XN000022-1979-12-14 — Page 2

FRIDAY, DECEMBER 14, 1979

ADVISORY COMMITTEE ON DIVERS IF ICATION REPORT PUBLISHED

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THE REPORT BY THE ADVISORY COMMITTEE ON DIVERSIFICATION, WHICH INCLUDES A NUMBER OF WIDE-RANGING RECOMMENDATIONS, WAS PUBLISHED TODAY (FRIDAY) IN BOTH CHINESE AND ENGLISH.

THE DETAILED REPORT IS THE CULMINATION OF TWO YEARS STUDY BY THE COMMITTEE WHICH WAS APPOINTED BY THE GOVERNOR IN OCTOBER 1977.

CHAIRED BY THE FINANCIAL SECRETARY, THE COMMITTEE'S MEMBERSHIP WHICH COMPRISES SENIOR MEMBERS OF THE COMMUNITY, WAS DRAWN FROM INDUSTRIAL, COMMERCIAL, FINANCIAL AND ACADEMIC CIRCLES, AS WELL AS A NUMBER OF SENIOR GOVERNMENT OFFICIALS.

ITS TERMS OF REFERENCE REQUIRED IT TO ADVISE THE GOVERNOR ON +WHETHER THE PROCESS OF DIVERSIFICATION OF THE ECONOMY, WITH PARTICULAR REFERENCE TO THE MANUFACTURING SECTOR, CAN BE FACILITATED BY THE MODIFICATION OF EXISTING POLICIES OR THE INTRODUCTION OF NEW POLICIES.+

A GOVERNMENT SPOKESMAN EXPLAINED THE COMMITTEE WAS CONCERNED WITH WHETHER EXISTING GOVERNMENT POLICIES SHOULD BE MODIFIED, OR NEW ONES DEVISED TO FACILITATE AND STIMULATE THE PROCESS OF DIVERSIFICATION WITHIN THE ECONOMY.

HE SAID THE COMMITTEE WAS NOT CONCERNED WITH HOW THE ECONOMY SHOULD BE DIVERSIFIED, AND THEREFORE WAS NOT CONCERNED WITH SELECTING ANY PARTICULAR INDUSTRY OR PRODUCT FOR SPECIAL TREATMENT BY THE GOVERNMENT.

THE COMMITTEE'S RECOMMENDATIONS WHICH WOULD HAVE MAJOR PROCEDURAL IMPLICATIONS FOR THE GOVERNMENT ARE ■

(A)

THAT A STANDING INDUSTRIAL DEVELOPMENT BOARD SHOULD BE ESTABLISHED TO PLAN, TO MONITOR AND TO ADVISE ON VARIOUS PROGRAMMES IN THE FIELD OF INDUSTRIAL DEVELOPMENT, PARTICULARLY IN RELATION TO THE PROVISION OF INDUSTRIAL SUPPORT FACILITIES TECHNICAL BACK-UP SERVICES AND INDUSTRIAL RESEARCH-

(B) THAT THE TRADE AND INDUSTRY ADVISORY BOARD SHOULD

ADVISE ON OVERALL STRATEGY IN RELATION TO INDUSTRIAL INVESTMENT PROMOTION, IN PLACE OF THE INDUSTRIAL INVESTMENT PROMOTION CO-ORDINATING COMMITTEE, AND THAT SUCH ACTIVITIES SHOULD BE CO-ORDINATED BY THE TRADE, INDUSTRY AND CUSTOMS DEPARTMENT, WHICH SHOULD ALSO PROVIDE A ONE-STOP+ FACILITY FOR DEALING IN HONG KONG WITH POTENTIAL INVESTORS.

(C)

A STATUTORY INDUSTRIAL TRAINING AUTHORITY SHOULD BE CREATED TO ORGANISE INDIVIDUAL AREAS OF MANPOWER TRAINING, AND THAT SUCH TRAINING SHOULD BE FINANCED FROM GENERAL REVENUE-

/(D) THE