CONFIDENTIAL
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additional restrictions and impediments to trade, but there is no sign yet of a slackening of the growth rate of exports.
6.
Industrial development, which reduced its rate of growth in 1967, is now progressing again. There is a shortage of industrial accommodation and a severe shortage of labour in some industries which are paying less than average wages.
Tourism continues to expand, with the number of visitors in 1968 rising by 17%, and there are already signs of a shortage of hotel rooms, which may persist over the next few years if the number of visitors continues to expand.
7.
We are engaged in a large programme of public works. A new 2,600 foot bridge has been built at Lai Chi Kok; roads are being widened and flyovers and under- passes are being constructed; the 37,000 million gallon Plover Cove Reservoir is now in use; a large sports area has been built at Tsuen Wan; a $30 million abattoir has been opened, and a second costing $25 million will be opened next month; a tunnel linking the Island and Kowloon is to be built; and we are considering the financial and engineering feasibility of an underground railway.
8.
Immigration is now at a low level and the birth rate is falling, but all our social services are still under pressure from the accumulated effects of massive immigration and a high birth rate over a period of years.
9.
Over one-third of the population is now accommodated in subsidised housing: 1·1 million in resettlement estates and 300,000 in other forms of subsidised housing. About 85,000 people were housed in 1968, but there are still nearly 500,000 squatters on steep hillsides or other land not required for development.
10.
Good progress has been made towards the provision, by 1971, of a government or government-aided primary school place for each child of the appropriate age who wants it. During 1968, 59,000 additional school places were provided in newly completed publicly financed primary school buildings, and it is expected that by 1971 there may be a substantial surplus of primary school places. Primary school fees have been reduced to a very low level, and grants for text books and stationery have been introduced. Steady advances are being made in the provision of secondary education and additional emphasis is being placed on technical education. Pressure for additional progress is likely to increase.
COMEISE
Some/..