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been improving, and its recruitment has picked up satisfactorily both as to numbers and quality. It is becoming a more effective weapon to deal with crime-the greatest social problem of the Colony. It has already had some notable successes, particularly in the field of narcotics, and I am hopeful that in 1975 with the increased support now forth- coming from the public, the alarming rise in violent crime will be arrested.
(c) The Independent Commission Against Corruption under devoted and able leadership has got off to a good start and secured the confidence of the public. Considering that it has had to start from scratch it has had infinitely more success in its first year than I would have imagined possible. The first signs of fear among the corrupt are detectable and in the light of the Commission's performance few here now doubt that we mean to see this job through.
(d) Participation in various minor acts of administration through mass movements and in particular the new Mutual Aid Committees now covering about one-quarter of Hong Kong's population, has proved popular, fills an obvious need, and has become an accepted part of the local scene. With careful nursing and direction the sense of participa- tion and of being in contact with the Government that this movement could provide, should fill some of the gap left by the absence of either elected government or a sense of national identity. It will also identify leaders from the low income groups who could in time qualify for appointment to the principal advisory committees and eventually the Legislative Council.
(e) Hopefully we are approaching a new and much more positive phase in combating drug addiction. The 100,000 or so addicts in Hong Kong represent a major domestic and international problem. The only prospect of eradication lies in a simultaneous attack on the lines of supply from Thailand, the local distribution syndicates, and the provision of a mass cure for addicts. Success in less than all three simultaneously is bound to be ephemeral. Better liaison with Thailand and other measures have produced new success on the first, and different police methods equal success on the second. International experts encourage us to believe that the results in two pilot schemes of a cure for drug addiction capable of application en masse without hospitalisation or incarceration justify widened application. We accordingly plan a substantial increase in provision for a cure along these lines this year.
(f) Finally, new and encouraging progress has also been made in the provision of facilities for an organisation of recreation and sport. This is a social necessity in such a densely packed and very young population.
6. The Budget was drafted to maintain as much momentum as possible in these fields--and incidentally, through them, economic activity and employment- in the face of massive rises in costs, an economy which has paused, and a dropping
revenue.
7. In simplest terms the rise in costs coupled with a forecast drop in revenue at constant tax rates of about 7 per cent, and provision for a small contingencies reserve of $70 million, produced a deficit of HK$2,338 million, or 35 per cent of total expenditure in '74-75 if existing plans were fully implemented. To bridge this gap the Financial Secretary proposed to raise new resources amounting to
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