ENG-2004 — Page 546

476 History

The Post-war Years

After the Japanese surrender, Chinese civilians. many of whom had moved into the Mainland 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, reaching four million by 1970, five million by 1980, approaching six million by 1990, and now nearing seven million.

After a period of economic stagnation caused by the United Nations' embargo on trade with China, arising from the Korean War, 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. Textiles and clothing made up more than half of domestic exports by value during the 1960s.

Although Hong Kong has become increasingly a service-based economy over the past 10 years with domestic merchandise exports steadily declining, textiles and clothing still constitute over 50 per cent of domestic exports by value. Electronics, watches, clocks and jewellery are also major export items.

Over the years, the manufacturing sector has gradually moved from one concentrating on simple, labour-intensive products to one focusing on sophisticated, 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 China was no exception. Coupled with tourism, this led to vast improvements in communications, with an increasing number of people entering Mainland China from or through Hong Kong, the natural gateway, each year.

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