XN000022-1980-01-24 — Page 4

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THURSDAY, JANUARY 24, 1980

TURNING TO THE CONSTRAINING EFFECT OF PROTECTIONISM ON OUR ECONOMIC GROWTH, SIR JACK SAID IN 1961 ONLY ABOUT 10 PER CENT OF OUR TEXTILES AND CLOTHING EXPORTS WERE COVERED BY BILATERAL AGREEMENTS WITH OUR TRADING PARTNERS. THIS PROPORTION HAS NOW INCREASED TO ABOUT 60 PER CENT AND +AT PRESENT, MOST UNHAPPILY, THE TENDENCY IS FOR THIS PROGRESSIVE SHIFT TOWARDS PROTECTIONISM TO CONTINUE.

+WHILE WE SHALL OF COURSE RESIST ITS APPLICATION TO HONG KONG'S TRADE WITH AS MUCH DETERMINATION AS EVER, PROTECTIONISM REMAINS A VERY REAL THREAT TO OUR WELL-BEING,+ HÉ SAID.

HE SAID DUE TO THE SLACKENING IN THE PACE OF GROWTH OF OUR EXPORT SECTION RESULTING FROM PROTECTIONISH, OUR ECONOMY MUST DIVERSIFY TO A MUCH GREATER EXTENT THAN IT HAS SO FAR, IN UKUER THAT WE MAY CONTINUE TO PROSPER.

THE GOVERNMENT IS INTENSIVELY CONSIDERING RECOMMENDATIONS BY THE ADVISORY COMMITTEE ON DIVERSIFICATION AND WILL SHORTLY BE SEEKING THE ADVICE OF THE EXECUTIVE COUNCIL ON THEM.

ON THE SUGGESTION THAT THE AVAILABILITY OF IMMIGRANT SEMI-SKILLED AND UNSKILLED WORKERS AT THE PRESENT TIME HAS ASSISTED OUR ECONOMY TO EXPAND, AND THAT IT HAS HELPED LABOUR-MANAGEMENT RELATIONS BY HAVING A SOBERING EFFECT ON THE SO-CALLED +UNREASONABLE+ WAGE DEMANDS, SIR JACK SAID NO ONE COULD DENY THESE CLAIMS BECAUSE THE LATEST INFLUX OF PEOPLE CAME AT A TIME WHEN OUR LABOUR MARKET WAS TIGHT AND IT HAD BEEN POSSIBLE TO PROVIDE MOST OF THEM WITH EMPLOYMENT.

BUT HE SAID WHEN OUR ECONOMY WAS FLOURISHING, IT WAS ALL TOO EASY TO FORGET THE UNHAPPY TIMES OF 1973 AND *74 WHEN THE SITUATION WAS FAR FROM ROSY.

IT IS, ALSO, PERHAPS, CONVENIENT TO OVERLOOK THE FACT THAT HONG KONG'S WORKERS RESPONDED MAGNIFICENTLY AT THAT TIME BY TIGHTENING THEIR BELTS AND SHARING THE WORK THAT WAS AVAILABLE.

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AND

+THEY HAVE A RIGHT TO A FAIR SHARE OF OUR PROSPERITY ESPECIALLY SHOULD THIS BE SEEN TO BE THE CASE WHEN AS NOW - WE ARE PROSPERING AS A COMMUNITY.+

SIR JACK SAID IF THERE WAS A SHORTAGE OF SKILLED AND SEMI-SKILLED LABOUR, SURELY THE ANSWER WAS IN IMPROVED PRODUCTIVITY. HONG KONG SHOULD CONTINUE TO RELY ON INDUSTRY AS OUR MAJOR SOURCE OF WEALTH, +SURELY WE MUST NOT ONLY DIVERSIFY, BUT MOVE FURTHER UP THE SCALE OF INDUSTRIAL SOPHISTICATION: SURELY, THEN WE NEED IMPROVED AND EXPANDED VOCATIONAL EDUCATION.

+THE WAY AHEAD LIES IN FURTHER AND CONTINUING INVESTMENT IN OUR ONLY NATURAL RESOURCE - PEOPLE, HE SAID.

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