chinese Evangelical Zion Church Limited Tze Wan

Shan Zion Youth Centre

Chinese Young Men's Christian Association of Hong

Kong

Ching Chung Taoist Association of Hong Kong

Limited

Christian Family Service Centre

Chung Shek Hei (Cheung Chau) Home for the Aged,

Limited

Chung Sum Free Methodist Church Bradbury Social

Centre for the Elderly

Church of Christ in China, Hong Kong Council,

Social Welfare Department

Church of United Brethren In Christ - Sun Chui

Youth Centre

Community Drug Advisory Council

Department of Applied Social Studies, City

Polytechnic of Hong Kong

Department of Applied Social Studies, Hong Kong

Polytechnic

Department of Social Work and Social

Administration, University of Hong Kong Diocesan Youth Committee

Duke of Edinburgh's Award

Ebenezer School and Home for the Blind

Evangel Children's Home

Evangelical Free Church of China Hong Fok Tong

Social Centre for the Elderly

Evangelical Lutheran Church Social Service - Hong

Kong

Family Planning Association of Hong Kong Finnish Missionary Society

Five Districts Business Welfare Association

Foreign Mission Board, Southern Baptist

Convention, Hong Kong - Macao Baptist Mission

Girls' Brigade, Hong Kong

Hans Andersen Club

Harmony House Limited

Heep Hong Society for Handicapped Children Helping Hand Limited

Heung Hoi Ching Kok Lin Association

Holy Carpenter Church and Community Centre Hong Kong Association for the Mentally

Handicapped

Hong Kong Association of Speech Therapists Hong Kong Association of the Blind Hong Kong Association of the Deaf

Hong Kong Association of Workers Serving the

Mentally Handicapped

Hong Kong Baptist College, Department of Social

Work

Hong Kong Baptist Hospital, Au Shue Hung Health

Centre

Hong Kong Catholic Marriage Advisory Council Hong Kong Catholic Youth Council Hong Kong Children and Youth Services Hong Kong Chinese Women's Club

Hong Kong Christian Concern for the Homeless

Association

Hong Kong Christian Mutual Improvement Society Hong Kong Christian Service

Hong Kong Confederation of Associations of the

Handicapped

APPENDICES

Hong Kong Council of Women

Hong Kong Emotion and Health Association

Limited

Hong Kong Eye Bank and Research Foundation Hong Kong Family Welfare Society

Hong Kong Federation of Handicapped Youth

Hong Kong Federation of Societies for Prevention of

Blindness

Hong Kong Federation of the Blind

Hong Kong Federation of Youth Groups

Hong Kong Girl Guides Association

Hong Kong Housing Affairs Association

Hong Kong Housing Society

Hong Kong Juvenile Care Centre

Hong Kong Life Guard Club

Hong Kong Lutheran Handicrafts Society

Hong Kong Lutheran Social Service, Lutheran

Church - Hong Kong Synod

Hong Kong Macao Conference of Seventh-Day

Adventist Church

Hong Kong People's Council on Public Housing

Policy

Hong Kong PHAB Association

Hong Kong Playground Association

Hong Kong Recreation and Sports Association Hong Kong Red Cross

Hong Kong Red Swastika Society Hong Kong School for the Deaf

Hong Kong Shue Yan College

Hong Kong Social Workers Association Limited Hong Kong Society for the Aged Hong Kong Society for the Blind Hong Kong Society for the Deaf

Hong Kong Society for the Protection of Children Hong Kong Society for Rehabilitation

Hong Kong Sports Association for the Mentally

Handicapped

Hong Kong Sports Association for the Physically

Disabled (S.A.P.)

Hong Kong Student Aid Society

Hong Kong Student Services Association

Hong Kong Tuberculosis, Chest and Heart Diseases

Association

Hong Kong Workers' Health Centre

Hong Kong Young Women's Christian Association

Industrial Evangelistic Fellowship

Industrial Relations Institute Institute of Cultural Affairs Limited International Baptist Church (HK) Limited International Church of the Foursquare Gospel,

Lung Hang Church Elderly Centre International Social Service Hong Kong Branch

Jane Shu Tsao Social Centre for the Elderly, Hong

Kong Mutual Encouragement Association Jockey Club Cheung Chau Don Bosco Youth Centre Junk Bay Medical Relief Council

Kowloon Union Church Wai Ji Training Centre Kowloon Women's Welfare Club

Kwai Shing Christian Social Service Centre

Kwai Shing Estate Residents' Association Kwun Tong Methodist Centre

Lai King Estate Tenants' Association

Lai Tak Youth Centre

Lei Fook Church Social Centre for the Elderly of the

Hong Kong Chinese Christian and Missionary Alliance

Link Association

Lok Sin Tong Chu Ting Cheong Home for the Aged Mary Rose School

Marycove Centre Maryknoll Sisters

Mental Health Association of Hong Kong Methodist Ap Lei Chau Centre Methodist Centre

Methodist Epworth Village Community Centre Mong Kok Lutheran School for the Deaf Mother's Choice Limited

Neighbourhood Advice-Action Council New Life Psychiatric Rehabilitation Association New Territories Women and Juvenile Welfare

Association Limited

North Point Kaifong Welfare Advancement

Association

Norwegian Missionary Society

O.M.S. 'St Simon' Home for Fishermen's and

Workmen's Children

Parents' Association of the Mentally Handicapped

Limited

Pentecostal Holiness Church C.N. Bostic Centre for

the Blind

Po Leung Kuk

Pok Oi Hospital

Pre-School Playgroups Association

Prisoners' Friends' Association

Project Concern Hong Kong

Richmond Fellowship of Hong Kong

Salvation Army

Samaritan Befrienders Hong Kong Samaritans (English Speaking Service) Save the Children Fund - Hong Kong Scout Association of Hong Kong Sheng Kung Hui Diocesan Welfare Council

407

408

APPENDICES

Sheng Kung Hui Kei Oi Social Service Centre Sheng Kung Hui Lady MacLehose Centre Sheng Kung Hui St Christopher's Home

Shun Tin Christian Children's and Youth Centre Sik Sik Yuen - Social Services Unit

   Sisters of the Good Shepherd - Pelletier Hall Social Service Group, Hong Kong University

Students' Union

Society for Community Organisation

Society for the Aid and Rehabilitation of Drug

Abusers

Society for the Rehabilitation of Offenders, Hong

Kong

Society for the Relief of Disabled Children

Society of Boys' Centres

Society of Homes for the Handicapped

Society of St Vincent de Paul

Spastics Association of Hong Kong

St James' Settlement

St John Ambulance Association and Brigade, Hong

Kong

St Stephen's Society

Stewards' Company (Hong Kong) Limited

Street Sleepers' Shelter Society Trustees Incorporated Suen Mei Speech and Hearing Centre for the Deaf

Tai Hang Tung and Nam Shan Estate Residents'

Association

TREATS

Tsuen Wan Ecumenical Social Service Centre Tsuen Tsin Mission Social Service Division Tung Lum Buddhist Aged Home Tung Sin Tan Home for the Aged Tung Wah Group of Hospitals

United Christian Medical Service

Victoria Park School for the Deaf

Watchdog Limited

Wong Tai Sin District Federation of Welfare

Services for the Aged

World Vision of Hong Kong

Wu Oi Christian Centre

Yan Chai Hospital

Yan Oi Tong Community and Indoor Sports Centre Yang Memorial Social Service Centre

Yau Tong Po Yin Social Centre

Yeung Men's Christian Association of Hong Kong Young Workers' Confederation

Zion Youth Service Centre

(B) The Community Chest of Hong Kong

Member Agencies

Action Group for Aid to the Mentally Retarded Adventure Ship Limited

Against Child Abuse

Agency for Volunteer Service

Asbury Village Community Centre for the Methodist

Church

Baptist Mid-Missions Butterfly Estate Social Centre

for the Elderly

Baptist Oi Kwan Social Service

Boys' Brigade, Hong Kong

Buddhist Po Ching Home for the Aged Women

Calvary Church Social Service Centre

Canossian Missions

Caritas Hong Kong

Chinese Y.M.C.A. of Hong Kong

Christian Fellowship (Church of God) Hau Man

Community Centre

Christian Nationals' Evangelism Commission Aged

People Centre

Duke of Edinburgh's Award

Ebenezer School and Home for the Blind

Evangel Children's Home

Evangelical Free Church of China Fook On Tong

Social Centre for the Elderly

Evangelical Freechurch of China Hong Fok Tong

Social Centre for the Elderly

Evangelical Lutheran Church Social Service - Hong

Kong

Family Planning Association of Hong Kong

Girls' Brigade, Hong Kong

Hans Andersen Club

Harmony House Limited

APPENDICES

Heep Hong Society for Handicapped Children Holy Carpenter Social Service Centre Hong Kong Anti-Cancer Society Hong Kong Association of the Deaf

Hong Kong Catholic Marriage Advisory Council Hong Kong Christian Aid to Refugees Hong Kong Christian Family Service Centre Hong Kong Christian Industrial Committee

Hong Kong Christian Mutual Improvement Society Hong Kong Christian Service

Hong Kong Council of Social Service

Hong Kong Council of Women - Women's Centre Hong Kong Evangelical Church Tai Hing Social

