XN000022-1981-02-25 — Page 29

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WEDNESDAY, FEBRUARY 25, 1981

WITHIN THE TERTIARY SERVICES SECTORS, THE FINANCIAL SECRETARY ALSO ENVISAGED THAT THE FINANCIAL AND RELATED BUSINESS SERVICES SECTOR WILL CONTINUE TO DEVELOP AS A SOURCE OF FOREIGN EXCHANGE EARNINGS IN ITS OWN RIGHT.

+BUT THIS MEANS THAT WE SHALL HAVE TO ADAPT, AND MONITOR CONTINUOUSLY, THE GROUND RULES WITHIN WHICH THE CONSTITUENT MARKETS OPERATE SO AS TO ACHIEVE A BALANCE BETWEEN THE LOW LEVEL OF GOVERNMENT REGULATION DICTATED BY PARTICIPANTS - THOUGH SOME PARTICIPANTS CAN BE AMBIVALENT IN THE IR ATTITUDES AND THE LEVEL OF PRUDENTIAL SUPERVISION NECESSARY TO KEEP IN LINE WITH DEVELOP ING INTERNATIONAL STANDARDS, HE ADDED.

SIR PHILIP ALSO ENVISAGED THAT PARTLY AS A CONSEQUENCE OF PROTECTIONISM, THE RELATIVE SIZE OF THE CONTRIBUTION OF THE MANUFACTURING SECTOR TO THE GROSS DOMESTIC PRODUCT WILL DECLINE FURTHER, ALTHOUGH IT WILL CONTINUE TO BE THE LARGEST SINGLE SECTOR OF OUR ECONOMY, PARTICULARLY IN TERMS OF EMPLOYMENT.

HE NOTED THAT HONG KONG'S RECENT EXPERIENCE WHEN NEGOTIATING BILATERAL AGREEMENTS UNDER THE MULTI-FIBRE ARRANGEMENT (MFA) INDICATES THAT THE MAJOR INDUSTRIALISED COUNTRIES ARE MOVING TOWARDS DISCRIMINATORY TREATMENT OF DIFFERENT SUPPLIERS, THEREBY BREACHING THE SPIRIT AND EVEN THE LETTER OF MFA.

HOWEVER, HE SAID, WHATEVER THE COURSE OF DEVELOPMENT OF THE MANUFACTUR ING SECTOR IN THE 1980'S, IT WILL NEED TO BE SUPPORTED BY AN EVEN GREATER STRESS ON TECHNICAL EDUCATION, ON AREA WHICH HE HOPED TO SEE A GREATER INVOLVEMENT OF PUBLIC FUNDS.

FACTS AND MYTHS OF THE MFA

*****

THE MULTILATERAL NEGOTIATIONS FOR A SUCCESSOR ARRANGEMENT TO THE MULTI-FIBRE ARRANGEMENT (MFA) WILL BE A MAJOR PREOCCUPATION DURING THE YEAR, THE FINANCIAL SECRETARY, THE HON SIR PHILIP HADDON-CAVE, SAID TODAY (WEDNESDAY).

IN HIS BUDGET SPEECH, SIR PHILIP SAID THE SIGNIFICANCE OF THE MFA TO HONG KONG WAS BEYOND QUESTION - OUR EXPORTS OF TEXTILES AND CLOTHING STILL ACCOUNTED FOR ABOUT 40 PER CENT OF TOTAL DOMESTIC EXPORTS, 45 PER CENT OF THE OUTPUT OF THE MANUFACTURING SECTOR AND 43 PER CENT OF EMPLOYMENT.

+THIS DEPENDENCE, DICTATED AS IT IS BY HONG KONG'S CIRCUMSTANCE, IS VERY MUCH GREATER THAN THE DEPENDENCE OF THE ECONOMIES OF OUR MAIN MARKETS ON THEIR TEXTILES AND CLOTHING INDUSTRY, HE SAID.

SIR PHILIP SAID THE SHORTCOMINGS OF THE MFA IN RECENT YEARS HAVE NOT BEEN SO MUCH THAT IT HAS BEEN INADEQUATE, BUT RATHER THAT, FOR ONE REASON OR ANOTHER, IT HAS BEEN INADEQUATELY RESPECTED.

/+NO DOUBT