XN000022-1976-09-24 — Page 5

FRIDAY, SEPTEMBER 24, 1976

SURVIVAL OF MIXED ECONOMY

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THE STREAMS OF COMMERCE WILL FLOW FASTER IF THEIR COURSES ARE CONSTANTLY MAINTAINED AND ACCOUNTANTS HAVE A DUTY, PARTLY THROUGH A STRICT ADHERENCE TO PROFESSIONAL STANDARDS AND PARTLY THROUGH INNOVATION, TO ASSIST IN THEIR MAINTENANCE, THE FINANCIAL SECRETARY, MR. PHILIP HADDON-CAVE SAID TODAY.

SPEAKING AT THE CLOSING CEREMONY OF THE CONFERENCE OF ASIAN AND PACIFIC ACCOUNTANTS, HE SAID THE BASIS OF A COMPETITIVE SOCIETY IS THE SO-CALLED MIXED ECONOMY WITH WHICH WE ARE ALL FAMILIAR.+

HE EMPHASISED THAT A MIXED ECONOMY WOULD ONLY SURVIVE IF, IN ADDITION TO THE ROLE AND SIZE OF THE PUBLIC SECTOR BEING DEFINED, AN EFFECTIVE PRIVATE SECTOR CO-EXISTED WITH THE PUBLIC SECTOR.

+THIS DEPENDS ON CERTAIN REQUIREMENTS BEING MET; AND I WOULD LIKE TO REFER TO SIX WHICH I BELIEVE TO BE OF PARTICULAR IMPORTANCE, AT ANY RATE IN HONG KONG, HE SAID.

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THEY ARE:

NON-INTERVENTIONISM MUST BE PRACTISED BY THE GOVERNMENT; GOVERNMENTS HAVE TO RECIPROCATE IN THE DESIGN OF THE IR FISCAL, BUDGETARY AND MONETARY POLICIES. THIS IS THE SOUND REQUIREMENT FOR THE MAINTENANCE OF AN EFFECTIVE PRIVATE SECTOR;

EMPHASIS ON INDIVIDUALISM. THE MARKET MECHANISM WORKS PRIMARILY THROUGH AN EMPHASIS ON INDIVIDUAL RESPONSIBILITY AND, BECAUSE ECONOMIC ACTIVITY EMBRACES THE ACCUMULATION OF WEALTH. IT IS ALSO IMPORTANT THAT THE EMPHASIS SHOULD BE ON INDIVIDUAL WEALTH;

THE EXISTENCE OF A STRONG WORK ETHIC WHICH IS NOT ERODED BY, FOR EXAMPLE, INFLATION AND REDISTRIBUTIVE FISCAL POLICIES WHICH ARE CARELESS OF THE NEED TO MAINTAIN A GROWTH MOMENTUM;

OPERATION OF MARKET MECHANISM. THE CONSTRAINTS AND GROUNDS RULES NECESSARY FOR COMPETITION TO WORK ARE NOT IGNORED. CONDITIONS MUST EXIST, OR BE CREATED, FOR AN ORDERLY WORKING OF MARKET FORCES AND, SERVICING PROFESSIONALS, LAWYERS, BANKERS, BROKERS AND ACCOUNTANTS SHOULD FULFIL THE IR RESPONSIBILITIES.

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