TNAG-0831-FCO40-1039-Commonwealth-Parliamentary-Association-(CPA)-annual-conferen-1979 — Page 55

IN CONFIDENCE

Activity

% of Employment

% of Output

Transport and

communications

7%

6%

Finance, insurance, real

estate, business services

3%

20%

Agriculture, fishing and

mining

20%

1%

Public utilities

1%

2%

2.5 The per capita Gross Domestic Product in 1978 was HK 213,826 (approx £1,455 this, and all subsequent comparisons, at 1978 rates of exchange i.e. £1 = HK $9.50). The average gross wage was HK 979 per month (approximately £103). Inflation was 6% and unemployment about 2.5% at the end of the year.

2.6 Estimated government revenue in 1978/79 was IK $10,366 million (approx £1,090 million). 38% of this came from direct taxes (income tax of 15%, profits tax and estate duty); 27% from indirect taxes (rates, excise duties, stamp duties, betting taxes, motor vehicle taxes); and the remainder from other sources, in particular government land transactions and payments for government services.

2.7 Of total government expenditure of an estimated IK 10,266 million (approx £1,080 million) in 1977/78, some 46% was spent on social services, 19% on general services (police, defence, administration etc), 19% on community services (transport, water supplies, amenities, etc), 4% on economic services (airport, harbours, communications etc) and the remainder on miscellaneous items such as government pensions and supplies etc.

2.8 The value of Hong Kong's domestic exports in 1978 was HK $40,711 million (approx £4,285 million). The principal products

were:-

Textiles and Clothing

45%

Electrical Hachinery and

appliances

12%

Scientific, photographic

and optical goods

8%

Miscellaneous mamufactured

goods

16%

I