XN000022-1981-10-29 — Page 10

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THURSDAY, OCTOBER 29, 1981

+THEREFORE, WHEN WE ARE EARNESTLY MOVING UP-MARKET AND UPGRADING THE TECHNOLOGICAL STANDARD OF OUR MANUFACTURING INDUSTRY, WE HAVE TO ACCEPT THE FACT THAT FROM A SOCIAL POINT OF VIEW, THE EXISTENCE OF CERTAIN FACTOR IES AND INDUSTRIAL UNDERTAK INGS AT THE LOWER END IS NECESSARY TO TAKE CARE OF THESE UNSKILLED WORKERS, HE SAID.

MR WONG URGED THAT CERTAIN ASSISTANCE TO THESE FACTORIES TO ENABLE THEM TO CONTINUE THEIR OPERATIONS MAY BE JUSTIFIED IN THE LIGHT OF SOCIAL CONSIDERATIONS, ADDING THAT THIS SHOULD NOT AFFECT IN ANY WAY THE TREMENDOUS EFFORTS IN UPGRADING AND DIVERSIFYING OUR INDUSTRY IN GENERAL.

TURNING TO THE EXTERNAL ENVIRONMENT OF OUR MANUFACTURING INDUSTRY, MR WONG POINTED OUT THAT IN THE EARLY YEARS, OUR NE IGHBOURING COUNTRIES WERE FAR BEHIND US IN PROGRESS AND THE IR COMPETITION WAS NOT A REAL THREAT.

SOME OF THEM EVEN WERE NOT YET ACTIVE IN THE WORLD MARKET WHILE HONG KONG HAD THE PROTECTION OF THE COMMONWEALTH PREFERENCE SYSTEM AT THAT TIME.

+TODAY, WE STAND STRIPPED OF THESE ADVANTAGES AND, ON THE CONTRARY, OUR NEIGHBOURS HAVE REVERSED THE POSITION ON US.

+THEY HAVE LOW COST LAND. THEY HAVE MORE RESOURCES, THEY HAVE A LARGER POTENTIAL DOMESTIC MARKET AND THEY ALSO HAVE THE IR GOVERNMENT'S ASSISTANCE IN ONE WAY OR ANOTHER. THEY HAVE DEVELOPED MANY BASIC INDUSTRIES TO PRODUCE THE RAW MATERIALS WHICH WE STILL HAVE TO IMPORT.

+WE EVEN HAVE TO COMPETE WITH SOME WELL-DEVELOPED COUNTRIES IN CERTAIN EXPORT ITEMS, HE SAID.

INTERNALLY, MR WONG CONTINUED, IN THE LAST FEW YEARS DURING THE PERIOD OF THE ECONOMIC UPSURGE, THE MANUFACTURING SECTOR AS A WHOLE HAS HAD A LESSER PORTION OF THE FORTUNE WHICH THE ENTIRE COMMUNITY CREATED.

HE SAID SOME INDUSTRIAL ISTS WHO WERE TOO ENTHUSIASTIC IN INCREASING OR IMPROVING THEIR PRODUCTION EQUIPMENT OR FOR ANY OTHER REASON WHO DID NOT SECURE A PIECE OF PROPERTY FOR THEIR OWN USE ARE NOW FACING THE PROBLEM OF INCREDIBLY HIGH RENTS FOR THE IR FACTORY SITES.

+THEREFORE, WE HAVE A GENUINE AND URGENT PROBLEM OF PROVIDING SITES FOR THOSE INDUSTRIES WHICH CANNOT COMPETE IN THE OPEN MARKET BUT WHOSE EXISTENCE IS DESIRABLE ON SOCIAL CONSIDERATIONS.

+PROBABLY THE PROVISION OF MORE PUBLIC INDUSTRIAL BUILDINGS MAY BE ONE OF THE ANSWERS FOR THE SMALL SIZE FACTORIES, ESPECIALLY THOSE WHICH HAVE TO BE CLEARED FROM CROWN LAND REQUIRED FOR DEVELOPMENT.+

ANOTHER PROBLEY

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