Centre for the Elderly

Hong Kong Family Welfare Society

Hong Kong Federation of the Blind

Hong Kong Federation of Youth Groups

Hong Kong Housing Authority, North Point Estate

Residents' Association

Hong Kong Life Guard Club

Hong Kong Lutheran Social Service

Hong Kong Red Cross

Hong Kong School for the Deaf

Hong Kong Sea School

Hong Kong Society for Rehabilitation

Hong Kong Society for the Aged Hong Kong Society for the Blind Hong Kong Society for the Deaf

Hong Kong Sports Association for Physically

Disabled (SAP)

Hong Kong Sports Association of the Deaf Hong Kong Students Aid Society

Interational Church of the Foursquare Gospel International Social Service, Hong Kong Branch

Junk Bay Medical Relief Council

Kwun Tong Community Health Project of the

United Christian Medical Service

Lai King Baptist Church Bradbury Social Centre for

the Elderly

Lam Tin Alliance Church Social Centre for the

Elderly

Lei Fook Church Social Centre for Elderly

Light and Love Home

Ling Oi Youth Centre of the Finnish Missionary

Society

Marriage and Personal Counselling Service Maryknoll Sisters Social Service

Mental Health Association of Hong Kong Methodist Church, Hong Kong - Kwun Tong

Methodist Centre

Methodist Epworth Village Community Centre Mother's Choice Limited

Neighbourhood Advice-Action Council

New Life Psychiatric Rehabilitation Association North Point Kaifong Welfare Advancement

Association

O.M.S. 'St. Simon' Home for Fishermen's and

Workmen's Children

Pelletier Hall - Good Shepherd Sisters Pentecostal Holiness Church C.N. Bostic Centre for

the Blind

Project Care

Project Concern, Hong Kong

Richmond Fellowship of Hong Kong

Salvation Army, Hong Kong and Taiwan Command

Headquarters

Samaritan Befrienders Hong Kong Samaritans (English Speaking Service) Save the Children Fund

Sheng Kung Hui Diocesan Welfare Council Sheng Kung Hui Happy Home for the Aged Sheng Kung Hui Holy Nativity Church Social

Service Centre

Sheng Kung Hui Kei Oi Social Service Centre Sheng Kung Hui Lady MacLehose Centre Sheng Kung Hui Lok Man Social Service Centre Sheng Kung Hui St Christopher's Home

Sheng Kung Hui St Nicholas Day Nursery Shun Tin Christian Children's and Youth Centre Society for the Aid and Rehabilitation of Drug

Abusers (SARDA)

Society for the Rehabilitation of Offenders, Hong

Kong

Society of Boys' Centres

Society of St Vincent de Paul Central Council -

Hong Kong

Spastics Association of Hong Kong

St Barnabas' Church Social Service Centre St James' Settlement and Sheltered Workshop St John Ambulance Association and Brigade St Thomas' Day Creche

Steward's Company (Hong Kong) Limited Street Sleepers' Shelter Society Trustees Inc. Suen Mei Speech and Hearing Centre for the Deaf

Tsuen Wan Ecumenical Social Service Centre

Watchdog Limited c/o Deloitte Haskins and Sells

Yang Memorial Social Service Centre

Young Women's Christian Association, Hong Kong

409

APPENDICES

APPENDIX 33

(Chapter 13: Housing)

Number of Quarters and Estimated Persons Accommodated

as at March 31, 1989

Number of Quarters

Category

Government quarters

Hong

Kowloon

Kong Island

and New Kowloon

New Territories

Total

7 800

7 500

9 100

24 400

Public housing

Housing Authority estates

60 200

263 300

259 600

583 100

Housing Authority cottage areas

500

400

2 100

3 000

Housing Society estates

11 100

10 000

9 500

30 600

Home Ownership Scheme Blocks*

11 100

27 100

55 300

93 500

Sub-total

82 900

300 800

326 500

710 200

Private housing

284 300

303 400

271 300

859 000

Total permanent

375 000

611 700

606 900

1 593 600

Estimated Persons Accommodated

Category

Government quarters

Hong Kong

Island

Kowloon and New Kowloon

New Territories

19 000

19 400

20 000

Total

58 400

Public housing

Housing Authority estates

239 500

909 800

Housing Authority cottage areas

1 600

1 000

Housing Society estates

42 400

42 000

1 049 900

6 400

38 700

2 199 200

9.000

123 100

Home Ownership Scheme Blocks*

40 200

100 500

Sub-total

323 700

Private housing

886 300

1 053 300

984 200

Total permanent

1 229 000

2 056 900

197 000

1 292 000

746 300

2 058 300

337 700

2 669 000

2 616 800

5 344 200

Temporary

Marine

Total population

410

Note: * Includes private sector participation scheme and middle income housing.

330 800

32 100

5 707 100

APPENDICES

APPENDIX 34

(Chapter 14: Land, Public Works and Utilities)

Land Office‡

Item

1987

1988

1989

Instruments registered

Assignments of whole buildings or sites

968

992

760

Assignments of flats or other units

94 436

90 486

87 676

Agreements for sale and purchase of flats or other

units

55 504

67 270

61 896

Building mortgages/building legal charges

51

55

60

Other mortgages/legal charges

Reassignments/receipts/discharges/releases and

100 272

97 423

90 822

certificates of satisfaction

54 627

62 069

67 890

Exclusion orders

Re-development orders

Miscellaneous

Total

-

5

11

5

1

30 484

37 275

41 278

336 347

355 576

350 393

Conditions of sale, grant, exchange, etc registered

62

42

50

Consents granted to entering into agreements for sale

and purchase

91

84

122

Modifications and variations of lease conditions

276

307

359

Government leases issued

20

95

65

Determinations of Government rent and premium

147

112

150

Multi-storey building owners corporations registered

189

116

178

Public searches in Land Office records

1 463 614

1 667 665

1 565 167

Considerations in Instruments Registered in Land Office‡

$ Thousand

Assignments of whole buildings or sites

17,915,312

32,410,516

31,176,096

Assignments of flats or other units

61,918,362

79,096,359

98,842,216

Agreements for sale and purchase of flats or other units

73,222,067

106,414,008

110,008,809

Building mortgages/building legal charges

765,450

783,438

2,555,329

Other mortgages/legal charges

47,927,881

74,034,286

59,597,100

Reassignments/receipts/discharges/releases and

certificates of satisfaction

24,435,942

28,656,287

35,029,758

Miscellaneous instruments

81,267

52,748

Total

226,266,281

321,447,642

49,095

337,258,403

Note:

Covering registrations recorded in respect of Hong Kong Island, Kowloon and New Kowloon only.

411

APPENDICES

APPENDIX 35

(Chapter 14: Land, Public Works and Utilities)

Land Usage

Class

A. Developed Lands

i. Commercial

ii. Residential

Approximate area (km2)

Percentage of whole

Remarks

1

0.1

39

3.6

Including all residential areas except public rental housing estates and temporary housing areas

iii. Public Rental Housing

8

0.7

iv. Industrial

9

0.8

Including warehouse and storage

v. Open Space

14

1.3

vi. Government, Institution and

Community Facilities

15

1.4

vii. Vacant Development Land

34

viii. Roads/Railways

21

2.0

ix. Temporary Housing Areas

2

0.2

222

3.2

Including land with construction in progress

Including flyovers and railway lands

B. Non-built-up Lands*

i. Woodlands

221

20.6

ii. Grass and scrub

2

520

48.4

iii. Badlands, swamp and mangrove

.45

4.2

iv. Arable

69

6.4

v. Fish ponds/livestock farms

26

225

vi. Temporary structures

vii. Reservoir

viii. Other uses

Note:

412

Total

2.4

Natural and established woodlands

Natural grass and scrubland

Land stripped of cover, or denuded granite country including coastal brackish swamp and mangrove

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

Fresh and brackish water fish farming and areas for livestock farming excluding coastal marine fish farms

+

4

0.4

26

2.4

20

1.9

Including cemetery, crematorium, mine and quarry

etc.

1 074

100.00

* Within these are 413 km2 of country parks and special areas designated under the Country Parks Ordinance for protection of vegetation and

wild life and for recreation.

APPENDICES

APPENDIX 36

(Chapter 14: Land, Public Works and Utilities)

Electricity Consumption, 1989

Maximum demand

Sales

Consumers

megawatts

million megajoules

China Light and Power Company

4 202

65 013

(3 849)

(60 366)

The Hongkong Electric Company

1 540

21 947*

hundreds

14 103 (13 594)

4 308

(1 421)

(20 452)*

(4 216)

Total

86 960

18 411

Note: Figures in brackets refer to 1988.

* Excluding inter-connection sales.

Electricity Distribution

Domestic

Industrial

Commercial

Street lighting

Export to China

Total

million megajoules

1987

1988

1989

14 022

15 711

17 075

23 979

32 403

24 876 34 818

25 178

38 097

222

228

239

4 904

5 186

6 371

75 529

80 819

86 960

Gas Consumption and Distribution (Town Gas)

Domestic

Industrial

Commercial

Total

million megajoules

1987

1988

5 254

6 127

1989

6 943

399

440

4 930

5 680

510 6218

10 584

12 247

13 671

Local Sales of Liquefied Petroleum Gas (LPG)

Total

Note:

* Estimated figure.

