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Wednesday, October 17, 1973
new pricing policies which have brought the price of perishable foodstuffs in
Hong Kong to levels comparable with prices elsewhere in the world.
"We must face the fact that those who sell us their goods are just
as entitled to charge the going rate for them as we are entitled to do the
same for our exports," he said.
He assured the Council, however, that the government would watch
closely to see whether the prices of foodstuffs not subject to normal
international competition get out of line with prices elsewhere.
Sir Murray said it was inevitable that the rise in prices would tend
to put pressure on wages, but while it was true that the trend had increased
sharply recently, a study of comparable figures elsewhere showed that up to
May "the rate of inflation in Hong Kong was no worse that elsewhere
I refer both to our competitors and our markets,"
and
The Governor added it should also be borne in mind that Hong Kong's
competitors had not been confronted with the same rise in prices of perishable
foodstuffs due to local climatic conditions.
cheap
The main contribution the government could make towards containing
inflationary trends, he went on, was through its social policies
subsidised housing for these least able to afford commercial rents, and the
control of rents themselves; free primary education and heavily subsidised
secondary and tertiary education; social services and relief for the
handicapped and destitute; and charges for medical care which are ac subsidised
as to be almost free.
Apart from rising prices, the international currency instability had
created many difficulties for Hong Kong manufacturers and traders, particularly
since much of Hong Kong's trade was transacted in US dollars and in Sterling.
/It seemed