LOINNSDAY.
ONE OF THE ELEMENTS IN ITS RESILIENCE AND ADAPTABILITY IS THAT MARKET FORCES ARE GIVEN FREEDOM TO WORK. 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.
IT IS AGAINST THIS BACKGROUND THAT THE PHENOMENON OF THE CANING AND MANAGEMENT OF SHIPS BY HONG KONG OWNERS HAS EVOLVED SO FAPIDLY ON SUCH A LARGE SCALE. THIS HAS NOT BEEN A CASE OF SO-CALLED 'CHEAP EASTERN COMPETITION'. 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 THEIR EUROPEAN COUNTERPARTS. IT IS NATURAL THAT HONG KONG OWNERS SHOULD STRONG OPPOSE UNCTAD'S CARGO-SHARING PROPOSALS. THEY REGARD THEM AS PROTECTIONIST AND DISCRIMINATORY IN PRINCIPLE AND AS EXPENSIVE TO THE CONSUMER IN PRACTICE.
I MUST APOLOGISE FOR HAVING STARTED TO TALK ABOUT SHIPS INSTEAD OF THE FAR EAST WHICH IS MY SUBJECT.
THERE HAS BEEN A TENDENCY FOR EUROPE TO FORGET THE EAST COMMERCIALLY. THE REASONS ARE NOT CLEAR, PERHAPS IT HAS BEEN ASSUMED TO BE A JAPANESE OR AMERICAN PRESERVE PERHAPS THE RIVAL ATTRACTIONS OF EUROPE AND NORTH AMERICAN MARKETS HAVE DISTRACTED ATTENTION, AND PERHAPS IT MAY SEEM TO SOME EUROPEANS TO BE A PART OF THE WORLD ASSOCIATED WITH AN ERA WHICH FOR THEM HAS ENDED. MY THEME IS THAT, ON THE CONTRARY, A NEW AND MUCH HAPPIER ESM OF THE FAR EAST HAS ALREADY BEGUN. AN ERA OF VAST POSSIBILITY, AN ERA WITH WHICH ALL WHO CAN SHOULD COME TO TERMS AS QUICKLY AS POSSIBLE.
WE ARE APT TO BE PUT OFF BY KIPLING'S JINGLE:
EAST IS EAST AND WEST IS WEST,
AND NEVER THE TWAIN SHALL MEET,
TILL TWO STRONG MEN STAND FACE TO FACE,
AT GOD'S GREAT JUDGEMENT SEAT.
ITS EXCESSIVELY OLD HAT, BUSINESSMEN OF EAST AND WEST MEET JUST AS EASTLY AS THOSE OF EUROPE OR AMERICA, AND EVEN IF ONCE THE EAST AS IMBUED WITH THE MYSTERY OF INACCESSIBILITY THAT TOC HAS CONE AS A RESULT OF CHEAP AIR FARES -- BUT LEAVE THAT TO YOUR CHAIRMAN. →
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