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exporta in the near future would only be about 5% to 6.5% per annum in volume

terms; suggesting that the growth potential of the export sector as a whole

may not be enough to enable us to sustain through the Eighties, the growth

rate of the economy we have experienced in the Seventies. Although our

tertiary services sector is expanding rapidly, it is unlikely that its

contribution to economic growth can compensate completely for the slackening

in the pace of growth in the export sector which will result as a direct

consequence of protectionism.

L

It has, therefore, and for long, been our view that the economy

aust diversify to a much greater extent than it has so fer, in order that

we may continue to prosper. This is, indeed, the main conclusion of the

Advisory Committee on Diversification, which has now come up with a list

of recommendations for strengthening and instituting further Government

policies aimed at facilitating the process of diversification.

Government

is now intensively considering these timely recommendations and will shortly

be seeking the advice of Executive Council on them. I can assure you,

Fr Chairman, that the Government will play its part: I am confident too

that industry and commerce, the private sector, will also recognise the

advisability, the necessity of speeding up plans for diversification.

is.

You may well be forgiven for thinking this is a long speech: it

You may also be forgiven for thinking that I have burdened you with

too many figures and percentages. I probably have. I am afraid, though

those figures and percentages are inevitable considerations in the scenario

of Hong Kong's economic future - and particularly in our recurring and now, once

more, very serious problem of people.

In our endeavours to prosper as a business community, Hong Kong's

competitiveness in world markets is important; but this single economic

/factor is..........

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