1
11
Review
THE year was one of general progress, despite some slowing down of the very high rate of growth achieved in recent years. Exports reached new record levels and the tourist trade continued to expand; these are the mainstay of the economy. The government's current revenue rose substantially and, while revenue from sales of land fell steeply owing to saturation of the market for most types of new land, the existence of substantial financial reserves made it possible to carry on without interruption the Colony's massive public work's programme, which is due to cost $538 million (almost £34 million) in the financial year 1965-6. Investment in private building slowed down because with higher quality flats at least- supply temporarily overtook demand. The difficulties of developers were aggravated, but not caused by, serious difficulties in the field of banking which arose in the first half of the year. Other forms of investment remained at a high level, especially in some sectors of the industrial economy where significant developments took place, including a number of joint ventures between Hong Kong and overseas interests. Despite the large numbers of young people leaving school and seeking their first jobs, there was again full employment-indeed at one time a survey by the Labour Department showed more than 11,000 jobs vacant. White papers laid down future policy for social welfare and education, and special official attention was given to subjects as diverse as gam- bling and productivity.
If the tempo of the year was not as steady as many would have wished, it was by no means such as to cause lasting or serious despondency, although pessimism was to some degree in fashion in the press and elsewhere. In fact, as events made themselves felt, Hong Kong's indomitable spirit once again came to the fore and all sections of the community at all levels showed themselves willing and able to meet these new challenges, while at the same time continuing to face the everyday problems to which Hong