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WEDNESDAY, OCTOBER 9, 1991
AS HONG KONG WAS NO LONGER PRIMARILY AN EXPORTER OF LIGHT MANUFACTURED PRODUCTS BUT WAS FULLY INTEGRATED INTO THE WORLD'S FINANCIAL MARKETS, THE TERRITORY MUST EXPECT TO BE MORE VULNERABLE THAN SOME OTHER PLACES TO THE GUSTY WINDS OF CRISES IN DIFFERENT PARTS OF THE WORLD, HE ADDED.
"WE MUST KEEP OURSELVES INCREASINGLY ALERT TO WHAT IS HAPPENING ELSEWHERE IN OUR GLOBAL MARKET,
INFLATION, ON
HE SAID.
THE GOVERNOR SAID THAT THIS CONTINUED TO BE A
MAJOR CONCERN AND THAT THERE WAS NO EASY CURE.
WHILE CONCEDING THAT THE MEASURES INTRODUCED BY THE GOVERNMENT FREEZING FEES AND CHARGES AND CUTTING BACK ON INCREASES IN TOBACCO DUTY IN MAY, CIVIL SERVANTS ACCEPTING A NON-INFLATIONARY PAY INCREASE, AND RESTRAINTS IN OTHER AREAS OF PUBLIC EXPENDITURE HAD HAD SOME IMPACT, SIR DAVID SAID INFLATION, WHICH DECLINED FROM A PEAK OF 13.9 PER CENT IN APRIL TO 12.7 PER CENT IN AUGUST, WAS STILL FAR TOO HIGH.
"WE MUST CONSIDER URGENTLY WHAT ELSE WE CAN DO TO REDUCE INFLATION," HE SAID.
THE GOVERNOR SAID THE REAL DANGER WAS THAT INFLATION WOULD REMAIN AT TOO HIGH A LEVEL IF WE DID NOT TACKLE SOME OF THE STRUCTURAL OBSTACLES TO
ECONOMIC GROWTH, ONE OF THE MAIN ONES BEING THE ACUTE. SHORTAGE OF LABOUR IN SOME SECTORS OF THE ECONOMY.
"INFLATION IS ONLY PART OF THE PRICE WE MUST PAY FOR OUR CHRONIC SHORTAGE OF LABOUR, HE SAID.
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"IN ADDITION, THIS SHORTAGE IMPOSES A SEVERE CONSTRAINT ON THE ECONOMY'S CAPACITY TO EXPAND AND CREATE ADDITIONAL WEALTH.
"AND THE SHORTAGE OF WORKERS WILL INFRASTRUCTURAL PROJECTS GET UNDERWAY.
INCREASE
AS ouk
THE
THE GOVERNOR SAID HONG KONG FACED A CHOICE BETWEEN ACCEPTING NEED TO STRENGTHEN ITS LABOUR FORCE WITH A CAREFULLY CONTROLLED SCHEME TO IMPORT LABOUR, OR ACCEPTING INFLATION, AGGRAVATED BY THE SLOW ECONOMIC GROWTH CAUSED BY THE ACUTE SHORTAGE OF LABOUR.
"I BELIEVE WE MUST GO FOR GROWTH.
BUT IT MUST BE GROWTH WITH
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THE RIGHT SAFEGUARDS, HE SAID.
**WE ARE THEREFORE CONSIDERING AN EXPANSION OF OUR CONTROLLED SCHEME TO IMPORT WORKERS FROM OVERSEAS BUT ONLY IN THOSE SECTORS THE ECONOMY WHERE THE LABOUR SHORTAGE IS MOST ACUTE.
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OF.
TO
"THERE 18, OF COURSE, NO QUESTION OF EXPANDING THE SCHEME THE POINT WHERE THE LIVING STANDARDS OF LOCAL WORKERS WOULD BB DAMAGED.
"THE OBJECTIVE MUST BE TO INCREASE THE PROSPERITY OF THE PEOPLE OF HONG KONG AS A WHOLE BY REMOVING A MAJOR OBSTACLE то ECONOMIC GROWTH, HE STRESSED.
/SIR DAVID ............