XN000022-1980-01-07 — Page 3

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MONDAY, JANUARY 7, 1980

HK'S SUCCESS RELIES ON FREE COMPETITION

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HONG KONG'S ECONOMY IS VERY EXPOSED TO FORCES WAY BEYOND OUR CONTROL AND THE ONLY WAY WE CAN SUCCEED IN SUCH CIRCUMSTANCES IS TO RELY HEAVILY ON FREE COMPETITION AND ON BUSINESSMEN MAKING THE IR COMMERCIAL DECISIONS WITH MINIMUM INTERFERENCE, SAYS THE SECRETARY FOR ECONOMIC SERVICES, MR. DAVID JEAFFRESON,

HE WAS SPEAKING TODAY (MONDAY) AT THE OPENING OF AN INTERNATIONAL SEMINAR ON THE LAW AND THE CONSUMER ORGANISED JOINTLY BY THE INTERNATIONAL ORGANISATION OF CONSUMERS UNIONS AND THE HONG KONG CONSUMER COUNCIL. DELEGATES FROM 26 COUNTRIES ARE ATTENDING THE FIVE-DAY SEMINAR AT THE YWCA IN WATERLOO ROAD HILL, KOWLOON.

AT THE OPENING CEREMONY, MR. JEAFFRESON ALSO TOLD DELEGATES THAT THE HONG KONG GOVERNMENT'S POLICY TOWARDS A FREE ECONOMY WAS TO ALLOW MARKET FORCES TO CONTROL ECONOMIC LIFE AS MUCH AS POSSIBLE.

HOWEVER, HE SAID, THE GOVERNMENT HAD ALSO A ROLE IN IT.

+ IT MUST FIRST MAKE SURE THAT ITS OWN POLICIES, ITS BUDGETARY AND FISCAL POLICIES, FOR EXAMPLE, AFFECT MARKET FORCES AS LITTLE AS POSSIBLE.

+SECOND, IT PROVIDES THE BASIC INFRA-STRUCTURE FOR ECONOMIC LIFE AND THOSE SERVICES WHICH THE PRIVATE SECTOR CANNOT POSSIBLE BE EXPECTED TO PROVIDE ITSELF.

+THIRD. IT PLAYS A ROLE IN BRINGING VARIOUS GROUPS WITHIN INDUSTRY AND COMMERCE TOGETHER IN ORDER THAT DECISIONS IN THE INTERESTS OF THE COMMUNITY AS A WHOLE CAN BE REACHED EFFECTIVELY.+

TURNING TO CONSUMER PROTECTION, MR. JEAFFRESON SAID: IT SEEMS TO US THAT LEGISLATION, WHERE ABSOLUTELY APPROPRIATE AND NECESSARY, AND EDUCATION MUST GO HAND IN HAND IN ORDER THAT CONSUMER PROTECTION CAN BE REALLY EFFECTIVE.+

IN ADDITION, THERE MUST BE A BODY TO WHICH CONSUMERS CAN TURN WHEN THEY FIND THEY ARE BEING EXPLOITED AND THIS BODY MUST ITSELF BE IN A POSITION TO EXPOSE SUCH PRACTICES AND TO TURN PUBLIC OPINION AGAINST THE SUPPLIERS CONCERNED AND TO DO SO WITHOUT FEAR OF REPRISAL.

HE SAID IF BOTH EDUCATION AND EXPOSURE FAILED, THEN THIS BODY COULD RECOMMEND, WITH AUTHORITY, RECOURSE TO LEGISLATION.

MR. JEAFFRESON ALSO BELIEVED THAT CONSUMER EDUCATION WAS VERY IMPORTANT AS LACK OF INFORMATION WAS AT THE ROOT OF MANY CONSUMER PROBLEMS. IT IS THE PREPARATION OF THE INDIVIDUAL IN THE SKILLS, CONCEPTS AND UNDERSTANDINGS THAT ARE REQUIRED TO ACHIEVE, WITHIN THE FRAMEWORK OF HIS OWN STANDARDS, MAXIMUM SATISFACTION AND UTILISATION OF HIS RESOURCES, HE SAID.

HE ALSO NOTED THAT THE CIRCUMSTANCES IN WHICH MARKET FORCES ARE UNABLE TO OPERATE EFFECTIVELY FELL ROUGHLY INTO TWO GROUPS -- 'THE LAW WHERE CONSUMERS CANNOT PROTECT THEMSELVES' AND 'THE LAW AND OTHER MARKET IMPERFECTIONS'.

/TOR THE