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10. Good progress has been made towards the provision, by 1971, of a Government or Government-aided primary school place for each child of the appropriate age who wants it. During 1968, 59,000 additional school places were provided in newly completed publicly financed primary school buildings, and it is expected that by 1971 there may be a substantial surplus of primary school places. Primary school fees have been reduced to a very low level, and grants for text-books and stationery have been introduced. Steady advances are being made in the provision of secondary education and additional emphasis is being placed on technical education. Pressure for additional progress is likely to increase.
11. Some progress is being made in our programme of labour legislation. Trade unions continue to be motivated principally by political interests, but some slow progress is being made in the establishment of consultative committees.
12. Early in 1968 we established the City District Officer scheme with the appointment of 10 administrative officers in small offices throughout the urban areas. Their responsibilities are to explain Government policies and to act as the articulate spokesmen of those who need help or redress. These "uncles ", as sections of the Press rather regrettably insist on calling them, have been well received and should play a useful part in welding the community together.
13. Substantial problems remain to be overcome, the most important being the administration of resettlement estates; the very large number of hawkers who provide a useful service, but create a serious health and traffic problem; and the large numbers of illegal mini-buses which came into existence when normal bus services were unable to meet public demand.
14. These problems, together with deficiencies still to be remedied in our social services, provide an opportunity for Communist exploitation which is not being overlooked. The Communists have reduced the virulence of their propaganda attacks and have progressively sought to restrain their supporters from openly breaking the law, but their objective of dominating the Government remains unchanged. The adoption of a softer line has not helped them to maintain the morale of hard-core Communists. During the disturbances some 15,000 workers in the Government service or in the public utilities went on strike or were dismissed. The Communists paid large sums in "strike pay" and then sought unsuccessfully to enforce the reinstatement of the "strikers" without loss of benefit or seniority, but were eventually obliged to put pressure on the " strikers " to find their own jobs. By the end of the year the majority had succeeded in doing so, and strike pay had virtually stopped, with the result that numbers of workers deserted their unions.
15. There has on the other hand been a disquieting expansion of Communist schools, which, while catering for only about 2 per cent of the school population, showed a 25 per cent increase in places during 1968; plans are in hand for further expansion. Communist schools can cater for only about one-third of the children from Communist families and they attract few from outside the fold. Under pressure from parents, some improvements have been made in the academic content of curricula but political indoctrination still plays an important part and there is close control over extra-curricula activities.
16. The border has been relatively quiet and the Chinese border authorities exercise strict control over emigrants, but there remains always the possibility that control might be relaxed. At sea fishermen who wish to fish in Chinese inshore waters are subject to economic pressures and political indoctrination, while in June 1968 70 fishermen were abducted in Deep Bay, of whom three have yet to
return.
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