XN000022-1984-10-25 — Page 20

THURSDAY, OCTOBER 25, 1984

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+THE VARIOUS PLANS FOR THE DEVELOPMENT OF OUR INFRASTRUCTURE AND THE PUBLIC SERVICE PROGRAMMES GIVE US GLIMPSES OF A BRIGHT OUTLOOK.

+1 AM CONVINCED THAT THE GOVERNMENT IS DETERMINED TO CARRY OUT THE PLANS EXTENSIVELY AND CONSISTENTLY.

+AS THERE WILL BE HURDLES TO OVERCOME, THE GOVERNMENT SHOULD SHOW GREATER COURAGE TO ACCEPT CHALLENGES AND JOIN HANDS WITH THE PEOPLE TO STRIVE FOR A PROSPEROUS FUTURE,+ HE SAID.

AVOID TAX INCREASES, SAYS KIM CHAM *****

ANY INCREASE IN DIRECT TAXATION SHOULD BE AVOIDED AS THIS MIGHT CURB HONG KONG'S COMPETITIVE POWER BY MAKING THE RESTORATION OF CONFIDENCE AND THE STIMULATION OF INVESTMENTS MORE DIFFICULT, THE HON KIM CHAM SAID IN THE LEGISLATIVE COUNCIL TODAY.

FOCUSSING ON THE LOCAL ECONOMY, MR CHAM SAID THE DYNAMICS ANT IMPACT OF THE ECONOMY'S RECOVERY WERE LARGELY CONCENTRATED IN T EXPORT SECTOR -- COMPLEMENTED BY AN IMPRESSIVE EXPANSION OF CHINA TRADE.

+I HAVE JUST LEARNT FROM THE FINANCIAL SECRETARY THAT IN T-E THIRD QUARTER CHINA HAS MOVED UP TO BECOME OUR SECOND LARGEST TRADING PARTNER.

+THIS EUPHORIC NOTE IS A SIGNAL THAT WE SHOULD, UNDER THE PRESENT OFFICIAL POLICY OF FREE TRADE, FORGE EVEN CLOSER ECONOMI TIES AND LINKAGE WITH CHINA, GIVEN ITS IMMENSE MARKET POTENTIAL,- HE SAID.

HE SAID HONG KONG'S CONTINUED GROWTH AS A FINANCIAL CENTRE HAD BEEN IMPRESSIVE AND HAD YIELDED SUBSTANTIAL BENEFITS.

STATISTICS OF 1982, HE SAID, SUGGESTED THAT THE FINANCE SECTOR FEATURED A RELATIVELY HIGH RETURN FOR THE INPUT OF LABOUr AS COMPARED WITH THE MANUFACTURING SECTOR.

+IN FACT, THE CONTRIBUTION OF THE FINANCE INDUSTRY IS ALSO RECOGNISED ELSEWHERE. TAIWAN HAD GRANTED PERMISSION FOR OFFSHORE BANKING, JAPAN WAS ABOUT TO LIBERALISE ITS FINANCIAL MARKETS LET ALONE SINGAPORE WHICH HAD LONG RECOGNISED THE CONTRIBUTION OF THIS SECTOR AND ACTIVELY SPONSORED ITS EXPANSION.

+IN ORDER TO MEET THE CHALLENGE OF INTENSIFYING COMPETITION FROM ABROAD, WE MUST SUSTAIN AND ACCENTUATE OUR EFFORTS TO EXPAND AND UPGRADE THIS SECTOR.

/+IN THIS

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