2 -

boom conditions, but obviously the worst of the recession is behind

U5,

and we can look forward to a period of expanding exports and solid

growth

-

provided that is to say, that we hold our competitive edge

and our ability to attract custom.

"I very much hope that Hong Kong's next period of growth

will see a greater diversification of the industries on which we depond.

You may be assured that the Government will play its part in this with

regard to land policy, provision of industrial estates, promotion of

foreign investment, and the rapid expansion of technical education.

"But it is clear that the production of consumer goods will

remain Hong Kong's chief source of income for the foreseeable future

and that the prosperity of this industry will depend to a large extent

on a continual upgrading of quality and design. Producers of low cuality

goods will find it increasingly difficult to retain their share of in-

ternational markets in the face of competition from lower labour cost

countries.

"The Industrial Design Council has an important role to play

in impressing upon industry the need to use to the full the design

skills and ability available in Hong Kong. I am interested to her that

the Council is paying attention to the protection of designs as one neens

of encourc.ging original work. A very important innovation introduced

last year was the setting up of the Design Depository, where owners may

lodge their original designs in order to provide prima facie evidence

of copyright ownership.

"The importance of good design to the marketability of product

cannot be over-emphasised. I share Mr. Wu's distaste for bogus

aesthetics and fussiness. I think we still produce too many dosigns

which are over complicated and gimmicky but then, so do the nost

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advanced industrial countries and I am glad to say that more of our

manufacturers now understand that well designed consumer products are often

deceptively simple. The award winning products here today well do-

monstrate this.

/"I am

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