XN000022-1981-03-25 — Page 16

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EDNESDAY, MARCH 25, 19:1

+ IT IS TRUE THE PUBLIC SECTOR HAS BEEN CONSISTENTLY IN OVERALL SURPLUS, AND RECENTLY SUBSTANTIALLY SO!

+ IT IS TRUE ALSO THAT THE FINANCIAL SECRETARY WARNED US ALL SEVERELY THAT, IN THE NEW THREE YEARS FORECAST PERIOD, THERE WILL BE NO ROOM FOR FURTHER ENLARGEMENT.

+BUT HE CANNOT ARGUE THAT THE CRITICAL TASK OF MANAGEMENT' IS TO PROTECT THE ABILITY OF THE ECONOMY TO ACHIEVE GROWTH WITH STABILITY AND YET RUN THE RISK OF THE PUBLIC SECTOR BIDDING RESOURCES AWAY FROM THE PRIVATE SECTOR THEREBY CASUING FURTHER DAMAGE THROUGH DOMESTICALLY GENERATED INFLATION.

+1 ADMIT THAT EVEN I HAVE SUGGESTED MORE EXPENDITURE ON HOUSING, BUT I HASTEN TO TAKE REFUGE IN A PLEA FOR A MORE AUSTERE VIEW OF PRIORITIES.+

SHE SAID SHE WOULD AGREE THAT THE TRANSPORT INFRASTRUCTURE, TECHNICAL EDUCATION, LAND PRODUCTION AND HOUSING DESERVE SPECIAL ATTENTION, BUT THERE MUST BE SCOPE FOR ECONOMIES ELSEWHERE.

REFERRING TO THE FORTHCOMING RE-NEGOTIATION OF THE KULT FIBRE ARRANGEMENT, MISS DUNN WARNED THAT THE TEXTILES

D CLOTHING TRADE AND INDUSTRY ARE CERTAINLY APPROACHING A ISIS+.

- IN HONG KONG, SHE SAID, TEXTILES AND CLOTHING STILL ACCOUNT FOR 40 PER CENT OF OUR DOMESTIC EXPORTS REFLECTING NOT LOW WAGES AND SWEAT SHOP WORKING CONDITIONS BUT A CONTINUING PROCESS OF MODERNISATION OF PLANT AND EQUIPMENT, DIVERS IF ICATION IF PRODUCTS AND MARKETS, AND A FLEXIBILITY OF RESPONSE TO FASHION CHANGES.

+SO, VERY UNDERSTANDABLY, HONG KONG EXPORTERS AND MANUFACTURERS ALIKE ARE FILLED WITH A SENSE OF FRUSTRATION, INDIGNATION AND APPREHENSION: INDIGNATED AT THE REPEATED REQUESTS FOR EXTRA RESTRICTIONS IN SPITE OF THE EXISTENCE OF BILATERAL AGREEMENTS: FRUSTRATED, BECAUSE THE MFA ITSELF IS TREATED SO CONTEMPTUOUSLY BY CERTAIN IMPORTING COUNTRIES AND APPREHENDED, SINCE THE FUTURE IS SO UNCERTAIN. +

SHE CALLED ON THE GOVERNMENT TO DO ALL WITHIN ITS POWER TO ENSURE THAT ANY SUCCESSOR ARRANGEMENT TO THE PRESENT MFA WILL BE A MEANINGFUL ONE.

SHE ALSO SAID IT WOULD BE HELPFUL IF THE BRITISH GOVERNMENT WOULD BE PRESSED TO LOOK AFTER HONG KONG'S INTERESTS IN THIS RESPECT.

MISS DUNN ALSO SPOKE AGAINST THE INTRODUCTION OF TOO MANY REFORM MEASURES IN A HURRY, NO MATTER HOW JUSTIFIED EACH MAY BE.

+THE MARKET TENDS NOT TO LISTEN TO THE CASE FOR REFORMS AS CAREFULLY AS THE FINANCIAL SECRETARY FORMULATES THEM AND SO 12 EASILY UPSET.+ SHE CAUTIONED,