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7.
disturbing, and at this time the most common criticism of the Government is that it will not adopt stern enough measures against culprits including use of the death sentence. The counter measures we have adopted were described at length in my annual despatch for 1973 and I will not repeat them here; they were radical in nature and involved a mobilisation of the population not previously attempted, as well as many basic changes in the procedures and attitude of the police. Though much groundwork has been layed and at last a satisfactory expansion of the police force is being achieved, the basic problem still remains to be cracked.
17.
The improvement of public transport involves the construction of an underground railway at a contract price of $5,000 m., which is now under negotiation, and also the construction of a series of massive road through-ways. Here again the cost is
very great, as has also been the demand made on scarce administrative manpower.
18.
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All this has been accompanied by very considerable efforts to improve communications between Government and governed including the establishment of a widespread network of grass-roots neighbourhood organizations called "Mutual Aid Committees" We have also embarked on determined efforts to improve recreational services for young people. These wide- spread activities have required considerable administra- tive back-up and consequent expansion and to some extent re-organisation of the direction and procedures of the Civil Service. In the latter we have been helped by the consultants, Messrs McKinsey Inc. All in all the implementation of the policies and operations described above and all other aspects of administration would involve expenditure rising from approximately $4,300 m in 1972/3 to $9,000 m. in 1977/78.
19.
When formulating these policies and operations we had hoped to cover the expenditure at constant tax rates. on an assumption of a 7% annual growth rate of the economy in real terms (the average achieved in recent years). But in view of the
uncertainty created in Hong Kong's export markets by all that is involved in the oil crisis, we have thought
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