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of its traditional murkets. It will not be sufficient to rely solely on the adaptability which has served it so well over the past 20 years. As output becomes more capital-intensive and labour becomes more skilled, the mobility of both capital and labour will decline (though of course the high geographical mobility of labour which is one of Hong Kong's main assets will remain, and indeed be enhanced by the MTR). A more positive and comprehensive policy of encouraging and assisting industrial development will be needed. The Financial Secretary's insistence that there will be no fiscal incentives of any kind for investment, apart from the present low level of Corporation Tax, does not seem helpful. Other things needed include a well thought-out large-scale programme of equipping younger workers with the skills that will be needed in the future; and much more emphasis on management education, which has made little progress so far. Moreover despite the frequently repeated slogan that there is no shortage of finance in Hong Kong some kind of Industrial Development Bank may be required in the future, as the need grows for a more systematic method of channelling private savings into industrial investment, particularly in small and medium-sized firms.
22. In general, the Government will have to move on from its present philosophy of holding the ring and letting private enterprise provide most of the economy's dynamism. Closely linked to this is the need to involve more people, particularly younger people in their 20's and 30's, in the running of the place. There is already a demand, which will inevitably increase, for a greater say in what happens both at the political level and in industry. This demand must be channelled creatively, not ignored or resisted. Que or two highly-placed people
seem well aware of this, but many of their colleagues in both the Government and business sectors do not, thus justifying some of the charges of complacency at the top which I encountered among a number I see of younger people who are concerned about Hong Kong's future. the main rôle that HG can play as being one of strengthening the hand of the more enlightened members of the administrative and
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