Sir,
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DRAFT SPEECH BY HON ALLEN LEE, OBE, JP
LEGISLATIVE COUNCIL
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27.3.85
Budget Debate 1985
Hong Kong's economy appears to be quite simple on surface yet it is fairly complex. The mere fact that we were successful in the past does not mean that we do not have to
look ahead into the future. I have given much thought to our economic development because I believe that without a sound economy, Hong Kong will lose its value to the world. I have often wondered about the factors which have contributed to the success of this small place situated at the mouth of the Pearl River in the South China Sea. A place which has attracted world-renowned economists to study its composition. What is
the real answer and where do the real answers lie? During my extensive travels around the world, I have tried finding a place comparable to Hong Kong. However, there is no place like Hong Kong. Therefore it would only seem right for me to seek
the answer right here in Hong Kong.
I have discussed this topic with numerous people from the different strata of our society to seek their opinions and to try to come up with an answer. The conclusion is, the main reason for the past success of Hong Kong lies in the development of the manufacturing sector. Before the 1950s, the manufacturing sector was only a small element in our economy and a negligible one by international standards. Within a decade however, Hong Kong became one of the world's major suppliers of light industrial goods. The main factor for this change was due to a change of Government in China in 1949 which gave rise to a rapid influx of labour, capital and industrial expertise. Orders of equipment and machinery originally destined for China were diverted to Hong Kong and this caused the start of our industrial revolution. The revolution started
in the textiles and clothing sector followed by foreign
investment in electronics and then the local development in the
plastics and toys sectors etc which made Hong Kong a major
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