TNAG-1013-FCO40-1263-Hong-Kong-annual-review-for-1980-1981 — Page 10

CONFIDENTIAL

I

#

19 January 1931

HONG KONG: ANNUAL REVIEW FOR 1980

SUMMARY

3

6. The influx of immigrants from China. Measures to halt illegal immigration eventually successful (paragraphs 2-4).

2. Over 21,000 Vietnamese boat refugees

still await resettlement (paragraph 5).

3

3. Economy did well, but high rate of export growth declined markedly in the second half. Inflation at 15% coupled with immigration held down real wages. Though unemployment is low it is rising steadily. Real estate and stock exchange booms (paragraphs 6-8).

4 Strong budgetary situation. Government

programmes on course. Public housing programme at last fairly satisfactory. First year in which all children under 15 were in free education (baragraph 9).

5. Plans for reform of local administration (

paragraph 10).

b. Staff relations eased in the public service

(baragraph 11).

7. Take-over of some old established firms

by local Chinese interests (paragraph 12).

CONFIDENTIAL

1312