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through a comprehensive redevelopment programme for the older public housing estates. It sets a new target of providing homes for an

additional one million families, from the public and private housing

sectors combined, between 1985 and the beginning of the next

century. The Housing Authority's terms of reference are to be

expanded to enable it to monitor and direct an overall housing programme in partnership with the private sector; and its financial arrangements are to be revised to give it more flexibility.

40.

In the financial year 1987/88 the Housing Authority aims to

complete almost 43,000 flats, of which over 7,500 will be for sale.

This is similar to the 1986/87 outturn.

The private sector also

produced over 38,000 units in 1987. In 1988/89 the Housing Authority plans to complete a record 52,000 public housing units, of which 12,000 will be sold under the home owner sip schemes.

(b)

Education

41. The Hong Kong Government continue to give high priority to

the expansion and improvement of the education system.

At 18 per

cent of total public expenditure, more is spent on education than on

any other item in the annual budget. Free places are now provided

for all children up to Form 3 (age 15) and steps are being taken to provide enough places in senior secondary forms and technical institutes to meet expected future demand. The school building

programme continues and there are plans to complete some 80 new

secondary and prevocational schools by 1993. While measures are being taken to encourage the greater use of vernacular Chinese as

the medium of instruction, higher standards of English are also

being sought in view of Hong Kong's importance as an international

centre. In this regard, a pilot scheme has been started to provide

secondary schools with native English speaking teachers from overseas and language courses have been organised in the United Kingdom for local secondary school teachers of English.

42. The largest technical institute yet built in Hong Kong was opened in September 1987 to add to the seven already in existence. Its opening has increased the number of full-time places for craft

and technician courses from under 4,000 in 1982 to over 10,500 at

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