XN000022-1980-11-05 — Page 2

WEDNESDAY, NOVEMBER 5, 1980

SIR MURRAY EXPLAINS HONG KONG'S SUCCESS

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THE PHENOMENON OF THE OWNING AND MANAGEMENT OF SHIPS BY HONG KONG OWNERS EVOLVING SO RAPIDLY ON SUCH A LARGE SCALE HAS NOT BEEN A CASE OF SO-CALLED 'CHEAP EASTERN COMPETITION', THE GOVERNOR, SIR MURRAY MACLEHOSE TOLD THE GENERAL COUNCIL OF BRITISH SHIPPING AT THE IR DINNER IN LONDON THIS (WEDNESDAY) EVENING.

+ IT HAS BEEN THE PRODUCT OF A COMBINATION OF A FISCAL AND FINANCIAL ENVIRONMENT, WITH GREAT MANAGERIAL SKILL AND DRIVE, PRODUCING RATHER HIGH RATES OF RENEWAL OF TONNAGE AND CONSEQUENTLY RATHER LOW RATES OF INSURANCE- AND ALSO AS IT HAS TURNED OUT, OFTEN WITH ECONOMIES OF SCALE DUE TO AN AVERAGE SIZE OF SHIP LARGER THAN THE IR EUROPEAN COUNTERPARTS,+ SIR MURRAY SAID.

SIR MURRAY EXPLAINED THAT ONE OF THE ELEMENTS IN HONG KONG'S RESILIENCE AND ADAPTABILITY WAS THE FREEDOM GIVEN TO MARKET FORCES.

+THERE ARE NO EXCHANGE CONTROLS, NO SUBSIDIES, NO PROTECTION OF LOCAL INDUSTRY. HARD WORK, INVENTIVENESS, MANAGERIAL SKILLS, THE RISKS OF INVESTMENT, ARE ALL ALLOWED MAXIMUM REWARD, UNFETTERED BY RED TAPE OR A DEPRESSING FISCAL SYSTEM, AND SUSTAINED BY A HIGHLY DEVELOPED FINANCIAL SECTOR, HE SAID.

SIR MURRAY ALSO TOLD THE SHIPPERS THAT THE EMERGENCE OF A NEW LEADERSHIP IN CHINA AND ITS NEW ECONOMIC AND COMMERCIAL POLICIES HAD AROUSED INTENSE INTEREST ALL OVER THE WORLD AND STIMULATED NEW INTEREST IN EASTERN MARKETS.

+

+HONG KONG, HE SAID, IS IN THE MIDDLE OF THIS GROWTH AREA, RIGHT IN THE CENTRE OF ITS SEABORNE AND AIRBORNE COMMUNICATIONS, A MAJOR MARKET AS WELL AS AN INDUSTRIAL AND FINANCIAL CENTRE, AND WITH THE CLOSEST CONNECTIONS WITH ENORMOUS DEVELOPING CHINA, +

THE FOLLOWING IS THE FULL TEXT OF SIR MURRAY'S SPEECH :

+WHEN I RECEIVED YOUR CHAIRMAN'S VERY KIND INVITATION TO ADDRESS A DINNER OF THE GENERAL COUNCIL OF BRITISH SHIPPING ON NOVEMBER 5 I WAS SURPRISED SINCE I AM NO SHIPPING EXPERT AND WAS SUSPICIOUS OF THE DATE, BUT YOU, SIR, HINTED THAT YOUR OBJECT WAS TO GIVE THIS GATHERING OF THE COUNCIL A FAR EASTERN FOCUS, AND DEDUCED THE SCENARIO TO BE THAT WHILE SIR OLIVER CHESTERTON WOULD SPEAK ABOUT SHIPS MAGNIFICENTLY AND HILARIOUSLY, AND WHILE YOU WOULD SPEAK ABOUT SHIPS WITH YOUR USUAL WIT AND WITH THE AUTHORITY OF YOUR OFFICE, I WAS NOT EXPECTED TO SPEAK ABOUT SHIPS AT ALL BUT RATHER ABOUT THE FAR EAST AND HONG KONG, SO I CAME WITH PLEASURE AND CANCELLED THE ORDER TO SEARCH THE CELLARS.

THE FAR EAST THE COUNTRIES OF THE WESTERN PACIFIC BASIN IS ONE OF THE GREAT ECONOMIC GROWTH AREAS OF THE WORLD, AND AT ITS CENTRE - IN TERMS OF GEOGRAPHY, COMMUNICATIONS, COP ERCE AND FINANCE IS HONG KONG, THE LATEST, HOST MUTUALLY DENEFICIAL, AND UNIQUELY SUCCESSFUL PHENOMENON IN THE LONG HISTORY OF SI1.3/ BRITISH RELATIONS.