14
Thursday, April 26, 1973
The prospects for Hong Kong deriving any great benefit from the
operation of the UNCTAD General Preference Scheme, said Mr. Herries, were
not too bright.
The Japanese attitude to it was not very encouraging and there were
increasing import restrictions and competition from other Far Eastern countries
with lower wages (and before long China would join these in the cheaper
manufactured goods market), he pointed out.
Although the growth rate of Hong Kong's manufacturing industry
had slowed in recent years, said Mr. Herries, 1972 saw an influx of foreign
banking and financing houses all attracted by the stability of Hong Kong's
central position and its potential as a leading money market in the Far East.
Commercial Diversification
This new industry provided employment for white collar workers and
was a form of commercial diversification which should benefit Hong Kong in the
years ahead.
"The performance of the Hong Kong stock market last year and early
this year," Mr. Herries continued, "has probably not inspired confidence in
overseas investors and I am sure the Government was right to issue warnings
to deter speculators and to bring in legislation designed to protect genuine
investors.
"Despite these fluctuations, however, the economy itself is basically
very sound and Hong Kong took the floating of sterling and another devaluation
of the U.S, dollar in its stride."
/Mr. Herries