XN000022-1973-10-31 — Page 18

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Wednesday, October 31, 1973

"After all, it is the duty of the government to control inflation

and to enter into the marketing activities of essential foodstuff so

that at least the element of profiteering as against legitimate profit

Jashlee!

making can be eradicated."

As he saw it, the basic cause of the worldwide problem of inflation

was "disequilibrium between demand and supply of commodities.

While inflation caused by the world price of the commodities

could not be controlled, he said, inflation in the Hong Kong prices of

essential foodstuff could be controlled to a considerable extent by

"negotiations, planning, supply of facilities and bonuses or other

methods of encouragement."

Mr. Wong repeated a proposal he made in 1968 concerning the

creation of an Economic Advisory Committee.

The functions of this Committee would be to:

Study the structure of Hong Kong's gross domestic product with a view to exploring additional sources of revenue without dampening entrepreneural incentives

in commerce and industry.

Study ways and means of stabilising the cost of living particularly as it relates to labour costs, and with

special reference to essential foodstuffs.

Study and recommend measures toward making the Hong

Kong dollar an independent currency and managing it conscientiously in order to avoid a possible crisis in the

future

and

To study and recommend economic policy for maintaining

a high rate of growth of the Hong Kong economy.

This committee