TNAG-0896-FCO40-1106-Refugees-from-Vietnam-in-Hong-Kong-Vietnamese-boat-people-1979 — Page 212

REFUGEE RESETTLEMENT IN HONG KONG

1.

3

Outline proposals for light manufacturing/residential complex to resettle 200,000 Vietnamese refugees in Hong Kong/New Terrorities by a specially formed Development Corporation. It is stressed that although this is aimed primarily at resettling Vietnamese, the facilities and accomodation will equally be available to existing Hong Kong residents. This is possible because there is no unemployment at the present time in Hong Kong.

Hong Kong's population is approximately 5 million. 200,000 refugees is equivalent to a 4% increase. Average annual population growth, over the last ten years, has been 2%, but much higher in some years of peak immigration. (Source "Hong Kong 1979", Hong Kong Government Information Services).

2.

Hong Kong's prosperity has been based on the assimilation of refugees.

3.

Recent figures for real GDP growth:-

1976 : 16% 1977 : 12% 1978

10%

(source

4.

ம்

5.

6.

7.

Financial Times, 9 July 1979)

argue that a population increase of 4% should present little problem in economic

terms.

Indeed, such are the pressures on the labour market that, but for the influx of some 100,000 Chinese immigrants last year, wage rate rises would have posed a severe inflationary threat.

Although it appears that Vietnamese refugees are prepared to work for HK$ 30 a day, against the current level of about HK$ 42-45 a day, (source GT Economic Departments) Corporations's plans would not be based on cut price labour. Nevertheless, from the official point of view the effect would be to moderate wage advances.

The Corporation's plans would actively help the Government's development of the New Terrorities, which aim at doubling their population from 1.25 million to 2.5 million by 1986. The initial aim had been a 50:50 split between public and private housing (F.T. 9 July 1979), but a shortfall in the private element has raised the prospective government content to 65%. The proposed Corporation would help to bring the outcome back nearer the original target.

The Government's plans to envisage resumption of New Territory land rising from 1.6 m. sq. feet in 1975, to an estimated 36m sq. feet by 1980 (FT, 9 July 1979). Between 1974 and 1978 new flatted factory space in Hong Kong averaged 550.000 sq. metres a year. Forecast for the next two years is a 2.5m square metres, of which 1.6m will be in the New Territories.

!

2/....