Water Consumption

tonnes

1987

174 119

1988

183 284

1989*

187 087

million cubic metres

1987

1988

1989

Fresh water

750

808

845

Salt water (flushing purposes)

108

110

112

413

414

APPENDICES

APPENDIX 37

(Chapter 15: Transport)

International Movements of Aircraft and Vessels

Aircraft

1987

1988

1989

Arrivals

36 823

43 507

47 100+

Departures

36 820

43 517

47 200+

Total

73 643

87 024

94 300+

Ocean-going vessels

Arrivals

14 876

16 411

17 762

Departures

14 853

16 365

17 781

Total

29 729

32 776

35 543

River steamers, hydrofoils, hoverferries, catamarans

and river trading vessels of 300 N.R.T. and under

Arrivals

87 312

94 931

94 282

Departures

87 193

94 849

94 472

Total

174 505

189 780

188 754

Note: Provisional figures.

International Movements of Passengers (Immigration figures)

Arrivals

Air

Sea

Land

Total

Departures

Air

Sea

Land

Total

Thousands

1987

1988

1989

5 497

6 621

6754

6 828

7 453

7 709

13 548

16 004

14 659

25 873

30 078

29 122

5 663

6 804

6902

7 242

7816

7932

12 966

15 486

14 280

25 871

30 106

29 114

Note: All figures quoted here exclude:

i. Passengers in transit.

i. Passengers refused permission to land.

iii. Military passengers.

International Movements of Commercial Cargo

by Different Means of Transport

Air

Imports

Exports

1987

234 407

Total

Ocean-going vessels #

Imports

Exports

Total

River vessels

Imports

Exports

Total

Rail

Importst

Exports

Total

Road

Imports

Exports

Total

1988

286 134

376 158

407 930

610 565

694 064

Tonnes 1989

307 000+ 423 000+ 730 000+

38 942 081

44 257 978

45 801 000+

14 615 191

17 062 591

18 825 000†

53 557 272

61 320 569

64 626 000+

6 151 633

6 009 045

5 477 112

3 257 778

4 060 241

3 549 439

9 409 411

10 069 286

1 890 266

1 728 826

374 795

484 152

2 265 061

2 212 978

9 026 551

1 745 163

452 992

2 198 155

2 967 003

3 525 415

4 102 846

2 439 781

3 216 487

3 857 528

5 406 784

6 741 902

7 960 374

Note: Road transport refers to cross frontier traffic through Man Kam To and Sha Tau Kok to and from China.

 Excluding livestock totalling 2 123 893 heads in 1987, 2 077 250 heads in 1988 and 1 995 674 heads in 1989. + Provisional figures.

#Figures on cargo movement by ocean-going vessels are based on the Shipping Statistics System set up by the Census and Statistics Department and are estimated from a sample of consignments on ocean cargo manifests. Figures on cargo movement by river vessels are provided by the Marine Department. The totals of these figures differ from those on cargo movement by sea in previous issues of this publication which were based entirely on figures provided by the Marine Department.

APPENDICES

APPENDIX 38

(Chapter 15: Transport)

Registered/Licensed Motor Vehicles

Public service vehicles

China Motor Bus Company

Public buses

Kowloon Motor Bus Company

New Lantao Bus Company

Others

Public light buses

Taxis

Private vehicles

Motor cycles

Motor tricycles

Private cars

Private buses

Private light buses

Goods vehicles

Crown vehicles (excluding vehicles

of HM Forces)

Motor cycles

Other motor vehicles

Total

Tramcars

Hongkong Tramways

Peak Tramways Company

Total

1987

As at end of year 1988

1989

Registered Licensed

Registered Licensed

Registered

Licensed

1 011

915

1 007

2 841

2828

2 782

878 2726

1 005

920

2 862

2 795

56

56

60

45

59

52

2 542

2 449

3 026

2916

3 356

3 184

4 350

4 340

4 350

4 341

4 350

4 340

16 810

16 538

17 080

16 805

17 351

17 014

17 045

13 489

17 311

13 943

18 931

15 553

12

10

12

10

13

8

166 977 137

145 809

178 234

160 579

195 818

180 184

129

2413

2 329

101 970

94 368

144 2 484 114 451

132

150

141

2 408 105 072

2 519 123 329

2 421 112 363

1 209

1 209

1 224

1 224

1 278

1 278

4917

4917

5 237

5 237

5 132

5 132

322 290

289 386

347 402

316 316

376 153

345 385

163 3

163

163

163

163

163

3

3

3

2

2

166

166

166

166

165

165

Public Transport: Passengers Carried by Undertaking

Thousand journeys

1987

1988

1989

Kowloon Motor Bus Company

1 088 363

1 081 832

973 905

China Motor Bus Company

318 396

317 607

298 813

New Lantao Bus Company

3 232

3 442

3 823+

Kowloon-Canton Railway Bus**

1 403

10 143

28 105+

Mass Transit Railway Corporation

592 912

629 857

688 457†

Kowloon-Canton Railway Corporation

136 352

154 615

173 094

Light Rail Transit #

16 112

Hongkong Tramways

128 677

131 917

Peak Tramways Company

2 684

2 708

81 507† 127 562 2828

Green Minibus

212 802

228 408

241 940+

Residential Coach Services

6 391

7 882

10 726†

Hongkong and Yaumati Ferry Company

74 966

75 691

71 699+

'Star' Ferry Company

39 911

41 707

39 976+

Minor Ferries

5 768

5 924

6 621+

Public Light Buses

356 616

351 259

383 670

Taxi

441 923

445 056

445 300

Total

3 410 396

3 504 159

3 578 024+

415

URBAN COUNCIL PUBLIC LIBRARIES

416

APPENDICES

  Public Transport: Passengers Carried by Area (excluding passengers of public light buses and taxis)

Hong Kong Island

Kowloon

Cross Harbour

Ferry

Tunnels

New Territories

Urban Rural

Total

1987

504 901

1988

522 773

Thousand journeys

1989+

514 708

844 900

837 687

807 095

94 597

96 944

89 020

359 796

375 749

391 463

396 193

424 575

411 471

450 116

430 880 515 888

2 611 858

2 707 844

2 749 054

Public Transport: Daily Average Number of Passengers Carried by Different Modes of Transport

1987

1988

Thousand journeys

1989†

Bus

3867

3 861

3 574

Public light bus* and Green Minibus

1 560

1 584

1 714

Taxi*

1211

1 216

1 220

Ferry

331

337

324

Tram and Cable Car

363

371

362

Railway‡

1 998

2 298

2 584

Residential coach

18

22

29

Total

9 347

9 689

9 807

Note:

* Estimate.

Includes Mass Transit Railway and Light Rail Transit.

**Kowloon-Canton Railway Bus was introduced in September 1987. #Light Rail Transit of KCRC was introduced on 18 September 1988. + Provisional figures.

APPENDIX 39

(Chapter 16: Public Order)

Traffic Accidents

APPENDICES

1987+

1988

3 843

8 481

3 960

34

Hong Kong Island

3 741

Kowloon

8 410

New Territories

3 859

Marine

27

Total

Traffic Casualties

Hong Kong Island

Fatal

Serious

Slight

Kowloon

Fatal

16 037

16 318

1989*

3 633

Į

8 345

3 924

30

15 932

56

1 228

3.400

52

1 079

3878

75

899

3 685

!

128

Serious

2411

2 259

Slight

8 435

8 541

128

142

2 119

8 427

New Territories

Fatal

Serious

Slight

97

120

1 576

1 476

1 427

4 192

4 606

4 264

120

Marine

Fatal

Serious

Slight

2

17

10

23

46

22

43

1 2 3

Total

Note:

* Provisional figures.

+ Revised figures.

21 563

22 197

21 223

417

APPENDIX 40

(Chapter 16: Public Order)

Crime

Police Cases

Against lawful authority

Against public order

Perjury

Escape and rescue

Unlawful society

Other offences

APPENDICES

Number of crimes/offences reported

Number of persons* prosecuted

1987

1988

1989

1987

1988

1989

1 780

1 805

1 984

3 743

3 778

4 004

279

286

199

220

218

161

33

35

51

18

33

31

963

908

1 041

402

406

479

192

165

131

177

149

89

3 247

3 199

3406

4 560

4 584

4 764

Sub-total

Against the person

Attempted murder

Murder and manslaughter

72

71

102

57

81

125

12

5

4

4

5

Serious assaults and woundings Abortion

8 310

8 183

9 194

5 473

5 620

5 744

1

Kidnapping and child stealing

2

4

7

20

Criminal intimidation

527

502

512

322

286

373

Other offences

138

142

151

138

123

107

Sub-total

9 060

8 907

9 968

5 995

5121

6 374

Against public morality

Rape and indecent assault

1 045

1 019

1 139

570

571

657

Other offences

1 156

1 517

1 418

1 165

1 383

1 261

Sub-total

2 201

2 536

2 557

1735

1 954

1918

Against property

Robbery with firearms

7

19

33

25

14

Other robberies

5 454

5 686

6 419

1 478

1 669

2 099

All burglaries

10 601 #

10 749

10 913

1 089

1 058

107

Going equipped for stealing, etc.

