XN000022-1974-03-13 — Page 19

Wednesday, March 13, 1974

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Turning to trade, Mr. Lee said: "Our internal and external

circumstances dictate that we must intensify all our efforts to expand

trade and industry.

"We are aware of the great work and the effectiveness of the

Trade Development Council. And now is the time for the Council to seek

to redouble its efforts, not only in our major markets, but also in opening

up new markets."

Commenting on the Budget for 1974-75, Mr. Lee said he was opposed

to the increase of the rate of direct tax. However, he agreed that fees and

charges should be updated.

Referring to licences, he said: "No doubt some of their foes are

antiquated. For example, there would seem to be a case for increasing

banking licence fees to meet a larger portion of the cost of running the

office of the Commissioner of Banking.

"But for some categories, the principle that they should be set

in terms of what the market can bear should not be applied too arbitrarily,

otherwise it would lead to internally-generated inflation and cause social

uneasiness."

On loan financing, he agreed that it was most important that it

should only be used for direct self-liquidating projects.

"Perhaps government may also consider raising funds from the World

Bank as well as in the international money market, besides from the Asian

Development Bank, to establish Hong Kong's eligibility and credit worthliness."

he added.

/Mr. Lee