XN000022-1973-03-15 — Page 6

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Thursday, March 15, 1973

"Losing out in international competition will in due course cause

the industry to wither, not to speak of expansion to offer more employment

to the upcoming young generation," he warned.

The fiscal policy guiding Hong Kong's socio-economic development,

he believed, must be such that it must reward largely "the bread earners of

Hong Kong."

He expressed the hope that the Financial Secretary would bear this

in mind when he was again forced to make important decisions on the Hong Kong

dollar.

Trade War

Mr. Ann also urged the Government to consider a fiscal policy that

would prepare Hong Kong for any possible monetary or trade war.

"While I am still optimistic that the worst may not happen," he said,

"I believe that we must think ahead."

Turning to the question of rising land prices and rents, Mr. Ann

said it was questionable whether the economy could bear the after effects of

these inflationary factors.

A review of the land policy was way overdue, he said, adding:

think it is high time for the Government to do some deep thinking on this matter."

"The fragmentation of land leasehold ownership via the stock markets,

thus financially liquefying the solid lands, and the possibility of seeing

every piece of property in Hong Kong float on the stock exchanges," he went on,

"really warrants immediate soul-searching on the part of the Government."

/Because