8
WERE WAS
LIU: WELL, IN FACT THE PROBLEMS THAT I HAVE MENTIONED ACTUALLY RAISED IN A HONGKONG BANK REPORT ISSUED LAST NIGHT SO I JUST WONDERING IF YOU ARE A BIT WORRIED ABOUT THE ECONOMIC OUTLOOK, SAY FOR THE NEXT COUPLE OF YEARS?
FOR
THAT REPORT ALSO, WHICH I GOVERNOR:
HAVE ONLY
IN READ
THE BUT IT PRESS THIS MORNING, I HAVEN'T SEEN THE FULL TEXT,
SAID THAT
THE OUTLOOK
NEXT YEAR LOOKS REASONABLY GOOD AND THAT WAS
OF QUITE ENCOURAGING. NOW
COURSE INFLATION IS. A PROBLEM. LABOUR SHORTAGE IS A PROBLEM. THE WORLD TRADE SITUATION, IF PROTECTIONISM KONG AND THE REVIVES ITSELF, IS A PROBLEM. I AM CONFIDENT THAT HONG
PROBLEMS JUST LIKE WE HONG KONG ECONOMY WILL FACE AND TACKLE THOSE HAVE IN THE PAST.
BALE:
SIR DAVID, YOUR POSITION
IN OUR
SOCIETY, AND
INDEED
YOUR SALARY TO SOME EXTENT, PROTECT YOU FROM THE EFFECTS OF INFLATION. IT IS NOT SO EASY FOR ORDINARY PEOPLE, AND THE KMB BUS FARE INCREASE JUST ANNOUNCED IS
EVIDENCE OF HOW
19 INFLATION
AFFECTING ORDINARY PEOPLE.
BEHIND THAT IS THAT OUR CURRENCY IS LINKED TO A WEAK U.S.
HOW MUCH LONGER IS THE GOVERNMENT GOING TO MAINTAIN THIS $7.80 LINK?
ANOTHER
ONE FACTOR
DOLLAR.
GOVERNOR: WE HAVE NO INTENTION OF CHANGING IT, THAT IS THE
BUT ON INFLATION, YES OF COURSE INFLATION IS FIRST POINT.
A WORRY A DIFFERENCE FOR PEOPLE, WHATEVER THEIR SALARY LEVEL INFLATION MAKES TO THE WAY IN WHICH YOUR LIFESTYLE OPERATES. IT IS ALSO TRUE, SURELY, THAT WAGES HAVE BEEN GOING UP VERY RAPIDLY IN HONG KONG. NOW THERE MOST ARE SOME PEOPLE WHO PROBABLY GET CAUGHT IN THAT SQUEEZE, BUT FOR PEOPLE WAGES ARE GOING UP AT LEAST AT THE RATE OF INFLATION.
IS THERE A SOLUTION IN LIU:
LABOUR SHORTAGE PROBLEM?
SIGHT, DO YOU THINK, FOR THE
WHEN THE
A
FAIRLY
GOVERNOR: AN ECONOMY EVENTUALLY SELF-CORRECTS. ECONOMY SLOWS DOWN THEN THE FACT THAT WE ARE SUFFERING FROM SERIOUS SHORTAGE OF LABOUR AT THE MOMENT WON'T BE SO ACUTE. TWO OTHER THINGS OUGHT TO HAPPEN. ONE IS THAT THERE WILL BE A GREATER DEGREE OF MECHANISATION IN MANUFACTURING INDUSTRY. SECONDLY, THERE
BORDER WILL PROBABLY BE FURTHER MOVEMENT ACROSS THE
INTO CHINA FOR AND THIS CAN BE BENEFICIAL TO THE HONG KONG CHEAP LABOUR PRODUCTS. ECONOMY.
ECONOMY WITH HIGH WE ARE BECOMING, WE
IF WE ARE GOING TO SURVIVE AS A SUCCESSFUL RATES OF PAY, AND THAT IS THE SORT OF ECONOMY HAVE GOT TO MOVE UP-MARKET. MOVING UP-MARKET MEANS YOU HAVE GOT TO
YOUR MECHANISE BECAUSE YOU HAVE GOT TO IMPROVE THE QUALITY OF
GOODS. SO THIS PROCESS, UNCOMFORTABLE THOUGH IT IS WHEN YOU ARE GOING THROUGH IT, WILL IN THE END BE BENEFICIAL TO HONG KONG.
LIU: SO ARE YOU SAYING THAT, FIRST OF ALL, THE ECONOMY MIGHT
TO THE INDUSTRIALISTS THAT SLOW DOWN AND THEN YOU ARE SAYING
THEY WILL JUST HAVE TO WAIT IT OUT AND MAYBE CHANGE IN TIME?
THE RATE OF
REAL GROWTH IS SIX PER SEVEN THINK, INCREASE THAN
GOVERNOR: I AM SAYING IT IS SLOWING DOWN, THAT GROWTH HAS SLOWED DOWN THIS YEAR. I COMPARED 13 PER CENT LAST YEAR WITH THIS YEAR WHEN THE ESTIMATE AT THE MOMENT CENT. I NOTICED THE BANK REPORT YOU REFERRED TO SAID, I PER CENT. BUT THAT IS A GREAT DEAL SLOWER AS A RATE OF
THAT IS PART OF THE LAST YEAR, SO IT IS SLOWING DOWN, AND I THINK
NEED NATURAL PROCESS. I AM SAYING TO INDUSTRIALISTS THAT THERE 19 A
WELL AWARE OF TO MOVE UP-MARKET WHICH THEY ARE VERY
AND THEY
TAKING ACTION TO DO PRECISELY THAT.
ARE
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