TNAG-0737-FCO40-941-Hong-Kong-annual-review-for-1977-1978 — Page 39

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

香港總督府

GOVERNMENT HOUSE

HONG KONG

7 March 1978

Sir,

ANNUAL REVIEW FOR 1977

www.

HONG KONG

I must first apologise for the lateness of

this Review. I have delayed it in the hope that

time would make clearer the state of the Royal Hong

Kong Folice Force.

2. 1977 saw further and rapid progress in Hong

Kong's social programmes and legislation, in economic

conditions that were comparatively good real 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 Police. Hong Kong has come through

these difficulties with remarkably little loss of

confidence.

The trend towards more pragmatic government

in China and the demonstrably good relations between HMG

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

CONFIDENTIAL

The Rt Hon Dr David Owen MP

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