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achieving an even higher standard of living than at present.

It is difficult to imagine the situation arising where

the Hong Kong textile and garment industry ceases to be

the leading activity here. On the other hand I doubt

if the construction industry will ever return to the boom

conditions of the early 1960's. No doubt many new

industries will arise fostered by the quick reactions

and drive of Hong Kong's businessmen and industrialists.

I think that the shortage of labour combined with increasing

competition, and the need to upgrade exports in overseas

markets, will cause Hong Kong to import ever more sophisticated

machinery for its industries, and this I hope is something

in which Britain can help.

Today's

All this of course depends on the maintenance of

peaceful and expanding conditions in world trade markets.

Hong Kong has been lucky in the last 20 years that these

desirable conditions have been maintained.

picture would, I think, be very different had the Colony

been unable to rely not only on the presence of the

garrison and the police force for internal security, but

also on the existence of peaceful conditions externally in

the world's main markets and trade routes. The se conditions

have been achieved without calling on the Colony to

contribute a large proportion of its annual Budget to

the maintenance of armed forces.

Similarly the aid programmes of Hong Kong's major

customers have greatly contributed to peaceful development

in countries less well placed than Hong Kong. I am often

asked why Britain does not "help" Hong Kong more by such

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