WEDNESDAY, DECEMBER 18, 1974
-DIRECT GOVERNMENT INTERVENTION NOT THE ONLY WAY TO SOLVE
FREIGHT RATES ISSUE *****
THE DIRECTOR OF COMMERCE AND INDUSTRY, THE HON. DAVID JORDAN, SAID TODAY THAT WHILST DIRECT GOVERNMENT INTERVENTION IN THE ISSUE OF FREIGHT RATE INCREASES DECIDED UPON BY THE CONFERENCE SHIPPING LINES WAS NOT RULED OUT, HE WOULD HOPE THAT IT WOULD NOT PROVE THE ONLY WAY TO SOLVE THE PROBLEM.
HE WAS REPLYING TO THE CALL FOR INTERVENTION BY DR. THE HON. CHUNG SZE-YUEN AND THE HON. TIEN YUAN-HAO IN THE LEGISLATIVE COUNCIL.
MR. JORDAN EXPLAINED THAT THE GOVERNMENT WAS AWARE THAT LEGISLATION TO CONTROL SHIPPING CONFERENCES EXISTED ELSEWHERE.
HE SAID THAT THE GOVERNMENT WOULD STUDY THIS LEGISLATION, THE WAY IT OPERATED AND ITS EFFECTS, BUT ADDED: +WE FEEL THAT THE MOST CAREFUL CONSIDERATION WOULD NEED TO BE GIVEN TO ALL ASPECTS OF THIS MATTER BEFORE WE COULD EMBARK ON SUCH A MAJOR DEPARTURE FROM OUR BASIC ECONOMIC PHILOSOPHY.+
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HE RECALLED THAT HE HAD SAID IN LEGCO ONLY RECENTLY THAT WHEN THE GOVERNMENT INTERVENES IN ANY COMMERCIAL ACTIVITY IT ALTERS THE NORMAL BALANCE OF COMMERCIAL ADVANTAGE AND THAT IT SHOULD THEREFORE DO SO ONLY WHEN AN IMBALANCE NEEDS TO BE CORRECTED IN THE INTERESTS OF THE COMMUNITY AS A WHOLE.
+I WOULD ADD THAT EVEN THEN WE SHOULD NOT INTERVENE UNTIL WE ARE QUITE SATISFIED THAT THE IMBALANCE WILL NOT OTHERWISE BE CORRECTED,+ HE SAID.
MR. JORDAN POINTED OUT THAT IT WAS THE GOVERNMENT'S VIEW THAT A BETTER WAY TO ENSURE THAT HONG KONG WAS NOT EXPLOITED AND COULD CONTINUE TO EXPORT ITS PRODUCTS AT COMPETITIVE SHIPPING RATES WOULD BE TO MAKE SURE THAT OUR SHIPPERS' COUNCIL, WHICH HAS BUILT UP CONSIDERABLE EXPERTISE AND HAS THE REPUTATION OF BEING ONE OF THE MOST EFFECTIVE SHIPPERS' COUNCILS IN THIS PART OF THE WORLD, WAS STRENGTHENED AND GIVEN SUCH ASSISTANCE AS THE GOVERNMENT COULD PROVIDE.
MR. JORDAN WENT ON TO SAY THAT STEPS WERE ALREADY BEING TAKEN IN CONSULTATION WITH THE COUNCIL, TO OBTAIN MORE INFORMATION ON THE COSTS AND RATE STRUCTURE OF SHIPPING LINES FOR USE IN ANY FUTURE NEGOTIATIONS.
ON THE INCREASE ITSELF, MR. JORDAN SAID: THE INCREASE IN RATES HAS, IN FACT, BEEN SIGNIFICANTLY SCALED DOWN COMPARED WITH THE CONFERENCE'S EARLIER PROPOSALS, AS THE RESULT OF THE EFFORTS OF ALL THE SHIPPERS' COUNCILS IN THE REGION. IN WHICH THE HONG KONG SHIPPERS' COUNCIL HAS PLAYED AN IMPORTANT AND VALUABLE ROLE.
/+THIS IN ITSELF