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WEDNESDAY, MARCH 28, 1979
CALL TO USE SURPLUSES TO AID INDUSTRIES
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THE GOVERNMENT WAS TODAY (WEDNESDAY) URGED TO STUDY IF SOME OF THE HUGE ACCUMULATED SURPLUSES AND THOSE FORTHCOMING IN THE YEAR AHEAD COULD BE CHANNELLED INTO PRODUCTIVE PURPOSES.
SUGGESTING THIS AT THE RESUMED BUDGET DEBATE IN THE LEGISLATIVE COUNCIL, THE HON. JAMES M.H. WU SAID THE SURPLUSES COULD BE USED IN THE WAY OF INDUSTRIAL LOANS AT SUBSTANTIALLY LOWER BUT STILL MUCH MORE ATTRACTIVE INTEREST RATES THAT CURRENT ACCOUNT DEPOSITS IN BANKS OFFER.
+ BELIEVE OUR EXISTING BANKING SYSTEM HAS THE EXPERTISE AND FACILITIES TO ADMINISTER THIS OPERATION ON BEHALF OF THE GOVERNMENT AND AT ITS DIRECTION, WITHOUT THE SETTING UP OF AN INDUSTRIAL BANK, HE OBSERVED.
CITING SOME OF THE WAYS SOUTH KOREA AND TAIWAN HAVE TAKEN TO FINANCE THEIR INDUSTRIAL DEVELOPMENT, MR, WU SAID: *OUR GOVERNMENT SURPLUSES HAD BEEN DEPOSITED IN COMMERCIAL BANKS WHICH IN TURN LENT TO THE PROPERTY AND SPECULATIVE MARKETS, AS WELL AS OVERSEAS, AGGRAVATING THE INFLATIONARY TREND AND WEAKENING THE DOLLAR.+
EARLIER, MR. WU POINTED OUT THAT THE GOVERNMENT'S PROPOSED ANTI-INFLATION MEASURES +WERE THE VERY POINTS THAT FEATURED SIGNIFICANTLY IN MY SPEECHES IN THIS COUNCIL AND AT THE FEDERATION OF HONG KONG INDUSTRIES DURING THE LAST TWO YEARS.+
+FOR THIS REASON I DO NOT INTEND TO BE REPETITIOUS, HE SAID, +SUFFICE TO SAY, WHAT I HAD MENTIONED ABOUT THE SPECULATIVE ATMOSPHERE, THE PROPENSITY TO SPEND, THE RAPIDLY WIDENING TRADE DEFICIT, THE DE FACTO DEPRECIATION OF THE HONG KONG DOLLAR AND THE SPIRALLING INFLATION HAVE NOW DEVELOPED TO SUCH AN ALARMED STAGE THAT OFFICIALDOM HAS AT LAST BEEN STUNNED INTO BELATED ACTION IN THE HOPE OF REMEDYING THE SITUATION,→
MR. WU SAID THE QUESTION NOW IS WHETHER WHAT HAVE BEEN PLANNED AND INDEED IMPLEMENTED ARE ADEQUATE ENOUGH TO ACHIEVE THE DESIRED RESULTS.
HE THEN CITED THE FOLLOWING RAPID DEVELOPMENTS IN THE LAST SIX MONTHS THAT HAVE SO MUCH AFFECTED THE MANUFACTURING INDUSTRY WHICH IS SUCH A VITAL PART OF OUR ECONOMY.+
* THE DEVELOPMENT IN IRAN THAT THREATENED AN INTERRUPTION
OF OIL SUPPLY AND CAUSED SHARP INCREASE IN OIL PRICES
/*THE SHORTAGE.