11.
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at the trend that contingency plans were ready for
the introduction of labour-intensive works, and even for
the mass distribution of free meals in case distress
got out of hand. But by the middle of the year it
had become clear that recovery had started, and the
plans were thankfully shelved. But even by September
unemployment was still running at about 9.1% of the
work force.
17.
By the end of the year there seemed no
doubt that recovery was reasonably strong, unemployment
had fallen, and incomes were rising. The rapid
slowing down of the inflation generated in 1973 and
early 1974, the static cost of living, as well as
lower raw material prices, have played a major part in
bringing this about through recovery of competitive
edge.
18.
The future depends upon a sustained
recovery in world trade. Nevertheless the mood here
has strikingly changed since even two months ago, and
is now one of confidence and expectation.
19.
I wrote above that during these two years
of recession the Hong Kong Government continued to
find the resources to maintain credible progress and
expansion in its social programmes. This it did, but
a degree of rephasing and consequent public disappointment
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