12
Wednesday, October 17, 1973
FUTURE OF ECONOMY PROMISING
Rate of Inflation In Hong Kong No Worse Than Elsewhere
The Governor, Sir Marray MacLehose, today described the general
picture of Hong Kong's economy as an encouraging one which held "solid ground
for hope" despite a further threat looming on the horizon.
"I note that the steady stream of merchant banks setting up in
Hong Kong continues and this is a fair indication of international estimates
of the importance and soundness of Hong Kong as a regional financial centre,"
he told the opening session of the Legislative, Council.
He was also optimistic about "prospects of a more liberal attitude
towards imports in Japan," and he repeated a confident prediction by the
Financial Secretary for a seven per cent annual growth rate, in real terms,
of the Gross Domestic Product.
However, the Governor was concerned about Britain's obligation te
make its first move towards harmonisation with the common external tariff of
the European Economic Community as from January 1 next year.
Under the accession arrangements, Hong Kong and its products face
progressive discrimination from Britain in respect of textiles and footwear which
would not be included in EEC generalised preferences.
On the other hand, the Governor said, this was the price paid by the
negotiators to obtain EEC acceptance of Hong Kong's inclusion in all other
generalised preferences.
"Nevertheless, we find this development a most disquieting one and
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we have left Her Majesty's Government in no doubt as to the strength of our feeling
on this subject in Hong Kong.
We
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