XN000022-1986-10-07 — Page 9

AY, OCTOBER 7, 1986

IN HIS SPEECH MR YEUNG MADE THE POINT THAT TECHNOLOGY TRANSFER WAS IMPORTANT TO DEVELOPING COUNTRIES LIKE HONG KONG. PARTICULARLY WHERE IT RAISED THE LEVEL OF PRODUCTIVITY AND QUALITY OF MANUFACTURING OUTPUT.

TECHNOLOGY TRANSFER WAS OFTEN A PURE BUSINESS TRANSACTION,

HE SAID, BUT GOVERNMENTS WERE MORE INTERESTED IN REMOVING BARRIERS TO ITS TAKING PLACE.

+GOVERNMENTS ARE CONCERNED, TO A GREATER OR LESSER DEGREE, WITH THE AVAILABILITY AND ADAPTABILITY OF CAPITAL AND TECHNOLOGICAL SUPPORT TO ENABLE THE PURCHASER OF TECHNOLOGY TO PUT IT TO FULL USE. GOVERNMENTS, THEREFORE, TEND TO BE CONCERNED WITH OVERCOMING OBSTACLES TO TECHNOLOGY TRANSFER, HE SAID.

SOME TECHNOLOGIES COULD NOT BE ABSORBED BY PRIVATE ENTERPRISE UNLESS THEY WERE ADEQUATELY SUPPORTED THROUGH MANPOWER TRAINING AND INDUSTRIAL SUPPORT SERVICES. HONG KONG WAS ACTIVELY SEEKING TO LOWER THESE BARRIERS, EDUCATION AND MANPOWER NOW ACCOUNTED FOR MORE THAN 20 PER CENT OF TOTAL GOVERNMENT EXPENDITURE.

IN ADDITION TO CONVENTIONAL FORMS OF TRAINING TO ACHIEVE ABSORPTION OF SPECIALIST TECHNOLOGIES, HONG KONG WAS ENCOURAGING GOVERNMENT-FUNDED TRAINING FOR PRACTISING ENGINEERS RATHER THAN ESTABLISHING LARGE RESEARCH AND DEVELOPMENT INSTITUTES. A WIDE RANGE OF INDUSTRIAL SUPPORT SERVICES WAS PROVIDED.

ANOTHER TYPE OF BARRIER TO TECHNOLOGY TRANSFER WAS THE MISMATCH BETWEEN FINANCIAL AND MARKET REQUIREMENTS. MANY COUNTRIES ATTEMPTED TO TACKLE THIS BY DIRECT GOVERNMENT SUPPORT SUCH AS INDUSTRIAL SUBSIDIES, LOAN GUARANTEES AND TAX INCENTIVES.

HONG KONG TOOK THE VIEW THAT IT WAS NORMALLY FUTILE AND DAMAGING TO ATTEMPT TO PLAN THE ALLOCATION OF RESOURCES OR TO FRUSTRATE THE OPERATION OF MARKET FORCES.

INCREASING INTEREST WAS NOW BEING SHOWN, HOWEVER, IN THE ESTABLISHMENT OF PRIVATE VENTURE CAPITAL OPERATIONS AND GOVERNMENT WAS NOW CONSIDERING WHETHER THERE MIGHT BE A CASE FOR RELAXING STOCK EXCHANGE LISTING REQUIREMENTS AS A MEANS OF NURTURING THE GROWTH OF SUCH OPERATIONS.

WHERE FOREIGN MANUFACTURING INVESTMENT WAS CONCERNED WHAT WAS BEING LOOKED FOR WAS THE INTRODUCTION OF NEW OR IMPROVED PRODUCTS, NEW DESIGNS AND PROCESSES, AND IMPROVED MANAGEMENT TECHNIQUES.

+ IN SEEKING FOREIGN INVESTMENT THE ROLE OF THE HONG KONG GOVERNMENT IS GENERALLY TO IDENTIFY THOSE FOREIGN BUSINESSES THAT HAVE THE TECHNOLOGY WE NEED AND TO ENCOURAGE THEM TO INVEST, SAID MR YEUNG, ADDING THAT JAPANESE FIRMS WERE IMPORTANT IN THIS.

HONG KONG'S MASSIVE INVESTMENT IN MANPOWER TRAINING, CAPITAL INFRASTRUCTURE AND INDUSTRIAL SUPPORT SERVICES IN PARTICULAR SHOWED CLEARLY THE GOVERNMENT'S DETERMINATION TO CREATE A SOUND TECHNOLOGICAL ENVIRONMENT - THE EXCELLENCE OF THE BUSINESS ENVIRONMENT REQUIRED NO ELABORATION, HE CONCLUDED.

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