95

82

131

100

93

130

Blackmail

611

612

664

605

676

650

Theft from persons

4 973

2 959

2 450

698

518

576

Other thefts

28 579

27 310@

27 706

8 466

7 936

8 901

All frauds

1 344

1 229

1 299

560

549

591

Handling stolen goods

174

· 171

203

161

207

196

Criminal damage to property

5 208

5 465

5 475

1 269

1 250

1 638

Unlawful possession

948

778

1 052

777

672

788

Possession of an unlawful instrument

356

279

455

322

260

537

Loitering and trespass

1 394

589

608

1 044

517

447

Tampering with vehicle

496

277

283

474

249

210

Sub-total

60 240 #

56 205

57 691

17 049

15 679

17 884

Other crimes

Forgery and coinage

291

356

484

167

232

413

Bribery and corruption

28

23

14

22

14

11

Possession of arms and ammunition

50

48

87

58

53

89

Conspiracy

76

92

125

189

258

237

Serious immigration offences

452

506

694

513

583

798

Other crimes

1 657

1 352

1.348

1 349

1 188

1 139

Sub-total

2 554

2377

2 752

2 298

2 328

2 687

Serious narcotic offences

4 143

5 527

5 040

5 231

6 579

Serious gambling offences

483

433

394

693

670

6 050 603

Total

81 928 #

79 184@

81 808

37 561

37 915

40 280

418

Overall detection rate

1987-46.7 per cent

1988-46.9@ per cent

1989 - 47.9 per cent

Narcotic Offence Cases

APPENDICES

Number of persons* prosecuted

1989

1987

1988

1989

Number of crimes/offences reported

1987

1988

Serious offences

Manufacturing

11

27

23

Trafficking

129

90

84

161

133

13 110

Possession for purpose of trafficking

4006

5 424

4 946

5041

6420

5 924

Other narcotic offence

2

3

3

Sub-total

4 143

5 527

5 040

5 231

6 579

6 050

Minor offences - Opium

Possession of opium

162

138

Possession of equipment

130

119

Keeping a divan

90

65

Smoking opium

247

248

159

8859

69

58

51

Other opium offences

3

Sub-total

632

572

339

མྦ॰ཎཤྩ ༔ |ཙུ །

92

47

65

49

187

157

1

354

259

Minor offences - Heroin

Possession of heroin

3 943

2 656

1 789

3 644

2 486

1 578

Possession of equipment

2 483

2 377

1 332

581

500

261

Keeping a divan

11

10

13

Smoking heroin

251

159

234

127

67

80

Other heroin offences

19

35

10

11

8

2

Sub-total

6 702

5 238

3.366

4 373

3 074

1922

Minor offences - Other dangerous goods

Possession

Smoking

Other offences

Sub-total

Total

Note:

764

811

775

600

580

689

7

2

28

51

51

15

22

792

863

833

615

585

713

12 269

12 200

9 578

10 644

10 592

8 944

* If a person is prosecuted on two or more occasions in a year, he will be recorded once for each occasion; on the other hand, if a person is

prosecuted on the same occasion for more than one offence, only the principal offence will be taken for tabulation.

#Due to the change in method of counting burglary incidents in 1988, the crime figures for 1987 have been revised so that they can be

comparable with those of 1988.

@Figures have been adjusted to make them comparable with the corresponding figures of 1989 due to the revision of counting rules for the

offence of theft from vehicle in January 1989.

419

.

420

ICAC Cases

Involving individuals employed in

government departments

Architectural Services

Buildings and Lands

Census & Statistics

City & New Territories Administration

Correctional Services

Civil Aviation

Customs & Excise

Education

Fire Services

Highways

Housing

Immigration

Independent Commission Against

Corruption

Judiciary

Legal

Marine

Medical & Healtht

Post Office

Regional Services

APPENDICES

Number of persons prosecuted

1987

1988

1989

1

1

3

1

Nolle

Total

Pending Convicted Acquitted Prosequi

||~|~~~ |-|- ~

| | | | | - | | | | | ~

2

| | | |-

1

16

8

~ | | | | | |--2-2-|--

Territory Development

Royal Hong Kong Police

Social Welfare

Urban Services

Water Supplies

Sub-total

40

555

17

14

Others

British Armed Forces

3

Crown servants/private individuals*

38

43

12

13

31

Public bodies #

49

2

Public bodies/private individuals*

76

Private sector**

282

276

Sub-total

Total

445

327

USF

1

2

59

155

45

259

71

171

51

293

485

382

80

188

65

333

Note:

* These are cases in which Crown/public servants and private individuals were involved.

# As defined in the Prevention of Bribery Ordinance, Cap. 201.

**These are cases in which only private individuals were involved.

† As from 1.4.89, the Medical and Health Department was restructured to form the Hospital Services Department and the Department of

Health. Figures concerning the two new departments for 1989 continue to be classified under the Medical and Health Department.

APPENDIX 41

    (Chapter 16: Public Order) Judiciary Statistics

Supreme Court

(i) Court of Appeal

Civil appeals

Criminal appeals

Total

(ii) High Court

APPENDICES

1987

1988

1989

168

164

202

637

627

638

805

791

840

Criminal jurisdiction

Criminal cases

234

296

387

Appeals from Magistrates

1 090

1 814

1 601

Total

1324

2110

1988

Civil Jurisdiction

High Court actions

Commercial cases

Construction cases

Miscellaneous proceedings

Adoptions

Divorce

Admiralty jurisdiction

Bankruptcy

Company winding-up

Appeals from Small Claims and

Labour Tribunals

Total

District Court

8 648

8 303

101

271

7 926

148

27

15

21

2 757

-

2 642

3.496

2

3

6

5

5

204

208

360

956

845

711

252

219

224

109

111

113

13 060

12 621

13 007

Criminal cases

Other cases

Civil actions

1.369

32 314

Stamp Appeals

41

1514*

28 975*

1 521

27 651

19

16

Employee's compensation

534

493*

621

Distress for rent

3 182

2 892*

Divorce

5 747

5 893

Adoptions

322

Lands

Total

Small Claims Tribunal

Number of cases filed

Labour Tribunal

5 121

292

5661*

3 099 6275 280

6 180

47 261

45 739*

45 643

33 243

36 022

37 771

Number of cases filed

4 426

4 312

4 285

Obsence Articles Tribunal

Number of cases filed

300

1 771

Coroner's Court

Number of death inquiries made

305

333

1 515

327

Magistracies

Charge sheets issued

167 623

147 045

Summonses issued

342 213

311 792

Miscellaneous proceedings issued

18 452

18 638

128 220 321 399 18 009

Anti-litter notices issued

46 851

48 311

42 244

Total

575 139

525 786

509 872

Defendants charged

Adults

574 086

515 192

Juveniles

3 471

3 498

519 527 3.800

Total

577 557

518 690

523 327

Defendants convicted

Adults

544 138

481 261

Juveniles

2 861

2717

493 067 3 044

Total

546 999

483 978

496 111

* Revised figures.

421

APPENDIX 42

(Chapter 16: Public Order)

Correctional Services

APPENDICES

1987

Population of

Prisons

Training centres

6041

597

As at end of year 1988

7 793 682

1989

8 453

Detention centres

275

312

707 363

Treatment centres

1 116

1 250

1 094

Vietnamese refugees/Vietnamese boat people/

Illegal immigrants

6 673

Number Discharged under aftercare

3 443

18 880 3 461

34 748 3 743

APPENDIX 43

(Chapter 19: Communications and The Media)

Communications

Postal traffic:

1987

1988

1989 Estimate

Letter mails (million articles)

posted to destinations abroad

120.5

posted for local delivery

456.9

126.6 532.7

144.9

594.4

received from abroad for local delivery

83.8

86.6

84.5

in transit

3.7

3.8

4.0

Parcels (thousands)

posted to destinations abroad

I 466

1 352

1 273

posted for local delivery

123

149

113

received from abroad for local delivery

548

540

552

in transit

47

40

46

Telecommunications traffic:

Telegrams (thousand messages)

accepted for transmission

857

799

638

received

974

923

726

in transit

423

221

177

Telex calls (thousand minutes)

outward

44 684

38 429

31 066

inward

50 738

44 346

36 998

International telephone calls (thousand minutes)

outward

253 162

350 782

inward

296 789*

397 959*

457 839 512 233

Radio pictures

transmitted

22 515

10 028†

7

received

3.490

733

378

Broadcast and reception services (thousand hours)

press

4.6

9.0

11.6

meteorological

125.9

113.7

108.4

International telephone circuits

6 512

8 058

10 274

International telegraph circuits

3 689

3 536

3 405

Telex trunks

2 501

2 459

2 422

International leased circuits

1856

1 907

2 152

Telephone exchanges

66

70

70

Exchange capacity (thousand lines)

Keylines and PABX lines (thousands)

Fax lines (thousands)

Telephone subscribers (thousands)

Telephones (thousands)

2 308

233.9

32.1

1 989

2 577

274

60

2 154

2 691

311

83

2305

2 662*

2 892*

3 106

Telephones per 100 population

47.42

50.41*

53.91

Outgoing internationl calls (million)

71.90

112.69

157.43

Telecommunications licences (all types)

57 255

66 480

71 956

Note:

* Estimate.

