TNAG-0737-FCO40-941-Hong-Kong-annual-review-for-1977-1978 — Page 13

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香港

-GOVERNMENT HOUSE- HONG KONG

7 March, 1978.

(Confidential)

Sir,

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7

ANNUAL REVIEW FOR 1977 HONG KONG

I must first apologise for the lateness of

this Review. I have delayed it in the hope that

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time would make clearer the state of the Royal Hong

Kong Folice Force.

2. 1977 saw further and rapid progress in Ilong

Kong's social programmes and legislation, in economic

conditions that were comparatively good-reel growth

in the Gross Domestic Froduct was 12% in spite of a growth of only 5% in exports. This growth was largely

sustained by unexpectedly strong domestic activity,

particularly in the construction industry.

3.

The end of the year was darkened by the prolonged

and bitter textile negotiations with the EEC, and by a

near-mutiny in the Tolice Hong Kong has come through

these difficulties with remarkably little loss of

confidence.

The trond towards moze pragmatic government

in China and the demonstrably good relations between IMG

and China over Hong Kong, have helped. So too has a

•

The It Hon Dr David Owen Mil

CONFIDENTIAL

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