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Since Hong Kong is dependent on external market forces the
economy has had to be left to adjust to them, so there are no tariffs or quantitative restrictions on trade, nor are there subsidies or schemes of preference. For the same reason our tax structure is comparatively low and simple. The businessman is thus free within bounds dictated by prudence, safety and justice to risk his money and provide employment in the knowledge that his profit is his to keep. The recipe is well proven. Over the last ten years our Gross Domestic Product has increased by 138% and our trade by 170% and these figures are in real not money terms.
The same decade has seen a growth in public spending of 210% again in real not money terms, achieved not through increases in taxation but through growth in wealth. Much of this expenditure has gone towards the building up of the social infrastructure swamped by press of population. Slowly at first but with increasing momentum the improvements have been made; housing; medical care; education; a welfare safety net for the less fortunate; provision for culture and recreation. From time to time fresh influxes of immigration have threatened our hopes.
None more serious than the 300 000 people who flooded into Hong Kong in the two years up to last October. Of course an enormous amount remains to be done.
This community, in which you are honoured guests, stands on 3'legs. The first is its own self-reliance, economic dynamism, and social cohesion, of this I have already spoken. The second is the support of the British Government. The third is a correct relationship with China. This is of course of particular importance. It is now entirely satisfactory and greatly assisted by the understanding attitude of China and by the excellent relations between that country and the United Kingdom. It is on these three things that the confidence and growth that you see around you in Hong Kong are based.
Your field is education so I will speak briefly about some of our efforts in this field. Since last year there has been 9 years of free and compulsory education for all children. Thereafter heavily subsidised places at form 4 and 5 level are or will be provided for about 60% of that age group. To put this in context, full primary education was not achieved until 1971. As an indication of the effort involved, in the last 5 years 136 000 additional secondary places have been provided by the Government; and in the last 7 years, 14 500 tertiary places.
We have
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