XN000022-1982-09-27 — Page 2

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PRIME MINISTER SPEAKS TO BUSINESS LEADERS

The Prime Minister, the Rt Hon Margaret Thatcher, today addressed

luncheon jointly hosted by the General Chamber of Commerce, the Chinese

Manufacturers' Association and the Federation of Hong Kong Industries.

Also attending the luncheon were Mr Denia Thatcher, the Governor,

Sir Edward Youde and Lady Youde.

Following is the full text of the Prime Minister's speecha

May I start by saying how pleased I am to be in Hong Kong again. The atmosphere is always stimulating perhaps because for generations Hong Kong people have looked not to Governments for their standard of living, but to their own personal efforts.

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Mr. Chairman, the prosperity of Hong Kong is built upon a principle in which I firmly believe that the powers of Government should be limited to providing a framework of justice and regulation which encourage people to exercise their own talente. Then success will be achieved, not only by men and women for themsleves and for their Families, but also for their community as a whole.

I am grateful for the opportunity to speak to you today because I want to tell you, the commercial and industrial leaders of Hong Kong, something about the ways in which we are now trying to apply the same principles in Britain.

For many years the concept grew in Britain that the Government could not only provide the climate for economic growth, but could even create it.

I well recall that in the national plan of the late 1960s the expansion of public expenditure was presented as the engine of economic growth.

/THAT FALLACY