XN000022-1976-05-10 — Page 11

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acceptable so long as it is sincerely aimed at improving the standard of

living of workers in developing countries, and not rather at destroying them

by eliminating the competition they offer. To affect concern over their

poverty and yet to deny them the opportunity to rise out of it by exporting

what they produce would be futile.

Moreover it would be bad and short-sighted business because successful

and prosperous industrialists and industrial workers make much better customers

than unsuccessful ones or than subsistence farmers, For instance real wages

in Hong Kong are now three times what they were in the early 1950s and this

has been amply reflected in personal spending power and volume of imports.

Over the years one has heard much too much of the so-called threat of exports

of textiles and other products from Hong Kong and other Pacific producers,

and much too little of the growing market in Hong Kong for imported capital,

consumer durable and consumer goods of all sorts and of the handsome profits

made by those export them, often from the same countries to which Hong Kong

itself exports. This is typical of the Western Pacific region. The

significant factor is not the competition which its industries may offer to

the developed countries, but the field it provides for exports and for

investment so long as its growth is not hindered by artificial barriers.

I am sure that as successful business leaders you will appreciate

the importance for the world economy of maintaining as free as possible a flow

of trade and business opportunities. Given the observance of reasonable codes

of practice I believe the new industries of Hong Kong and the Western Pacific

and the new prosperity and purchasing power they create offer to industry

and exporters of developed countries not a threat to be resented and resisted,

but an opportunity for expanding markets and profitable investment which

/should be