THURSDAY, SEPTEMBER 30, 1976
HONG KONG'S ECONOMIC POLICY ******
HONG KONG IS BEST KNOWN FOR THE EMPHASIS IT PLACES ON THE FREE OPERATION OF MARKET FORCES AND ITS COMPARATIVELY LOW LEVEL OF TAXATION, THE GOVERNOR, SIR MURRAY MACLEHOSE, SAID TODAY.
SPEAKING AT THE OPENING OF THE COMMONWEALTH FINANCE MINISTERS' MEETING AT THE CONVENTION CENTRE, HE SAID: THIS IS TRUE AND FOR SPECIAL PRACTICAL NOT DOCTRINAIRE REASONS WE THINK THESE BENEFICIAL.+
+ IT IS OUR AIM, HE SAID, TO BALANCE PROSPERITY AND ECONOMIC GROWTH WITH SOCIAL PROGRESS.+
HE EXPLAINED THAT HONG KONG WAS TOTALLY DEPENDENT ON TWO THINGS. THEY ARE
*
THE RETENTION AND ATTRACTION AND GROWTH OF INVESTMENT
TO EMPLOY ITS POPULATION HENCE THE NEED FOR A COMPARATIVELY ATTRACTIVE LEVEL OF TAXATION AND,
* THE SALE ABROAD OF VIRTUALLY ALL ITS PRODUCTS AND THE
PURCHASE ABROAD OF ITS RAW MATERIALS.
BECAUSE HONG KONG DEPENDED SO GREATLY ON ECONOMIC CONDITIONS IN ITS MARKETS ABROAD, HE SAID, IT MUST BE ABLE TO ADJUST TO THEM AND TO ADJUST FAST - HENCE THE NEED TO ALLOW MARKET FORCES TO WORK.
SIR MURRAY CONTINUED + DO NOT THINK THAT ANY OTHER COMMUNITY IN THE WORLD IS SUBJECT TO THE SAME ECONOMIC FACTORS TO THE SAME DEGREE.
+BUT THOUGH THIS SIDE OF HONG KONG IS WELL KNOWN, THE OBVERSE IS NOT. THE FREE-PLAY OF MARKET FORCES IF LEFT ENTIRELY TO THEMSELVES WOULD HAVE UNACCEPTABLE SOCIAL CONSEQUENCES.
+SO THIS CONCEPT OF ECONOMIC FREEDOM IS BALANCED NOT ONLY BY AN EXPANDING CORPUS OF COMMERCIAL AND LABOUR LEGISLATION, BUT ALSO BY THE PROGRESSIVE PROVISION OF MEDICAL SERVICES AND EDUCATION EITHER FREE, OR AT NOMINAL CHARGE, OR WITHIN THE MEANS OF ALL- SOCIAL WELFARE IN CASH OR SERVICES TO SUPPORT THE UNFORTUNATE- AND BY THE PROVISION OF CHEAP PUBLIC HOUSING ON A SCALE RARELY EQUALLED.
+ON SUCH THINGS BETWEEN 40 PER CENT AND 50 PER CENT OF HONG KONG'S BUDGET IS SPENT.+
SIR MURRAY POINTED OUT THAT THE OVERALL GUIDELINES WITHIN WHICH HONG KONG WAS PROGRESSING, AND PROGRESSING SO FAST, HAD ENABLED THIS COMMUNITY TO COME THROUGH THE WORLD RECESSION AND BACK TO FULL EMPLOYMENT AND ECONOMIC GROWTH WITH REMARKABLE SPEED AND VIRTUALLY WITHOUT INFLATION.
+WITHIN THEM, AND HELPED BY AN EXPANDING ECONOMY
WE EXPECT
TO MAKE RAPID INROADS INTO THE DEFICIENCIES THAT EXIST IN HONG KONG AS A RESULT OF THE VAST POST WAR EXPANSION OF POPULATION, AND TO ELIMINATE THEM BY THE EARLY '80S, HE PREDICTED.
/SIR MURRAY