TNAG-1413-FCO40-1889-Future-of-Hong-Kong-annual-report-to-Parliament-on-Hong-Kong-1985 — Page 138

CONFIDEN TIAL

grey

areas, the period under review saw Hong Kong

"business as usual".

re turn to

35.

Looking ahead, Hong Kong's economy will continue to remain

highly dependent on trade and manufacturing. Clearly, important

factors will be consumer demand in Hong Kong's export markets and

the willingness of other Governments to allow consumers freedom of

choice.

If the Thurmond/ Jenkins Bill in the United States should

be passed into law, Hong Kong's trade would be adversely affected.

Otherwise, Hong Kong's economy is expected to hold up well. In the

financial sector over the next 12 months the Government in tends to

develop further schemes for prudential sunervision of banks and

financial institutions.

V.

SOCIAL PROGRAMMES

36.

During the year the Hong Kong Government has pressed ahead

vigorously with its forward-looking social programmes to improve the

well-being of the people of Hong Kong.

(a)

37.

Housing

The territory was able to maintain its performance and

achievements in public housing construction. The Housing Authority

exceeded its annual production target of 35,000 flats for the sixth

successive time.

With a further 12,000 flats built under the

Private Sec tor Participation Scheme and by the Housing Society,

public housing construction reached a record level of over 48,000

flats. Over 18,000 of these were for sale to the general public;

yet another record, reflecting recovery and re-investment in the

property market. Private sector housing production also increased

with about 30,000 new flats completed.

38.

1985 saw the Hong Kong Government step up their squatter area

clearance programme.

Their object is to clear and rehouse all

squatters in the urban area over the next ten

being given to those

landslip.

currently squatting on

years,

with priority

vulnerable to

slopes

12

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CONFIDENTIAL