XN000022-1985-03-28 — Page 26

THURSDAY, MARCH 28, 1985

+OBVIOUSLY, FREE TRADE IS OF MUTUAL BENEFIT TO ALL TRADING PARTNERS, BUT SHORT-SIGHTED MEASURES OF RESTRICTIONS HAVE BECOME MORE WIDELY USED BY INDIVIDUAL GOVERNMENTS IN ATTEMPTS TO APPEASE THE PAROCHIAL BUSINESS INTERESTS OF THEIR DOMESTIC INDUSTRY.

+NO DOUBT, THIS WILL ADVERSELY AFFECT OUR VISIBLE TRADE ACCOUNT,

+ IT IS CLEARLY OF URGENCY ON THE AGENDA OF OUR ECONOMIC POLICY TO COUNTERACT THE IMPEDIMENTS OF THESE DISCRIMINATORY PRACTICES ON OUR TRADING POSITION, HE STRESSED.

DR CHAM THE SUGGESTED THAT WHILE WE MUST BE COMMITTED TO STRENGTHENING THE COMPETITIVENESS OF OUR PRODUCTS IN THE WORLD MARKET, WE SHOULD CONTINUE TO DIVERSIFY OUR ECONOMY AND REINFORCE OUR VISIBLE TRADE SURPLUS THROUGH THE EXPANSION OF OTHER SECTORS ESPECIALLY IN FINANCIAL SERVICES.

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GOVT ASKED TO CONTRACT OUT WORK TO CHINA

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THE HON KEITH LAM CALLED ON THE GOVERNMENT TO CONSIDER CONTRACTING OUT SOME GOVERNMENTAL FUNCTIONS TO CHINA SO AS TO HELP REDUCE PUBLIC EXPENDITURE.

DESCRIBING THIS AS A BOLD SUGGESTION+, AT THE BUDGET DEBATE TODAY (THURSDAY), HE SAID THAT GOVERNMENT COULD CONSIDER SUCH A MOVE IN PURSUING THE PRINCIPLE OF COST-EFFECTIVENESS AND TO FURTHER PROMOTE CO-OPERATION WITH CHINA,

HE SAID ONE SUCH POSSIBILITY WAS TO MOVE STANLEY PRISON

TO SHENZHEN, WHERE OVERHEADS WERE MUCH LOWER.

+AS STANLEY PRISON IS A MAXIMUM SECURITY PRISON, THE RECURRENT EXPENDITURE THERE IS VERY HIGH. IN THE FIRST HALF OF 1984-85, THE AVERAGE COST OF MAINTAINING ONE PRISONER WAS $144.00 PER DAY OR $4 320 PER MONTH,

+ IF WE LAY DOWN OUR REQUIREMENTS AND SPECIFICATIONS FOR A MAXIMUM SECURITY PRISON AND CONTRACT OUT THE MAINTENANCE OF SUCH A PRISON TO THE CITY OF SHENZHEN, I THINK THE COST PER INMATE WILL BE SUBSTANTIALLY REDUCED WITHOUT LOWERING STANDARDS, FOR STAFF SALARIES AND PRICES OF FOOD AND MATERIALS THERE ARE MUCH LOWER THAN THOSE IN HONG KONG.

/+TO ENSURE