XN000022-1978-01-27 — Page 3

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FRIDAY, JANUARY 27, 1978

SIR MURRAY SAID HONG KONG MUST NOT BE REGARDED SIMPLY AS

A SOURCE OF IMPORTS OR 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 AND CONVENIENT ONE IN WHICH TO DO BUSINESS, SIR MURRAY SAID.

+ IT IS ON THE MAINLAND OF CHINA, THE BIGGEST COUNTRY IN THE WORLD WHICH IS HEADED FOR RAPID ECONOMIC DEVELOPMENT+ AND IS ALSO AT THE +HEART OF THE GROWTH AREA OF THE WESTERN PACIFIC+.

+ IT IS THE NATURAL PLATFORM FROM WHICH THESE MARKETS SHOULD BE WORKED BY HEAD OFFICES, BY STOCKING AND SERVICING CENTRES,

BY LOCAL ASSEMBLY OR MANUFACTURE.

+WE MUST BUILD UP AN IMAGE OF HONG KONG 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,+ SIR MURRAY SAID.

HE ALSO POINTED OUT THAT WE HAVE A DUTY TO OURSELVES AND TO ALL SMALL TRADING UNITS TO KEEP ALIVE THE ISSUE OF THE RULE OF LAW IN INTERNATIONAL TRADE AND TO +EMPHASISE WHENEVER WE REASONABLY CAN BOTH THE ECONOMIC FALLACIES BEHIND THE VIOLENCE THAT HAS BEEN DONE TO THESE RULES AT OUR EXPENSE, AND THE DANGER TO WORLD TRADE THAT COULD RESULT IF SUCH ATTITUDES ABOUT TEXTILES ARE ALLOWED TO SPREAD TO OTHER ITEMS+.

ON THE PROSPECTS FOR HONG KONG'S ECONOMY THIS YEAR, SIR MURRAY SAID THE BALANCE OF OPINION AT PRESENT SUGGESTS THAT THE OVERALL GROWTH IN OUR DOMESTIC EXPORTS IN 1978 IS LIKELY TO BE NO LESS THAN LAST YEAR'S.

NOTE TO EDITORS:

COPIES OF THE FULL TEXT OF THE GOVERNOR'S SPEECH ARE AVAILABLE FOR COLLECTION FROM G.I.S. PRESS BOXES.

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