422

† A major customer withdrew its subscription to the service from July 1988.

APPENDICES

APPENDIX 44

(Chapter 21: Recreation and The Arts)

Recreational Facilities

Facilities

         Children's playgrounds Parks and gardens

Grass games pitches

Hard-surface mini-soccer pitches

Basketball/volleyball/badminton courts

Tennis courts

Running tracks

Beaches

Swimming pool complexes

Multi-purpose indoor games halls/recreation centres

Obstacle golf course, squash courts, practice tennis court, bowling greens,

roller-skating rinks, table tennis tables

Urban Council

Regional Council

ཙྪི ནྣིཙུཝིཎྜནྣིནིགཔཀྐསྶ རྩ ཙྩཱ

1987

1988

1989

1987

1988

1989

200

223

229

134

461

470

709

264

42

42

39

10

104

104

107

41

367

416

457

211

96

101

106

40

9

9

10

10

12

12

12

30

13

13

14

7

20

27

28

6

241

303

342

115

248

248

250

85

8སྣ8སྐe8སྒྱུ=་ྲས

156

181

302

343

9

10

46

50

256

279

39

45

10

10

30

30

7

8

11

13

153

178

121

157

Aviaries and mammal exhibits, concrete chess tables, model boat pools,

open-air theatre

Bandstand, barbecue pits, composite beach buildings, changing rooms,

fountains, dog's gardens, refreshment kiosks, public toilets, pavillions shelters, spectator stands

1 073

1 100

4

511

575

8-10-

1 127

1 010

1

6

9

0224

1 350

1350

2

2

34

3

4

4

589

348

429

510

Camps

Water sports centres

Fitness centres

Total area of public open space administered (hectares)

APPENDIX 45

(Chapter 22: The Environment)

Climatological Summary, 1989

Mean

pressure at mean

Maxi-

mum

Mini-

mum

Mean

Month

     sea level hectopascals

air tem- perature

Mean air tem-

air tem-

perature

perature

dew point

Mean relative humidity

Mean amount of cloud

Total bright sunshine

Total rainfall

Prevailing wind

Mean

wind

direction

speed

°C

°C

ос

°C

per cent

per cent

hours

mm

degrees

km/h

January

1 019.4

23.2

15.7

7.6

12.1

80

February

1 019.0

24.9

16.6

8.7

11.7

74

March

1 016.6

25.7

18.6

11.4

13.7

75

April

1011.1

29.0

22.0

18.3

19.5

86

May

1 009.2

31.0

25.1

20.9

22.5

86

June

1 008.1

31.7

27.5

22.4

24.3

83

July

1 006.1

33.7

28.8

21.7

24.7

79

August

1 004.9

34.3

28.9

24.9

25.0

80

September

1 007.6

34.0

28.1

23.5

23.6

October

1 014.5

30.9

25.1

19.1

19.7

November

1 019.7

28.2

21.5

12.3

15.3

December

1 020.7

23.3

17.8

13.1

12.8

Year

1 013.0

34.3

23.0

7.6

18.8

FCO* *

77

73

69

74

78

*********** 8

84.9

23.9

070

28.0

149.3

2.7

060

24.4

145.6

47.8

070

25.1

71.1

201.1

070

20.1

109.2

771.9

080

24.8

179.2

137.5

090

24.5

238.2

237.9

230

22.1

196.4

218.0

230

16.6

175.9

228.1

120

22.1

195.4

15.2

100

35.0

179.2

20.3

100

30.3

164.1

40.2

090

25.7

1 888.5

1944.6

080

24.9

Climatological Normals

(1951-1980)

Month

hectopascals

°C*

°C

°C*

°C

per cent per cent

January

1 020.1

26.9

15.6

0.0

9.8

February

1 018.6

27.8

15.9

2.4

11.7

March

1 016.2

30.1

18.5

4.8

15.0

April

1 013.1

33.4

22.1

9.9

18.9

May

1 009.1

35.5

25.9

15.4

22.7

June

1 006.2

35.6

27.7

19.2

24.5

July

1 005.4

35.7

28.6

21.7

25.0

August

1 005.2

36.1

28.2

21.6

24.8

September

1 008.5

35.2

27.5

18.4

23.2

October

1014.0

34.3

25.0

13.5

19.3

November

1017.6

31.8

21.3

6.5

14.9

December

1 019.8

28.7

17.7

4.3

11.4

Year

1 012.8

36.1

22.8

0.0

18.4

FR2288 2

71

78

83

84

72

& 333882JCZZ28 2

hours

mm

degreest

km/ht

59

153.5

26.9

070

23.8

108.7

41.9

070

23.1

76

101.4

54.8

070

21.4

76

120.2

139.4

080

19.0

73

162.6

298.1

090

18.8

75

159.2

431.8

090

20.9

66

230.9

316.8

230

18.9

66

206.0

413.4

090

18.2

62

188.5

320.4

090

21.4

209.9

121.2

090

26.1

52

191.5

34.7

080

26.8

179.3

25.3

080

24.9

65

2011.6

2 224.7

080

21.9

Note:

* These extreme values are for the period 1884-1939; 1947-1989.

+ These normal values are for 1953-1982.

423

424

APPENDICES

APPENDIX 46

(Chapter 24: History)

Governors of Hong Kong

The Right Honourable Sir Henry POTTINGER, Bt, PC, GCB

Sir John Francis DAVIS, Bt, KCB

Sir Samuel George BONHAM, Bt, KCB

Sir John BoWRING

The Right Honourable Lord RosMEAD, PC, GCMG

June 26, 1843

May 8, 1844

March 21, 1848

April 13, 1854

(formerly the Right Honourable Sir Hercules ROBINSON, Bt) September 9, 1859

Sir Richard Graves MACDONNELL, KCMG, CB

Sir Arthur Edward KENNEDY, GCMG, CB

Sir John Pope HENNESSY, KCMG

The Right Honourable Sir George Ferguson BOWEN, PC,

GCMG

Sir George William DES VOEUX, GCMG

Sir William ROBINSON, GCMG

Sir Henry Arthur BLAKE, GCMG

The Right Honourable Sir Matthew NATHAN, PC, GCMG

The Right Honourable the Lord LUGARD, PC, GCMG, CB,

DSO

Sir Francis Henry MAY, GCMG

Sir Reginald Edward STUBBS, GCMG

Sir Cecil CLEMENTI, GCMG

Sir William PEEL, KCMG, KBE

Sir Andrew CALDECOTT, GCMG, CBE

Sir Geoffry Alexander Stafford NORTHCOTE, KCMG

Sir Mark Aitchison YOUNG, GCMG

Sir Alexander William George Herder GRANTHAM, GCMG

Sir Robert Brown BLACK, GCMG, OBE

Sir David Clive Crosbie TRENCH, GCMG, MC

Lord MACLEHOSE of Beoch, GBE, KCMG, KCVO

(formerly Sir Crawford Murray MACLEHOSE)

Sir Edward YOUDE, GCMG, MBE

Sir David Clive WILSON, KCMG

March 11, 1866

April 16, 1872

April 22, 1877

March 30, 1883

October 6, 1887

December 10, 1891

November 25, 1898

July 29, 1904

July 29, 1907

July 24, 1912

September 30, 1919

November 1, 1925

May 9, 1930

December 12, 1935

October 28, 1937

September 10, 1941

July 25, 1947

January 23, 1958 April 14, 1964

November 19, 1971

May 20, 1982

April 9, 1987

INDEX

Accidents--

        occupational, 107, 397 traffic, 223, 417 Administration-

Government, 23-40

District, 30

Structure of, 34

Acquired Immune Deficiency Syndrome (AIDS),

148, 153-4, 276

Advisory committees, 33

Agreement on the Question of Hong Kong,

Implementation, 49-52

Joint Declaration, 23, 35, 42, 191

Agriculture

     and Fisheries Department, 113-6 co-operative societies, 113-4

credit unions, 113

crops, 111

development, 114-5

industry, 111-2

livestock, 112-3

loans, 113

marketing, 115-6

pest management, 113-4

pollution, 113

poultry, 111-2

research, 113

Airport-

Port and Airport Development Strategy, 17-18,

192-3, 216, 230, 233, 332

Air Service Agreements, 50, 234-5

Antiquities and Monuments Board, 320

Aquatic life, 325

Archaeology, 358-60

Armed Services-

Air Force, 271, 273

Army, 271-2

Navy, 271-2

Royal Hong Kong Regiment (The Volunteers),

273

Arts-

An International Celebration of the, 295, 301 Academy for Performing, 318

Centres, 299-300

Chung Ying Theatre Company, 316-7

City Contemporary Dance Company, 317-8 Council for Performing, 316

Cultural Presentations, 301

HK Arts Festival, 303-4

HK Festival Fringe, 304

HK Ballet, 301, 317

HK Chinese Orchestra, 302-3

HK Cultural Centre, 207, 295, 298

HK Dance Company, 303

HK International Arts Carnival, 305

HK International Film Festival, 304-5

HK Philharmonic Orchestra, 298, 301, 303 HK Repertory Theatre, 302

Ko Shan Theatre, 300

Arts--(Contd)

Music Office, 318-9

Recreation and Culture Branch, 316 Audit of public accounts, 27, 36-7 Auxiliary Services-

