IN CONFIDENCE
3
1.10 By far the most significant political presence in Hong Kong is
that of the Communist Chinese. There are a number of overt Communist
organisations, including trade unions and schools. They are tightly
disciplined and controlled by the local party organisation appointed by
Peking (headed by the Director of the local New China News Agency Office).
These organisations have not attempted to play a direct role in Hong
Kong's political affairs. While it remains the policy of Peking to
maintain the stability and prosperity of Hong Kong, the Chinese Communist
organisations in the territory can be relied on not to undermine
government policies.
1.11
The activities of the Chinese Nationalists parallel those of the
Communists but on a very much smaller, and diminishing, scale.
SECTION 2: THE ECONOMY
areas,
2.1 Much of Hong Kong is unproductive mountainland but significant
including sections reclaimed from the sea, are used for resi- dential and industrial development. Only 9.4% of the land is farmeć, producing vegetables, fruit, flowers, freshwater fish, pigs and poultry. There is a considerable fishing fleet of 5,000 boats, meeting over 90% of local demand for fish. Less than 3% of the population engage in farming or fishing.
2.2 Hong Kong is at present almost totally dependent on oil imports for
its energy requirements. However, new power stations being constructed by the China Light and Power Company and the Hong Kong Electric Company, Hong Kong's two privately-owned electricity companies, will be able to
use either coal or oil.
2.3 Hong Kong's principal natural asset is its sheltered harbour, the
only developed deep water port on the China coast. From the establish-
ment of Hong Kong as a centre for Britain's Far East trade in 1841 up to
about 1950, trade and commerce was the main economic activity.
Then,
when the Korean War brought a slump in trade with China, it became
necessary to develop other sources of income, particularly since the
population had expanded rapidly with the influx of immigrants from China
at the time of the Communist take-over. Hong Kong therefore turned to
manufacturing, starting with textiles and clothing (which remain the
IN CONFIDENCE
/dominant