TUESDAY, NOVEMBER 17, 1981
THE WORK FORCE IN SHENZHEN HAS TAKEN TO FLY TYING WITH EFFICIENCY AND THE LOW OVERHEADS HAVE MADE THE PROJECT VIABLE, THE GOVERNOR SAID.
+CH INA'S LAWS ON FOREIGN INVESTMENT AND IN PARTICULAR ON JOINT VENTURE TAXATION ARE NOT YET FULLY DEVELOPED. THE SAME APPLIES TO THE REGULATIONS GOVERNING COMPENSATION TRADE, COOPERATIVE PRODUCTION AND PART-PROCESSING AGREEMENTS. SO THESE ENTERPRISES MUST BE BASED ON MUTUAL TRUST, RATHER THAN ENFORCEABLE CONTRACT, SIR MURRAY SAID.
THE HONG KONG ECONOMY, LIKE MOST OTHERS IN THE WORLD, HAS BEEN GOING THROUGH AN ANXIOUS PERIOD. INFLATION IS UNDESIRABLY HIGH, PARTICULARLY OF CONSUMER PRICES, AND THIS TOGETHER WITH HIGH RENTS IN THE PRIVATE SECTOR, is WHAT HITS PEOPLE MOST. BUT UNLIKE OTHER COUNTRIES, THE HONG KONG ECONOMY HAS CONTINUED TO GROW RAPIDLY IN REAL TERMS, AND DESPITE THE INCREASE IN PEOPLE OF WORK ING AGE DUE TO IMMIGRATION, UNEMPLOYMENT ROSE ONLY MODERATELY AND ALMOST CERTAINLY IS NOW FALL ING.
THE RECENT DECLINE IN GROWTH RATE OF THE MONEY SUPPLY AND OF DOMESTIC CREDIT SHOULD TEND TO REDUCE BOTH INFLATION AND THE SIZE OF THE TRADE DEFICIT, SIR MURRAY SAID.
+TO SUM UP,+ SIR MURRAY SAID, +WE HAVE COME COMPARATIVELY WELL THROUGH A PERIOD MADE DIFFICULT LARGELY BY EXTERNAL
INFLUENCES. INSOFAR AS THE PROBLEMS HAVE BEEN DOMESTIC OR SELF-INFLICTED, THEY APPEAR TO BE SLOWLY CORRECTING.+
THE GOVERNOR REFERRED TO THE SHADOW OF THE NEW MEA+ AND THE ECONOMIC CONDITIONS OF THE MAJOR MARKETS WHICH +MAKE A DEPRESSING BACKGROUND FOR NEGOTIATION+.
+BUT WE HAVE LEARNT THAT DEMAND FOR HONG KONG GOODS CAN BE SUSTAINED IN COUNTRIES WHOSE ECONOMIES ARE RECESSED PARTICULARLY, AS AT PRESENT, WHEN STOCKS ARE UNIFORMLY LOW, AND THAT PROVIDED WE CAN MAINTAIN ACCESS WE CAN SELL.+
ENCOURAGEMENT CAN MOREOVER BE TAKEN FROM THE OPEC DECISION ON OIL PRICES AND THE LOWERING OF US INTEREST RATES, AS WELL AS THE SIGNIFICANT RISE IN OUR IMPORTS OF RAW MATERIALS AND SEMI-NANUFACTURES.
+SO_ALL_IN_ALL I AM QUIETLY HOPEFUL THAT OUR GROWTH WILL CONTINUE IN THE YEAR AHEAD AND THAT THE PRESSURES OF INFLATION WILL RELAX, AND THE OPPORTUNITIES FOR WORK INCREASE,+ SIR MURRAY SAID.
EARLIER SIR MURRAY REFERRED TO THE NEED EXPRESSED BY THE SOCIETY'S PRÉSIDENT MR JOHN CHAN, FOR MORE ACCOUNTANTS AND TO THE PROPOSALS MADE BY THE SOCIETY FOR PRODUCING THEM.
/THE GOVERNMENT