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In all this Hong Kong is an extreme example of what is happening
in countries in the Western Pacific region. All are changing and
industrialising fast, all are greatly dependent on world markets. All share
with Hong Kong a vital interest in the continuance of a free and expanding
world economy.
The growth of trade over the last 30 years has been greatly helped
by reduction in trade barriers. Look for instance at the tremendous spurt in
international trade that followed the successful conclusion of the Kennedy
round in 1967. It is our firm hope that this process should continue, for
trade liberalisation has been a powerful force in raising living standards and
any return to protectionism would lead not only to a reversal of all that has
been achieved, but to bitterness and disillusionment with Western ideals.
Of course there are occasions when the growth of new industries in
the developing world creates problems for the older industrialised countries.
Where serious damage is proved, so far as Hong Kong is concerned, we accept
that measures of restraint or protection are justified and necessary, but they
+
.+
should be temporary and should be designed to mitigate the hardships of
adjustment rather than to postpone it indefinitely, and they should be based
on economic fact and not political expediency.
In this
The Western Pacific is now an area of relatively rapid economic
growth. Most developing countries in the region are speeding up their
industrialisation and increasing their exports. Most began by concentrating
on labour intensive industries. They then progress, as Hong Kong has done, to
higher skilled, better paid and more capital intensive production.
comparatively early stage of their industrial evolution their working
conditions are sometimes not as good as those in developed countries,
«nd one must expect a demand from the latter that the gap be narrowed.
Raising incomes and living standards in the constant objective of
this Government, and a demand of this sort is understandable and
/acceptable
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