I
CONFIDENTIAL
effect on the consumer price indices. Food
prices had risen by 25% on average during 1981.
A greater control in the growth of the public
sector was required. Exports had generally
performed well and Hong Kong continued to develop
as
a financial centre. There was little increase
in real wages in the manufacturing sector because
of the scale of recent immigration. However, no
unemployment problem was envisaged in the long
term. The effect of quotas was to push the value
of Hong Kong trade up as exporters were forced
to enter high quality markets. The Governor
remarked that the rapid increase in the price of food
stuffs and the failure of real wages in industry
to rise comparably had led to a certain amount
of public discontent which in turn had led to the
creation and support for pressure groups protesting
against various fee increases.
(I)
District administration
The Governor reported that there was a change in
emphasis in certain fields away from central
administration to the district level. District
Advisory Boards were being formed to advise the
Government on district affairs. These Boards
to be made up of half appointed and half elected
members would have their first elections in
March 1982. Over 200,000 people had already
CONCIDE
/ registered
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