XN000022-1974-12-18 — Page 8

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WEDNESDAY, DECEMBER 18, 1974

ECHOING DR. CHUNG'S CONCERN OVER THE ISSUE. MR. TIEN SAID THE CONFERENCE LINES HAD A DISPROPORTI NATE SHARE OF HONG KONG'S OCEAN CARGO AND THEREFORE +HAVE VIRTUAL CONTROL OVER OUR ONLY MEANS OF GETTING OUR GOODS TO OUR MARKETS.+

+THERE IS AN OBVIOUS NEED FOR THE RESTORATION OF SOME DEGREE OF BALANCE BETWEEN CONFERENCE LINES AND SHIPPERS. THE GOVERNMENT CAN, AND SHOULD, TAKE STEPS TO RESTORE THE BALANCE,+ HE STRESSED.

MR. TIEN WARNED THAT HONG KONG WAS NOT IN FOR A GOOD TIME. +INDEED, WE ARE BARELY SURVIVING,+ HE REMARKED,

IN THESE CIRCUMSTANCES, HE THOUGHT IT JUSTIFIED FOR THE GOVERNMENT TO DEPART FROM ITS HANDS-OFF POLICY THOUGH HE FELT AS A GENERAL RULE, LAISSEZ FAIRE SUITED HONG KONG'S PARTICULAR CIRCUMSTANCES.

HE NOTED THAT HONG KONG WAS ONLY MARGINALLY MORE COMPETITIVE THAN THE DOMESTIC SUPPLIERS IN ITS MAJOR MARKETS, AND THAT IT SURVIVED BECAUSE OF ITS ABILITY TO PRODUCE QUALITY GOODS, AND TO MEET DEMANDS QUICKLY AND TO THE CUSTOMERS' SATISFACTION.

+OUR COMPETITIVE EDGE, SO PAINSTAKINGLY BUILT OVER THE YEARS, WILL BE BLUNTED BY THE EXTRA AND QUITE UNJUSTIFIED FREIGHT RATES, WHICH, THOUGH NOT VERY SIGNIFICANT BY THEMSELVES IN TERMS OF OUR OVERALL COSTS, COULD WELL BE THE PROVERBIAL STRAW THAT BREAKS THE CAMEL'S BACK, HE CAUTIONED,

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