Registrar-Generals-Department-Annual-report-1967-1968 — Page 8

Communist disturbances that erupted in May as vociferous demonstra- tions but later assumed a violent character and continued intermittently until the end of the year. The disturbances, however, were not the only blows the economy had to contend with. The outbreak of the war in the Middle East in June also affected confidence, as did reports that the United States was considering the imposition of additional duties on manufactured imports. The autumn dock strike in Britain also affected the Colony's trade, and further problems were created by the devaluation of sterling in November and the subsequent devaluation and revaluation of Hong Kong's own currency.

4. The actual performance of the economy in the face of all these difficulties was something that the Colony has every reason to be proud of. In spite of all, Hong Kong industrialists and businessmen succeeded in 1967 in expanding the total value of external trade, that is the combined value of imports, exports and re-exports, by a vigorous 9.26% to the new record figure of $19,230m. The building industry, despite the continuing shortage of credit, completed in 1967-68 buildings for the private sector costing only $73m. less than the all-time record of $1,017m. set up in 1965-66. Tourism, however, was adversely affected by the disturbances, as was only to be expected, the number of tourists. decreasing by 2.2% from the 1966 figure to 489,000 in 1967. Bank deposits were down $127m. on the year to $8,714m. at 31st March 1968, and Bank loans and advances to commerce and industry down $85m. to $5,532m. Currency in circulation advanced by $184m. to $2,107m. Wages continued to edge upwards, as did unfortunately for the consumer the General Consumer Price Index, which averaged 112.6 for 1967-68 against 106.3 for the previous year. Government building continued apace and much progress was made in public housing, educa- tion, social welfare and the medical and health services. The year was therefore, all things considered, one of anxious endeavour but creditable achievement on many fronts.

The Property Market

5. Although as already mentioned building continued at a high level, the property market remained depressed throughout the year. Among the causes of this were the difficulty of borrowing from banks on real estate, a large number of sales by mortgagees (see paragraph 60), the existence of a large number of empty flats and other units, and the shaken confidence of speculative investors, who used to buy flats more or less as gambling counters in the hope of a quick resale at an enhanced

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