XN000022-1978-04-03 — Page 3

FO

MONDAY, APRIL 3, 1978

SIR DENYS SAID HONG KONG HAD MANAGED TO BECOME, IN SPITE OF FORMIDABLE OBSTACLES, ONE OF THE LEADING TRADERS IN THE WORLD, HE ASKED: +WHAT ARE THE REASONS FOR ITS REMARKABLE SUCCESS IN A COMPETITIVE AND UNCERTAIN WORLD?+ HE SUGGESTED 10 REASONS:

+FIRST, A LABOUR FORCE AND MANAGEMENT OF INTELLIGENT ADAPTABLE AND HARD-WORKING PEOPLE, BRED IN A LONG TRADITION THAT LIFE IS A STRUGGLE, THAT NOBODY OWES YOU A LIVING AND THAT EFFORT SHOULD BE REWARDED. THIS OUTLOOK BRINGS WITH. IT THE ABILITY TO MOVE SWIFTLY INTO THE MANUFACTURE OF NEW PRODUCTS AS THE DEMANDS OF WORLD MARKETS CHANGE.

+SECOND, A HABIT OF ENERGY. IN 1945, HONG KONG WAS RUINED. RECONSTRUCTION BEGAN AT A FURIOUS PACE, WHICH HAS NEVER SLACKENED AS WE MOVED FROM RESTORING THE PLACE TO WORKING ORDER, TO INDUSTRIAL DEVELOPMENT TO SUPPORT A HUGE POPULATION AND TO TRYING TO PROVIDE, BY AN EXPANSION OF PUBLIC HOUSING, TRANSPORT FACILITIES AND EDUCATIONAL AND SOCIAL WELFARE ADVANCÉS, A BETTER STANDARD OF LIFE FOR THOSE WHO LIVE HERE.

+THIRD, SELF RELIANCE. WE DO NOT BELONG TO ANY MULTI-NATIONAL ECONOMIC ALLIANCES OR TO ANY ECONOMIC COMMUNITY. WE HAVE HAD TO LEARN TO FIGHT FOR OURSELVES, THOUGH WE HAVE RECEIVED MUCH SUPPORT AND ENCOURAGEMENT FROM BRITAIN. HONG KONG IS ONE OF THE FEW AREAS OCCUPIED DURING WORLD WAR II WHICH HAS RECONSTRUCTED

ITSELF WITH VIRTUALLY NO EXTERNAL AID.

+FOURTH,

A SUPERB HARBOUR, WITH FIRST CLASS PORT FACILITIES, WHICH HAVE KÉPT PACE WITH MODERN REQUIREMENTS.

+FIFTH, A GOVERNMENT WHICH IS RELIABLE AND PREDICTABLE, BECAUSE IT DOES NOT CHANGE NOR DO THE MAIN PRINCIPLES ON WHICH ITS POLICIES ARE BASED. IN MOST COUNTRIES, YOU EITHER HAVE A DICTATOR (WHO IS UNPREDICTABLE) OR FREQUENT CHANGES OF GOVERNMENTS, WHICH PURSUE DIFFERENT POLICIES.

+SIXTH, A BELIEF, RARE IN THE WORLD TODAY, THAT A GOVERNMENT SHOULD INTERFERE AS LITTLE AS POSSIBLE WITH BUSINESS AND INDUSTRY, UPON WHICH OUR PROSPERITY DEPENDS, SAVE IN SO FAR AS REGULATION IS NECESSARY FOR THE REASONABLE PROTECTION OF THE SOCIAL AND PHYSICAL WELL BEING OF EMPLOYEES AND CONSUMERS.

THE HONG KONG ADMINISTRATION BELIEVES THAT TRADING SHOULD BE LEFT IN THE HANDS OF THE TRADERS AND MANUFACTUERES, WHO UNDERSTAND IT BEST. BUSINESS SHOULD NOT BE ENTRUSTED TO BUREAUCRATS, WHO ARE TRAINED TO HABITS OF MIND OF CAUTION AND OF PLANNED PROGRESSION WHICH ARE UNSUITABLE TO THE DYNAMIC QUALITY OF INTERNATIONAL COMMERCE, WHERE SPEED AND WILLINGNESS TO ACCEPT RISKS ARE SO ESSENTIAL TO SUCCESS.

+SEVENTH, A CONVICTION THAT A GOVERNMENT SHOULD LIVE WITHIN ITS MEANS, THÚS, WE HAVE ALMOST NO PUBLIC DEBT, AND OUR LIQUID RESERVES ÁMOUNT TO ABOUT SIX MONTHS' PUBLIC EXPENDITURE.

/+EIGHTB,