XN000022-1977-10-27 — Page 4

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THURSDAY, OCTOBER 27, 1977

GOVERNMENT URGED TO ASSIST TEXTILE INDUSTRY TO MAINTAIN COMPETITIVENESS

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THE HON. LYDIA DUNN TODAY CALLED ON THE GOVERNMENT TO ASSIST THE TEXTILE INDUSTRY TO MAINTAIN ITS COMPETITIVENESS AT THE SAME TIME AS THE GOVERNMENT SEEKS TO PROMOTE DIVERSIFICATION.

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IN HER SPEECH IN THE DEBATE ON THE GOVERNOR'S ADDRESS, SHE ARGUED THAT HONG KONG COULD ONLY TAKE ADVANTAGE OF GROWTH IN WORLD TRADE IN 1978 IF THE GOVERNMENT RECOGNISES THE IMPLICATIONS OF THE CURRENT ECONOMIC SITUATION AND TAKES POLICY INITIATIVES AND DECISIONS WITH REGARD TO THE TEXTILE INDUSTRY, DOMESTIC INFLATION AND THE MAINTENANCE OF CONFIDENCE.

THE TEXTILE INDUSTRY HAD A REMARKABLE RECORD OF SURVIVAL AND EXPANSION OVER THE PAST 15 YEARS IN THE FACE OF GROWING RESTRICTIONS, YET ITS RELATIVE IMPORTANCE IN OUR ECONOMY HAS NOT DIMINISHED AND THERE IS NO POSSIBILITY ITS DOMINANT ROLE WOULD BE MORE THAN MARGINALLY REPLACED IN THE SHORT TERM NO MATTER HOW SUCCESSFULLY THE POLICY OF DIVERSIFICATION IS PURSUED, SHE SAID.

IN HER VIEW, THE GOVERNMENT AND THE ADVISORY COMMITTEE ON DIVERSIFICATION SHOULD HELP THE INDUSTRY TO SURVIVE BY OFFERING SPECIAL LAND TERMS AND ASSISTANCE IN MARKETING.

+WE ARE, AFTER ALL, APPARENTLY PREPARED TO ASSIST NEW INDUSTRIES IN THESE WAYS, INDUSTRIES IN WHICH WE HAVE NO EXPERIENCE AND WHICH ARE OF UNTESTED PROFITABILITY, SHE SAID.

SHE WARNED THAT IF THERE WERE TO BE EMPHASIS ON DIVERSIFICATION RATHER THAN SPECIALISATION OF PRODUCTION, THERE WOULD BOUND TO BE LOSS OF PROFITABILITY AS HONG KONG MOVES AWAY FROM AREAS WHERE THERE WAS MAXIMUM COMPARATIVE COST ADVANTAGE.

IRRESPECTIVE OF THE STATE OF THE TEXTILE INDUSTRY HOWEVER, THERE WAS A CASE FOR BROADENING HONG KONG'S INDUSTRIAL BASE AND SHE WELCOMED THE SETTING UP OF THE ADVISORY COMMITTEE.

SHE ASKED THAT APART FROM ENGAGING IN ITS OWN RESEARCHES AND ACTIVITIES, IT SHOULD CO-ORDINATE THOSE OF ALL OTHER SIMILAR ORGANISATIONS.

+THERE IS A NEED FOR A CENTRALISED POOL OF INFORMATION ON POSSIBLE INVESTMENT AND MARKET OPPORTUNITIES AND EXPERT ADVICE AS TO HOW BEST THEY MIGHT BE EXPLOITED, SHE SAID.

DOMESTIC INFLATION WAS ANOTHER PROBLEM MISS DUNN RAISED IN REGARD TO THE COMPETITIVENESS OF HONG KONG'S INDUSTRIES.

WHILST ADMITTING