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WEDNESDAY, MARCH 2, 1988
"SOME OF THE INFLATION WAS IMPORTED, PARTLY REFLECTING THE WEAKENING OF THE HONG KONG DOLLAR AGAINST MOST OTHER MAJOR CURRENCIES, AND SOME AROSE FROM THE HIGH LIQUIDITY AND PRESSURE OF DEMAND WITHIN THE ECONOMY, HE SAID.
"P
MR JACOBS SAID THAT WITH THE ECONOMY OPERATING AT FULL CAPACITY, LABOUR SHORTAGES BECAME WIDESPREAD IN 1987.
IN RESPONSE, HE SAID, LOCAL PRODUCERS HAD DISPLAYED A REMARKABLE DEGREE OF FLEXIBILITY AND INGENUITY IN INCREASING PRODUCTIVITY.
"THEY HAVE ALSO
MADE SIGNIFICANTLY MORE USE OF OUTWARD PROCESSING FACILITIES IN CHINA. THIS INCREASED INTER-RELATIONSHIP OF OUR ECONOMY WITH THAT OF CHINA WAS A MARKED FEATURE OF LAST YEAR AND SEEMS LIKELY TO CONTINUE THIS YEAR.
"THERE ARE BENEFITS FOR ALL IN THE DEVELOPMENT OF THIS RELATIONSHIP," HE SAID.
MR JACOBS SAID THE PRESSURE OF DEMAND AND THE RESULTING LABOUR SHORTAGES SET IN TRAIN THE ADJUSTMENT PROCESS, WHICH WAS BRINGING ABOUT A GRADUAL SLOWDOWN IN THE GROWTH RATE OF THE ECONOMY.
"IN THE LATER PART OF LAST YEAR, THE GROWTH RATE OF OUR EXPORTS EASED SOMEWHAT, AND MORE RECENTLY THERE HAVE BEEN SOME SIGNS THAT THE PRESSURE OF DEMAND ON RESOURCES IS BEGINNING TO SLACKEN, HE SAID.
H
TURNING TO THE EVENTS OF LAST OCTOBER IN THE WORLD'S STOCK MARKET, MR JACOBS SAID WHAT TOOK PLACE IN THE MARKET WAS IN PART A RESPONSE TO WORLD EVENTS AND THE SHARP FALLS WERE NOT A REFLECTION OF WEAKNESSES IN THE ECONOMY.
THAT OUR SYSTEMS THIS REASON THAT EXAMINE CRITICALLY
NEVERTHELESS, HE ADDED, THERE WAS NO DOUBT WERE SHOWN TO BE LESS THAN ADEQUATE AND IT WAS FOR THE SECURITIES REVIEW COMMITTEE WAS APPOINTED TO THE RELEVANT STRUCTURES AND SYSTEMS WITH A VIEW ΤΟ RECOMMENDING IMPROVEMENTS.
"WE IN HONG KONG ARE NOT ALONE IN RECOGNISING THE NEED TO DRAW LESSONS FROM THE CRASH, OTHER MAJOR MARKETS, INCLUDING LONDON AND NEW YORK, ARE CONDUCTING SIMILAR REVIEWS," HE SAID.
IN THE MEANTIME, HE SAID, VARIOUS IMPROVEMENTS WERE BEING CARRIED OUT BY BOTH THE STOCK EXCHANGE AND FUTURES EXCHANGE IN ORDER TO DEAL WITH IMMEDIATE PROBLEMS THAT HAD BEEN IDENTIFIED.
"IT IS IMPORTANT THAT WHERE STEPS CAN BR TAKEN TO FURTHER SAFEGUARD INVESTORS THESE STEPS SHOULD NOT BE DELAYED PENDING THE RECOMMENDATIONS OF THE SECURITIES REVIEW COMMITTEE, HE SAID.
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THE GOVERNMENT,