XN000022-1973-12-11 — Page 6

Tuesday, December 11, 1973

All this, he pointed out, amounted to a new and disturbing

prospect which called for careful thought and perhaps some adjustments,

but which could not at present be fully assessed.

"We would be wrong to take it lightly, but we would be even more

wrong to embrace gloom," he said.

Another new problem, the Governor continued, was the serious

shortages of essential raw materials and semi-manufactured materials which

had developed with some rapidity, coupled in some cases by price rises of

a size unprecedented in recent times.

Virtually everyone of Hong Kong's export industries was experiencing

difficulty in securing an adequate supply of raw materials, he said, and

price increases had occurred where raw materials are available.

While it was difficult for Hong Kong to influence production in

the supplying countries, Hong Kong was not entirely helpless and wherever

possible the government had taken steps to improve supplies and would

continue to do all in its power.

Sir Murray described improvement of supplies as "a field of the

greatest importance" and assured industrialists that the government would

continue to maintain close contact with industry about it.

Referring to trade discrimination against Hong Kong, the Governor

re-iterated that the government would continue to fight it "with the utmost

vigour.

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He believed that the continuing, unrelenting and highly expert

effort of our trade officials was having some practical success as well as

giving Hong Kong's trading partners a better understanding of its problemṣ,

He welcomed