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rate of our net external earnings is the basic determinant of the growth
rate of real incomes in Hong Kong; and this harsh reality is inescapable
except in the very short term. The budgetary and fiscal policy implications
of this reality are equally inescapable, if not always entirely self-evident
to some.
Free Trade a Condition of Growth
Of course, the adjustment process which is associated with free
trade situations can be painful in the short term, as we in Hong Kong know
from our own experience in the field of manufactures; and as all of you
will know from your own experience in your own fields. Nevertheless,
restrictions on trade, although superficially attractive in certain
circumstances, are in practice a prescription for stagnation, not growth,
in the medium and longer term.
Interdependence of World Sconony
To sum up, therefore, whilst we in Hong Kong have an immediate
cause for concern because the present lurch to protectionism is directed
largely at manufacturers, only through the opportunities provided by an
open world economy can a recovery of world output and trade generally be
eventually engineered and a satisfactory growth rate sustained thereafter.
So, any endeavour to return to a more liberal approach is not the concern
of exporters of manufactures alone, but of all participants in world trade
including the mining and metals industries.
Conclusion
With these lighthearted words, ladies and gentlemen, I have pleasure
in declaring open the Eleventh Commonwealth Mining and Metallurgical Congress.