XN000022-1981-02-25 — Page 30

28

WEDNESDAY, FEBRUARY 25, 1981

+NO DOUBT THE 'DEVELOPED COUNTRIES WILL DRAW HEAVILY ON THE PRESENT STATE OF THE IR ECONOMIES AND THEIR PRESENT LEVEL OF UNEMPLOYMENT AS EXCUSES, ALTHOUGH TRADE IN TEXTILES AND CLOTHING CANNOT BE HELD RESPONSIBLE FOR EITHER PLIGHT.+

SIR PHILIP SAID THE FALLACIES BEHIND THE WAY IN WHICH THE PRESENT MFA HAS BEEN APPLIED AS A RESULT OF THE SO-CALLED +REASONABLE DEPARTURES+ PROVISION WERE DISCLOSED IN THE PUBLICATION OF THE HONG KONG TEXTILE AND CLOTHING INDUSTRIES' JOINT CONFERENCE, MYTHS, FACTS AND APPLICATION+.

IT ALSO DEMOLISHED MOST EFFECTIVELY THE ARGUMENTS THAT WERE SUPPOSED TO JUSTIFY THE MFA AND UNDERLINED THE DOMINANT POSITION OF THE DEVELOPED COUNTRIES IN WORLD TRADE.

THE PUBLICATION CAME TO TWO VERY SIGNIFICANT CONCLUSIONS, PHILIP SAID.

SIR

+THE FIRST IS THAT IMPORTS HAVE NOT BEEN THE PRINCIPAL CAUSE IN THE DECLINE IN EMPLOYMENT. THE SECOND IS THAT, WHERE JOBS WERE LOST BECAUSE OF IMPORTS AS OPPOSED TO INCREASED PRODUCTIVITY, IT WAS IMPORTS FROM 'DEVELOPED COUNTRIES THAT ACCOUNTED FOR THE BULK OF THE LOSSES NOT IMPORTS FROM DEVELOPING COUNTRIES.+

OUR GENERAL POSTURE OVER THE COMING MONTHS, HE SAID, MUST BE ONE OF ATTACK, FOR THE ARGUMENTS ARE CERTAINLY ON OUR SIDE.

+BUT THOSE DIRECTLY CONCERNED IN THE TRADE INDUSTRY AND CUSTOMS DEPARTMENT WILL NEED TO BEAR IN MIND LORD CHALFONT'S MEMORABLE SPECIFICATION FOR A SUCCESSFUL NEGOTIATOR, HE MUST HAVE, HE ONCE WROTE, THE PRECIOUS GIFT OF LISTENING TO HOURS OF CANT, HYPOCRISY AND BARELY CONCEALED BLACKMAIL WHILE WEARING THE EXPRESSION OF ENTRANCED SERENITY NORMALLY RESERVED FOR THE SLOW MOVEMENT OF MAHLER'S FIFTH SYMPHONY'..

TELEVISION TALK ON BUDGET *****

THE FINANCIAL SECRETARY, THE HON SIR PHILIP HADDON-CAVE, SPOKE ON THE 1981/82 BUDGET IN A TELEVISION BROADCAST THIS (WEDNESDAY) EVENING.

THE FOLLOWING IS THE FULL TEXT OF HIS TALK:

GOOD EVENING:

THIS AFTERNOON I PRESENTED MY TENTH BUDGET TO THE LEGISLATIVE COUNCIL.

I WAS ABLE TO REPORT THAT 1980 WAS ANOTHER GOOD YEAR FOR THE ECONOMY WHICH GREW BY 9 PER CENT IN REAL TERMS, THAT IS TO SAY, AFTER ALLOWING FOR INFLATION. INFLATION ACCELERATED IN 1980 AND NONE OF US LIKES THIS, BUT IT IS NOT EASY TO AVOID INFLATION IN A FAST DEVELOPING AND DIVERSIFYING ECONOMY AND PARTICULARLY ONE WHICH IS SO EXPOSED TO THE OUTSIDE WORLD LIKE OURS.

/BUT LAT

Page 30Page 31