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WEDNESDAY, APRIL 25, 1979
*
INCREASED PROPENSITY TO SPEND ON EXPENSIVE IMPORTED FOOD AND GOODS BY THE POPULATION, DUE TO IMPROVED EARNINGS AND ASPIRATION FOR BETTER LIVING.
* BIG INCREASE IN TRAVEL DUE TO INCREASED AND LONGER
HOLIDAYS BY PRACTICALLY EVERY SECTOR OF THE COMMUNITY.
*
THE PRESSURE ON THE HONG KONG DOLLAR WITH CHINA'S INCREASED PURCHASES FOR THE FOUR MODERNISATION PROGRAMMES WITH U.S. DOLLARS EXCHANGED WITH HONG KONG DOLLARS IT EARNED FROM EXPORTS TO HONG KONG.
THE INDICATED REMEDIAL MEASURES WOULD THEREFORE HAVE TO BE CUTTING DOWN ON SPENDING AND INCREASING EARNINGS THROUGH EXPORTS OF GOODS AND SERVICES, SAID MR. WU.
+ IN THE PROCESS, PEOPLE WOULD EXPECT THOSE CONCERNED, AND IN PARTICULAR THE GOVERNMENT MACHINE, TO PLAY AN IMPORTANT ROLE WITH EFFECTIVE FINANCIAL AND OTHER ADMINISTRATIVE MEASURES, + HE NOTED.
MR. WỤ THEN RECALLED A STATEMENT MADE BY THE FINANCIAL SECRETARY IN WINDING UP THE BUDGET DEBATE, IN WHICH THE HON. PHILIP HADDON-CAVE WAS QUOTED AS SAYING +1 MUST CONFESS THAT I AM NOT AWARE THAT THE MANUFACTURING SECTOR OF OUR ECONOMY IS PRESENTLY EXPERIENCING ANY DIFFICULTY IN OBTAINING FUNDS FOR COMMERCIALLY VIABLE PROJECTS.+
REFERRING TO THE INCREASE OF PRIME INTEREST RATES FROM 4.75 PER CENT TO 13 PER CENT, MR. WU SAID IF AN INDUSTRIAL PROJECT WAS CONSIDERED VIABLE AT 4.75 PER CENT INTEREST FOR INVESTMENT, IT COULD FALL FAR SHORT OF BEING SO AT TODAY'S RATE.
+ IN THE MEANTIME, INVESTMENT WOULD BE INHIBITED, EXPORT EARNING POWER DECREASED AND PRODUCTIVE JOBS LOST,+ HE ADDED.
+ IN ADDITION, IF THE FINANCIAL SECRETARY AT THE PRESENT STATE OF OUR ECONOMY WOULD NOT DIFFERENTIATE FINANCIAL FACILITIES TO REAL ESTATE SPECULATION AND HIRE-PURCHASE LOANS FOR CARS ETC. WITH INVESTMENT IN EXPORT-EARNING INDUSTRIES, COULD HE STILL ENJOY OUR COMPLIMENTS FOR POSSESSING HIS USUAL GOOD SENSE OF PRIORITY?+ HE ASKED.
MR. WU SAID IT WAS FOR THESE COMPELLING AND URGENT REASONS THAT HE ADVOCATED IN HIS SPEECH ON THE BUDGET DEBATE THAT PREFERENTIAL LOAN TREATMENT BE EXTENDED TO THE MANUFACTUR ING INDUSTRIES, AS WAS GENERALLY DONE BY HONG KONG'S COMPETITORS.
+1 ALSO SAID THAT THE INCREASE IN INTEREST RATES WAS HURTING INDUSTRY MORE AND I AM GLAD TO LEARN THAT AT LEAST ONE OF OUR LEADING BANKS IS LISTENING AND PLANNING FOR AN IMMEDIATE RELIEF.
+1 AM ALSO GLAD THAT MY CONFIDENCE ON THE IR JUDGMENT AND BUSINESS SENSE HAS NOT BEEN MISPLACED, WHEN I SUGGESTED THAT GOVERNMENT LEAVE IT TO THEM. AT LEAST TEMPORARILY TO ADMINISTER THE ROLE OF AN INDUSTRIAL DEVELOPMENT BANK FOR OUR IMMEDIATE NEED, HE ADDED.
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