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munity in the long run that the interest of both employers and employees should be safeguarded.

It is most gratifying to hear from His Excellency the Governor before he left for London that "we will continue with our established policy in housing, health and education". The Governor further said that the Plover Cove water scheme should be finished by 1968 and the question of labour legislation and local authority would also be tackled. But, Sir DAVID warned that the progress of these social plans depends on the economic and financial strength of Hong Kong and there must be peace and stability. The present urgent question is therefore how to restore peace, stability and prosperity in Hong Kong. As I have said earlier on that we must continue to apply and practice the principle of mutuality. We should call upon our neighbours, great or small, to do everything possible to help us or at least not to hamper us to maintain and strengthen our prosperity and to preserve the present status quo. On our part, we must avoid doing anything which may result in forcing other people to do what they really do not intend for their own interest. At the same time, as Sir DAVID said at the end of May this year, that no Government is perfect, we are to improve it. Perhaps, nothing in the world is perfect. It is only in conformity with democratic tradition and principle, which are so dearly cherished by all of us, that any allegation made in good faith and supported by prima facie evidence, whether it concerns the police or not, should be looked into and investigated by the Government. It is true that we rely on the police force to maintain law and order

CHAIRMAN:----Mr. Hu, can you please give me some indication of the length of your speech?

MR. HU: It will be finished in about another four minutes.

It is true that we rely on the police force to maintain law and order, but such a measure would eventually improve the relationship between the police and the population, if it needs to be improved. In the end, the community as a whole would be benefited.

All of us who take Hong Kong as their permanent home and also those who would be benefited by the prosperous continuation of the status quo of this tiny Island, simply cannot let the present situation go on much longer. The longer it lasts, the more harmful it would be to our economy. I heard the other day the question of flow of capital was raised and asked in the Legislative Council. It would not be possible to have an exact estimate of how much capital has been flown away, but the prolongation of the present situation is certainly a deterrent factor to have further expansion of our industry. As we all know, Hong Kong now depends on its industry for survival, and at the end of the year 1966 we had 635,300 workers living on manufacturing of some

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kind, and 133,700 workers on construction, not to mention the number of transport or agricultural workers. The present disturbances would certainly affect their rice bowls, and those of the member of their families. The fruit of prosperity of Hong Kong has hitherto been shared, not only by the people of Hong Kong, but also by people outside Hong Kong. It is now high time that some chances or opportunities acceptable to all concerned should be provided to get out from the present embarrassing position.

For the benefit of Hong Kong and its citizens and because of the delicate geographical position of Hong Kong, there must not be a victory or defeat in the present disturbances.

CHAIRMAN: -Mr. Hu, you are not speaking to the motion on the Order Paper. You have not spoken to the motion on the Order Paper since you began to speak. What you are saying has no reference to the motion which I accepted in good faith.

MR. HU: Yes, Mr. Chairman, I am about to speak to the motion. (Laughter).

Hong Kong cannot afford to have any kind of victory or defeat if we want to preserve its economic and financial strength. A show of hands must be avoided. A round table talk is perhaps worth while trying. It is obvious that without the spirit of mutual forbearance and respect, we cannot have real peace and stability in Hong Kong. Without peace, stability and prosperity in Hong Kong we would be in a difficult position to fulfil the statutory duties of the Council. Let alone the carrying out of any plan of local administration. Hong Kong is a cosmopolitan city. We need international understanding and co-operation. We should foster the spirit of international cordiality and disregard any idealogical differences by developing closer relationship between Hong Kong and other big cities of the world. With great sincerity and with the interest of Hong Kong and its people in my heart, I have the honour to move the present motion standing in my name.

Mr. Chairman, you may not be certain of my speech, but as a whole, it is a logical conclusion that I reached at the end of my speech. Thank you.

MR. BERNACCHI :-Mr. Chairman, it gives me great pleasure to rise and second this motion. Hong Kong has been going through a difficult time recently, but perhaps this has made the real citizens of Hong Kong feel for the first time that they belong to Hong Kong and Hong Kong belongs to them. For the first time we have had to choose. For the first time we have all had to choose where our allegiance lies in such an emergency, and the vast majority of the people of Hong Kong have demonstrated that it lies in support of the conception of

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