Air Force, 265-6

Civil Aid Services, 264-5 Medical Services, 164 Police, 249

Bankruptcies and liquidations, 98

Banks-

Commissioner, 68, 70

Hong Kong Association of, 67, 75-6

Hong Kong and Shanghai Banking Corporation

Limited, 77, 386

interest rates, 73, 76

licences, 67-8

loans, 387

Standard Chartered Bank, 77, 386

supervision, 70-2

Baptist College, 132-4

Basic Law, 11, 49, 51-2

Beaches, 297-8, 334, 340-41

Bill of Rights, 11

Birds, 323

Births-

and deaths registration, 347, 403

Books Registration Office, 320

Botanical Gardens, 309-10 British-

Council, 145-6

Government, 6, 23, 37

Forces Broadcasting Service, 286, 288 Parliament, 37

British National (Overseas) Passports, 332 Broadcasting Authority, 283

Buddhism, 290-91

Budget,

appropriation bill, 34

management, 62-3

Building(s)

private, 205-6 public, 206-8

town planning, 196-9

Bus services, 226-7 Business-

profits tax, 65

registration, 65-6

Campaigns, 276

Catholic Board of Education, 292

Catholic Social Communications Office, 292

Cemeteries and Crematoria, 163-4

Central Government, 24-5

Chief Secretary, 34

China-

People's Republic of, 23

relations with, 49-52

425

INDEX

426

China (Contd)

transport links, 218, 224-5

trade, 56-7, 59

Chinese

festivals, 290

General Chamber of Commerce, 93-4

language, 39-40, 140-41

Manufacturers' Association, 93

temples, 291-2

Temples Committee, 291

Christian-

community, 292

Council, 291-2

Service, 292

Cinemas, 289

City Hall, 295, 298-9

Civil Aviation, 233

Air Service Agreements, 234-5

Civil Service, 8

Branch, 38

Standing Commission, 38

Training Centre, 39

Councils, 39

Climate, 321-2

Coins, 77

Commerce-

Chinese General Chamber of, 93-4

Hong Kong General Chamber of, 93

Indian Chamber of, 86

Commissioner for Administrative Complaints, 35-6

Commodities trading, 71

Communications, 274

Companies Registry, 97

Constitution, 23-40

Consumer Council, 94-5

Consumer price index, 53, 398

Container port, 216-7, 229-30, inside back cover

Convention of Chuenpi, 353

Convention of Peking, 354

Co-operative societies, 114

Copyright, 251

Correctional Services, 255-60, 422

after-care, 258-9

closed centres, 256, 259-60

drug addiction treatment, 257

educational and vocational training, 258

female offenders, 257

industries, 259

adult male offenders, 256

medical care, 258

psychological services, 258

Society for the Rehabilitation of Offenders, 260

staff training, 260

young offenders, 256-7

Council of Social Service, 165

Countryside

conservation, 326

Crime, 238, 418-20

ballistics and firearms, 241

commercial, 239

Fight Crime Committee, 236-7

information, 240-41 Interpol, 241

juvenile, 238

narcotics, 239

Crime (Contd)

organised and serious, 238-9 prevention, 240

triads, 236-7

Crops, 111, 113-4, 399-400 Currency, 69, 73-7, 386 Customs and Excise

anti-narcotics, 250

anti-smuggling, 250-51 Department, 89-90, 250

intellectual property, 251

ivory trade, 251

administration and trade controls, 89-90

Deaths, 332, 403-4

Defence

and Public Order, 50

Dental services, 152

Dental training, 155

Deposit-taking companies, 67-8, 388

Development Loan Fund, 62

Development of Representative Government, 10

Diplomatic representation, 37-8, 372

District-

Administration, 30-31

Boards, 23, 32

Drug addiction, 196-7

Action Committee Against Narcotics (ACAN),

157

Central Registry of Drug Abuse, 156

Drug Trafficking Bill, 157

international action, 159

legislation, 157

methadone clinics, 158

preventive education, 158-9

PS33, 158

Society for the Aid and Rehabilitation of Drug

Abusers (SARDA), 158

telephone enquiry service, 159

treatment, 158

Drug seizures, 239, 419

Dutiable commodities, 384

Earnings and Profits Tax, 65, 378 Economy, 58

Budget, 62-3

Development Loan Fund, 62 domestic demand, 59-60

economic policy, 61

Exchange Fund, 76-7

external trade, 58-9, 389-93

General Revenue Account, 62

government involvement, 61-2

government loans, 62

government revenue and expenditure, 63-6,

378-83

growth, 53

inflation, 61

labour market, 60

links with China, 60-61

manufacturing, 55-6, 394-6

property market, 60-61

public sector, 63-4

revenue, 64, 378, 380

Science and Technology, 66

INDEX

Economy (Contd)

service sectors, 56

     structure and development, 54 taxation, 64-5

Education, 12-14, 117-46

adult, 140

Advisory Inspectorate, 141-2 aided schools, 119

and Manpower Branch, 117 apprenticeship, 138 Baptist College, 132-4 Board of, 117-8

British Council, 145-6 Chinese University, 126-8 City Polytechnic, 131-2 Colleges of Education, 139 commercial, 142 Commission, 117

Community Youth Club, 144

computer, 142-3

dental training, 124

Department, 119-20 disabled, 138-9

Education Research, 126

Educational Television Service, 144-5

Examinations Authority, 145 expenditure, 120

financial grants, 135

graduate teachers, 125

Grantham College, 120

Hong Kong Polytechnic, 129-31

industrial training, 137-8

Institute of Language, 141

kindergartens, 120

language, 140

library services, 144

Lingnan College, 123

medical schools, 124, 126, 155 music, 143

Open Learning Institute, 134-5

physical, 143

post-secondary, 123

primary, 120-21

Provisional Council for Academic

research, 141

Accreditation, 134

scholarships, 135

secondary, 121-2

Shue Yan College, 123

Sir Edward Youde Memorial Fund, 136

special, 122-3

SSPA system, 121

student finance, 135

students overseas, 145

teachers' colleges, 139-40

teaching centres, 143-4

technical, 142

training authorities, 138 UK-HK Scholarships, 135

University and Polytechnic Grants Committee,

118-9

University of Hong Kong, 124-6

     University of Science and Technology, 128-9 visual, 143

Vocational Training Council, 119

Vocational Training for the Disabled, 138-9

Electoral system, 32-3 Electricity, 213-4, 413 Electronics industry, 79 Emigration, 5-6 Employment, 99-110

agencies, 106

careers guidance, 105 conditions, 100 contracts, 106

controls on illegal, 101 domestic helpers, 106

employees' compensation, 109-10 finding employment, 104

foreign workers, 105-6

health and hygiene, 108-9

illegal, 101-2

labour administration services, 102-3 Labour Advisory Board, 110

labour relations, 103

Labour Tribunal, 104

legislation, 100

long service payment, 102

occupational health and hygiene, 108 occupational safety, 108-9

outside, 106

protection of wages on insolvency, 104 safety, 106-9

Selective Placement, 104

services, 104

trade unions, 102

wages, 100 work force, 99

Energy, 213-4, 413

Environment, 16-17, 321-43

air, 330, 335-7, 342

aquatic life, 325

background radiation, 343

chemical wastes, 340

climate, 321

environmental management, 326

EPCOM, 331

legislation and pollution control, 334-5

Metroplan, 332

monitoring, 340-43

noise, 331, 337-8, 342

plant life, 325-6

protection, 331

Royal Observatory, 326-7

Topography and Geology, 322-3

waste disposal, 330, 338-40

water, 330, 334-5, 340-41

weather, 327-9

wildlife, 323

Estate Duty, 65, 378

Exchange Fund, 76-7

Exchange value of dollar, 75, 385 Executive Council, 24-5, 367 Explosives, 116

Export Credit Insurance Corporation, 92 Exports, 84-6, 389-93

*External commercial relations, 37-8, 86-8

Factories and industrial undertakings, 394-6 Federation of HK Industries, 93 Fight Crime Committee, 236-7 Film industry, 289

427

INDEX

Finance Committee, 26

Financial and Monetary Affairs, 67-77

banking, 67-8, 387-8

commodities trading, 68-9 currency, 77, 386

Exchange Fund, 77

exchange value of dollar, 75

financial scene in 1989, 73-5

gold market, 75

inflation, 61

institutions, 67-9

markets, 69-70

monetary policy, 75-7

regulation, 70-73

Securities and Futures Commission, 72-3

Securities Review Committee, 72-3 stock market, 69, 74-5

Fire Services, 260-62

ambulance service, 261 communications, 262 prevention, 261

training, 262

First Opium War, 353

Fish Marketing Organisation, 115-6

Fishing-

co-operative societies, 115 development, 114-5

industry, 112-3, 400

loans, 113, 115

marine fish culture, 112-3

ponds, 112

research, 113

Flood control, 212

Foreign relations, 37-8

Forensic laboratory, 255

Gas, 214-5, 413

Geology, 322-3

Geophysical Services, 329-30 Geotechnical Control, 211

Good Citizen Award Scheme, 243 Government-

administration, 23, 34-5 branches, 34-5 Budget, 34, 62-3

Central, 24-5

Central Policy Unit, 34

departments, 34-5.

