· 6
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5.
1)
Managers or District Officers on the
administration of each new town or district.
For the first time a specifically New
Territories' personality was appointed to
the Legislative Council. A sub-committee,
including strong Heung Yee Kuk membership,
chaired by Sir Yuet-keung Kan, was appointed
to examine the vexed question of levels of
compensation for land resumed by the Government.
The strength of the Police was increased by
1,500, and a beat-radio network was introduced.
The foregoing are only some of the major features
of a Government operating at full stretch over a very
wide field. In money terms these activities, and all
others provided for in the budget of 1977/78, represented
an increase of 24% in money terms over 1976 or 16% in real
terms. We propose to carry on this extraordinarily fast
pace of expansion this year with a further increase
estimated at 26% in money terms or 21% in real terms.
6. The dust is now settling on the swingeing restrictions
imposed by the EEC on Hong Kong textile exports. Two facts
in particular emerged. The restrictions will pull back
Hong Kong's growth rate unless non-textile exports or
other earnings can be increased proportionately; secondly
it is clear that until the end of recession releases
Governments of developed countries from protectionist
CONFIDENTIAL