FRIDAY, NOVEMBER 2, 1984
1
SOUND BASIS FOR RETURN TO BUSINESS AS USUAL
****
THE DRAFT AGREEMENT ON THE FUTURE OF HONG KONG WITH ITS DETAILED ASSURANCES PROVIDED A SOUND BASIS FOR A RETURN TO BUSINESS AS USUAL IN THE TERRITORY, THE SECRETARY FOR ECONOMIC SERVICES, MR PIERS JACOBS, SAID TODAY (FRIDAY).
+ITS EFFECT SHOULD BE SEEN IN DUE COURSE IN AN INCREASED WILLINGNESS TO INVEST IN HONG KONG, BOTH IN PLANT AND MACHINERY AND IN PROPERTY, WITH HIGHLY FAVOURABLE IMPLICATIONS FOR THE LONG-TERM HEALTH AND PROSPERITY OF THE HONG KONG ECONOMY, + SAID MR JACOBS IN AN ADDRESS TO THE ANNUAL CONVENTION OF THE HONG KONG INSTITUTE OF PERSONNEL MANAGEMENT.
+WHAT THE DRAFT AGREEMENT PROVIDES IS THAT ATMOSPHERE OF CERTAINTY IN WHICH ENTREPRENEURS WILL BE ABLE TO TAKE THEIR DECISIONS AS BEFORE. THAT IS THE STRENGTH OF THE DRAFT AGREEMENT, WHICH IS GOOD FOR BUSINESS, NOT FOR THE SHORT-TERM GAINS IT BRINGS, BUT BECAUSE OF THE ASSURANCES IT CONTAINS ABOUT THE CONTINUITY OF HONG KONG'S EXISTING, SUCCESSFUL BUSINESS ENVIRONMENT, HE STRESSED.
MR JACOBS SAID THAT WHILE THE DRAFT AGREEMENT PROVIDED
A SOUND BASIS FOR CONTINUING PROSPERITY, IT DID NOT, AND SHOULD NOT, ATTEMPT TO INSULATE HONG KONG FROM THE INFLUENCE OF MARKET FORCES THAT HAD SO OFTEN BENEFITED HONG KONG IN THE PAST.
+ IT MAY BE THAT FROM TIME TO TIME MARKET FORCES WILL GO AGAINST US, JUST AS THEY HAVE IN THE PAST. BUT I HAVE NO DOUBT THAT IF AND WHEN THAT HAPPENS HONG KONG'S BUSINESSMEN AND MANAGERS WILL OVERCOME THE DIFFICULTIES, AGAIN JUST AS THEY HAVE IN THE PAST,+ HE STATED.
RECALLING HOW HONG KONG CAME OUT OF THE SHORT-LIVED RECESSION IN THE EARLY 80'S TO REGAIN STRONG GROWTH IN ITS DOMESTIC EXPORTS AND RE-EXPORTS, MR JACOBS SAID ONE FACTOR THAT CAST A SHADOW OVER THE ECONOMY DURING THE RECESSION IN 1982 AND EARLY 1983 WAS CONCERN OVER THE FUTURE OF HONG KONG.
+WHILE THE SINO-BRITISH NEGOTIATIONS WERE GOING ON, UNCERTAINTY INHIBITED INVESTMENT. IN AN ECONOMY AS DYNAMIC AS HONG KONG'S THERE IS ALWAYS A NEED FOR A STEADY STREAM OF NEW INVESTMENT TO MAINTAIN COMPETITIVENESS AND PROVIDE ADEQUATE PRODUCTIVE CAPACITY.
IN THE
+1 AM HAPPY TO SAY THAT DURING 1984, IN RESPONSE TO THE BOOM IN EXPORTS, AND PROBABLY WITH A GROWING PERCEPTION THAT A FAVOURABLE AGREEMENT WOULD BE NEGOTIATED, THERE HAS BEEN AN INCREASED WILLINGNESS TO INVEST IN PLANT AND MACHINERY. FIRST THREE QUARTERS OF THE YEAR, RETAINED IMPORTS OF CAPITAL GOODS INCREASED BY ABOUT 25 PER CENT IN REAL TERMS+, MR JACOBS ADDED.
HE ALSO DREW THE ATTENTION OF CONVENTION PARTICIPANTS TO THE INCREASED OPPORTUNITIES IN TRADE WITH CHINA.
/+THE GROWTH ....