XN000022-1980-11-19 — Page 19

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WEDNESDAY, NOVEMBER 19, 1980

PROPOSALS FOR AID TO INDUSTRY HANDLED BY

DIVERS IF ICATION COMMITTEE

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THE SECRETARY FOR ECONOMIC SERVICES, THE HON DAVID JEAFFRESON POINTED OUT TODAY IN THE LEGISLATIVE COUNCIL THAT PROPOSALS BY THE HON WONG PO-YAN AND THE HON S.L. CHEN IN THE DEBATE ON THE MOTION OF THANKS FOR THE GOVERNOR'S ADDRESS HAD BEEN COVERED BY THE ADVISORY COMMITTEE ON DIVERS IF ICATION.

THE POINT OF MR WONG'S SUGGESTION FOR INCREASED FINANCIAL ASSISTANCE AND BETTER COORDINATION+ TOWARDS +PROMOTING AND COORDINATING OUR OWN RESEARCH AND DEVELOPMENT EFFORTS IN A MORE ACTIVE MANNER+ HAD BEEN CONSIDERED IN DETAIL BY THE COMMITTEE, MR JEAFFRESON SAID.

*THE GOVERNMENT HAS ACCORDINGLY ESTABLISHED A STANDING INDUSTRIAL DEVELOPMENT BOARD UNDER THE CHAIRMANSHIP OF THE FINANCIAL SECRETARY WITH THE TERMS OF REFERENCE THE ADVISORY COMMITTEE RECOMMENDED.

+ THE BOARD IS SPECIFICALLY CHARGED WITH DRAWING UP PROGRAMMES IN RESPECT OF TECHNICAL RESEARCH AND DEVELOPMENT WORK, IN RESPECT OF TRANSFERS OF TECHNOLOGY, AND IN RESPECT OF APPLIED RESEARCH OF RELEVANCE TO THE DEVELOPMENT OF HONG KONG'S INDUSTRIES AND IT WILL MONITOR IMPLEMENTATION OF THESE PROGRAMMES, HE SAID.

AS TO THE SUGGESTION, MENTIONED BY MR CHEN, FOR THE CREATION OF A FINANCIAL INSTITUTION TO ASSIST INDUSTRIES, MR JEAFFRESON SAID THE ADVISORY COMMITTEE HAD CONSIDERED THE RATE OF CAPITAL INVESTMENT IN HONG KONG AND CONCLUDED ON THE EVIDENCE AVAILABLE TO IT THAT HONG KONG'S MANUFACTURING INDUSTRIES WERE NOT UNDER CAPITALISED.

+SUBSEQUENT EVIDENCE INDICATES THAT, IF ANYTHING, HONG KONG'S INDUSTRIES ARE NOW BETTER CAPITALISED, HE SAID.

HE SAID THE ADVISORY COMMITTEE POINTED OUT THAT INDUSTRY IN HONG KONG HAD RELIED MAINLY ON THE COMMERCIAL BANKS TO PROVIDE CAPITAL FINANCE.

+ IT CONCLUDED THAT COMMERCIALLY VIABLE BUSINESSES DID NOT SEEM TO HAVE ENCOUNTERED DIFFICULTY IN RAISING CAPITAL FINANCE FROM THIS SOURCE, A VIEW WHICH THE MAIN INDUSTRIAL ORGANISATIONS HAD GENERALLY ENDORSED, MR JE AFFRESON SAID.

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