15
Wednesday, October 17, 1973
It seemed clear, Sir Murray said, that "uncertainties will continue
for some time to come and that there is nothing which we can do about it."
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However, there was every evidence of the Hong Kong dollar maintaining its
strength, he added.
The Governor cited the world-wide general shortage of raw materials
as another major problem local manufacturers had had to face, but he said he
had been impressed by the tremendous efforts of Hong Kong exporters.
Trading and industrial organisations had also played "a most
helpful role" in seeking out raw material sources, whilst the Commerce and
Industry Department had assisted with official representations and
co-ordination of effort.
On the stock market, the Governor said Hong Kong could look forward
to "brighter days" with the advent of new legislation to protect investors,
coupled with market values tearing a much more attractive price earnings
ratio and with good prospects for growth in the economy.
He described the rise and fall of the market as "basically a very
dangerous phenomenon" which had left deep scars, and he felt that in this
instance "laissez-faire has produced excessive risks both for individuals and
for Hong Kong."
Sir Murray was equally convinced, however, "that the introduction
of disciplines having the force of law is an essential step on the read to
full recovery."
While the rise and fall of the market was a temporary deterrent to
overseas investors, he said, the fact that the economy was able to weather
such a shock had made a very favourable impression. This was clear from what
he had been told in the City of London and by visiting financiers.
/He thanked
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