TNAG-0368-FCO40-414-Visits-of-UK-Government-Ministers-to-Hong-Kong-1973 — Page 127

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construct an underground railway. The estimated cost at mid-1972

prices is some £550m. Preliminary bids were submitted in October.

The British consortium appears to be in a good position, but

there is severe competition, especially from the Japanese. HMG are

giving full support to the British consortium, particularly through

ECGD. Ministers consider it important that the contract should be won

for Britain.

Crime

9.

The Governor is concerned at the increase in crime in Hong

Kong. Over the last 4 years, total reported crime has increased

by 40% and violent crime by 135%. Narcotics are a particular problem.

The Hong Kong Government are taking action on a wide front, including

increases in police pay, improvements to the auxiliary police force,

amendment of the law to provide for appeals by the Crown against inadequate

sentences, and a new form of detention centre for young first offenders.

A Narcotics Commissioner has recently been appointed. Apart from such

measures, the Governor hopes that efforts to improve the quality of life

for everyone in Hong Kong, for example in housing, education,

social welfare and recreation, will have a favourable long-term

effect on crime rates.

Soviet Spies in Hong Kong

10. For a number of years, the Soviet Union has tried to establish

some presence in Hong Kong. Soviet cruise and cargo vessels regularly

visit the Colony. Two Soviet engineers are based in one of the docks

which has a contract for the repair of Soviet ships. We normally

refuse Soviet requests for visits to Hong Kong by other ships such

as research vessels. We also normally refuse visas for Soviet and

/Eastern

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