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construct an underground railway. The estimated cost at mid-1972
prices is some £550m. Preliminary bids were submitted in October.
The British consortium appears to be in a good position, but
there is severe competition, especially from the Japanese. HMG are
giving full support to the British consortium, particularly through
ECGD. Ministers consider it important that the contract should be won
for Britain.
Crime
9.
The Governor is concerned at the increase in crime in Hong
Kong. Over the last 4 years, total reported crime has increased
by 40% and violent crime by 135%. Narcotics are a particular problem.
The Hong Kong Government are taking action on a wide front, including
increases in police pay, improvements to the auxiliary police force,
amendment of the law to provide for appeals by the Crown against inadequate
sentences, and a new form of detention centre for young first offenders.
A Narcotics Commissioner has recently been appointed. Apart from such
measures, the Governor hopes that efforts to improve the quality of life
for everyone in Hong Kong, for example in housing, education,
social welfare and recreation, will have a favourable long-term
effect on crime rates.
Soviet Spies in Hong Kong
10. For a number of years, the Soviet Union has tried to establish
some presence in Hong Kong. Soviet cruise and cargo vessels regularly
visit the Colony. Two Soviet engineers are based in one of the docks
which has a contract for the repair of Soviet ships. We normally
refuse Soviet requests for visits to Hong Kong by other ships such
as research vessels. We also normally refuse visas for Soviet and
/Eastern
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