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had come when it would draw up programme
[Sir P. Bryan.] China, raw materials-textile fibres and plastics-largely from Japan. Hong Kong's processing industries use machinery imported from all over the world, and 80 per cent. of their finished products predominantly textiles and clothing, electrical goods and plastic pro- ducts are exported mainly to the United States and the EEC.
This dependence on foreign trade leads inevitably to certain clear-cut economic policies. Due also to its origin as a trade entrepôt for China, Hong Kong believes in the virtues of free enterprise and free trade: low import duties, low taxation,
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reactivate the death penalty. One cann to make an end to these deficiencies for capital punishment. It differs in varyi generalise about the deterrent effects As a rong societies. The people of Hong Ko
on Hong Kong in the past and to do within a measurable period.
guide we set ourselves the time-span of decade."
I pay particular tribute to the approach of Sir Murray Maclehose, the governor, and his team to these social problems
seem almost unanimous in their bej that it would have a deterrent effect the
Will the Minister say a word about This has ex mass transit railway?
Anyone who thinks of Hong Kong as a prospect of being one of the most rem: purely materialistic, get-rich society and able engineering feats in the world. nothing else should read the governor was, therefore, naturally a disapp mammoth "State of the Nation" speech ment when the contract was not wor Three-quarters of this speech is devoted the British consortium. The main re to the plans for the social betterment of for the success of the Japanese te
those who live their lives in the colony.
By now these long-term plans for hous
was the absence of an escalation cla This seemed remarkable at the time
unrestricted capital movements and equal ing, social welfare, education, medical quite incredible now in the face of cu
treatment of locally based and foreign operations.
Firm and constant adherence to these policies has led to one of the most re- markable phenomena in history-the in history-the sevenfold growth in 25 years, on a tiny, inhospitable patch of this world, of a community from 600,000 to 4.2 million people. Let me emphasise, too, that the bulk of these 4 million people came to Hong Kong, often in the face of great hardship, of their own free will, and they remain there of their own free will.
Critics may say that these policies of low taxation and free enterprise have made the rich too rich. What they cer- tainly have done is to attract investment from all over the world, resulting in highly efficient industry which alone can give good employment and a good living to this growing population. So these policies are the very reason for the existence of Hong Kong and its community. The prosperity that they have brought has been the main cause of the growth of the community.
This mushroom growth has in turn been the cause of huge social problems and it is to these that I should like to address my speech tonight.
I quote the Governor's speech to the Legislative Council on 16th October this
year:
In the last quarter century, life in Hong Kong has been dominated by the way in which the growth in population outstripped the capacity of any government to provide for residents and immigrants alike some of the basic infrastructure, of life. But the problem was faced and very great progress was made. So much so that two years ago your Government concluded that the time
and health services, are well under way. I shall be specially interested to see some. thing of them during my visit.
Housing has been one of the biggest problems and biggest achievements in Hong Kong. What has been done is unique in the Far East, but the problems remain formidable. The plans of the new housing authority look like trans forming the situation within the next 10; years. I should like to know from the Minister whether these plans are affected by the current downturn in trade, which Hong Kong shares with the rest of the world.
The education services have not been able to keep up with the needs of tho rocketing population. The new White Paper gives real hope that this will be remedied. I find the plans for technical education and polytechnic and industrial training particularly encouraging and necessary, especially in a society that can prosper only by consistently maintaining a technical lead in industry.
To the outsider, one of the less credit able sides of the Hong Kong scene would seem to be its crime and corruption record.
This problem is being tackled with a will. There has been a real break through in recruitment for the police Police techniques and training have been improved. The idea of mobilising people in neighbourhoods to help each other and the police to deter crime seems full, of promise and, if successful, might well be
copied in other countries.
Crime figures nevertheless are still rising. I must warn the Minister of State that when his colleague visits Hong Kong he will meet a very strong pressure to
Japanese
inflation. Do the Japanese maintain their original tender? Hong Kong has certainly got a ba
The Minister will find a conside sense of grievance among textile facturers regarding the EEC gener scheme of preferences. A situati which preferences in the British ec are given to Hong Kong's comp but not to Hong Kong is quite imp to explain or to justify. The exclu footwear has recently been remov this is of small importance. I ho the Government are making a s effort to negotiate the inclusion of
I appreciate that the Minister will not be able to deal with questions in 10 minutes tonight should be grateful if those he is to answer orally could be answ letter before I go to Hong Ko month. There will be concern prospect of paying a higher defence costs, as foreshadowed
The latest defence review. assumption that this is a high perous community well able to more is not valid in today's c The economy is sound. Indeed, country could take some lesson Hong Kong has kept its econo in the face of worldwide inflati age of material and depresse markets. These economic diffi incide with quite exceptiona expenditure necessary to carr Social
programmes I have menti these much additional finance loans and other means will H found. Now, therefore, would
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