XN000022-1974-10-30 — Page 7

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WEDNESDAY, OCTOBER 30, 1974.

INDUSTRIAL DEVELOPMENT BANK ADVOCATED

TO RAISE FUNDS FOR PROPOSED INDUSTRIAL ESTATES

X X X X X X

AN INDUSTRIAL DEVELOPMENT BANK WITH JOINT GOVERNMENT AND COMMERCIAL PARTICIPATION AND EXPERTISE TO RAISE THE NECESSARY FUNDS FOR THE DEVELOPMENT OF INDUSTRIAL ESTATES IN HONG KONG, WAS PROPOSED BY THE HON. LEE QUO-WE! TODAY.

CALLING FOR A STUDY ON THE MATTER, MR. LEE SUGGESTED THAT THE BANK SHOULD BE OPERATED COMMERCIALLY AND DESIGNED TO RAISE MONEY LOCALLY AND, IN PARTICULAR, INTERNATIONALLY, AND DEAL ONLY WITH SUBSTANTIAL AND WORTHWHILE PROJECTS.

HE WELCOMED THE GOVERNMENT'S DECISION TO PROVIDE LAND IN THE FORM OF INDUSTRIAL ESTATE AS A GREAT STEP FORWARD SINCE +THE PROVISION OF LAND FOR INDUSTRY HAS BEEN A MAJOR WEAKNESS IN OUR COMPETITION WITH NEIGHBOURING COUNTRIES FOR OVERSEAS INVESTMENT,+ ESPECIALLY IN LAND-INTENSIVE INDUSTRY.

HE NOTED THAT A WORKING PARTY WAS CURRENTLY CONSIDERING THE FEASIBILITY OF ESTABLISHING AN AGENCY TO DEVELOP THE LAND, AND SAID THE IMPORTANT POINT WAS WHETHER THE GOVERNMENT, THE PRIVATE SECTOR OR BOTH SHOULD PROVIDE THE NECESSARY FINANCE.

+IF IT IS TO COME FROM THE PRIVATE SECTOR OR BOTH, CONSIDERATION MAY BY GIVEN TO HAVING TWO SEPARATE BODIES - ONE CHARGED WITH THE PHYSICAL DEVELOPMENT, EVENTUAL SALE, LETTING AND MANAGEMENT OF THE ESTATES, AND THE OTHER TO RAISE THE NECESSARY MONEY FOR FINANCING, HE SUGGESTED.

LIKE HIS UNOFFICIAL COLLEAGUES, MR. LEE SUPPORTED THE GOVERNMENT'S DECISION TO PROCEED WITH ITS LONG-TERM WELFARE

PROGRAMMES. HE REGARDED THIS AS A VOTE OF CONFIDENCE IN HONG KONG'S FUTURE AND SAID THE PEOPLE OF HONG KONG NEEDED THIS REASSURANCE IF THEY WERE TO STRIVE FOR A BETTER FUTURE, WHILE

OVERSEAS INVESTORS NEEDED TO HAVE CONFIDENCE IN HONG KONG

IF THEY WERE TO CONTINUE INVESTING HERE.

ALSO IN THE PRESENT STATE OF SLACKENED ECONOMY, THE PROGRAMMES WOULD PROVIDE EMPLOYMENT IN CERTAIN SECTORS OF INDUSTRY. MOREOVER, DESPITE A DEFICIT BUDGET IN THE CURRENT FISCAL YEAR, HONG KONG HAD A LOW NATIONAL DEBT, RESERVE IN TAXABILITY AND THE RESERVES TO DRAW FROM IN CASE OF NEED.

MR. LEE WAS HOPEFUL OF A RECOVERY IN THE GENERAL WORLD ECONOMY NEXT YEAR ONCE MEASURES TAKEN BY THE MAJOR COUNTRIES TO CONTAIN INFLATION HAD THEIR DESIRED EFFECTS AND WITH THE HOPE OF A SMOOTH RECYCLING OF OIL PROCEEDS.

HE STRESSED, HOWEVER, THAT IT WAS VITALLY IMPORTANT FOR HONG KONG TO DO EVERYTHING POSSIBLE TO MAINTAIN ITS COMPETITIVENESS. IN THIS HE WAS CERTAIN THAT OUR BUSINESSMEN, INDUSTRIALISTS AND WORKERS, WOULD PLAY THEIR PART AS THEY HAD DONE IN THE PAST. NR. LEE WAS ALSO CONFIDENT THAT THE VARIOUS GOVERNMENT DEPARTMENTS CONCERNED AND THE TRADE DEVELOPMENT COUNCIL ON THEIR PART WOULD STRIVE TO PROMOTE EXTERNAL TRADE.

EXPRESSING THE UNOFFICIAL MEMBERS' CONCERN OVER PRODUCTIVITY IN THE GOVERNMENT ADMINISTRATION, MR. LEE URGED THE GOVERNMENT TO INTENSIFY ITS EFFORTS ON COST CONTROL, AND THAT MAJOR DEPARTMENTS SET UP SEPARATE SECTIONS TO COST THEIR SERVICES.

/HE NOTED THAT