CONFIDENTIAL
Mr Murray Mr Cortazzi
See $317 69
Offic
IND
VISIT TO HONG KONG : 30 SEPTEMBER
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13 OCTOBER
NO. $1
REG.OTHY Action Taton
1. I paid my first visit to Hong Kong as Head of Hong Kong and General Department from 30 September to 13 October. I have minuted separately on certain specific points which arose. The following paragraphs record my more general impressions. I have tried to keep them short in case you wish to submit them further.
General
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2. This was my first visit to Hong Kong since I was seconded to the Hong Kong Government at the end of the 1960's as Assistant Political Adviser; I was also there as a Chinese language student from 1959-60. It was therefore very much a re-familiarisation visit. Although I was well prepared I found the physical changes quite staggering major new land reclamations; new road systems; new industrial estates; new public buildings and office develop- ments on the Island and in Kowloon; immense new housing estates; the Container Port; the cross-harbour tunnel; the Mass Transit system; and, perhaps more impressive than anything else, the New Towns in the New Territories. But the less tangible changes were no less striking. The economy has grown, and has become more sophisticated. The manufacturing sector now accounts for only 28% of GDP compared with around 40% in the late 1960's, and finan- cial services have become increasingly important. Hong Kong has developed into a major financial centre, and is now an international city in a sense in which it was not ten years ago.
3. Social progress has been even greater. The real disposable income of the bulk of the population has increased steadily and there is now a growing middle-class. People have more leisure and, with many new opportunities and facilities now available are making better use of it. Education has made great strides. When I was last in Hong Kong it was neither free nor compulsory, even at the primary level; there is now free education for all children up to the age of 15 not in private schools, and attendance will be compulsory by 1980. The disadvantaged, too, get a much better deal. In the late 1960's public assistance was still on a minimal dry- rations basis. Today there is a fully fledged Public Assistance Scheme designed to bring the income of all families up to a basic minimum level; and improvements in areas such as labour legislation have kept pace.
There has also been substantial progress in medical and health services. In short, while there are still a great many things which need to be done, a remarkable amount has been achieved in the past ten years.
Relations with China
4. On the day I arrived in Hong Kong the Governor attended the Chinese National Day reception given by the Director of the NCNA, and Director Wang toasted The Queen. On the day I left the first regular (though non-scheduled) passenger flight from China since
CONFIDENTIAL
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