WEDNESDAY, MARCH 30, 1977
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+THERE IS EVERY SIGN THAT OUR EXPORT GROWTH IN THE FIRST QUARTER OF 1977 IS SLOWER THAN THAT OF LAST YEAR, AND THAT, WITH THE EXCEPTION OF A FIVE PER CENT INCREASE IN EXPORTS TO THE UNITED STATES COMPARED WITH JANUARY LAST YEAR, THERE ARE REDUCTIONS IN OUR EXPORTS TO WEST GERMANY, JAPAN AND PARTICULARLY TO THE UNITED KINGDOM, CANADA AND AUSTRALIA,+ HE EXPLAINED,
MR. WU EMPHASISED THAT WITH GROWING PROTECTIONISM IN HONG KONG'S MARKETS AND SEVERE UNDER-CUTTING FROM ITS COMPETITIVE NEIGHBOURS, MANUFACTURERS AND EXPORTERS HERE WERE FINDING IT INCREASINGLY DIFFICULT TO OBTAIN ENOUGH ORDERS TO SUSTAIN INCREASING OVERHEADS.
LINES.
+WE ARE LOSING MANY ORDERS AT THE LOWER END OF OUR PRODUCTION
+ THE OPPORTUNITIES FOR US TO TAKE FULL ADVANTAGE OF OUR FLEXIBILITY IN UTILISING THE FACTORS FOR INCREASED PRODUCTION SUCH AS LABOUR, PLANT AND OTHER FACILITIES (AS WAS THE CASE IN THE LAST +DENIM BOOM+) DO NOT PRESENT THEMSELVES TOO OFTEN.
+ INDEED, AS SOON AS OUR COMPETITORS CATCH UP WITH OUR INNOVATIONS WE IMMEDIATELY SUFFER FROM THE DISADVANTAGES OF HIGHER WAGES AND HIGHER OVERHEADS, MR. WU SAID.
TURNING TO THE SUBJECT OF INDUSTRIAL LAND, MR. WU UNDERLINED THE NEED FOR THE GOVERNMENT TO PROVIDE FOR MORE INDUSTRIAL LAND FOR AUCTION TO MEET URGENT DEMANDS AND TO ABSORB THE HUGE SUMS OF SPECULATIVE HOT MONEY THAT HAD DRIVEN PRICES BEYOND THE REACH OF MANY GENUINE USERS.
TO ILLUSTRATE HIS POINT, MR. WU SAID THE AVERAGE PRICE FOR INDUSTRIAL LAND AUCTIONED IN 1975 WAS $139 PER SQUARE FOOT BUT THAT FOR 1976 HAD SOARED TO $389 PER SQUARE FOOT, RISING 2.8 TIMES IN ONE YEAR.
HE POINTED OUT THAT FOR THE FORESEEABLE FUTURE, HONG KONG WOULD STILL DEPEND HEAVILY ON EXPORTS OF LIGHT INDUSTRIAL CONSUMER GOODS, COMMONLY MANUFACTURED IN HIGH-RISE GENERAL-PURPOSE INDUSTRIAL BUILDINGS, WHICH WERE STILL UNDER-PROVIDED.
CONSIDERING THE PHENOMENAL INCREASES IN RENTS AND LAND PRICES, AS COMPARED TO THE LESS SIGNIFICANT INCREASES IN WAGES AND MATERIAL COSTS, MR. WU SAID HE WOULD ESTIMATE THAT SOME FIVE TO SIX PER CENT OF HONG KONG'S PRESENT MANUFACTURING COSTS WAS ATTRIBUTABLE TO RENTS AND RATES AN UNACCEPTABLE FIGURE BY ANY STANDARD.
HE ADDED THAT IT WAS THIS HEAVY INCREASE IN OVERHEAD COSTS THAT WOULD OFFSET ANY GAIN IN PRODUCTIVITY, AND THAT THE EFFECT OF LAND PRICES ON HONG KONG'S INDUSTRIAL DEVELOPMENT MUST BE FULLY ASSESSED AND CONTAINED.+
/+THE BRAZICI...