XN000022-1980-07-25 — Page 10

FRIDAY, JULY 25, 1980

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+ IF WE WERE TO MAKE ALL THE IMPROVEMENTS THAT HAVE BEEN URGED UPON US, I AM AFRAID WE WOULD NOT BE TAKING A STEP, BUT MAKING A LEAP. AND BECAUSE WE WOULD NOT KNOW WHERE WE ARE HEADING, THIS WOULD BE A LEAP INTO THE DARK.+

THIS WAS A RISK WHICH THE GOVERNMENT COULD NOT AFFORD TO TAKE IN RESPECT OF A SYSTEM WHICH WAS OF VITAL IMPORTANCE TO THE TEXTILE AND GARMENT TRADE IN HONG KONG AN INDUSTRY WHICH EMPLOYED HALF THE WORKERS AND PROVIDED SLIGHTLY LESS THAN HALF OF OUR EXPORT EARNINGS.

+WHETHER THIS REVIEW ACHIEVES ITS DESIRED AIM WILL BE A JUDGEMENT THAT CAN ONLY BE MADE WITH THE LAPSE OF AT LEAST A YEAR OR SO. WE WILL BE KEEPING A CLOSE WATCH ON HOW THE SYSTEM IS WORKING, OR NOT WORKING, HE SAID.

IT IS LIKELY THAT MINOR MODIFICATIONS, OR FINE TUNING, WILL HAVE TO BE MADE FROM TIME TO TIME. A SIMILAR MAJOR EFFORT WILL BE MADE IN THREE YEARS' TIME, WHEN PERHAPS, WE MIGHT TAKE A FEW MORE STEPS WHICH WE HAVEN'T HAD THE COURAGE OR CONVICTION TO TAKE DURING THIS REVIEW,+ CONCLUDED MR TSAO.

CONSUMER PRICE IND ICES

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THE CONSUMER PRICE INDEX (A) AND THE CONSUMER PRICE INDEX (B) FOR JUNE 1980 WERE 158 AND 157 RESPECTIVELY. COMPARED WITH THE PREVIOUS MONTH, C.P.I. (A) INCREASED BY ONE POINT AND C.P.I. (B) REMAINED STABLE.

THE C.P.I. (A) IS BASED ON WEIGHTS DERIVED FROM THE EXPENDITURE PATTERN OF HOUSEHOLDS SPENDING BETWEEN $400 AND $1 499 A MONTH AND THE C.P.I. (B) FROM THOSE SPENDING BETWEEN $1 500 AND $2 999 A MONTH, AS DETERMINED FROM THE HOUSEHOLD EXPENDITURE SURVEY OF 1973/74.

THE CHANGES FOR JUNE 1980 IN RESPECT OF THE COMPONENTS OF THE TWO INDICES, COMPARED WITH THE PREVIOUS MONTH AND WITH THE CORRESPONDING MONTH IN 1979, ARE

C.P.I. (A)

C.P.1. (B)

COMPONENT

JUNE 80 MAY 80 JUNE 79 JUNE 80 MAY 80 JUNE 79

FOODSTUFFS

150

150

132

152

152

134

HOUSING

151

151

143

151

151

142

FUEL AND LIGHT

262

262

168

247

247

164

/ALCORGLIS DRIN

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