5
Wednesday, November 14, 1973
Mr. Williams was concerned, however, about internally generated
inflation. He warned that the enormous plans for public works and high
building activity in the private sector would put a great strain on the
labour force.
This would, he thought, result in more competition for labour in
the construction industry and even higher wages, and labour would be attracted
from other industries, who in turn would have to raise wages to retain
their workers.
Mr. Williams said he would like to hear the government's views on
the sufficiency of labour resources for the rest of this decade.
In the case of the small businessmen who were often worst hit by
inflation and shortages of materials, many of them might go out of business.
"This might be taken as a sign of recession but it may also be a
hard but natural economic process resulting in larger and stronger business
unite," he said.
Mr. Willians was optimistic on the whole that the economy of Hong
Kong would continue to prosper because competitors in less developed nations
did not have the advanced and growing industrial and commercial base and
infrastructure Hong Kong had, and Hong Kong's technological and commercial
skills were unrivalled. Besides there was not a comparable level of investment
and a stronger currency.
On other matters raised by the Governor in his opening address to
the Council, Mr. Williams supported the establishment of a Council for
Recreation and Sport and hoped that it would improve the organisation of
sport in Hong Kong.
"I believe