When Youde took office as Governor in 1982, he sought to expand Hong Kong's further education system which he considered to be lacking. At that time, there were only two accredited universities in Hong Kong - the
University of Hong Kong and the
Chinese University of Hong Kong. Statistics also suggested that only 2% of secondary school graduates attended university locally. In view of this, Youde created the City Polytechnic of Hong Kong (now
City University of Hong Kong) and the
Hong Kong Academy for Performing Arts. The idea of setting up a secondary school to develop students' potential in sport and the visual arts together with a normal academic syllabus was first mooted by Youde. Based upon this idea, the
Jockey Club Ti-I College was founded in 1989. Youde delivered his first policy address to the
Hong Kong Legislative Council in October 1982, in which he stated that he wanted to "create an environment that encourages citizens to develop their energy and enterprising spirit; only under special circumstances, such as disruption of normal operations and workers not being treated fairly , or Hong Kong's reputation is damaged, the government will intervene in the industrial, commercial and financial sectors." Although Hong Kong's economy was in recession, he personally led trade missions to the United Kingdom, Japan, the United States and China to promote Hong Kong's trade. He also promulgated many laws to control and supervise the banking, insurance, securities, finance and trade industries. Youde is especially remembered for his tenure as the
Hong Kong Governor and his role in negotiating the
Sino-British Joint Declaration, which was signed in Beijing in 1984. This, among other things, made it clear the British would leave Hong Kong in 1997 after 156 years of colonial rule. To this end, Youde embarked on further political reforms to support the development of
representative democracy in Hong Kong and issued a green paper on Hong Kong democracy in 1984. The reform stated 24 seats in the Legislative Council will be elected by the electoral college and functional constituencies, with 12 seats each elected by voting. On September 26, 1985, Hong Kong held its first indirect election for the Legislative Council, officially starting Hong Kong's representative government system. However, many Hong Kong citizens were worried about the future of Hong Kong. The British-owned
Jardine Matheson announced that it would move its head office from Hong Kong to Bermuda . This was regarded by all sectors of society as Britain's intention to withdraw its capital, and as a result, they became even more worried about the future of Hong Kong. Youde also had to deal with a substantial
emigration wave after it became apparent Hong Kong citizens would not be offered British citizenship during the handover, so many many Hong Kongers made private arrangements with emigration to Canada, Australia and the United Kingdom being popular destinations with outflows between 1988 and 1994 averaged about 55,000 per year, although some Hong Kong people returned after in the early years after 1997. Youde was Hong Kong's only Welsh Governor. He was widely liked for his kindly demeanour and greatly admired for his formidable erudition. In an editorial following his death, the
Chinese-language Ming Pao newspaper compared him to
Zhuge Liang, a chancellor of the state of
Shu Han during the
Three Kingdoms period, who had 'pledged to work diligently on state affairs until death.' Youde was known for his love of Chinese literature and Chinese language. He once claimed he read several Chinese newspapers every day when he had breakfast. ==Death and state funeral==