Letters Patent, 24

offices overseas, 376

political adviser, 37-8

revenue and expenditure, 63-6

Royal Instructions, 24

Secretariat, 34-5

Governor, 23-4, 367

Governor in Council, 25

Green Paper on Representative Government, 23

Gross Domestic Product, 4, 53-4

Health, 147-64

abattoirs, 163

AIDS, 148, 154

Auxiliary Medical Services, 164

cemetries, 163-4

clinics, 150-51

428

crematoria, 163-4

Health (Contd)

communicable diseases, 148-9

community, 148

community nursing service, 154

Council on Smoking and Health, 154

dental services, 152

dental training, 155

development programmes, 149-50

education, 154

expenditure, 147-8

family, 151

food, 161-2

Government Laboratory, 156

hawkers, 162-3

hospital beds, 149-50

hospitals, 149-50 markets, 162

medical charges, 155

Medical and Health Department, 147

medical personnel, 155-6

medical schools, 155-6

mental, 152-3

narcotics, 156-9

port, 151-2

Provisional Hospital Authority, 147

psychiatric, 152-3

rabies control, 149

Review of Primary Health Care, 152

school service, 151

schools of nursing, 155-6

special services, 153-4 training, 155-6

Heung Yee Kuk, 30 Hindu community, 293 History, 352-60

Home Purchase Loan Scheme, 183

HK Convention and Exhibition Centre, 92 HK Council of Social Service, 165, 406-8 HK Export Credit Insurance Corporation, 92 HK General Chamber of Commerce, 92-3 HK Industrial Estates Corporation, 83-4 HK Journalists Association, 277

HK Laboratory Accreditation Scheme, 81 HK Management Association, 94 HK Productivity Council, 82

HK Red Cross, 148

HK Shipowners' Association, 231

HK Tourist Association, 267-70

HK Trade Development Council, 90-92 HK Trade Facilitation Committee, 94 Housing, 176-90, 410

allocation, 183-4 Authority, 176-8 construction, 178 clearance, 187

cottage areas, 186 estates, 179-80 expanded role, 177 expenditure, 177-8

Home Ownership Scheme, 182-3 Home Purchase Loan Scheme, 183

Kowloon Walled City Clearance, 187

letting, 185-6

Long Term Strategy, 176

management, 184-5

INDEX

Housing (Contd)

maintenance, 181-2

new towns, 179-80

post-war premises, 187-8

pre-war premises, 187

Private Sector Participation Scheme, 176, 182

privately-owned buildings, 186

redevelopment, 180-81

rent control in private sector, 186-7

rent policy, 184

Society, 176

squatters, 187

temporary, 186

transit centres, 186 urban, 179

Immigration-

BN(O) passport, 346 Chinese, 345

control, 345

Department, 345, 348

Easy Travel Scheme, 345

illegal, 346

legal, 346

personal documentation, 346-7

resettlement, 348

screening policy, 348-50

staff training, 348

travel documents, 345-7

UNHCR, 348-51

Vietnamese Boat People, 242, 348-51

Imports, 59, 84-5, 389-90'

Independent Commission Against Corruption, 252-5

community relations, 254-5 complaints committee, 252 corruption prevention, 253-4 operations, 252-3

Industrial-

Chinese Manufacturers' Association, 93 Development Board, 80 documentation, 85-6 Estates Corporation, 83-4 Exports, 85, 389-93

Federation of Hong Kong Industries, 93 Governor's Award Scheme, 82

health and hygiene, 108-9

imports, 84-5, 389-90

investment, 82

land, 82

products, 78-80

quality service, 81

safety, 106-8

Productivity Council, 82-3

Standards and Calibration Laboratory, 81

support facilities, 82

standards and testing, 81

Industry and Trade, 78-98

Information policy, 274-5

Information Services Department, 275-6

Internal revenue, 64-6, 378-80

Jewish community, 294

Joint Declaration on the Question of Hong Kong,

Agreement, 23, 49, 352

Joint Liaison Group, 11, 49-50, 352 Judiciary, 43-4, 421

Judicial Trustee, 98

Labour-

ILO, 100

administration and services, 102-3

Advisory Board, 110

careers guidance, 105

compensation, 109-110

conditions of work, 100-101

employment services, 104

foreign workers, 105-6

health and hygiene, 108-9 illegal employment, 101-2 industrial safety, 106-8 legislation, 100

long service payment, 102

occupational safety, 109 overtime, 101

relations, 103

trade unions, 102

Tribunal, 104

wages, 100-101

wages protection, 104

workforce, 99

Land, Public Works and Utilities, 191-215

acquisition for public purposes, 194 administration, 193-4

Commission, 192

development, 192

flood control, 212

Geotechnical Control, 211

grants and leases, 193-4

Metroplan, 193

new town development, 199-203 office, 194-5

Port and Airport Development Strategy, 192-3,

inside back cover

port works, 211

private building, 205-6

professional registration, 193

public building, 206-8

reclamation, 204

Review of Town Planning Ordinance, 198

sales, 195-6

supply, 193-4

survey and mapping, 208-9

territory development strategy, 196

town planning, 196-9

urban development, 204

urban renewal, 204-5

usage, 412

water supplies, 209-10 Language, 39-40, 140-41 Law-

Basic, 11, 51-2 localisation of, 50 in Hong Kong, 41-2 Legal System, 41-8

Attorney General, 44-5 Bar Association, 46 Bill of Rights, 42-3 civil legal aid, 46-7 Coronor's Court, 43

429

430

INDEX

Legal System (Contd)

