XN000022-1979-03-28 — Page 10

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WEDNESDAY, MARCH 28, 1979

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LOANS FOR INDUSTRIALISTS SUGGESTED

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THE HON. HILTON CHEONG-LEEN SUGGESTED IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) THAT AN ORGANISATION SIMILAR TO THE HONG KONG BUILDING AND LOAN AGENCY BE SET UP TO HELP INDUSTRIAL ENTERPRISES BUY FACTORY PREMISES AND EXPENSIVE CAPITAL

INTENSIVE MACHINERY.

SUCH AN INSTITUTION WILL HAVE TO BE FUNDED INITIALLY BY BOTH THE GOVERNMENT AND THE PRIVATE BANKING SECTOR. REPAYMENTS CAN BE FOR OVER 10 TO 15 YEARS AT PRIME OR NEAR PRIME INTEREST RATES.

MR. CHEONG-LEEN SAID THAT IN THE ABSENCE OF AN IMPORT-EXPORT BANK IN HONG KONG, WHICH MAY NOT BE PRACTICAL IN OUR ECONOMIC ENVIRONMENT, THE NEED FOR SUCH A NON-GOVERNMENT INSTITUTION IS ALL TOO OBVIOUS.

THE GOVERNMENT COULD ALSO PLAY A MORE SOPHISTICATED ROLE IN THE EXCHANGE FUND, ITS NEAREST EQUIVALENT TO A CENTRAL BANK, IN STIMULATING TIMELY REALLOCATION OF RESOURCES OR CREDIT SO THAT HONG KONG'S EXPORT-ORIENTED ECONOMY WOULD BE LESS IMPERILLED, HE ADDED.

ONE OTHER WAY THE GOVERNMENT COULD HELP, MR. CHEONG-LEEN SAID, IS TO ACCELERATE THE THIRD FIVE-YEAR PLAN OF THE PRODUCTIVITY COUNCIL WITHOUT WAITING FOR THE COMPLETION OF THE ADVISORY COMMITTEE ON DIVERSIFICATION REPORT.

WHILE THE REPORT WILL ONLY BE READY IN THE SECOND HALF OF THIS YEAR, THE NEED TO STRENGTHEN OUR INDUSTRIES REMAINS AS URGENT AS EVER, HE SAID.

HE REGRETTED THAT THE FINANCIAL SECRETARY DID NOT OFFER ANY SIGNIFICANT PROPOSALS TO STIMULATE OUR EXPORT-ORIENTED ECONOMY.

HE EXPLAINED THAT THE BEST WAY TO DAMPEN INFLATION IS TO INCREASE PRODUCTIVITY.

+TO GO ABOUT IT, WE SHOULD GIVE WORKERS BETTER TRAINING, MORE UP-TO-DATE TOOLS TO BE USED EFFICIENTLY SO THAT THEY CAN TURN OUT MORE AND BETTER QUALITY GOODS WITHOUT EXTRA TIME OR EFFORT, HE SAID.

HE SAID THE PLANNING AND EXPANSION OF TECHNICAL EDUCATION, ALSO, MUST NOT BE PULLED BACK AND IT WOULD BE WISE TO PROVIDE UNIVERSAL EDUCATION UP TO THE AGE OF 16 BY THE MID-80'S AND TO PROVIDE MORE TEACHING FACILITIES FOR TECHNICAL EDUCATION IN THE NEW TERRITORIES.

HE HAD SUGGESTIONS ON OTHER TOPICS NOT RELATED TO THE ECONOMY.

ON GOVERNMENT PLANS FOR A SECOND AIRPORT AT CHEK LAP KOK, MR. CHEONG-LEEN SAID AN ALTERNATIVE SITE ACROSS THE SHUM CHUN BORDER COULD BE CONSIDERED IN GREATER DEPTH WITH THE CO-OPERATION OF CHINA.

/OUGH A ONET

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