ENG-1987 — Page 370

HISTORY

313

industrial revolution was based on cotton textiles, gradually adding woollens and, in the late 1960s, man-made fibres and made-up garments. Although the share of total exports held by textiles and clothing has declined over the past 10 years, these still make up around 40 per cent of domestic exports by value. 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 traditions 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 had led to vast improvements in communications with an increasing number of people entering China from or through Hong Kong, its natural gateway, each year. The territory's major carrier, Cathay Pacific, and the Civil Aviation Administration of China operate scheduled, and a considerable number of charter, services between Hong Kong and cities in China, and a new airline, Hong Kong Dragon Airlines, now operates non- scheduled services to a number of cities in China. The Kowloon-Canton Railway runs, jointly with Canton's railway administration, express 'through' trains between Kowloon and Canton; several direct bus services, including a British and Chinese joint venture, operate different routes into Guangdong and other parts of southern China; and there are several daily ferry services to Canton and other ports in South China. Hoverferries operate on some of these services.

To keep pace with the development and a policy of decentralisation, the government is committed to improving the infrastructure and an estimated $7,050 million, about 16 per cent of expenditure, is being spent on public works projects during 1987-8. New roads, tunnels and flyovers have completely transformed road travel throughout the territory in the post-war era and modern, multi-lane highways are opening up many new areas.

The development of Hong Kong's economic base has enabled the government to increase spending on social services over the years - from $3,830 million in 1977-8 to an estimated $24,542 million in 1987-8.

Accommodation has always been a problem with a rapidly growing population, and expenditure in this field has increased accordingly. More than 2.63 million people now live in some form of public housing provided by the Housing Authority. Throughout 1987, public housing flats were being constructed at an average rate of almost 100 flats a day, and it is planned to continue providing at least 40 000 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 free and compulsory primary and junior secondary school places for every student up to the age of 15.

In the field of social welfare, major advances have been made by both the government and voluntary agencies in the past decade with expenditure increasing from $378 million in 1977-8 to $2,879 million during 1987-8.

The medical and health services are also undergoing vigorous development programmes which, by the end of the decade, will provide four more hospitals and some 21 additional clinics and polyclinics.

During the post-war years, a comprehensive system of protection for wages, rest days, statutory holidays, paid annual leave, maternity leave, sick pay, severance payment,