Crown Solicitor, 44 Court of Appeal, 43

District Court, 43

Duty Lawyer Scheme, 48

English Acts, 41

High Court, 43

Hong Kong Act, 41

Hong Kong (Legislative Powers) Order, 41

Judiciary, 43-4

Justices of the Peace, 41

Law Reform Commission, 45

Labour Tribunal, 44

Law Society, 46

Legal Aid, 46

Letters Patent, 41

Magistrates' Courts, 43

Obscene Articles Tribunal, 44

Privy Council, 42

Registrar General, 45-6

Small Claims Tribunal, 44

Solicitor General, 44

Supreme Court, 43

Legislative Council, 25-6

Letters Patent, 41

Libraries, 310-12

London Office, Hong Kong Government, 278, 373

Lotteries Fund, 62

Manufacturing, 55-6, 78

Maps, 208-9

Marine

Department, 228-33

Mercantile Marine Office, 232

Port and Airport Development Strategy, 230,

inside back cover

Seamen's Recruiting Office, 232

shipping register, 232

training, 232

Marriages, 347

Measurement-

units of, 364

Standards and Calibration Laboratory, 81

Media, The, 274-89

Medical-

and Health Department, 147

and health services, 14-15

charges, 155

hospital beds, 149-50

personnel, 155

schools, 155-6

Metrication, 96

Mining, 116

Monetary policy, 75-6

Money lenders, 98

Monuments, 320

Municipal Councils, 23

Museums-

Art, 307

History, 305-6

Railway, 308

Sam Tung Uk, 308

Science and Technology, 306-7

Sheung Yiu Folk, 308

Space, 306

Music-

HK Chinese Orchestra, 302-3

HK Jockey Club Music Fund, 319

HK School of, 318

HK Philharmonic Orchestra, 303

HK Youth Symphony Orchestra, 319 Office, 318-9

Youth Music Camp, 319

Muslim community, 293

Narcotics, 156-9, 239, 419-20 New towns-

Fanling/Sheung Shui, 202 Sha Tin, 200 Tai Po, 201

Tsuen Wan, 199-200

Tseung Kwan O (Junk Bay) and Sai Kung, 203

Tuen Mun, 200-201

Yuen Long, Tin Shui Wai and North Western

New Territories, 202-3

Nuclear power-

Daya Bay plant, 214

Radiation monitoring, 343

Oceanographic services, 329-30

Office of Members of the Executive and Legislative

Councils (OMELCO), 27-8, 367-9

Official-

Receiver, 98 Solicitor, 98

Trustee, 98

Overseas offices, 277-9, 373

Overseas representation in Hong Kong, 372

Plastics, 79-80

Police Force, Royal Hong Kong,

Auxiliary, 249

ballistics, 241

commercial crime, 239

communications, 246

community relations, 243-4

Complaints Against Police Office, 245

Complaints Committee, 249

crime information, 239

crime prevention, 239

dogs, 247

exchange scheme, 247-8

illegal immigrants, 242

information technology, 246

Interpol, 241

Junior Police Call, 243-4

juvenile crime, 238

Licensing and Societies Registration, 247

marine, 242

museum, 249

narcotics, 239

organised and serious crime, 238-9

personnel, 247

planning and development, 245-6

public order, 241

traffic, 242-3

training, 244-5

transport, 246

Vietnamese influx, 242

welfare, 248-9

INDEX

       Political Adviser, 37-8 Pollution,

air, 330, 335-7, 342 chemical, 330, 340

Environmental Protection, 331 EPCOM, 331 investigation,

340-42

legislation and control, 334-8 marine, 334-5

monitoring, 340-43

noise, 330, 337-8

planning, 331-4

sewage, 338-9

     waste disposal, 330, 338-40, 342 water, 330, 334, 340 41

Polytechnics-

Hong Kong, 129-31

City, 131-2

Population, 328, 346, 403

Port-

and Airport Development Strategy, 17-8,

       192-3, 216, 230, 232-3, inside back cover administration, 228

container terminals, 229-30

Postal services, 282-3

Power stations, 213-4

Primary production, 111-6

Printing and publishing, 279-80

Prisons, 256-7

Productivity Council, 80

Product Standards Information Bureau, 81

Profits Tax, 65

Protestant community, 291-2

Public-

Accounts Committee, 27

Assistance Scheme, 166-7

audit of accounts, 36-7

    expenditure, 63-4 libraries, 310-12

order, 236-66

Records Office, 358

Service, 38-9

Service Commission, 38

transport, 217, 224-8

utilities, 209-15

works and development, 192

Quarantine

animal, 149

Port Health Service, 151-2

Quarrying, 116

Queen, The, 24

Rabies, 149

       Radiation Monitoring, 343 Radio, 286-8

Rainfall, 321-2, 423

Recreation

and Culture, 316

     and the Arts, 295-320 arts centres, 299-300

major parks, 310

Regional Council, 29-30, 296-7, 371

Registrar General's Department, 45-6, 97-8

Religion and Custom, 290-94

Rent Control, 188-9 Reptiles, 324 Research-

agricultural, 113 fisheries, 113

geophysical/oceanographic, 329-30 Reservoirs, 209-10

Revenue and expenditure, 63-6, 378 Roman Catholic community, 292 Royal Instructions, 24

Royal Observatory, 326-8

Salaries tax, 65

Second Anglo-Chinese War, 354

Securities and Futures Commission, 72-3 Seismology, 329-30

Select committees, 27

Shipbuilding and repairing, 80

Shipping, 228

Shipping Register, HK, 225-6

Sikh community, 294

Sino-British Joint Declaration on the Question of

Hong Kong, 23, 37, 49, 352 Implementation of, 49-52

Sino-British Joint Liaison Group, 49, 226

Sino-British Land Commission, 51

Social Welfare, 165-75

care of elderly, 171

Central Committee on Youth, 175

community building, 174-5

Community Chest, 166

child care, 170

civic education, 175

Council of Social Service, 165

expenditure, 167

family welfare services, 170-71

medical social service, 171

public assistance, 167

rehabilitation, 172-3

research, 174

services for offenders, 169-70

services for young people, 171

social security, 166-8

social welfare services, 165

Special Needs Allowance Scheme, 167

staff development, 173-4

White Papers, 165

Sound Broadcasting, 286

Special Administrative Region (SAR), 5, 23, 51, 352

Sports-

Adventure Ship, 314

and recreation, 312-3

HK Coliseum, 300

Jubilee Sports Centre, 314-5

Ocean Park, 314

Outward Bound School, 313-4

Queen Elizabeth Stadium, 300 swimming pools, 397-8 Stamp duty, 65

Stock Exchange, 69-70

Taoism, 290-91

Taxes, 64-5, 378

Teachers' colleges, 139-40

431

INDEX

Telecommunications services---

Authority, 281

Cable and Wireless (Hong Kong) Limited,

280-81

HK Telephone Company Limited, 280 Postmaster General, 281

Post Office, 282-3

Television-

cable, 285-6

codes of practice, 283

educational, 285

Temples, 290-91

Thatcher, Mrs. Margaret, Prime Minister, 352

The Press, 276-7

Topography, 322-3

Tourism, 267

Town halls, 299

Town planning, 196-9

Trade-

Advisory Board, 88

Certificate of Origin, 86

controls, 89-90

Department, 88-9

Development Council, 90-92

documentation, 85-6

Export Credit Insurance Corporation, 92 external, 84-5

external commercial relations, 86-8 Facilitation Council, 94

General Agreement on Tarriffs and Trade

(GATT), 86-7

Generalised System of Preferences (GSP), 88 in endangered species, 95-6

marks and patents, 96-7

Multi-Fibre Arrangement (MFA), 86-7

Trade unions-

Federation of, 102

Hong Kong and Kowloon TUC, 102

Traffic-

Accident Victims Assistance Scheme, 168 accidents, 242-3, 417

Transport, 216-35

administration, 217-8

Advisory Committee, 217

air agreements, 50, 235

Air Transport Licensing Authority, 235

buses, 226

Chek Lap Kok, 216

civil aviation, 233-5

cross border traffic, 218-9

Eastern Harbour Crossing, 216, 221 ferries, 228

Green Paper, 216

licensing, 222

minibuses, 227

non-franchised buses, 227

Transport (Contd)

parking, 222 planning, 218 policy, 216-7

Port and Airport Development Study, 230,

inside back cover

public, 224

railways-

KCR, 224-5

LRT, 225

MTR, 224

Peak Tram, 225

roads, 219

safety, 223

Second Comprehensive Transport Study, 216

shipping, 228

taxis, 227

tramways, 225

Tribunal, 218

tunnels, 221

vehicle examination, 223

Travel and Identity documents, 345, 346-7

Treaty of the Bogue (Humen), 354 Treaty of Nanking, (Nanjing), 354 Treaty of Tientsin (Tianjin), 354 Triad Renunciation Scheme, 236

Universities--

Chinese University of Hong Kong, 126-8 University of Hong Kong, 124-6

University of Science and Technology, 128-9 University and Polytechnic Grants Committee,

118-9

Urban Council, 25, 28-9, 295-6

entertainment, cultural and sports facilities,

296-9

Vietnamese Boat People, 6-8, 348-51 Vision of the Future, 4-22

Vital Statistics, 403

Water supplies, 209-10 Weather-

the year's, 328-9

forecasts, 326-7

monitoring and prediction, 327-8

White Paper on Representative Government, 23 Wildlife, 323-5

Youth, 15-6

Central Committee

on,

175

hostels, 315

music camp, 319

Summer Youth Programme, 315

Zoological and Botanical Gardens, 309-10

432

Printed and Published by H. Myers, Government Printer at the Government Printing Department, Hong Kong

URBAN COUNCIL PUBLIC LIBRARIES |

YUEN LONG

HONG KONG PORT & AIRPORT DEVELOPMENT STRATEGY

TIN SHUI WAI

Map Note:

Data supplied by the Strategic Unit of Planning, Environment and Lands Branch. The illustrations and figures quoted are indicative only. Strategy as approved by Executive Council

on 10th October, 1989.

INDICATIVE LAYOUT OF

CHEK LAP KOK AIRPORT

Runway

Building

Black

Point

URMSTON ROAD

Lung Kwu

Chau

Tai O

Turfed Area

DEEP BAY

K

NG

Passengers

Cargoih

in million

AIR TRAFFIC FORECASTS

mullion tonnes

50

30

20

20

10

0

1989 1991

Castle Peak

Chek Lap

Kok

Tung Chung

The Brothers

в

A

Siu Lam

Ragerech

sham

PENNY'S

Shui Kok

BAY

Tai Ho

Discover

Bay

LANTAU ISLAND

Mui Wo

Shek Kwu Chau

Existing Committed Development

چی

NEW

TAI PO

TOLO HARBOUR

D

TERLITO

Reservoir

SHA TIN

Floorvor

SAI KUNG

TOMEN WAN

Sham Tsen

30 Mitte

Chau

Tsal

Pen Chau

Kau Yi

Sunshine

Island

Hei Ling

Chau

Cheung Chau

KWAI

TSII

YI

////////////

WEST LAMMA CHANNEL

Port & Airport Development Strategy( PADS )

A

Passengers

Existing Development Area

Ling

Container Terminal

ד

3

Committed/Developing Ar

Multipurpose Terminal

Existing Main Road

Cargo Working Arba

2

Air Cargo

Existing Rail

Planned Road as at 1989

Port Back-up

General Industry

-/T

Planned Rail as at 1989

D

Deep Waterfront Industry

1996

2001

2006

Series AR/14/PADS

Edition 1 1990

Stonecutters Island

KOWLOON

BUNG

Greed Island

VICTORIA

HARBOUR

HONG KONG ISLAND

Ap Lei

Chau

EAST LAMMA CHANNEL

Roperyour

Lei Yue

Mun

LEI YUE MUN

INDICATIVE CAPITAL COSTS

(units in billion HK$)

Utilities Industrial/

Urban

(3)

10% (12)

Port

Transport

39%

21%

(50)

(27)

Airport 28%

(35)

Total cost to the year 2006 is estimated as HK$ 127 billion

(at 1989 prices)

Tung Lung

Chau

BRARIES

CHANNEL

Lamma Island

SCALE

km 0

2

PORT TRAFFIC FORECASTS

Residential

Buoys and Anchorages

Shipping Channels/Improves

Relocated Macau Ferry Terminal

Breakwater/Typhoon Shelter

Road for PADS,

RaoT PADS

Road (Year 2011)

Development to 1996

Development 1996 to 2001

t Further Development at year 2011

Development 2001 to 2006

1989

1991

Transhipment

Rive

Direct Shipment

Cargo in million tonnes

300

200

•TOO

0

2006

1996

2001

Cartography by Survey & Mapping Office Buildings & Lands Department

Hong Kong Government

AUXILIARY AIR FORCE

BL


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