XN000022-1973-04-26 — Page 14

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Thursday, April 26, 1973

HONG KONG MUST PRODUCE MORE SOPHISTICATED GOODS

Economy Is Basically Sound Despite Fluctuations

The Chairman of the Hong Kong Association in London, Mr. Michael

Herries, has emphasized the necessity for Hong Kong to raise its production of

more sophisticated goods which are not yet being produced by its trading rivals.

Speaking at the Association's annual general meeting in London

yesterday (Wednesday), Mr. Herries noted that the abundant talents of Hong

Kong industrialiste were already directed towards this objective.

He cited the introduction of a quality mark and the attention being

given to packaging as moves in the right direction and expressed the hope that

they would be backed by the investment required to achieve their aims.

If Hong Kong were to remain prosperous and earn enough money to pay

for the enormous public works and social programmes being undertaken, he said,

it was to be hoped that the level of its trade increase would not decline further.

Mr. Herries noted that Hong Kong's total trade had continued to expand

but the growth rate had slowed down from the heady 21.9 per cent in 1969

over 1968 to only 10 per cent in 1972 over 1971, although the trend was upward

in the second half of the year.

"This is still a good increase," he said. "But in real terms, it

was only HK$3,700 million against HK$4,500 million the year before and, when the

increased cost of both imports and exports is taken into account, the volume

of trade cannot have increased by much."

The prospects ...................