XN000022-1972-03-16 — Page 21

Thursday, March 16, 1972

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Possible diversification into related fields, new industries

having regard to Hong Kong's present capabilities and potentials, market

trends throughout the world for the types of products Hong Kong had traditionally produced and technological trends of which Hong Kong could take advantage,

were also among the things an industry survey could find out, he added.

"The results of such a survey will definitely throw valuable

light on the problem of attracting prospective entrepreneurs and more overseas investors, and in the meantime guide Government in her future industrial infrastructure planning," he pointed out.

Growth Rate

Mr. Ann agreed with the Financial Secretary's prognosis that the rate of growth would ease before a resurgence could be envisaged in late 1973.

"But the anticipated resurgence of the rate of export growth

is based on the assumption that the overseas market demands will always be for the same goods which we are now able to produce competitively."

"This simply cannot be true to life," he added.

He cited a recent attempt by Hong Kong industrialists to increase synthetic fiber manufacture exports by staking new investment in that field as evidence of the need for change in Hong Kong's industrial capability.

"The attempt was, unfortunately, frustrated by new restrictions

imposed by Hong Kong's trading partners," he said.

Hong Kong could not place reliance permanently on textiles, plastics and wigs

the three sectors which absorbed 61 per cent of the total employment of 671,308 persons who manufacture for both export and domestic consumption,

he said.

/Mr. Ann