XN000022-1980-08-19 — Page 5

TUESDAY, AUGUST 19, 1980

ALTHOUGH IT MAY TAKE TIME FOR THESE FAVOURABLE DEVELOPMENTS TO WORK THROUGH TO RETAIL PRICES, THERE IS A REAL PROSPECT OF INFLATION SLOWING DOWN IN COMING MONTHS. HOWEVER, THE REPORT EXPRESSES CONCERN OVER THE RATE OF INCREASE IN WORLD PRICES WHICH HAS CONTINUED TO BE RAPID AND OVER THE WEAKENING OF THE HONG KONG DOLLAR IN MORE RECENT MONTHS- BOTH IMPLY THAT THERE WILL CONTINUE TO BE INFLATIONARY PRESSURES INSOFAR AS THE EXTERNAL UNDERLYING FACTORS ARE CONCERNED.

COMMENTS

COMMENTING ON THE REPORT. A GOVERNMENT SPOKESMAN SAID THAT THE FACT THAT IN THE FIRST HALF OF 1980, THE ECONOMY IS CONTINUING ON THE EXPORT-LED GROWTH PATH ESTABLISHED LAST YEAR IS ENCOURAGING, ESPECIALLY WHEN VIEWED AGAINST THE BACKGROUND THAT THE ECONOMIES OF SOME OF HONG KONG'S MAJOR MARKETS APPEARED TO BE MOVING INTO A RECESSION.

IN LINE WITH A CLOSER BALANCE BETWEEN THE DEMAND FOR DOMESTIC RESOURCES AND THE SUPPLY OF THEM, THERE IS A DISTINCT POSSIBILITY THAT DOMESTICALLY GENERATED INFLATION WILL EASE FURTHER IN THE COMING MONTHS BUT PROSPECTS AS REGARDS IMPORTED INFLATION REMAIN LESS PROMISING.

IN GENERAL, THE ECONOMIC PERFORMANCE OF HONG KONG IN THE FIRST HALF OF 1980 REMAINED GOOD, ALTHOUGH IT IS DOUBTFUL WHETHER THE GROWTH RATE OF DOMESTIC EXPORTS CAN BE SUSTAINED AT SUCH A HIGH LEVEL UNTIL THE END OF THIS YEAR.

CHILDREN OF NEW TOWNS WANT TO DEVELOP

SENSE OF BELONGING

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CHILDREN WILL BE GROWING UP IN THE NEW TERRITORIES NEW TOWNS WHO KNOW NO OTHER PLACE AND WHO WANT TO DEVELOP A SENSE OF BELONGING REGIONAL COMMISSIONER FOR THE NORTHWESTERN NEW TERRITORIES,

MR JIMMY SWEETMAN, SAID TODAY.

SPEAKING AT A ROTARY CLUB OF KOWLOON EAST MEETING, MR SWEETMAN SAID BECAUSE OF THIS THE NEW TERRITORIES ADMINISTRATION WAS COMMITTED TO PROMOTING COMMUNITY SERVICES AND RECREATIONAL FACILITIES THAT WOULD HELP TO BRING ABOUT THIS SENSE OF BELONGING- AND IN THE GREEN PAPER ON DISTRICT ADMINISTRATION THE GOVERNMENT PROPOSED TO BRING ABOUT A VERY REAL MEASURE OF DECENTRALISATION NOT ONLY OF OUR POLITICAL ADMINISTRATION BUT TO GIVE THE PEOPLE GREATER OPPORTUNITY TO HAVE A VOICE IN THEIR OWN AFFAIRS AND TO INSIST THAT LOCAL PROBLEMS WERE DEALT WITH LOCALLY BY THOSE GOVERNMENT OFFICERS RESPONSIBLE FOR CARRYING OUT THE VARIOUS TASKS WHICH GOVERNMENT HAD TO PERFORM.

/MR SWEETMAN