XN000022-1978-04-26 — Page 46

– 2.

It has done so because of very special circumstances, including the attitude

of the People's Republic of China and the support of the United Kingdom. But

I think, too, it has survived because the combination of the place, the

people, and the Government has been so extraordinarily 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 profit from it, whether from China, America, Britain or

elsewhere.

Hong Kong has the reputation of being the last outpost of

laissez faire and on this account has both its panegyrists and its critics.

The fact is that Hong Kong is unusually dependent on external economic

forces over which it has no control. Sooner or later it has no alternative

but to adjust to them. Consequently the 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 infrastructure without

which acceptable speeds of social advance and economic growth would not be

possible. These are of course very large qualifications to laissez faire,

and I shall describe some of the major programmes which these qualifications

involve. Moreover as in any other civilised society, there is comprehensive

legislation covering financial, commercial and industrial activity, and labour

conditions and relations, and Hong Kong would be an insecure business partner or

field for investment if there were not,

/But it is