SECRET

Sterling Assets

A surplus of £9 million is budgeted for in the current year.

32. Hong Kong is the largest single holder of sterling assets.

These assets stood at £45 million at the end of 1969,

comprising official funds (£255 million) and private funds

(£189 million) held for residents and banks. A further

$18 million was recently transferred to the UK by the long

Kong Government.

SOCIAL SERVICES

33. The great post-war increase in Hong Kong's population

(largely by immigration from China) hes involved a formidable

programme of expansion in the social services

housing,

Although

health services, education, water supplies.

mussive advances have been made in these fields in the last

twenty years, a great deal remains to be done and there are

some formidable problems (not confined to financial

considerations) involved.

Hong Kong Department 23 June, 1970

SECRET

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