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introduced in the U.S. or other welfare states in Europe to hedge the differences between the rich and the poor or placate the people in the low- salary strata. The fact is Hong Kong people are proud of themselves; the success of others will only spur them on to work harder and will not cause them to be disappointed and rely on social welfare or take to destructive action. The attitude is fundamental to the prosperity and stability of Hong Kong.

(2) On account of the said social attitude, Hong Kong government does not have to bear huge financial burdens in social welfare and military defense. (3) Not hindered by the differences between the rich and the poor, Hong Kong can give full play to the system of free competition, and Hong Kong people can make full use of their intellectual and physical strength in the development in industry and commerce.

(4) Free competition, the low taxation system and the practice of to each according to his work have helped Hong Kong people become the most quick-minded and hard-working in the world in industry and commerce. Industrialists and businessmen from other countries are all glad to employ or cooperate with them.

(5) As advanced countries levy very high taxes, the low taxation policy in Hong Kong has attracted many businessmen to it. Here they are able to enjoy considerable tax reductions and exemptions in the purchase of goods, setting up of companies and in investments.

(6) Because of these factors, the ratio between export and population in Hong Kong is better than many developing countries and Hong Kong people have more opportunities of learning various production techniques. (7) Hong Kong people enjoy rather high incomes and therefore more oppor- tunities of travelling abroad for vacations, thus widening their horizon and stimulating spending. The various trades and professions in Hong Kong are constantly improving the quality of their goods and services in order to meet the tastes of local customers and foreign businessmen. This contri- butes to the rapid development of Hong Kong and helps retain its position as one of the most advanced cities in the world.

(8) The above are only some of the more important factors. In short, Hong Kong with all its uniqueness will not be replaced by other cities; the Sino- British agreement has even enhanced its uniqueness and laid the conditions for further prosperity and stability. Hong Kong people should grasp and fully make use of the opportunity.

Thank you, Mr. Chairman.

(Mr. Peter C. K. CHAN and Miss Cecilia L. Y. YEUNG arrived at these points- 2.32 p.m. and 2.38 p.m. respectively.)

DR. PHILIP C. K. Kwok (in English):--Mr. Chairman, I think it is pure coincidence that two bearded fellows will be speaking one after another, but you can readily tell them apart, one is young, one is very much younger.

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First of all, as Chairman of the Museums Select Committee I would like to say a few words about the Council's museum services.

1984 has, in fact, been a particularly noteworthy one for museum services. A number of significant exhibitions were organised during the year. At the Museum of Art these included 'American Porcelain' which was a joint pre- sentation with the American Consulate General, 'Fabric & Form' jointly presented with the British Council, a major exhibition on 'Pre-Raphaelite Arts' in support of the Birmingham and West Midlands Festival in Hong Kong, a Hong Kong Design Exhibition 1984' in association with the Hong Kong Designers Association, Hong Kong Pottery To-day' and a tribute to an outstanding Hong Kong artist entitled 'Luis Chan: fifty years of artistic career'. The two particularly interesting exhibitions at the Museum of History were 'Nature Conservation in China', which was organized jointly with the World Wildlife Fund Hong Kong, the Environment Protection Bureau in China and the Beijing Natural History Museum, and the Hong Kong postal history exhibition entitled 'A Stamp is Born'. In early February the museum will be presenting

a major exhibition on 'Dinosaurs in China' in conjunction with Academia Sinica. The special study on local folk songs which was commis- sioned earlier has been completed, whilst that on stone incriptions is making good progress. More recently, the Museums Select Committee has commis- sioned a twenty month study on 'Puppet Theatres in Hong Kong'.

The Space Museum has continued to feature interesting sky shows, which during the year included 'Exploring Volcanoes' and 'Cosmic Flight', whilst its educational/extension activities, particularly the telescope making and astronomy classes have continued to receive enthusiastic support. A successful astrophotographic competition was also organized.

The Popular Science Lectures' organized by the Science Museum Office has continued to attract capacity audiences, whilst a good deal of effort was put into the planning of the 'Temporary Science Museum' during the year.

This month sees the first anniversary of the Flagstaff House Museum of Teaware which during the last twelve month attracted over 111 000 people.

In all, over 12 million people attended the various exhibitions and educational/extension activities organized by the museums.

But perhaps the most exciting development of the year was the announce- ment of a very generous donation by the Royal Hong Kong Jockey Club towards the construction of the permanent Museum of History and Museum of Science and Technology. As a result, the Museums Select Committee has decided not to proceed with the temporary Science Museum.

Planning for the permanent Museum of Art has gathered momentum with the establishment of a Museum of Art Planning Sub-Committee under the capable Chairmanship of Mr. Walter SULKE, whilst two Council/departmental