ENG-1982 — Page 333

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HISTORY

estimated 1.8 million. Then, in the period 1948-9, as the forces of the Chinese Nationalist Government began to face defeat in civil war at the hands of the communists, Hong Kong received an influx of people unparalleled in its history.

About three quarters of a million refugees - mainly from Guangdong province, Shanghai and other commercial centres - entered the territory during 1949 and the spring of 1950. By the end of 1950 the population was estimated to be 2.3 million. Since then it has continued to rise and now totals more than 5.2 million.

After a period of economic stagnation caused by the United Nations' embargo on trade with China, Hong Kong began to industrialise. No longer could the territory rely solely on its port to provide prosperity for its greatly increased population. From the start, the industrial revolution was based on cotton textiles, gradually adding woollens and, in the late 1960s, man-made fibres and made-up garments. The fact that textiles and clothing have consistently taken up 42 to 55 per cent of Hong Kong's total domestic exports each year since 1959 clearly shows the economy's dependence on these items. While textiles remain the mainstay of Hong Kong's economy, major contributions are made by electronic products, watches and clocks, plastic goods and other light industries.

Associated with events in China, 1966 saw mounting tension in Hong Kong which during 1967 developed into a series of civil disturbances affecting all aspects of life and temporarily paralysing the economy. But, by year-end, the disturbances were contained and the community continued its tradition of peaceful progress.

In development of the post-war years, Hong Kong has continued to build up its role as an entrepôt with its neighbours and trade with China has been no exception. Coupled with tourism, this has led to vast improvements in communications and during 1982 an average of 15 500 people a day entered China from or through Hong Kong, its natural gateway. The territory's flag carrier Cathay Pacific and the Civil Aviation Administration of China operate increasing numbers of scheduled and chartered flights between Hong Kong and cities in China; the Kowloon-Canton Railway runs jointly with the Guangzhou Railway Administration express 'through' trains between Kowloon and Guangzhou; since 1981 a direct bus service a British and Chinese joint venture has served 10 destinations in Guangdong; and there are daily hoverferry services, as well as ferry services, to Guangzhou. The development of Hong Kong's economic base has enabled the government to increase spending on social services over the years - from $1,357 million in 1972-3 to an estimated $10,813 million in 1982-3.

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Accommodation has always been a problem with a rapidly growing population and expenditure in this field has increased accordingly. More than two million people now live in some form of public housing managed by the Housing Authority. Throughout 1982, public housing flats were being constructed at an average rate of one every 7.5 minutes each 12-hour working day, every day of the year - and it is planned to continue providing about 35 000 flats a year under present conditions.

Expenditure on education facilities and improvements for Hong Kong's young and vibrant population has always been one of the major considerations in budget preparations and there are now junior secondary school places for every student up to the age of 15 years. In the field of social welfare, such major advances have been made by both the government and voluntary agencies in the past decade that expenditure has increased by more than fifteen-fold, from $81.4 million in the 1972-3 financial year to an estimated $1,266.8 million during 1982-3.

The medical and health services are also undergoing vigorous development programmes which, by the end of the decade, will provide five more hospitals and 20 additional clinics