Another promising field for increased public expenditure is housing. The housing programme has been remarkable by any standards but whilst the quality has been rising it still falls well below that provided in Singapore. To some extent this has been due to the need rapidly to house very large numbers of people within
certain financial constraints: the degree of subsidisation has been high (rents being as low as 6% of private sector levels on the older estates) and the rates of amortisation long. However, since December 1974, a new policy has been introduced of increasing rents with the ultimate aim of achieving 50% of private sector rents. The The process must initially be gradual for fear of provoking civil disturbances but steady progress should be made in releasing further resources by raising both domestic and commercial rents to realistic levels (use can be made of the existing machinery to ensure that where the means of individual tenants are not equal to increased rents, special assistance should be provided). Borrowing could make a contribution and the Hong Kong Government is at present negotiating a loan of approximately HK 300 million from the Asian Development Bank for this purpose. Additionally, a scheme is shortly to be introduced to encourage better off tenants to buy new flats through a home purchase scheme, thus releasing existing accommodation for
those in more need. With these measures to ease the financial
constraints it should be possible to reconsider housing standards. This task will need to be undertaken urgently if any results are to be expected in the early 1980s.
Educational standards in the Colony will clearly have to continue to improve, partly in response to popular demand and partly in support of an increasingly sophisticated economy where industry is moving up the technical ladder. There is now full free provision at the primary level (albeit on a bi-sessional basis which is popular locally); and there is provision in the estimates for a rise in expenditure of 37% by 1979/80 largely to meet expansion in the secondary and tertiary sectors (details in Annex D). It is difficult to see how, even given greater financial resources. this target
could be improved upon, but obviously plans will be needed for further expansion in the early 1980s. These plans will presumably be prepared well in advance of 1 January 1979: it would be useful to have the projections in London by that date.
Present medical provision in Hong Kong coupled with the plans for the future (see Annex D) clearly made improved medical care of
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