PURSLT, NOVEMBER 16, 197
HE EXPECTED THAT A DAMPENING DOWN OF THE DEMAND RESULTING FROM HIGHER INTEREST RATES WILL SLOW DOWN THE GROWTH RATE OF THE MONEY SUPPLY AND, IN DUE TIME, THE EXCHANGE VALUE OF THE HONG KONG DOLLAR WILL STRENGTHEN.
MR. HADDON-CAVE ALSO PREDICTED THAT THE RATE OF INCREASE IN THE GENERAL PRICE LEVEL AND THE CONSUMER PRICE INDEX THIS YEAR WILL NOT EXCEED SIX PER CENT, WHILE THE INCREASE IN THE PRICES OF INVESTMENT GOODS THIS YEAR WILL BE ABOUT EIGHT PER CENT.
THE UNIT VALUE INDEX OF IMPORTS OF RAW MATERIALS AND SEMI- MANUFACTURES WAS ONLY 1.1 PER CENT HIGHER IN THE FIRST EIGHT MONTHS OF THIS YEAR THAN IN THE SAME PERIOD LAST YEAR WHILE THE NOMINAL DAILY WAGE RATES FOR MANUFACTURING WORKERS WERE EIGHT PER CENT HIGHER IN MARCH THIS YEAR THAN IN SEPTEMBER 1977.
ON OTHER MATTERS, MR. HADDON-CAVE SAID THAT THE PROPOSAL FOR A HONG KONG RESEARCH COUNCIL SHOULD BE LEFT TO BE EXAMINED BY THE INDUSTRIAL DEVELOPMENT SUB-COMMITTEE OF THE ADVISORY COMMITTEE ON DIVERSIFICATION.
HE SAID THE INDUSTRIAL DEVELOPMENT SUB-COMMITTEE HAD BEEN ESTABLISHED TO ADVISE ON WHETHER THE EXTENT OF THE GOVERNMENT'S EXISTING INVOLVEMENT IN ASSISTING HONG KONG'S INDUSTRIES SHOULD BE WIDENED AND ENHANCED, HOW THIS WAS TO BE ACHIEVED, AND THE COSTS AND BENEFITS INVOLVED.
+THESE TERMS OF REFERENCE ENCOMPASS AN EXAMINATION OF THE NEED FOR CO-ORDINATED RESEARCH AND THE GOVERNMENT'S INVOLVEMENT IN IT, HE SAID.
THE FINANCIAL SECRETARY ALSO WARNED THAT AN UPDATING AND RESTRUCTURING EXERCISE ON WATER CHARGES WAS INEVITABLE.
HE SAID THE GOVERNMENT WAS NOW WORKING ON THE FINAL DETAILS OF A NEW AND VERY CAREFULLY DESIGNED TARIFF WHICH SOUGHT TO RECONCILE FISCAL, SOCIAL AND ECONOMIC CONSIDERATIONS AND WHICH WOULD BE INTRODUCED SOME TIME NEXT YEAR.
CONCLUDING THE DEBATE MR. HADDON-CAVE PAID TRIBUTE TO UNOFFICIAL MEMBERS FOR THE TIME AND ENERGY THEY DEVOTE, AND THE WISDOM THEY BRING TO, THE DISCHARGE OF PUBLIC BUSINESS AND THE CARE WITH WHICH THEY HANDLE COMPLAINTS FROM MEMBERS OF THE PUBLIC AND HELP THOSE WHO HAVE DIFFICULTIES IN THE IR DEALINGS WITH GOVERNMENT DEPARTMENTS.
A