XN000022-1984-11-15 — Page 8

THURSDAY, NOVEMBER 15, 1984

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MANUFACTURING STILL BEDROCK OF ECONOMY

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MANUFACTURING WOULD REMAIN THE BEDROCK ON WHICH THE HONG KONG ECONOMY WAS BUILT AND THE GOVERNMENT WOULD CONTINUE TO PROVIDE THE BEST POSSIBLE INFRASTRUCTURE FOR INDUSTRIALISTS, THE DIRECTOR OF INDUSTRY, MR JOHN YAXLEY, SAID TODAY (THURSDAY).

+THE DRAFT SINO-BRITISH AGREEMENT ON THE FUTURE OF HONG KONG PROVIDED A FRAMEWORK WITHIN WHICH DEVELOPMENT COULD CONTINUE WELL IN THE NEXT CENTURY, HE SAID.

+FURTHERMORE, THE DRAFT AGREEMENT IS DRAWN UP IN TERMS WHICH GUARANTEE THAT A FREE ENTERPRISE SYSTEM WILL CONTINUE TO FLOURISH HERE TERMS WHICH ARE SPECIFIED WITH A CLARITY THAT SHOULD GIVE CONFIDENCE TO THE MOST FAINT HEARTED BUSINESSMAN. WHAT BETTER CONDITIONS COULD ANY INVESTOR EXPECT?+ HE SAID.

MR YAXLEY WAS SPEAKING TO THE Y'S MEN'S CLUB OF HONG KONG. THE BASIC PHILOSOPHY OF THE GOVERNMENT HAD REMAINED ONE OF ALLOWING MARKET FORCES TO RUN OUR INDUSTRY AND OUR OTHER ECONOMIC ACTIVITIES, HE SAID.

+ IT HAS NEVER SOUGHT TO INTERVENE IN DECISIONS ON WHAT TYPE OF INDUSTRY SHOULD BE SET UP HERE OR ANY OTHER ASPECT OF PRIVATE BUSINESS INVESTMENT.

+THE GOVERNMENT'S PRAGMATIC AND LIBERAL APPROACH HAS WORKED EXTREMELY WELL, AND HONG KONG'S RESILIENCE AND FLEXIBILITY HAVE TIME AND AGAIN ENABLED ITS INDUSTRIES TO COPE WITH ALL KINDS OF PRESSURE SUCH AS INCREASING COMPETITION FROM NEIGHBOURING COUNTRIES, RISING PRODUCTION AND LABOUR COSTS, STRINGENT QUOTA RESTRICTIONS ON TEXTILES AND GARMENTS, AND NOT LEAST, STAGNATION IN THE WORLD ECONOMY.

*THE OUTCOME HAS BEEN A DIVERSIFICATION FROM TEXTILES AND GARMENTS TO PLASTICS, TOYS, ELECTRICAL PRODUCTS, ELECTRONICS, OPTICAL AND PHOTOGRAPHIC GOODS, WATCHES AND CLOCKS, AND OTHER MORE SOPHISTICATED PRODUCTS WHICH CARRY A HIGHER ADDED VALUE,+ HE SAID.

TO MAKE THE POLICY WORK IN PRACTICE AND REACT IN A POSTIVE WAY TO THE CHANGING CIRCUMSTANCES OF HONG KONG'S ECONOMIC DEVELOPMENT, THE GOVERNMENT IN THE SIXTIES SET UP A SERIES OF STATUTORY BODIES TO PROVIDE INSTITUTIONAL SUPPORT FOR INDUSTRY. THESE BODIES INCLUDED THE TRADE DEVELOPMENT COUNCIL, THE HONG KONG EXPORT CREDIT INSURANCE CORPORATION, THE HONG KONG PRODUCTIVITY COUNCIL AND THE FEDERATION OF HONG KONG INDUSTRIES.

/IN THE