XN000022-1977-10-13 — Page 2

THURSDAY, OCTOBER 13, 1977

HK'S COMPETITIVE POSITION MAY IMPROVE ******

THE GOVERNOR, SIR MURRAY MACLEHOSE, SAID THIS EVENING THERE IS A SOUND PROPSECT OF POSITIVE GROWTH EVERYWHERE, AND FOR SOME

IMPROVEMENT IN THE LEVEL OF WORLD TRADE.

+HONG KONG'S COMPETITIVE POSITION IS LIKELY TO IMPROVE, AND PROSPECTS OVERALL ARE THEREFORE FAR FROM BAD, + SIR MURRAY TOLD A GATHERING AT THE ANNUAL DINNER OF THE FEDERATION OF HONG KONG

INDUSTRIES.

BUT, SIR MURRAY OBSERVED IT IS DISAPPOINTING THAT THE ECONOMIES OF OUR MAJOR MARKETS HAVE NOT RECOVERED IN 1977 AS FAST AS ONE HAD HOPED IN 1976, AND DO NOT LOOK LIKE DOING ANY BETTER IN 1978 UNLESS RAPID AND EFFECTIVE ACTION IS TAKEN TO STIMULATE THEM,+

ON HONG KONG'S TEXTILE EXPORTS, HE WARNED THAT AGAINST THE BACKGROUND OF EXPANSION IN OTHER INDUSTRIES, AND OF THE CAPACITY FOR ADAPTATION AND TRADING UP IN THE TEXTILE INDUSTRY, IT WOULD BE MISLEADING TO OVERDRAMATISE THE PROBLEM POSED BY INCREASING RESTRICTIONS ON OUR TEXTILE EXPORTS.

BUT THE TIME WAS CERTAINLY RIPE TO CONSIDER WHAT COULD BE DONE TO FACILITATE A WIDER AND LESS VULNERABLE INDUSTRIAL BASE AND ECONOMY, SIR MURRAY SAID.

+FOR THIS REASON I HAVE ANNOUNCED THAT A SPECIAL COMMITTEE ON DIVERSIFICATION WILL START WORK UNDER THE CHAIRMANSHIP OF THE FINANCIAL SECRETARY, AND ITS MEMBERSHIP AND TERMS OF REFERENCE WILL BE ANNOUNCED VERY SHORTLY.+

COMMENTING ON THE WORK OF THE FEDERATION OF HONG KONG INDUSTRIES, SIR MURRAY GAVE ASSURANCE OF THE +CONTINUING SUPPORT OF THE GOVERNMENT FOR THE FEDERATION AND FOR THE WAYS IN WHICH IT HELPS THE INDUSTRY OF HONG KONG.+

THE FOLLOWING IS THE TEXT OF SIR MURRAY'S SPEECH :

+THANK YOU FOR YOUR WARM WELCOME. I AM GLAD TO HAVE THIS OPPORTUNITY TO MEET MEMBERS OF THE FEDERATION, PARTICULARLY ON AN OCCASION TO HONOUR MR. T.K. ANN AND MRS. SUSAN YUEN, BOTH OF WHOM IN VERY DIFFERENT WAYS HAVE DONE SO MUCH TO FURTHER INDUSTRIAL DEVELOPMENT IN HONG KONG.

+MR. CHAIRMAN, YOU HAVE REMINDED US THAT THE FEDERATION HAS BEEN IN EXISTENCE FOR OVER 17 YEARS, AND YOU HAVE INDICATED SOME OF THE QUESTIONS TO WHICH IT IS ADDRESSING ITSELF.

+ IF I MIGHT SAY SO I MYSELF ATTACH PARTICULAR IMPORTANCE TO THE FEDERATION'S EFFORTS TO OFFER PRACTICAL SERVICES TO HONG KONG INDUSTRY IN FIELDS IN WHICH NEEDS BECOME APPARENT.

/+FOR INSTANCI