FS:
I'M VERY CAUTIOUS ABOUT
16
THURSDAY, MARCH 4, 1993
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AS
TAX
NEW TAXES.
FAR I BELIEVE THAT AS
THE WHAT HONG KONG NEEDS IS NOT TOO MUCH INNOVATION IN POSSIBLE
AND THAT'S WHAT I'M GIVING THEM. AREA
I THINK WE NEED TO LOOK VERY CAREFULLY
WE BEFORE
INTRODUCE ANY NEW TAXES. I'M
OF AWARE
THE SUGGESTION OF CAPITAL GAINS TAX. AT THE MOMENT I'M NOT CONVINCED THAT THERE'S A CASE FOR IT. I'M TRYING TO DO THE OPPOSITE, I'M TRYING REDUCE THE NUMBER OF TAXES, NOT INCREASE THEM.
ΤΟ
CUMMINGS:
OUR TELEPHONE NUMBER ON THE ENGLISH SIDE IS 3388266 WE'RE TALKING TO HAMISH MACLEOD. IT'S A BILINGUAL PRESENTATION, OBJECTIVE IS
FOR YOU TO ASK YOUR QUESTIONS TO HIM AND WE DO QUESTION NOW ON THE LINE. GOOD MORNING TO YOU.
AND
IT'S
HAVE A
QUESTION:
GOOD MORNING.
CUMMINGS: YES, YOU'RE SPEAKING TO MR MACLEOD.
A
GOOD QUESTION:
MORNING MR MACLEOD.
AS YOU MENTIONED INFLATION NECESSARY PRICE THAT HAS TO BE PAID ALTHOUGH OBVIOUSLY BETTER THAN THE DEPRESSED CONDITION OF THE ECONOMIES IN MOST OF THE REST OF THE WORLD, HOWEVER THERE SERMS ΤΟ BE A FAIRLY SIMPLE SOLUTION WHICH GOVERNMENT DOESN'T SEEM TO HAVE DONE MUCH ABOUT. WILL YOU AGREE THE PRINCIPAL CAUSE OF INFLATION IS FULL EMPLOYMENT AND THEREFORE WAGE PRESSURE?
THE THAT
THE
AS
FS: YES, I THINK IT'S TRUE THAT IF ONE WERE LOOKING AT IT SIMPLY AN ECONOMIST THEN THE TWO PRIME CAUSES, OR THE TWO PRIME FACTORS,
LABOUR WHICH WE COULD ADJUST TO DEAL WITH INFLATION ARE THE SUPPLY OF
BUT BUDGET,
I AND THE SUPPLY OF LAND, WHICH I'VE TOUCHED ON IN MY THINK IT'S ALSO TRUE THAT IN THE REAL WORLD THERE'S A LIMIT TO HOW FAR WE CAN GO IN IMPORTING LABOUR. I'M AWARE THAT SOME OTHER PLACES HAVE GONE MUCH FURTHER THAN WE HAVE BUT THE JUDGEMENT AT THE MOMENT IS THAT WE HAVE про BALANCE OFF THE GOOD EFFECT ON INFLATION OF IMPORTING
THAT'S AGAINST THE EFFECT ON OUR EXISTING WORKFORCE AND LABOUR
WHAT WE'RE ATTEMPTING TO DO, BUT YOU'RE RIGHT IT'S A KEY FACTOR.
CUMMINGS:
ON
WELL WE CONTINUE NOW, PERHAPS WITH ANOTHER QUESTION INFLATION MR MACLEOD. YOU SEEM TO TAKE A SLIGHTLY AMBIVALENT ATTITUDE
IS TOWARDS IT
INFLATION IN YOUR SPEECH, YOU'RE SAYING THAT YES UNFORTUNATE THING TO HAVE IN AN ECONOMY, WE'VE HAD IT FOR A WHILE
THE OTHER HAND THE OTHER SIDE OF THAT COIN IS THAT YOU COURSE
AND IT AND THEN HAVE BANKRUPTCIES BATTLE
UNEMPLOYMENT, TAKEN IN GENERAL THAT THE INFLATION IS THE LESSER OF TWO BVILS. YOU EXPAND ON THAT A LITTLE?
ABOUT
AN
BUT
COULD
OF
BUT
CAN
FS:
ΤΟ THINK
YES, I THINK SOMETIMES THERE'S A TENDANCY FOR PEOPLE YOU CAN TACKLE INFLATION WITHOUT ANY AS IT WERE COSTS OR DOWNSIDES AND THAT
WHERE THEY'VE NORMALLY ISN'T THE CASE. IF YOU STUDY COUNTRIES ERECTED
YOU COMBATING INFLATION AS THE NUMBER ONE TARGET, THEN
LOWER SEEN COSTS IN THE FORM OF UNEMPLOYMENT AND NORMALLY GROWTH, SO ONE HAS TO BALANCE THOSE OFF. THAT'S THE PROBLEM, NO COST-FREE SOLUTION.
HAVE ECONOMIC THERE'S
TO OUR CUMMINGS: BUT IN A WAY, YOU KEEP SAYING THAT WE'RE HOSTAGE OVERSEAS MARKETS, THAT WOULD OBVIOUSLY BE AMERICA, GERMANY, JAPAN ETC, AND YET THEY HAVE HAD BAD TIMES FOR SO LONG, SEVERAL YEARS NOW AND YET WE DON'T SEEM TO BE AFFECTED, AND IN A WAY YOU'RE CRYING WOLF PERHAPS,
/ES
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