XN000022-1977-05-04 — Page 2

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WEDNESDAY, MAY 4, 1977.

APPROPRIATION BILL PASSED AT LEGCO

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THE APPROPRIATION BILL 1977 COMPLETED ITS PASSAGE THROUGH THE LEGISLATIVE COUNCIL THIS AFTERNOON.

DURING THE COMMITTEE STAGE, TWO UNOFFICIALS FURTHER COMMENTED ON THE BILL. THE HON. HILTON CHÉONG-LEEN AND THE HON. JAMES WU TOUGHED ON HONG KONG'S EXPORTS IN THE FACE OF WORLD PROTECTIONISM

STIFF COMPETITION FROM SOUTH KOREA AND TAIWAN, SCHOOL DROP-OUTS AND PUBLIC ASSISTANCE DISCRETIONARY GRANT.

MR. CHEONG-LEEN SUGGESTED THAT THE GOVERNMENT SHOULD BE PREPARED TO MAKE AVAILABLE WHATEVER RESOURCES AND FUNDS THAT WERE NECESSARY TO STABILISE THE PRICE OF LAND FOR INDUSTRIAL EXPANSION, SURVEY THE POTENTIAL OF NEW INDUSTRIES, ASSIST SMALLER FACTORIES IN THEIR DESIGN CAPABILITY AND TO IMPROVE THE QUALITY OF THEIR PRODUCTS, STRENGTHEN OUR TRADE PROMOTION EFFORTS WORLDWIDE, AND GENERALLY TO KEEP OUR PRODUCTIVITY AHEAD OF RISING COSTS,

AS EXPONENTS OF THE FREE ENTERPRISE SYSTEM, HE SAID, HONE KONG INDUSTRIALISTS AND BUSINESSMEN HAD NEVER BEEN OVERAWED "UR AFRAID OF COMPETITION,

+YET IT WOULD BE A MATTER OF SIMPLE PRUDENCE IF WE AVOID ANY SENSE OF COMPLACENCY, AND INSTEAD STRIVE EVEN MORE THAN EVER TC ACCELERATE HONG KONG'S INDUSTRIAL AND ECONOMIC GROWTH,+ HE SAID.

MR. CHEONG-LEEN SAID, HE WAS +DISTURBED+ BY THE GOVERNMENT'S +BLI THE STATEMENT THAT THE CONSISTENTLY HIGHER GROWTH RATES OF SOUTH KOREA AND TAIWAN IN THE EXPORT OF MANUFACTURED GOODS WERE +NOT NECESSARILY A CAUSE FOR CONCERN. +

HE POINTED OUT THAT THE EXPORT OF HONG KONG GOODS TO THE UNITED STATES LAST YEAR INCREASED BY 56 PER CENT OVER THAT OF THE PREVIOUS YEAR. SOUTH KOREA AND TAIWAN HAD INCREASED THE IRS EY 83.5 PER CENT AND 69.5 PER CENT RESPECTIVELY.

IN 1971, HONG KONG RANKED SECOND AMONG ASIAN COUNTRIES IN TOTAL EXPORTS TO THE UNITED STATES, BUT LAST YEAR, HONG KONG'S RANK DROPPED TO FIFTH PLACE FOLLOWING JAPAN, TAIWAN, INDONESIA AND SOUTH KOREA, HE SAID.

+WITHOUT A DOUBT, HOWEVER, HONG KONG HAD PERFORMED WELL IN 1976 AND ON NO ACCOUNT SHOULD WE BELITTLE OUR OWN ACHIEVEMENT. NEVERTHELESS WE SHOULD STILL BE ASKING OURSELVES SERIOUSLY IN THE NEXT FEW YEARS WHETHER OUR COMPETITIVE EDGE WOULD BE BLUNTED BY THE GATHERING MOMENTUM OF THE KOREAN AND TAIWAN EXPORT-ORIENTED ECONOMIES,+ HE SAID.

MR. JAMES WU VOICED SIMILAR CONCERN AND HE FELT THAT NOT ENOUGH RESOURCES HAD BEEN ALLOCATED TO THE DEPARTMENT OF COMMERCE AND INDUSTRY IN ITS VITAL ROLE OF PROTECTING OUR ACCESS TO TRADITIONAL EXPORT MARKETS AND PROMOTING INVESTMENT DIVERS IF ICATION AND SOPHISTICATION IN OUR INDUSTRY.

/HE NOTED