XN000022-1978-01-27 — Page 14

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Friday, January 27, 1978

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We can help ourselves by diversifying into products that escape

restraint, and this is happening. Any more radical change to broaden the

base of our economy will take time, but I avait with the greatest interest

the outcome of the Financial Secretary's Committee on Diversification.

We will resist any new manifestations of protectionism with all

the ingenuity and determination we can. But over this period muscle

could help. We are devoted multi-nationalists in accordance with the

"basic concept of the GATT. Nevertheless Hong Kong would be in a stronger

position could the point to better sales in Hong Kong by the exporters in

her principal markets. Profits and jobs due to Hong Kong orders would

speak louder to Governments than anything we could say. We are bound to

run a very large deficit in our trude with China and this is entirely

acceptable; but both the public and private sectors should bear in mind

that when other things are equal, or almost equal, to buy from our major

markets may help us to sell in them. Of course this is a two-sided

business and it is for this reason that we have made such efforts to

encourage the exporters of our major markets to pay more attention to

their sales in Hong Kong.

We mist also do everything we can to impress on officials and

exporters as well as the media and public in Europe and America what

Hong Kong has to offer as a place of business, It must not be regarded

simply as a source of imports, a shopping centre.

It is a very big

market in its own right, and through the comparative absence of red tape

and the sophisticated services and communications that it offers, a

particularly quick nd convenient one in which to do business,

It is on

the mainland of China, the biggest country in the world which is headed

for rapid economic development. It is also at the heart of the growth

area of the Western Pacific.

It is the natural platform from which these

/markets