XN000022-1978-04-28 — Page 10

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FRIDAY, APRIL 28, 1978

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DIVERSIFICATION IS AN EVOLUTIONARY PROCESS

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THE DIRECTOR OF TRADE, INDUSTRY AND CUSTOMS, MR. DAVID JORDAN SAID TODAY DIVERSIFICATION OF THE ECONOMY IS AN EVOLUTIONARY PROCESS THAT HAS BEEN GOING ON FOR MANY YEARS AND THE REAL QUESTION IS NOT WHETHER WE SHOULD DIVERSIFY BUT WHETHER NEW INITIATIVES ARE NEEDED TO ACCELERATE THE PROCESS.

HE WAS SPEAKING AT THE OPENING OF A SYMPOSIUM ON THE DIVERS IF ICATION OF HONG KONG'S ELECTRICAL AND ELECTRONICS INDUSTRIES ORGANISED BY THE HONG KONG SECTIONS OF THE INSTITUTE OF ELECTRICAL AND ELECTRONICS ENGINEERS AND THE INSTITUTION OF ELECTRONIC AND RADIO ENGINEERS.

IN HIS ADDRESS, MR. JORDAN SAID THAT WHEN THE CRY OF DIVERSIFICATION WAS BEING AIRED SO MUCH TOWARDS THE END OF LAST YEAR IT WAS AGAINST THE BACKGROUND OF AN UNCERTAIN AND APPARENTLY GLOOMY FUTURE FOR HONG KONG'S MAJOR INDUSTRY OF TEXTILES AND CLOTHING.

+THAT UNCERTAINTY HAS SINCE BEEN REMOVED BECAUSE ALL OUR MAJOR NEGOTIATING COMMITMENTS HAVE BEEN COMPLETED AND THE LIMITS AND GROWTH OF OUR EXPORTS OF TEXTILES AND GARMENTS TO OUR PRINCIPAL MARKETS HAVE BEEN SET FOR SEVERAL YEARS AHEAD.+

MR. JORDAN SAID THAT THE INDUSTRY IS NOW IN A CONFIDENT MOOD +AND ONE HEARS FAR MORE COMPLAINTS ABOUT THE SHORTAGE OF LABOUR THAN ABOUT RESTRICTIONS ON TRADE.+

+SHORT OF A MAJOR DOWNTURN IN THE WORLD ECONOMY IT MIGHT THEREFORE BE FAIR TO SAY THAT OUR THREE TRADITIONAL MAJOR INDUSTRIES -TEXTILES AND GARMENTS, ELECTRONIC PRODUCTS, AND TOYS AND PLASTIC PRODUCTS SHOULD CONTINUE TO PROVIDE SUBSTANTIAL NUMBERS OF JOBS AND EXPORT EARNINGS FOR HONG KONG FOR SEVERAL YEARS AHEAD.+

THIS PERHAPS GIVES US A BREATHING SPACE IN WHICH TO LOOK AHEAD AND CONSIDER WHAT WE NEED TO DO TO SECURE OUR LONG-TERM ECONOMIC GROWTH, ON WHICH OUR SOCIAL PROGRESS DEPENDS.

TURNING TO THE ELECTRICAL AND ELECTRONIC INDUSTRIES, MR. JORDAN POINTED OUT THAT THEY HAD DIVERSIFIED WITHIN THEMSELVES EVEN MORE DRAMATICALLY THAN MOST OTHER LOCAL

INDUSTRIES.

HE SAID THAT THIS DIVERSIFICATION TOOK PLACE WHILE THE MANUFACTURING SECTOR OF THE ECONOMY EVOLVED OVER THE PAST 25 YEARS FROM A FAIRLY RUDIMENTARY, UNSOPHISTICATED FORM TO THE MATURE, EFFECTIVE AND SKILLED OPERATION IT IS TODAY.

+THAT PROCESS OF EVOLUTION WILL CONTINUE, + MR. JORDAN STRESSED. +ECONOMIC PRESSURES WILL OBLIGE HONG KONG TO CONTINUE TO MOVE UP-MARKET AND IN THE PROCESS NEW PRODUCTS WILL EMERGE WHICH WILL NEED EITHER NEW SKILLS OR THE UPGRADING OF EXISTING SKILLS IN THE IR PRODUCTION PROCESSES MANY OF WHICH WILL ALSO BE NEW.+

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