XN000022-1976-06-12 — Page 2

JA1URDAY, JUNE 12, 1976

GOVERNOR PREDICTS SIGNIFICANT ECONOMIC GROWTH

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THE GOVENOR, SIR MURRAY MACLEHOSE SAID TODAY THAT BARRING UNFORESEEN ACCIDENTS IN THE WORLD, THE GROWTH IN HONG KONG'S ECONOMY THIS YEAR WOULD BE GREATER THAN THAT FORECAST EARLIER IN THE YEAR.

SPEAKING AT THE OPENING OF THE DOW CHEMICAL POLYSTYRENE PLANT ON TSING YI ISLAND, SIR MURRAY SAID THE ECONOMY IN HONG KONG THIS YEAR COULD NOW EXPECT SOMETHING SIGNIFICANTLY BETTER THAN THE 9 PER CENT IN-REAL-TERM GROWTH RATE PREDICTED AT THE TIME THE FINANCIAL SECRETARY WAS PREPARING HIS BUDGET.

+GIVEN THIS PROSPECT AND THE EXPANSION IN GOVERNMENT REVENUE THAT SHOULD GO WITH IT, THE PROSPECTS FOR PROGRESS IN OUR SOCIAL PROGRAMMES ARE GOOD.

SIR MURRAY NOTED THAT HONG KONG'S EXPORTS HAD GROWN BY OVER 50 PER CENT IN VALUE TERMS FROM THE BOTTOM OF THE RECESSION IN EARLY 1975 TO THE SAME PERIOD THIS YEAR, AND ARE NOW RUNNING AT A LEVEL HIGHER THAN EVER BEFORE.

HE SAID,+IN RECENT MONTHS, ALSO EMPLOYMENT IN MANUFACTURING INDUSTRY HAS BEEN GROWING AT A RAPID RATE AND IT IS NOW ALMOST A FIFTH HIGHER THAN A YEAR AGO.

+ALL THIS IS EVIDENCE OF A RAPID TAKING UP OF THE SLACK AND OF RENEWED REAL GROWTH IN THE ECONOMY, AND THIS HAS BEEN REFLECTED ALSO IN ACTIVITY IN THE CONSTRUCTION INDUSTRY, AS WELL AS IN INCREASED CONSUMPTION AND HIGHER IMPORTS.

THE GOVERNOR SAID, +1 BELIEVE HONG KONG IS NOW A STRONGER AND SOUNDER PLACE THAN IT WAS IN THE BOOM YEARS OF 1972/73 AND OUR NEW INDUSTRIAL AND OTHER POLICIES ARE DESIGNED TO MAKE IT STRONGER STILL.

+ IN THE NEW PHASE OF INDUSTRIAL DEVELOPMENT WHICH HONG KONG IS ENTERING, THE GOVERNMENT ACCEPTS THAT IT MUST PLAY A POSITIVE ROLE.

+WE WILL, FOR EXAMPLE, CONTINUE TO OPERATE THE MODIFIED INDISTRIAL LAND POLICY WHICH WAS INSTRUMENTAL IN MAKING POSSIBLE THIS PROJECT AND OTHERS WHICH CANNOT BE CARRIED OUT IN HIGH RISE BUILDINGS.+

THE GOVERNMENT WILL ALSO PROVIDE MORE LAND FOR INDUSTRIAL DEVELOPMENT THROUGH THE BUILDING OF INDUSTRIAL ESTATES TO PROVIDE ADDITIONAL AREAS FOR LIGHT AND MEDIUM ENGINEERING INDUSTRIES DESIGNED TO EMPLOY THE WORKERS AND SUPERVISORS BEING TRAINED IN HONG KONG'S POLYTECHNIC AND TECHNICAL INSTITUTES.

HE DISCLOSED