XN000022-1972-03-01 — Page 9

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Wednesday, March 1, 1972

HONG KONG IS NOW MUCH MORE DEPENDENT ON INVESTMENT

FOR INCREASED PRODUCTIVITY

Budget Speech Of The Financial Secretary

Hong Kong is now much more dependent on investment for increased productivity, the Financial Secretary, hr. C.P. Haddon-Cave, said in

his Budget speech today.

Speaking in the Legislative Council, the Financial Secretary said the growth of Hong Kong's economy was today dependent upon the annual increase in the size of the economically active sector of the population, the skills with which it was equipped and the increase in

productive capacity through now investment.

The employment situation today was in marked contrast to the 1950s when "large tranches" of unemployed and under-employed resources were available to be drawn into the productive system for use on an

intensive basis.

"This is the way the economy expanded," Mr. Haddon-Cave explained, He asked: Would the casing of Hong Kong's growth rate in 1972/73

lead to any pockets of unemployment appearing?

Or would it involve, via an easing of the tight labour market

of recent years, no more than a falling off in internal inflationary

pressures and a reduction in labour turn-over?

Mr. Haddon Cave said that, as regards industrial employment,

Hong Kong recorded increases in every quarter since 1947 until September

last year when the total stood at 613,000.

However, ****