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HONG KONG GOVERNMENT INFORMATION SERVICES
HONG
25 OCT1977
RA
INDEX
ESK OFFL
THE WEEK IN HONG KONG
SATURDAY 1 OCTOBER FRIDAY 7 OCTOBER 1977
HONG KONG REGAINING COMPETITIVE TRADING POSITION GOVERNOR
The Governor of Hong Kong, Sir Murray MacLehose, in his inaugural adress to Hong Kong Legislative Council, under- lined the Hong Kong Government's determination to press ahead with its massive social programmes, despite some economic uncertainties. Reviewing Hong Kong's economic future particularly in relation with the European Economic Community (EEC) - Sir Murray said that the economic and financial outlook for 1978 was reasonably good, but a proper assessment was impossible until the outcome of the EEC textile negotiations was known.
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Hong Kong's trading fortunes should be favoured by the falling level of stocks expected in Germany and the prospect of increased consumption in the United Kingdom, said Sir Murray. With export prices in Hong Kong dollars remaining stable and with world prices increasing at about eight to nine per cent a year, Hong Kong's competitive position was being gradually regained. Given the compara- tively optimistic forecasts for world trade in 1978, the underlying conditions for more rapid growth in domestic exports could be present, at least for the wide field of items not singled out for discriminatory treatment by the EEC. Commenting on the EEC's attitude towards "principal suppliers" which include Hong Kong, Sir Murray pointed out that "the loss of trade below the 1976 level envisaged by the Commission would be about HK3480 million (£60 million), but the loss in trade possibilities in the EEC could be over HK$1,000 million (£125 million).
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On social welfare, Sir Murray announced that a white paper on the handicapped would be published soon followed by three green papers on social services. If the Government accepted the complete proposals, capital expenditure would amount to HKZ173 million (£22,250,000) and the current expenditure would rise to HK3719 million (£90 million) by 1982/83 compared with the provision of HKZ407 million (251 million) for all types of services in 1977-78. In manpower terms, an additional 3,700 trained personnel would be required. The main increase would be in teachers, nurses, and graduate and non-graduate social workers as well as doctors and para medical specialists deployed in the field of rehabilitation.
Sir Murray said the housing programme was in top gear and at the current rate of completion, the Government expected to solve the public housing problem in the next five or six years.
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Phone 01-499-9821
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