XN000022-1978-04-26 — Page 4

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WEDNESDAY, APRIL 26, 1978

+BUT I THINK, TOO, IT HAS SURVIVED BECAUSE THE COMBINATION OF THE PLACE, THE PEOPLE, AND THE GOVERNMENT HAS BEEN SO EXTRA- ORDINARILY SUCCESSFUL IN PRODUCING STABILITY AND STEADILY RISING LIVING STANDARDS, ALSO BECAUSE IT IS SO OPEN -- ALL ARE EQUALLY FREE AND WELCOME TO PARTICIPATE IN THIS SUCCESS AND TO PROF IT FROM IT WHETHER FROM CHINA, AMERICA, BRITAIN OR ELSEWHERE.+

HE NOTED THAT HONG KONG HAS THE REPUTATION OF BEING THE LAST CUTPOST OF LAISSEZ FAIRE AND THE FACT IS THAT HONG KONG IS UNUSALLY DEPENDENT ON EXTERNAL ECONOMIC FORCES OVER WHICH IT HAS NO CONTROL.

HE SAID THE HONG KONG GOVERNMENT DOES NOT INTERVENE IN THE NATURAL PLAY OF MARKET FORCES EXCEPT TO STOP ABUSE OR DISTRESS TO THE PUBLIC, OR TO ENSURE THE PROVISION OF THE ESSENTIAL INFRAST- RUCTURE WITHOUT WHICH ACCEPTABLE SPEEDS OF SOCIAL ADVANCE AND ECONOMIC GROWTH WOULD NOT BE POSSIBLE.

SIR MURRAY POINTED OUT THAT HONG KONG HAS COMPARATIVELY LOW RATES OF TAX AND A COMPARATIVELY SIMPLE FISCAL SYSTEM: +THERE IS NO EXCHANGE CONTROL, AND THERE IS FREEDOM TO EMPLOY SUCH STAFF AS A FIRM SEES FIT, AND FREEDOM TO REMIT PROFITS AND CAPITAL AT WILL, AND IN COMPARISON WITH OTHER COMMUNITIES, THERE IS A REFRESHING ABSENCE OF REGULATION AND RED TAPE.

+50 IN HONG KONG THE ENTREPRENEUR PROBABLY DOES ENJOY GREATER FREEDOM TO GET ON WITH HIS JOB THAN IN ANY COMPARABLE PLACE OF BUSINESS. WE HAVE EVERY INTENTION OF ADHERING TO THIS GENERAL APPROACH, + HE SAID.

HE ALSO NOTED THAT U.K. EXPORTS TO HONG KONG LAST YEAR WERE WORTH ABOUT 270 MILLION POUNDS STERLING ABOUT THE SAME AS BRITAIN'S EXPORTS TO INDIA, TWO-THIRDS OF HER EXPORTS TO JAPAN, AND FOUR TIMES HER EXPORTS TO CHINA.

+ IT IS VERY MUCH A MARKET IN ITS OWN RIGHT, AND I BELIEVE THAT WITH ATTENTION BRITISH SALES WOULD BE MUCH BIGGER THAN THEY ARE, + HE SAID.

SIR MURRAY ALSO POINTED OUT THAT HONG KONG IS NOT JUST AN INDUSTRIAL COMMERCIAL AND FINANCIAL INSTITUTION. + IT IS A COMMUNITY OF ABOUT FOUR AND A HALF MILLION, INTENSELY SHREWD AND ACTIVE PEOPLE.+

+IT IS GOVERNED WITH MORE REAL FREEDOM THAN ANY OTHER COMMUNITY IN ASIA AND YET BECAUSE OF CIRCUMSTANCES WHICH ARE FORCED UPON

WITHOUT ELECTED GOVERNMENT.+

IT

HE CITED A FEW EXAMPLES OF THE VARIOUS SERVICES PROVIDED BY THE GOVERNMENT TO ENSURE THAT THE COMMUNITY CONTINUES TO GROW WITH STABILITY.

/OF HOUSING,