THURSDAY, NOVEMBER 28, 1974
THE FACT WAS, HE SAID, THAT 1973 WAS A RECORD YEAR FOR WORLD TRADE AND ONE OF OUR BEST TRADING YEARS AS WELL. +IT COULD BE ARGUED, THEREFORE, THAT IT WOULD BE NO MEAN ACHIEVEMENT - GIVEN THE TRAUMAS OF THE PAST THREE YEARS OR SO AND AGAINST THE BACKGROUND OF THE PRESENT HIGHLY UNCERTAIN TRADING ENVIRONMENT - IF OUR DOMESTIC EXPORTS, IN QUANTITY TERMS FOR 1974 AS A WHOLE WERE TO BE ONLY A LITTLE HIGHER, OR EVEN A LITTLE LOWER THAN LAST YEAR'S.+
IMPORT PRICES FOR FOODSTUFFS AND CONSUMER GOODS HAVE ALSO BEEN LEVELLING OFF AND THIS HAS CONTRIBUTED TO THE EASING
OF CONSUMER PRICE INFLATION IN RECENT MONTHS, HE SAID. IN FACT CONSUMER PRICE INFLATION IN HONG KONG WAS NOW LOWER THAN IN NEARLY ALL OTHER MAJOR ASIAN CITIES AND COMPARED FAVOURABLY WITH THE SITUATION IN MOST OF THE INDUSTRIAL COUNTRIES OF THE WORLD.
SUMMING UP THE ECONOMIC CLIMATE, THE FINANCIAL SECRETARY SAID THE SITUATION GENERALLY IS OVERCAST, BUT WITH BRIGHTER SPOTS HERE AND THERE.
+THE OUTLOOK IS UNCERTAIN,+ HE SAID, AND IS LIKELY TO REMAIN SO FOR A WHILE YET.
HOWEVER, THERE WAS NO NEED FOR DISMAY AS THE SITUATION COULD AND WOULD HAVE BEEN A LOT WORSE IF IT HAD NOT BEEN FOR THE FLEXIBILITY, BOTH UPWARDS AND DOWNWARDS, OF HONG KONG'S INTERNAL COST/PRICE STRUCTURE.
THE LESSON, MR. HADDON-CAVE SAID, WAS CLEAR. +JUST AS WE WERE ABLE, THROUGH OUR ADJUSTMENT PROCESS, TO PREVENT THE EROSION OF OUR EXTERNAL COMPETITIVENESS IN 1971 AND HENCE TO TAKE ADVANTAGE OF RENEWED EXPANSION OF WORLD TRADE IN 1972 AND 1973, SO WE MUST BE ABLE TO DO SO NOW.
+AND WE ARE DOING SO, WHICH IS WHY IN SPITE OF PRESENT DIFFICULTIES, WE CAN VIEW THE FUTURE WITH CONFIDENCE.+
NOTE TO EDITORS.
COPIES OF THE FULL TEXT OF THE FINANCIAL SECRETARY'S SPEECH ARE BOXED FOR COLLECTION.
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