HONG KONG
CONFIDENTIAL
I
1
The Economic Situation
about
The population of Hong Kong has increased from well under 600000
lion after the War to some million now. Although
the immigration from China has virtually stopped, the
population is increasing by 2 to 3 per cent a year and
is expected to reach 5 million by 1980, The overwhelming
majority live on Hong Kong island or in Kowloon, though
11/12ths of the area of the colony is accounted for by the
New Territories, the lease for which expires in 1997. Half the population are under 20 years of age. There is
thus a need for expanding employment opportunities.
45 per cent of the working population are employed in
industry. Although there are no reliable statistics, it
is believed that unemployment has been kept reasonably
low, and there is now developing a shortage of skilled
workers.
2.
From her traditional role as an entrepot, Hong Kong las
developed in the last two decades into a major
manufacturing centre. A dynamic rate of export basod
growth has been maintained.
In 1968 exports increased
by 30 per cent and in 1969 by 25 per cent over the
previous year. Whereas in 1947 80 per cent of total
exports from Hong Kong were re-exports, in 1966 the
proportions had been reversed and re-exports represented
only 24 per cent of the total. It is estimated that
85-90 per cent of Hong Kong's production is exported.
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