4
Tuesday, December 11, 1973
The world shortage in oil, he said, could affect us in various
ways. Most directly and immediately, supplies for consumption in Hong Kong
could and probably will be reduced.
"In the first place everyone of us must do what he can to help
Substantial savings can be made simply by reducing waste,"
reduce demand.
he stressed.
While it was impossible to judge at this time whether Hong Kong
was going to face seriously reduced supplies in oil and oil products, he
said, it was prudent to achieve a reduction in consumption of 10 to 15 per
cent now, in anticipation of a reduction in supplies later.
"If reduction in supplies is of this magnitude we may expect personal
inconvenience rather than economic damage to result. But damage could come
from the less direct impact of the world shortage.
"For instance, in the medium term, world oil shortage must affect our
certainly as to price and probably as to
supply of oil-based raw materials
volume, The first need not necessarily affect our competitive position but
the second could affect our earnings," he said.
Furthermore, he went on, demand for our exports might be affected if,
in the longer term, oil shortage were to slow down the growth of the economies
of our major markets.
The Governor said that although tentative reports received forecast
a slowing down in Hong Kerg's markets, he felt that not too much credence
should be placed on such forecasts at this early stage. "At present there is
no real certainty as to the exact course that cuts in supply will take or of
the impact they will have on our major markets."
/All this
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