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Apart perhaps from steel, which is a baleful exception, world

trade in minerals and metals is also free from quantitative import

restrictions and other protectionist devices. Such a competitive

environment has fostered product innovation and the introduction of new

techniques aimed at increasing productivity and reducing costs. In

other words, this competitive environment has evinced a response from

those many individualists traditionally to be found in the mining and

metallurgical industries.

World Trade in Manufactures

I think it would be fair to say that manufacturers and traders

in Hong Kong count many individualists among their numbers and very

robust individualists they are too and the Hong Kong Goverment's fiscal

and other policies are committed to the concept of reward for enterprise

and effort.

Unfortunately, however, international trade in manufactures is

not now conducted within a relatively free trade environment similar to

that enjoyed by minerals and metals. It is true that the thirty or so

years following the Second World War saw the largest increase in world

output and trade in any comparable period in history. Part of the

credit for this must go to the gradual lowering of barriers to trade

and payments over this period. Indeed, it is no coincidence that the

most significant exercise in trade liberalisation in this period, the

GATT Kennedy Round in 1967, was followed by a marked acceleration in

the growth of world output and trade over the next five years.

The New

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