XN000022-1980-06-20 — Page 2

FRIDAY, JUNE 20, 1980

HONG KONG'S PRINCIPLES IN COMMERCIAL DEALINGS ******

THE GOVERNOR, SIR MURRAY MACLEHOSE SAID THIS EVENING THAT THE DECISION BY THE SECRETARY FOR TRADE TO ALLOW HONG KONG'S OWN AIRLINE TO FLY TO LONDON WAS A BRAVE ONE FOR FAIR PLAY, FREER COMPETITION, AND CONSIDERATION FOR THE CONSUMER.+

*THIS IS EXACTLY WHAT WE ALWAYS ASK FOR IN OUR COMMERCIAL DEALINGS WITH OTHERS AND WHAT WE ALWAYS GIVE OTHERS WHO DEAL WITH US.

+ IT IS A HAPPY DAY IN WHICH WE SEE THE BRITISH GOVERNMENT, ON WHICH WE DEPEND SO GREATLY, TAKING A RESOLUTE STAND ON THESE PRINCIPLES,+ HE SAID.

SPEAKING TO THE FEDERATION OF HONG KONG INDUSTRIES AT ITS 20TH ANNIVERSARY DINNER IN THE OCEAN CENTRE, SIR MURRAY SAID THESE PRINCIPLES INVOLVED OBLIGATIONS AS WELL AS BENEFITS.

+DECISIONS ON LICENCES TO LAND IN HONG KONG LIE WITH THE HONG KONG AIR TRANSPORT LICENSING AUTHORITY ALONE. IT IS NOT SUBJECT TO GOVERNMENT DIRECTION, AND THERE IS NO RIGHT OF APPEAL,

+BUT THE HONG KONG GOVERNMENT IS ENTITLED TO MAKE REPRESENTATIONS TO THAT BODY, AND IN PRINCIPLE STANDS READY TO SUPPORT APPLICATIONS FOR ARRANGEMENTS TO MATCH THOSE PROVIDED IN LONDON. IN ALL FAIRNESS, WE COULD NOT DO LESS, HE SAID.

HE NOTED THAT OVER THE LAST 20 YEARS THE THREE SECTORS OF HONG KONG'S ECONOMY HAD ALL TENDED TO LOOK EAST AND WEST TO THE GREAT DEVELOPED MARKET OF NORTH AMERICA, JAPAN AND EUROPE, AND ALSO, TO SOME EXTENT, TO THE GROWTH AREAS TO OUR SOUTH.

+IN ALL THESE AREAS WE ARE CONSCIOUS OF PRESSURES WHICH SUGGEST THE BENEFITS OF A MORE DIVERSIFIED ECONOMY IN HONG KONG,

+NOW, IN ADDITION, WE MUST LOOK NORTH TO THE DEVELOPING ECONOMIC LINKS WITH THE PEOPLE'S REPUBLIC OF CHINA. CONSIDERABLE AS ARE THE NEW OPPORTUNITIES, THEY ALL TEND TO SUPPORT THE CASE FOR DIVERSIFICATION. +

SIR MURRAY SAID IN THIS EVOLVING SITUATION THE GOVERNMENT WAS SEEKING TO RESPOND TO THE NEEDS OF INDUSTRY AND THE ECONOMY.

MOST OF THE RECOMMENDATIONS OF THE ADVISORY COMMITTEE ON DIVERSIFICATION, INCLUDING THE ESTABLISHMENT OF AN INDUSTRIAL DEVELOPMENT BOARD, HAVE ALREADY BEEN ACCEPTED AND ARE BEING GRADUALLY IMPLEMENTED, HE SAID.

+BUT THE FACT THAT IN SEVERAL IMPORTANT RESPECTS THE GOVERNMENT HAS RESPONDED POSITIVELY TO SUGGESTIONS MADE BY THE FEDERATION AND OTHERS IS ONLY THE BEGINNING.

/+I SUGGEST