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by making tooth brushes, ploughed back its profits and retooled for

canvas shoes, did the same thing again for box cameras, and is now

one of the biggest producers of high grade photographic and optical

goods in the world all within 25 years on the same site and with

even some of the same work-force. The ingredients are typical of

Hong Kong with determination to survive, acceptance of the need to

plough back profits, willingness to adapt and progress up the

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technological scale.

Naturally, none of this world have been possible

without the support of a first rate banking system.

"The principal industry is high-grade clothing and textiles,

but toys, electronics, clocks, watches, radios, cameras and optical

instruments are all important, and diversification into a wide range of

other industries is continuous. So too is the growth of service

industries to maintain and even build some of the machines for the

producers. The rate of progress has been so rapid that the government

has given high priority to technical education at all levels so as to

meet requirements for craftsmen, technicians and technologists.

"Hong Kong has the reputation of being the last outpost of

laissez faire and on this account has both its panegyrists and its

critics. The fact is that the government is disinclined to intervene

in the natural play of market forces except to stop abuse or distress

to the public, or if market forces left to themselves cannot meet

public needs. This is of course a large qualification, and there is

comprehensive legislation covering financial, commercial and industrial

activity, as well as labour relations, and Hong Kong would be an

insecure field for investment if there were not. But it is true that

Hong Kong does have comparatively low rates of tax and a comparatively

simple fiscal system; there is no exchange control, and there is freedom

/to employ

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