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groups, e.g., the physically and mentally handicapped, and

youth;

(c) an education plan to provide by September 1978 heavily subsidised or free secondary education up to the age of

14 for all children leaving primary schools and a further two years secondary schooling up to 16 for 40% of the children; and in tertiary education to provide the equivalent of about 22,500 equivalent full time places by 1980/81 as compared with 7,600 in 71/72;

(a) a ten year plan to expand medical and health services.

Though these plans suffered some delay due to the economic recession and the consequent weakening of the fiscal base, with the upturn in the economy, the momentum has been picked

up again.

8.

The Governor's commitment to social reform is well

recognised, even by Hong Kong's critics in this country; and he has acheived striking success in harnessing general public opinion in support of long-term and coherent plans for social

progress. However, consideration of whether they can be carried out needs to take account of the pattern over the past eight years or so. Government expenditure on social programmes has, of course, increased enormously: from HK$728 million at current prices in 1967/68 to an estimated HK$2,720 million in 1974/75. The proportion of social spending of the total budget has risen more slowly and erratically. It was 39.4% in 67/68, 32.9% in 72/73, 37% in 73/74, is 40% of the current budget, and the budget 3 year forecast provides for it to rise to 48% in 79/80. To a large extent these figures reflect the demands for

expenditure on essential community services such as roads, water etc. without which Hong Kong would have ceased to be viable, though the present upward trend of social spending is unmistakable. But the indications would seem to be that the significant accel- eration in social spending envisaged requires either a substantial

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