CONFIDENTIAL
8
June 1982 pointed to a way out. Hong Kong's offer in August to share the difference between home and overseas fees with HMG was accepted six months later. After much drama, and some suspicion about the extent to which the Hong Kong case in the negotiations for a new Multi- Fibre Agreement had the support of HMG, a new textiles agreement was reached with the European Community in November. The key issues now are to demonstrate HMG's continuing commitment to the well-being of Hong Kong and to reassure the Unofficials that they are being taken fully into our confidence in the conduct of the
negotiations with Peking.
Progress in other Fields
13.
Concern about the economy and the future should not obscure the fact that the period under review was far from lacking in achievements or promise for the coming years. To quote only a few examples, over 300,000 people voted in the first elections to the New Territories and Urban District Boards during 1982; and 120,000 voted in the Urban Council elections, held for the first time on a constituency basis. Land production and development programmes were sustained at planned levels; major public works completed or near completion during 1982 included the Aberdeen Tunnel, the 1,400 bed Prince of Wales Hospital for the Eastern New Territories, the electrification of the Kowloon- Canton railway (on the Hong Kong side), the extension to Tsuen Wan of the Mass Transit Railway and the production of 35,200 flats for rental and 8,100 flats for sale by the Housing Authority. Measures for the expansion of the two Universities were approved, and a site chosen for a second Polytechnic which it is hoped will start operations in temporary accommodation next
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CONFIDENTIAL
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