ENG-2003 — Page 533

HISTORY

high value-added products. Taking advantage of the abundant supply of land and labour in the Pearl River Delta, industrialists have expanded their production bases across the boundary while maintaining headquarters operations in Hong Kong. This mode of operation has contributed to economic development in the region and facilitated the transformation of Hong Kong into a services centre.

Associated with events in the Mainland, 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 the Mainland was no exception. Coupled with tourism, this has led to vast improvements in communications, with an increasing number of people entering the Mainland from or through Hong Kong, the natural gateway, each year. With the launch of the Individual Visit Scheme for Mainland people in 2003, there was a surge in the demand for air services between the Mainland and Hong Kong. On December 2, Cathay Pacific Airways commenced three weekly services to Beijing. Altogether, Cathay Pacific and Hong Kong Dragon Airlines (Dragonair) and four Mainland carriers China Southern Airlines, Air China, China Eastern Airlines and Xiamen Airlines operate more than 1 200 flight movements a week in scheduled and non- scheduled services between Hong Kong and about 40 destinations in the Mainland. The Kowloon-Canton Railway Corporation operates frequent train services from Hung Hom in Kowloon to the Mainland boundary at Lo Wu. It also operates inter- city through train services between Hong Kong and cities in Guangdong as well as Shanghai and Beijing. Ten trains are available daily from Hung Hom to Guangzhou, six of which call at Dongguan, and one terminates at Zhaoqing via Foshan. Trains to Shanghai and Beijing operate on alternate days. Cross-boundary coach services. operate different routes to Guangdong and other parts of southern China. There are frequent daily ferry services to Macau and there are also regular services to some 20 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, and first-class port and airport facilities. New highways have opened up previously remote areas, the railway networks are being expanded, and a new international airport has been in operation at Chek Lap Kok since 1998. Accommodating about 46 per cent of Hong Kong's population, the nine new towns in the New Territories have eased the pressure on developable land in Kowloon and on Hong Kong Island. Current and planned projects would continue to spur the economy, creating job opportunities and enhancing the environment for the community.

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 $69.7 billion in 1993-94 to an estimated $155.3 billion in 2003-04.

J

Hong Kong's public housing programme started with an emergency measure to rehouse some 53 000 people made homeless overnight in a squatter fire on Christmas Day 1953. It has developed into a comprehensive programme that encompasses a wide range of rental and home ownership scheme flats with self-contained facilities.

The programme is in line with the Government's policy objectives to reduce the number of inadequately housed people, to help households gain access to affordable

449