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on export markets, which always makes control of her economy and brecasting of revenue extremely difficult; by the sense of insecurity and instability created by the Colony's relationship with China, which in turn requires the prospect of quick profits and consequently of a low tax structure to retain and attract investment and thus provide employment and revenue; and finally by the absence of the development. aid which many other developing countries have enjoyed.

13.

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However we have concluded that a major

effort must now be made to put a term to the deficiencies that exist and have therefore drawn up. major programmes, to be completed within the next decade in the fields of Housing, Education, Medica! and Health Services and Social Welfare. The part- ment are familiar with the details and I will not recapitulate them here. Suffice it to say that when completed there should be little about Hong Kong for which any European observer need feel shame, and much for which Asians will feel admiration. The programmets have caught the imagination of the public, and generally improved its confidence in the Government and in the Government's concern for public welfare.

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14.

The expense of all this is of course very great, and will result in the cost of these "social" items rising from 33% of the total budget in '72/73 to 45% in 177/78.

15.

In addition to this field, which might be described as the social security of the population, to which I attach the greatest importance, this Government is also heavily involved in two other particular areas of activity. Firstly, the expansion and training of the Police Force to give greater security against the rising rate of crime, and particularly violent crime, and secondly the improvement of public transport.

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16.

With regard to crime the key facts are that in the 5 years from 1968-73, whereas overall crime has increased by 60%, violent crime, i.e. murder, manslaughter, attempted murder, serious assaults and robbery has increased by 260% (from 2,900 cases to 11,000).

The effect on the population has been highly

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