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ANNOUNCEMENT OF A REDUCTION IN THE GARRISON, NEITHER OF WHICH ARE TRUE. THE INCREASE MAY ALSO BE IN PART AS A RESULT OF THE
INTRODUCTION OF MORE SOPHISTICATED DETECTION EQUIPMENT ALONG THE
BORDER EARLIER THIS YEAR. INTELLIGENCE EVALUATION SHOWS THAT THE
PERCENTAGE OF THOSE WHO EVADE THE SECURITY FORCES AT THE BORDER OUT OF THE TOTAL NUMBERS THAT ATTEMPT TO CROSS HAS DECREASED DRAMATICALLY FROM 53 PERCENT IN 1979 TO 10 PERCENT IN 1985. SUBSEQUENT ARRESTS OF EVADERS IN THE URBAN AREAS HAVE RESULTED IN RATES OF ARREST IN THE LAST FEW YEARS WHICH ARE PROBABLY CLOSE TO 100 PER CENT. CROSS BORDER CONSULTATIONS WITH THE CHINESE
AUTHORITIES HAVE BEEN HELD TO TRY TO STEM THE RECENT INCREASE.
IX.
CONCLUSION
53. THE SIGNING OF THE JOINT DECLARATION, WHICH CONFIRMED THAT THE UNITED KINGDOM WOULD REMAIN RESPONSIBLE FOR THE ADMINISTRATION OF HONG KONG UP TO 30 JUNE 1997, AND WHICH SPELLED OUT THE BASIC POLICIES OF THE PEOPLE'S REPUBLIC OF CHINA REGARDING HONG KONG FOR 50 YEARS AFTER HONG KONG BECOMES A SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE'S REPUBLIC OF CHINA IN 1997, DID MUCH TO RESTORE THE CONFIDENCE OF THE PEOPLE OF HONG KONG, WHO FOR THE PREVIOUS TWO YEARS HAD FELT UNCERTAINTY AND ANXIETY ABOUT WHAT THE FUTURE HELD IN STORE. FOLLOWING THE
ANNOUNCEMENT OF THE AGREEMENT THE FUTURE LOOKED MUCH MORE
ASSURED.
54.
IT REMAINS THE POLICY OF HER MAJESTY'S GOVERNMENT TO
MAINTAIN CONFIDENCE IN HONG KONG AND TO PROMOTE ITS STABILITY AND
PROSPERITY. SO FAR AS THE DEVELOPMENT OF REPRESENTATIVE GOVERNMENT IS CONCERNED, FOLLOWING THE RECENT CHANGES IN THE COMPOSITION OF THE LEGISLATIVE COUNCIL, THE COMING YEAR WILL BE A PERIOD OF CONSOLIDATION OF THE REFORMS WHICH HAVE ALREADY BEEN
CARRIED OUT RATHER THAN OF NEW INITIATIVES. ON THE ECONOMIC FRONT, THE OUTLOOK IS SATISFACTORY, NOTWITHSTANDING THE POSSIBILITY THAT THE GROWTH RATE OF DEMAND FOR DOMESTIC EXPORTS
IN HONG KONG'S MAIN EXPORT MARKETS WILL BE LOW: EMPLOYMENT IS
EXPECTED TO REMAIN STABLE AND THE RATE OF INFLATION LOW: THE
RECOVERY OF THE PROPERTY MARKET IS LIKELY TO CONTINUE: AND THE PROSPECTS FOR A RETURN TO A BALANCED BUDGET IN 1986-87 ARE GOOD.
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