Form LRZO

sent to CCD 24.2

ge

香港

CONFIDENTIAL

OFFICE

STARFSMART PRINDERIJ

MAISTRY Action Taken

REIGN AND CO

13. ALTH

Ни 26 JAN 1931

GOVERNMENT HOUSE

HONG KONG

19 January 1981

AKK 014

ROLVED IN REGMAY NO.

23*rp,31

.7

INDLY

ANNUAL REVIEW FOR 1980: HONG KONG

SUMMARY

See (3

Paragraph

1

2 - 4

LO

5

6-8

9

10

11

12

Subject

Introduction

Immigration

The influx of immigrants from China. Measures to halt illegal immigration eventually successful.

Over 21,000 Vietnamese boat refugees still await resettlement.

The Economy

Economy did well, but high rate of export growth declined markedly in the second half. Inflation at 15% coupled with immigration held down real wages. Though unemployment is low it is rising steadily. Real estate and stock exchange booms.

Domestic

Strong budgetary situation. Government programmes on course. Public housing programme at last fairly satisfactory. First year in which all children under 15 were in free education.

Plans for reform of local administration.

Staff relations eased in the public service.

Take-over of some old established firms by local Chinese interests.

CONFIDENTIAL

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