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The outcome of the review was published in a Hong Kong government White Paper in February. The main decision in the review was to
This outcome int duse 10 directly elected seats into LEGCO in 1991. was generally well received in Hong Kong as a reasonable and balanced
It followed active response to the views of the community as a whole. debate between those who wanted the introduction of direct elections in 1988, arguing that this would boost confidence and ensure that democracy was firmly rooted in Hong Kong before the transfer of sovereignty over Hong Kong in 1997, and those who wanted to move more cautiously on the grounds that Hong Kong's future government structure would be set down in the Basic Law to be promulgated in 1990, and that political changes in Hong Kong should be undertaken on a gradual and prudent basis.
There are few organised political groups in Hong Kong. Two small, quasi-political organisations contest URBCO and District Board elections, but they are really no more than pressure groups and their membership is limited to a small number of mainly middle-class Chinese and expatriates of no particular ideological background.
A number of other organsiations have emerged over the past few years, but none has yet attracted any widespread popular support.
The vast majority of Hong Kong's Civil Service (approx 175,000) has been progressively localised over many years. Under the provisions of the Sino-British agreement on the future of Hong Kong, the Hong Kong SAR Government may not employ foreign nationals as heads of branches or major departments after 1997. Hong Kong's continuing localisation policy, which has been in force since the 1960s, must make allowance for this to avoid a very damaging break in the continuity of the civil service in 1997. However, the agreement also provides for the continued employment of British and other foreign nationals at all other levels of the civil service after 1997. The Hong Kong Government has recently introduced a compensation scheme for those superseded for promotion or compulsorily retired in the interest of accelerated localisation.
2.
THE ECONOMY
About 16%, including Much of Hong Kong is unproductive mountainland. areas reclaimed from the sea, is used for residential and industrial development. Only 9.4% of the land is farmed, producing vegetables,
There is a considerable fruit, flowers, freshwater fish, pigs and poultry. 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.
The management of Hong Kong's economy is based on commitment to market mechanisms and free enterprise. GDP grew in real terms by 11% in 1986 and 13% in 1987. 5% growth is projected for 1988. Average growth in real terms over the last 20 years is about 8%. The per capita GDP of about US$ 8200 in 1987 is among the highest in Asia, second to Japan and comparable with Singapore. Domestic exports increased in real terms by 16% in 1986 and by 23% in 1987. The economy remains bouyant but some slowdown in the rate of growth of domestic exports occurred since the third quarter of 1987. The labour market remains tight; 1.6% unemployment in the first quarter 1988. Retained imports of industrial machinery for manufacturing use, which is an important indicator of investment in the manufacturing sector, increased in real terms by 26% in 1986 and 18% in 1987. The average inflation in the last ten years was about 8.1
78.
The forecast for 1988, at 7% and is in line with this
average.