XN000022-1982-08-03 — Page 2

TUESDAY, AUGUST 3, 1982

QUALITY FOR SUCCESS

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THE ACTING SECRETARY FOR TRADE AND INDUSTRY, MR PETER TSAO TODAY (TUESDAY) DESCRIBED OUR FAST AND ACCURATE RESPONSE TO OPPORTUNITIES AS THE MAJOR QUALITY WHICH NOT ONLY HAD HELPED HONG KONG OVERCOME DIFFICULTIES IN PAST YEARS, BUT WAS PAVING THE WAY FOR A PROMISING FUTURE, DESPITE THE PRESENT WORLD-WIDE RECESSION.

ADDRESSING THE LUNCHEON MEETING OF THE LIONS CLUB OF NORTH KOWLOON, MR TSAO POINTED OUT THAT THIS WAS THE FACTOR WHICH ENABLED HONG KONG TO MAINTAIN A MINIMUM GROWTH RATE DURING THE ECONOMIC RECESSION, AND WHICH WOULD ENSURE FULL USE WAS MADE OF ADVANTAGES WHEN THE WORLD ECONOMY REVIVED.

CITING EXAMPLES OF 1980 AND 1981 WHEN THE INTERNATIONAL ECONOMY WAS DECLINING, MR TSAO OUTLINED HOW HONG KONG HAD COPED. +DURING THAT TIME, MOST OF THE OVERSEAS TRADERS CHANGED THE IR PURCHASING POLICY BY CLEARING STOCKS, REDUCING IMPORTS AND SHORTENING ORDER PERIODS.

+HONG KONG BENEFITED IN THESE TWO YEARS BECAUSE OUR COMPETITORS COULD NOT REACT AS QUICKLY AS HONG KONG TO THE ORDER REQUIREMENTS OF OVERSEAS BUYERS.+

THE REASONS WHY HONG KONG HAS ABILITIES WHICH ARE LACKING IN OTHERS, ACCORDING TO MR TSAO, ARE:

+HONG KONG PEOPLE ARE PARTICULARLY SENSITIVE TO, OR PERHAPS CONCENTRATING ON, WAYS OF EARNING MONEY, OUR TRADERS ARE MORE READY THAN OTHERS TO ADAPT THEMSELVES TO CIRCUMSTANCES. HONG KONG'S INFRASTRUCTURE IS WELL-ESTABLISHED. THEREFORE, WHENEVER TRADE OPPORTUNITIES ARISE ALL SUPPORTING FACILITIES, SUCH AS BANKING, CARGO SHIPPING AND COMMUNICATIONS, ARE IMMEDIATELY AVAILABLE.

+THERE ARE NO COMPLICATED GOVERNMENT REGULATIONS TO BURDEN TRADERS WHEN THEY HAVE TO DEAL WITH OVERSEAS ORDERS IMMEDIATELY. THERE IS SUFFICIENT LOCAL CAPITAL TO FINANCE URGENT TRANSACTIONS, AND THE WELL-KNOWN WORKING ATTITUDE AND SPIRIT OF OUR WORKERS CONTRIBUTE TO OUR REMARKABLE ACHIEVEMENTS, HE SAID.

+FIRST,

TURNING TO HONG KONG'S TRADE PERFORMANCE IN THE NEXT FEW MONTHS, MR TSAO WAS RELUCTANT TO MAKE ANY FORECASTS. WE CANNOT EXPECT A SUBSTANTIAL RISE IN OUR EXPORTS AS LONG AS WORLD ECONOMY IS IN A DOWN-TURN. SECONDLY, WHILE HONG KONG CAN WITHSTAND THE EFFECTS OF WORLD RECESSION FOR A PERIOD OF TIME, AND WE DID SO IN 1980 AND 1981, HONG KONG IS NOT IMMUNED FROM RECESSION.

+THIRDLY, ASSUMING THAT OUR FOREIGN TRADE IS IN THE TOTAL

I. T. TREND. WE SHOULD NOT LOOK AT ONLY 1982, BUT ALSO TAKE INTO ACCOUNT THE ACHIEVEMENTS IN THE PAL FEW YEARS.