CONEIDENTIAL

A surplus of £9 million is budgeted for in the current year. 32. Hong Kong is the afgest single holder of sterling, acosts.

These assets stood at £445 million at the end of 1969, comprising official funds (2256 million) and private funds

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

£18 million was recently transferred to the UK by the Ilong

Kong Government.

SOCIAL SUBVICES

33. The great post-war increase in Hong Kong's population (largely by immigration from China) has involved a formidablo

Although

programme of expansion in the social services - housing,

health services, education, water supplies.

massive advances have been made in these fields in the lact

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

CONFIDENTIAL

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