Rising cost of Living
The reply given to Mr. T. K. Ann on May 9 by Mr. D.J.C. Jones, Acting Financial Secretary, about the cost of living in Hong Kong has been followed by numerous comments from the Chinese press.
Wah Kiu Man Po (12.5.73) criticized Mr. Jones' speech for mentioning only the increase in the prices of food while deliberately omitting the greater increase in the prices of other commodities. "This is like a sick man refusing to see a doctor," it said.
Tin Tin Yat Po (10.5.73), Sing Tao Man Po (10.5.73) and Kung Sheung Daily News (11.5.73) analysed the causes for the rising cost of living and ways to remedy the situation.
Kung Sheung Daily News believed that the rise in the cost of living is not the result of economic depression but one of economic expansion. "The present instability is an abnormal phenomenon which can be corrected by technical know-how and a careful review of the situation," it said. It asked the people not to lose faith in the future of Hong Kong but to help the authorities solve the problem. "But on the other hand, nothing will be achieved if the Government adopts an
'ostrich policy', it warned.
As for remedial measures, Kung Sheung Daily News and Sing Tao Man Pao suggested that we should open up more markets for our export products especially in South East Asia.
Kung Sheung Daily News advised that suitable control should be imposed on speculative activities by foreign consortiums which have led to vicious inflation.
It also felt that the high land price policy should be changed.
Tin Tin Yat Po and Sing Tao Man Po suggested that the Government should make full use of its revenue to build more public housing and provide more social welfare services so as to off-set the ill consequences of the rising cost of living.
Tin Tin Yat Po also maintained that the Government should in all circumstances retain the present value of the Hong Kong dollar.
The communist paper Hong Kong Evening News (10.5.73) attributed the causes for inflation to the devaluation of the pound and Hong Kong Government's high land price policy. "In saying that food prices have affected almost one half of the price index, the Acting Financial Secretary was evading the truth," it said.
The paper said that the only way to save Hong Kong's economy is for the Government to sell houses and factory land at low prices, reduce taxes and promote trade.
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