53.

CONCLUSION

155.

And so I come to the end of this review of your Government's

activities and proposals. They encompass continuation of the steady

transformation of Hong Kong. In this aim we must persist if we are to

develop as a technically advanced, valued, and above all, respected

society.

156.

Government activity should provide the framework for an

economic society which should be as free as possible. This of course

assumes that the use of this freedom does not run counter to the

conditions of our survival, namely that as a society we remain cohesive

What is called "the ugly face of capitalism' was

and respected.

notably absent in the recession of 1974/75 and the subsequent recovery,

and this was one of the reasons Hong Kong came through it so well.

Now when the economy as a whole is doing comparatively well, and looks

like continuing to do so, there are signs of this lesson being

forgotten by some. There has been excessive speculation in real estate

and some socially disruptive transactions. It is all very well to

say that in a free economy one must take the rough with the smooth;

but those who take the rough are so seldom those who enjoyed the

smooth. This refers only to a very few. Our economy depends on the

development of sound industry, sound communications, and sound financial

institutions, based on a decently housed society whose elements observe

mutual respect and restraint. So long as the ingenious and admirably

intense economic activity of Hong Kong concentrates on these productive

objectives, I am convinced that other medium and long term factors

are very greatly in our favour.

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