CONFIDENTIAL
the senior ranks had
a steering group of
to be at a faster pace than hitherto achieved;
senior government
officials was charged with
recommending to the Governor how this objective was best to be
attained without jeopardising either the Force's efficiency
morale.
or its
of
territories a t the
Initial consideration was given to the possibility
introducing a limited compensation scheme on lines similar to
schemes introduced into former British dependent
time of constitutional change, which am ong
enable pensionable overseas officers who were
retire, or superseded for promotion to make way for local officers,
to be compensated for loss of career.
other things, would
either required to
IV.
STATE OF THE ECONOMY
27.
The Sino-British Joint Declaration on the question of Hong
Kong removed much of the shadow of uncertainty which had hung over
the Hong
Hong Kong economy in 1983 and most of 1984. But the economy
remained dependent on trade and hence vulnerable to external forces
outside Hong Kong's control.
28.
After a year of strong
economy showed signs of slowing
other economies. For 1985 as a
export-led growth, the Hong Kong
down in 1985, in line with many
whole the estimated grow th rate of Hong Kong's GDP was 41/2% to 5%, compared with 9.4% for 1984. The
future performance of domestic exports added an extra element of uncertainty to this forecast. Exports were increasingly affected by
the growing threat of protectionism in Hong Kong's export markets.
29.
domestic
exports,
The performance of the Hong Kong economy as a whole over the
period of review was characterised by a fall in
counterbalanced by a substantial growth in re-exports,
unemployment, and a low rate of inflation.
a low rate of
weak demand in
the United States
re-exports to China,
30. The fall in domestic exports was largely due to
Hong Kong's traditional export markets, notably
and the EEC. Hong Kong's domestic exports and
continued to show substantial growth. In addition to being
however,
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