XN000022-1979-09-25 — Page 2

TUESDAY, SEPTEMBER 25, 1979

GOVERNOR'S TERM EXTENDED

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THE QUEEN HAS APPROVED THE EXTENSION OF SIR MURRAY MACLEHOSE'S APPOINTMENT AS GOVERNOR AND COMMANDER IN CHIEF OF HONG KONG UNTIL APRIL 1982.

HK TO BENEFIT FROM BRITAIN'S NEW ECONOMIC POLICIES - BLAKER ***

THE MINISTER OF STATE FOR FOREIGN AND COMMONWEALTH AFFAIRS, MR. PETER BLAKER, TODAY (TUESDAY) EMPHASISED THE BRITISH GOVERNMENT'S SPECIAL RESPONSIBILITY TOWARDS HONG KONG AND OUTLINED BRITAIN'S NEW DOMESTIC ECONOMIC POLICIES TOWARDS RETURNING TO FREE ENTERPRISE.

SPEAKING AT THE LUNCHEON OF THE HONG KONG GENERAL CHAMBER OF COMMERCE, MR. BLAKER SAID THESE DOMESTIC POLICIES WERE RELEVANT FOR HONG KONG BECAUSE IF BRITAIN WAS SUCCESSFUL IN CREATING NEW DYNAMIC ATTITUDE IN INDUSTRY THEN THE PROBLEMS OF ADMITTING FOREIGN GOODS FROM EAST ASIA AND OTHER DEVELOPING PARTS OF THE WORLD WOULD BE DIMINISHED.

MR

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BLAKER SAID THE NEW BRITISH GOVERNMENT REGARDED THESE POLICIES AS THEIR TOP PRIORITY TO MAKE THE BRITISH ECONOMY MORE FLEXIBLE, MORE ENERGETIC, MORE DYNAMIC AND MORE ATHLETIC.

→WE WANT TO CREATE AGAIN AN ECONOMY IN BRITAIN WHICH IS CAPABLE OF CHANGE AND GROWTH, WE HAVE THEREFORE TO CHANGE SOME ATTITUDE ON THE PART OF MANY PEOPLE IN BRITAIN AND WE ARE GOING TO APPROACH OUR TASK IN THREE WAYS,

* TO CURB INFLATION BY RESTORING COLLECTIVE BARGAINING TO

THE FIRM WHERE RESPONSIBILITY OUGHT TO BE, AND AT THE SAME TIME MAINTAINING A STRICT MONETARY AND FINANCIAL POLICY AS THE NEW BRITISH GOVERNMENT REGARD THESE TWO METHODS AS THE BEST WAY OF CONTROLLING INFLATION-

* TO MAKE SOME CHANGES IN THE LAW REGARDING INDUSTRIAL

RELATIONS SO AS TO REDRESS THE IMBALANCE WHICH EXISTS AT THE PRESENT TIME BETWEEN THE TRADE-UNIONS AND EMPLOYERS SO THAT-FREE COLLECTIVE BARGAINING WHICH BRITAIN WANTS TO RESTORE CAN TAKE PLACE IN FAIRER CONDITIONS AND

* TO PROMOTE ENTERPRISE AND TO INCREASE THE REWARDS FOR

SUCCESS BY RELYING MORE ON PRIVATE ENTERPRISE AND LESS ON PUBLIC ACTIVITY AND AT THE SAME TIME REDUCING THE HEAVY BURDEN OF TAXATION AND PUBLIC SPENDING.+

MR. BLAKER SAID THE BRITISH GOVERNMENT ALREADY HAVE SOME SUCCESS IN EMBARKING ON THESE POLICIES.

+WE HAVE MANAGED ALREADY TO CUT DIRECT TAXATION AND PARTICULARLY WE HAVE CUT IT ON THE HIGHER INCOMES WHERE WE THINK SUCH A CUT IS SO IMPORTANT.

/+WE HAVE.....