XN000022-1976-05-10 — Page 3

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MONDAY, MAY 10, 1976

BESIDES BEING THE LARGEST EXPORTER OF CLOTHING AND TOYS IN THE WORLD, HE SAID HONG KONG WAS ALSO THE LARGEST TOURIST CENTRE IN SOUTH-EAST ASIA.

HE WENT ON TO SAY THAT THERE WERE OCCASIONS WHEN THE GROWTH OF NEW INDUSTRIES IN THE DEVELOPING WORLD CREATED PROBLEMS FOR THE OLDER INDUSTRIALISED COUNTRIES.

+WHERE SERIOUS DAMAGE IS PROVED, SO FAR AS HONG KONG IS CONCERNED, WE ACCEPT THAT MEASURES OF RESTRAINT OR PROTECTION ARE JUSTIFIED AND NECESSARY.+

BUT THE GOVERNOR STRESSED THAT THEY SHOULD BE TEMPORARY AND SHOULD BE DESIGNED TO MITIGATE THE HARDSHIPS OF ADJUSTMENT RATHER THAN TO POSTPONE IT INDEFINITELY, AND THEY SHOULD BE BASED ON ECONOMIC FACT AND NOT POLITICAL EXPEDIENCY.

+OVER THE YEARS,+ HE CONTINUED, +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.+

IN CONCLUDING, SIR MURRAY SAID HE BELIEVED THE NEW INDUSTRIES OF HONG KONG AND THE WESTERN PACIFIC AND THE NEW PROSPERITY AND PURCHASING POWER THEY CREATED WOULD 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 GRASPED.

+AND I HOPE THAT AS PEOPLE OF INFLUENCE YOU WILL CARRY HOME THIS POSITIVE AND ENCOURAGING MESSAGE OF OPPORTUNITY TO THE POLICY MAKERS IN YOUR OWN COUNTRIES, HE TOLD THE BUSINESSMEN.

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