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FRIDAY, MAY 26, 1978
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+MEANWHILE, LET ME HASTEN TO ADD THAT THE ECONOMY IS NOT WAITING WITH BATED BREATH FOR GUIDANCE ON HOW TO SUSTAIN OUR PROSPERITY. IN MY BUDGET SPEECH IN MARCH, I ESTIMATED THAT G.D.P. IN REAL TERM WOULD GROW AT 9 PER CENT THIS YEAR, A RESPECTABLE RATE OF GROWTH BY ANY STANDARDS, PARTICULARLY AS WE ARE NOW IN THE MATURE PHASE OF THE RECOVERY FROM THE 1974-75 RECESSION,
+CONSIDERATION OF THE FURTHER EVIDENCE THAT HAS BECOME AVAILABLE SINCE THEN SUGGESTS THAT THE EXTERNAL SECTOR IS GROWING, AT PRESENT, FASTER THAN MY FORECAST, PARTICULARLY AS REGARDS IMPORTS. THIS IS A WELCOME DEVELOPMENT. IT IS TRUE THAT DOMESTIC ACTIVITY IS ALSO GROWING FASTER THAN MY FORECAST. BUT THE PERSONAL CONSUMPTION COMPONENT CAN BE EXPECTED TO SLOW DOWN LATER IN THE YEAR.
+ALL IN ALL, ON PRESENT EVIDENCE, I HAVE NO REASON TO BELIEVE THAT AN OVERALL GROWTH RATE OF 9 PER CENT WILL NOT BE ACHIEVED IN 1978.
+SO THE ADVISORY COMMITTEE HAS TIME TO TACKLE ITS REMIT SYSTEMATICALLY AND IN AN ORDERLY SEQUENCE.+
MR. HADDON-CAVE SAID THE TERM +DIVERSIFICATION+ HAD COME TO MEAN DIFFERENT THINGS TO DIFFERENT PEOPLE. TO SOME, HE SAID, DIVERSIFICATION MEANT A HEAVEN-SENT OPPORTUNITY FOR REQUIRING AN
INERT BUREAUCRACY TO HEED THE CASE FOR THE IR PET IDEAS. TO CTHERS, DIVERSIFICATION HOPEFULLY MEANT THE SUBSIDISATION OF CERTAIN COST-INPUTS FOR CERTAIN INDUSTRIES OR. IN ITS MOST EXTREME FORM, FOR ALL INDUSTRIES AND REGARDLESS OF THE INEVITABLE FISCAL AND OTHER CONSEQUENCES.
HE CONTINUED: +FORTUNATELY, IT IS NOT LIKE THAT AT ALL. THE FACT IS THAT THE GOVERNMENT'S INVOLVEMENT IN OUR ECONOMY IS DETERMINED BY OUR PHILOSOPHY OF POSITIVE NON-INTERVENTIONISM. THAT IS TO SAY, WE TAKE THE VIEW THAT ATTEMPTS TO GUIDE CR OTHERWISE INTERFERE WITH THE OPERATION OF MARKET FORCES WILL TEND TO DAMAGE THE GROWTH RATE OF THE ECONOMY.
+1 SEE NO PROSPECT OF OUR MODIFYING THAT PHILOSOPHY. THIS IS NOT TO SAY THAT EVEN THE HONG KONG GOVERNMENT DOES NOT RECOGNISE CERTAIN QUITE SPECIFIC OBLIGATIONS TO PROVIDE SERVICES AND FACILITIES WHICH IT IS EITHER MORE CONVENIENT OR MORE EFFICIENT FCR IT TO PROVIDE OR WHICH SHOULD BE PROVIDED, AS A MATTER OF DELIBERATE POLICY, AS A CHARGE TO PUBLIC FUNDS. BUT BEYOND THESE OBLIGATIONS, THE GOVERNMENT'S APPROACH IS TO FACILITATE, OR AT LEAST TO AVOID FRUSTRATING, THE OPERATION OF MARKET FORCES.+
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SO IT WAS WITHIN THE CONFINES OF THIS LONG ESTABLISHED AND WELL TRIED PHILOSOPHY, DETERMINED IN PART BUT ONLY IN PART BY THE NATURE OF THIS ECONOMY THAT THE ADVISORY COMMITTEE'S REMIT MAS WRITTEN, MR. HADDON-CAVE SAID.
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