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Wednesday, October 16, 1974
recession is unlikely to assume an extreme form.
During the
down-turn now in existence, the purchasing power of the populations of developed countries is continuing at a comparatively high level. While demand for some products, and in particular cars and consumer durables is being affected, the course of demand for the sort of things that Hong Kong exports is much more difficult to gauge. One should not assume that because a family in the United States or Europe will economise by keeping an old car instead of buying a new one, or will put off buying a house, it will also put off buying clothes, or radies toys or cameras. Moreover the down-turn is not evenly spread throughout our markets. No doubt our exporters will face increased competition, and perhaps difficulties over finance, but there is a fair hope that in our markets as a whole a sufficiently healthy demand will continue to keep Hong Kong busy.
And on our side things will not be standing still. Our industrialists with their usual enterprise will be searching the world's markets for contracts, and you may be sure that the Trade Development Council will be doing everything within its power to help them to find new openings and expand old ones. The Government for its part, and with the support of Her Majesty's Government, will continue to do all that determined negotiations can to ease restrictions on our trade and resist attempts at further impositions. The prospects of maintaining our exports are favourable because' Hong Kong's productivity is now high and our competitive position abroad is very strong, indeed as strong as it has ever been, so we are in a position to supply
/what demand
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