should be set up consisting of representatives from Government, industry, professional
engineers and financial and economic
shane)
experts. The Councilwould have three
main functions to establish priorities
in development, to provide inducements
for new industries and to discourage
over-expansion of existing ones.
(b) the Government should offer backing
to commercial banks to enable them to
extend long-term, fixed-period and fixed-interest loans to industry, not only for the modernisation of plant
and qquipment but also for credit
facilities in boosting the export of capital goods. Such backing is necessary because existing labour-intensive
industries are standing on a knife-
edge due to competition from lower labour. cost countries Abre technologically advanced industries requiring greater capital investment are therefore he de d
endaalso, because of competition in¬
consumer goods from nearby countries,
it is necessary to change over to the
production of capital goods for the
purchase of which customers must be
offered long-term credit. (In the Officials' reply to the Budget Debate the Director of Commerce and Industry
said that the Government would be
studying the possibility of establishing
a loan institution specialising in
helping small-scale industry with
medium-term finance at fixed rates for
re-equipment).
(c) Free primary education is necessary
to ensure Hong Kong's continuing success
in industrial and economie development.
should
I
be introduced over a period of
three to five years.
a need for
more
(a) There is, for many children, 2 gap
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