XN000022-1974-10-03 — Page 5

THURSDAY, OCTOBER 3, 1974.

+THE QUALITY OF OUR WORKERS, ALLIED TO AN EXPANDING FACILITY FOR TECHNICAL TRAINING, PROVIDES A TREMENDOUS ATTRACTION FOR INDUSTRIALISTS,+ HE ADDED.

+AS A RESULT OF A TRADITIONAL RESPECT BETWEEN ENLIGHTENED MANAGEMENT AND RESPONSIBLE LABOUR, OUR WORKERS HAVE EXPERIENCED A STEADY IMPROVEMENT IN THEIR STANDARD OF LIVING FOR MANY YEARS WITHOUT THE KIND OF DISRUPTIVE INDUSTRIAL ACTION RESORTED TO IN SO MANY OTHER COUNTRIES.

+HONG KONG LABOUR UNIONS HAVE SHOWN WISDOM AND MODERATION BOTH IN GOOD TIMES AND IN TIMES OF TROUBLE. EITHER UNIONS NOR WORKERS HAVE SHOWN ANY ENTHUSIASM FOR INAPPROPRIATE ADVICE FROM OVERSEAS LABOUR EXPERTS WHOSE RECORD OF SUCCESS AS TRADE UNION OFFICIALS HAS SO OFTEN WEAKENED THE ECONOMIES OF THEIR COUNTRIES.+

ON RELATIONS WITH CHINA, MR. MCGREGOR SAID +VE HAVE EXPERIENCED IN RECENT YEARS A CONTINUALLY IMPROVING CONTACT AND CO-OPERATION WITH OUR CHINESE FRIENDS. BUSINESSHEN HAVE ODV JOUSLY TAKEN NOTE OF THIS SITUATION AND HAVE NOT BEEN SLOW TO INTERPRET IT IN THE KOST PRACTICAL WAY, I.E. BY INVESTING IN SOME PRETTY LONG-TERM PROJECTS.

+THAT WE DEPEND UPON CHINA'S CO-OPERATION AND GOODWILL IT SEEMS CLEAR TO ME

IS INCONTROVERTIBLE.

THAT THIS GOODWILL IS EVIDENT IN OUR MUTUALLY BENEFICIAL ECONOMIC AND TRADE RELATIONS. THAT THIS SITUATION WILL CONTINUE AS FAR AHEAD AS THE PRUDENT BUSINESSMAN NEED LOOK IS ALSO, IN MY VIEW, AN INESCAPABLE CONCLUSION,

+ BELIEVE THAT ANY OBJECTIVE ASSESSMENT OF OUR FUTURE WILL PROVIDE THE CONFIDENCE NEEDED AND VERY LARGE INTERNATIONAL AND MULTI-NATIONAL COMPANIES HAVE EMBARKED ON LONG-TERM PROJECTS IN HONG KONG.+

MR. MCGREGOR SAID THAT THE PROPOSED REFINERY AND PETRO- CHEMICAL COMPLEX WOULD COST AT LEAST $6,000 MILLION. WAS MORE THAN THE FIRST FOUR STAGES OF THE MASS TRANSIT SYSTEM

THIS

WHICH WAS ALSO A VERY LONG-TERM PROJECT.

+OUR TWO MOST RECENT MAJOR INDUSTRIAL ENTERPRISES INVOLVE A CAPITAL EXPENDITURE OF MORE THAN $250 HILLION AND WE ARE DEALING WITH OTHERS IN THE SAME CATEGORY,+ HE ADDED.

+THE BOARDS OF THESE COMPANIES HAVE OBVIOUSLY REACHED THE CONCLUSION THAT THE COMMERCIAL FUTURE OF HONG KONG IS BRIGHT AND I AM BOUND TO SAY THAT I AGREE WITH THEM.+

MR. MCGREGOR SAID THAT HONG KONG HAD JOINT VENTURE PARTNERS WHO WERE READY AND WILLING TO JOIN WITH FOREIGN MANUFACTURERS IN NEW VENTURES AND WE HAD BANK FINANCE TO SUPPORT SOUND PROJECTS.

+WE HAVE RECENTLY MODIFIED OUR INDUSTRIAL LAND POLICIES TO PROVIDE FOR DIRECT SALES OF INDUSTRIAL LAND FOR MAJOR PROJECTS,+ HE SAID, +AND WE ARE NOW WORKING ON PLANS FOR NEW INDUSTRIAL ESTATES WHICH WILL BE PARTICULARLY SUITABLE FOR ENGINEERING AND SUPPORT INDUSTRIES.+

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