XN000022-1979-11-01 — Page 4

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THURSDAY, NOVEMBER 1, 1974

+THIS SURELY IS THE PERSPECTIVE IN WHICH WE SHOULD SEE THE DEVELOPMENT OF HONG KONG INTO A HIGH WAGE, HIGH TECHNOLOGY ECONOMY AND THE ACCOMPANYING PROCESS OF TRADING UP TOGETHER WITH ALL THAT THIS IMPLIES FOR EDUCATION AND TECHNICAL TRAINING,

→THIS PROCESS WILL INVOLVE THE GRADUAL REPLACEMENT OF OUR BASIC, TRADITIONAL INDUSTRIES WITH GENERALLY CLEANER *KNOWLEDGE-INTENSIVE UNDERTAKINGS, AND ALSO THE FREE ING-UP OF VALUABLE RESOURCES BY SO DOING.

+FURTHERMORE, WE CAN EXPECT, IN TIME, A MIGRATION OF SOME OF THIS 'SECOND GENERATION INDUSTRIAL ACTIVITY FROM HONG KONG TO CHINA THUS FURTHER ENHANCING THE ECONOMIC INTERDEPENDENCE WHICH HAS PROVED SO MUTUALLY BENEFICIAL, HE SAID.

MR. NEWBIGGING ALSO COMMENTED BRIEFLY ON THREE ASPECTS OF THE ECONOMY - INFLATION, OUR MARKET PROSPECTS IN THE US AND OUR INVISIBLE TRADE.

HE SAID INFLATION REMAINS OUR PUBLIC ENEMY NUMBER ONE' AND HAS INTENS IF IED, WITH MUCH OF IT BEING IMPORTED. ALTHOUGH HE HAS NO ALTERNATIVE STRATEGIES TO THOSE BEING IMPLEMENTED BY THE FINANCIAL SECRETARY, HE WARNED THAT ANY SOCIETY WITH INFLATION OF 10 PER CENT OR MORE IS A SOCIETY AT RISK.

ON THE UNCERTAIN PROSPECTS OF OUR MAJOR EXPORT MARKET IN THE US AND THE RECESSION BEING PREDICTED THERE, MR. NEWBIGGING COMMENTED THAT MANY OF THE PROBLEMS WHICH THAT COUNTRY APPEARS TO FACE COULD BE DESCRIBED AS PSYCHOLOGICAL - WHICH CREATE A LACK OF CONFIDENCE - WHEREAS THE IR OWN BALANCE OF PAYMENTS HAS IN FACT BEEN IMPROVED QUITE SIGNIFICANTLY THIS YEAR.

AS TO THE QUESTION OF OUR INVISIBLE TRADE, THE IMPORTANCE OF WHICH IS INCREASING WITH THE GROWING SOPHISTICATION OF OUR ECONOMY, MR. NEWBIGGING REGRETTED THE APPARENT LACK OF PROGRESS IN HAVING IT QUANTIFIED IN STATISTICAL TERMS, DESPITE ASSURANCES TO THE CONTRARY. HE CONSIDERED THIS KNOWLEDGE GAP, CONCERNING WHAT IS PROBABLY A LARGE SECTOR OF OUR ECONOMY, A WEAKNESS OF THE GOVERNMENT.

EMPHASIS ON GOVT NETWORK OF ADVISORY AND

CONSULTATIVE BODIES WELCOMED

*****

DR. THE HON. RAYSON HUANG WELCOMED THE EMPHASIS THE GOVERNOR PLACED ON THE INCREASINGLY COMPREHENSIVE NETWORK OF ADVISORY AND CONSULTATIVE BODIES AND AVENUES OF APPROACH TO THE GOVERNMENT IN HIS ADDRESS TO THE LEGISLATIVE COUNCIL,

SPEAKING IN THE COUNCIL THIS (THURSDAY) AFTERNOON, DR. HUANG POINTED OUT THAT WITH A HIGHER LEVEL OF EDUCATION OF THE COMMUNITY AT LARGE, AN INCREASING NUMBER OF PEOPLE IN HONG KONG ARE NOW CONCERNED WITH COMMUNITY PROBLEMS AND EXPECT TO BE INFORMED AND CONSULTED ON GENERAL ISSUES WHICH AFFECT THEM.