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WEDNESDAY, OCTOBER 27,
1993
HE SAID HONG KONG'S INFLATION WAS CAUSED PRIMARILY BY ROBUST ECONOMIC GROWTH OVER A LONG PERIOD OF TIME, IN AN ECONOMY WITH LIMITED LOCAL RESOURCES.
TREND
"WE REMAIN COMPETITIVE PARTLY BECAUSE WE DO NOT IMPORT INFLATION. THE PRICE OF RETAINED IMPORTS HAS SHOWN A DECLINING OVER THE PAST TWO YEARS.
"IN
ADDITION, PRODUCTIVITY CONTINUES TO IMPROVE. MOST OF WE BENEFIT FROM OUR INDUSTRIAL CO-OPERATION WITH CHINA, HE SAID.
"I
ALL,
REPLYING TO SOME MEMBERS' REFERENCE TO THE SINGAPORE EXPERIENCE OF LOWER INFLATION RATE, MR MACLEOD SAID SINGAPORE HAD SUPPORTED A MUCH MORE AMBITIOUS AND FLEXIBLE LABOUR IMPORTATION SCHEME THAN HONG KONG.
HE POINTED OUT THAT THE SECRETARY FOR EDUCATION AND MANPOWER HAD EARLIER EXPLAINED THE DEDICATE BALANCE HONG KONG AIMED FOR IN ITS LABOUR IMPORTATION SCHEMES BETWEEN THE NEEDS OF THE ECONOMY AND THE NEED TO PROTECT WORKERS' INTERESTS.
MR MACLEOD NOTED THAT THE OTHER SIDE OF INFLATION IS RAPID GROWTH WITH FULL EMPLOYMENT, BUT HE BELIEVED THAT HONG KONG WOULD NOT PREFER LOW INFLATION AT THE COST OF ECONOMIC STAGNATION AND HIGH
UNEMPLOYMENT.
HE ALSO POINTED OUT THAT ANOTHER ASPECT OF HONG KONG'S RESOURCE PROBLEM WAS LAND.
"PROPERTY PRICES ARE HIGH MAINLY BECAUSE DEMAND IS STRONG WHILE LAND IS SCARCE. THE GOVERNMENT INVESTS HEAVILY IN THE PRODUCTION OF SUFFICIENT NEW LAND.
"THE CHINESE GOVERNMENT TOO HAS BEEN SYMPATHETIC IN AGREEING TO THE SALE OF LAND EXCEEDING THE 50 HECTARE ANNUAL LIMIT.
"THE SUPPLY WOULD BE FURTHER IMPROVED IF ADDITIONAL LAND ASSOCIATED WITH THE NEW AIRPORT AND AIRPORT RAILWAY COULD ALSO BE AGREED AND COME ON STREAM AT ANY EARLY DATE, NE SAID.
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ON THE ELECTION ISSUE, MR MACLEOD SAID HE WOULD LIKE VERY CLEAR HIS OWN CONVICTION,
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TO MAKE
"IF WE ARE TO SUCCEED IN PRESERVING HONG KONG'S WAY OF LIFE CHARACTERISED AMONG OTHER THINGS BY AN HONEST ADMINISTRATION AND THE RULE OF LAW
THEN ONE OF THE KEY REQUIREMENTS IS TO HAVE A LEGISLATURE WHICH IS GENUINELY ROOTED IN THE COMMUNITY, ELECTED IN AN HONEST MANNER, AND SO ABLE TO EFFECTIVELY MONITOR AND QUESTION THE EXECUTIVE, WHICH IS AFTER ALL REQUIRED TO BE ACCOUNTABLE TO THE LEGISLATURE.
AND IT IS ESSENTIAL TO PRESERVE OUR WAY OF LIFE, OUR SYSTEM, IF HONG KONG IS TO CONTINUE TO PROSPER.
"THE COMMITMENT TO TWO SYSTEMS REALLY DOES MATTER, HE SAID.
/ON MEMBERS'