XN000022-1978-01-27 — Page 15

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Friday, January 27, 1978

markets should be scrised by head offices, by stocking and servicing centres,

We must build up an image of Hong Kong by local assembly or manufacture.

as a potential source of profit and employment to Europe and America, a

large market itself and the focal point in one of almost unlimited

extent.

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It will be apparent to you from what I have just said why I have so enthusiastically supported the efforts of this Chamber, in conjunction with the Trade Development Council and the Department of Trade, Inudstry and Customs, to promote Hong Kong abroad as a place for investment or establishment. It is very valuable work and pays a political and public relations dividend at least equal to its direct commercial return.

Prospects for the Economy in 1978

I have spoken at some length about this subject of the threat of protectionism, how real it is, and what we can do to counter its effect

But I shall an us, because it has been very much in all our minds.

emphasise that so far it has only operated at the margins and has not substantially affected the overall expansion of our economy, though it certainly could do, and certainly is already affecting certain sectors

of it.

it. I therefore do not want what I have said to distort the general image of Hong Kong, its economy and its prospects at this time, which I

see as definitely favourable,

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