ENG-1997 — Page 505

HISTORY

The Post-war Years

After the Japanese surrender, Chinese civilians many of whom had moved into China during the war- returned at the rate of almost 100 000 a month. The population, which by August 1945 had been reduced to about 600 000, rose by the end of 1947 to an estimated 1.8 million. In 1948-49, 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 unparalleled in its history. Hundreds of thousands of people -- mainly from Kwangtung (Guangdong) Province, Shanghai and other commercial centres entered Hong Kong during 1949 and the spring of 1950. By mid-1950, the population had swelled to an estimated 2.2 million. It has continued to rise and is now over 6.5 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 Hong Kong 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 to the list and, in the late 1960s, man-made fibres and made-up garments. The share of total exports held by textiles and clothing reached was more than 51 per cent of domestic exports by value during the 1960s. This share has declined over the years but they still constitute about 38 per cent. Electronic products, watches and clocks, and printing are also important industries.

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

Hong Kong continued to expand its role as an entrepôt with its neighbours and trade with China was no exception. Coupled with tourism, this led to vast improvements in communications, with an increasing number of people entering China from or through Hong Kong, a natural gateway, each year. One of Hong Kong's carriers, Hong Kong Dragon Airlines, and six Chinese airlines - China Southern Airlines, Air China, China Eastern Airlines, China Southwest Airlines, China Northern Airlines and China Northwest Airlines

operate more than 700 flight movements a week in scheduled and non-scheduled services between Hong Kong and 40 destinations in China.

The Kowloon-Canton Railway Corporation runs, jointly with the Guangzhou Railway (Group) Corporation, four 'through' trains to Guangzhou, two of which stop at Changping, and one train daily to Zhaoqing which stops at Foshan. Trains to Shanghai and Beijing also operate on alternate days. Direct bus services operate different routes into Guangdong and other parts of southern China. Daily ferry services run to Guangzhou and other ports in South China.

To keep pace with the development, the government places strong emphasis on improving and expanding infrastructure. As a result, Hong Kong has been transformed into a modern city with efficient road and rail links, tunnels and flyovers. New highways have opened up previously remote areas.

The development of Hong Kong's economic base has enabled the public sector to increase spending on housing, education, social welfare and health over the years from $24.34 billion in 1987/88 to an estimated $126.87 billion in 1997/98.

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