igration. Her Majesty's Government, in consultation with the Hong Kong ernment, has also announced that it will not be proceeding with the construction of the Kohima Barracks in the New Territories.
52. Notwithstanding the overall reduction in illegal immigration there was an increase in the numbers attempting to enter Hong Kong illegally in middle and late 1985. Arrests for this period averaged 1,250 persons per month, that is 30 per cent up on the same period last year, or approximately 15 per cent of the level in 1979. The reasons for the increase appear to be rumours of an amnesty and decreased levels of border security due to the recent 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 per cent in 1979 to 10 per cent 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. The Sino-British Joint Liaison Group and Land Commission have got off to good starts.
55. Her Majesty's Government remain committed to the territory of Hong Kong and to its people. They will continue to fulfil their responsibilities for Hong Kong's sound administration and to look after Hong Kong's interests internationally. They will work to ensure the smooth implementation of the Sino- British Joint Declaration, and to preserve economic prosperity and social stability.
Printed by Her Majesty's Stationery Office
Dd 601694 C13 3163772 12/85