XN000022-1977-10-26 — Page 5

WEDNESDAY, OCTOBER 26, 1977

SUPPORT FOR ADVISORY COMMITTEE ON DIVERSIFICATION ******

THE HON. JAMES WU TODAY VOICED HIS SUPPORT FOR THE PROPOSAL TO SET UP AN ADVISORY COMMITTEE ON DIVERSIFICATION.

+A SUCCESSFUL OUTCOME MIGHT SAVE US FROM THE FOOTSTEPS OF BRITISH ECONOMIC ILLS, AND PUT US ON THE LOGICAL PATH THAT THE JAPANESE HAVE CÁRVED OUT FOR THEMSELVES IN THE FACE OF COMPETITION FROM LOW-COST PRODUCERS AND PROTECTIONISM BY IMPORTING COUNTRIES,+ MR. WU SAID IN THE LEGISLATIVE COUNCIL.

OUTLINING THE DIFFERENCE BETWEEN +ECONOMIC GROWTH AND +ECONOMIC DEVELOPMENT+, MR. WU SAID IT WAS CLEAR THAT IN THE LAST 25 YEARS HONG KONG HAD SEEN BOTH GROWTH AND DEVELOPMENT, PERHAPS MORE GROWTH, THAN DEVELOPMENT, AND THIS INDICATED WHERE OUR DIRECTION SHOULD BE TO DEVELOP AN INDUSTRIAL BASE OF GREATER SOPHISTICATION AND DIVERSITY, A CASE FORCED UPON US BY BOTH EXTERNAL AND INTERNAL PRESSURES.

MR. WU ADDED THAT HE WAS HEARTENED TO HEAR OF THE GOVERNOR'S FAIRLY OPTIMISTIC VIEW OF THE GROWTH OF WORLD TRADE IN 1978 THAT WOULD BENEFIT HONG KONG, AND REJO ICED OVER THE PROSPECT OF A LARGER SURPLUS IN OUR BUDGET AS PREDICTED BY THE FINANCIAL SECRETARY.

COMMENTING ON THE GOVERNOR'S PREDICTION THAT OUR GDP GROWTH WAS LIKELY TO BE 8 PER CENT ALTHOUGH OUR EXPORT PERFORMANCE WOULD BE LAGGING BEHIND IN GROWTH, MR. WU SAID, THIS GROWTH, PARTICULARLY NOTICEABLE IN THE CONSTRUCTION FIELD, HAS CAUSED APPRECIABLE INFLATION IN WAGES AFFECTING SOME INDUSTRIES, AND IN HIND-SIGHT, WE COULD HAVE DONE BETTER NOT TO TAKE THOSE STOP-AND-GO MEASURES IN THE RECESSION YEARS OF 1974/75 BUT TO PROCEED WITH THE GENERALLY ACCEPTED PUBLIC WORKS POLICY.+

MR. WU ALSO THANKED THE GOVERNOR FOR HIS EFFORTS IN GOING TO LONDON AND BRUSSELS TO STATE HONG KONG'S CASE ON THE TEXTILE AGREEMENT AND GAVE THE STRONGEST SUPPORT FOR THE NEGOTIATING TEAM NOW IN BRUSSELS.

TURNING TO THE PROPOSAL TO PROVIDE FOR THREE YEARS OF COMPULSORY AND FREE JUNIOR SECONDARY EDUCATION FOR EVERY PRIMARY SCHOOL LEAVER, MR. WU SAID THAT THIS WOULD ENABLE HONG KONG TO KEEP UP WITH BETTER-OFF NEIGHBOURING REGIONS.

+1 ALSO AGREE THAT SUBSIDISED PLACES IN FORMS IV AND V FOR 40 PER CENT OF JUNIOR SECONDARY LEAVERS ARE APPROPRIATE AT THIS STAGE OF OUR DEVELOPMENT, AND THAT SCHOOL EXAMINATION AT SOME STAGE IS A NECESSARY EVIL TO ENSURE ACADEMIC STANDARDS AND TO EVALUATE TEACHING PERFORMANCE, HE ADDED.

HE ALSO