XN000022-1986-11-03 — Page 4

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MONDAY, NOVEMBER 3, 1986

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DOMESTIC EXPORTS HAD BEEN INCREASING HEALTHILY SINCE MARCH. AN OVERALL GROWTH RATE OF 12 PER CENT WAS RECORDED FOR THE FIRST EIGHT MONTHS OF THIS YEAR. DOMESTIC EXPORTS TO ALL MAJOR MARKETS GREW DURING THIS PERIOD.

IMPORTS INTO HONG KONG ALSO INCREASED BY 13 PER CENT DURING THE FIRST EIGHT MONTHS OF THE YEAR.

MR JACOBS SAID THE LATEST STATISTICS ON RETAINED IMPORTS OF RAW MATERIALS AND SEMI-MANUFACTURES AND ON THE ORDER-BOOK POSITIONS OF HONG KONG'S MANUFACTURERS SUGGESTED A CONTINUED IMPROVEMENT IN MANUFACTURING ACTIVITY.

HE ADDED THAT RETAINED IMPORTS OF INDUSTRIAL MACHINERY HAD INCREASED CONSIDERABLY, BY 51 PER CENT IN VALUE TERMS AND SOMEWHAT LESS IN REAL TERMS IN THE FIRST EIGHT MONTHS OF THIS YEAR.

+ INVESTMENT IN INDUSTRIAL MACHINERY IS ESSENTIAL NOT ONLY TO THE PRODUCTION OF GOODS BUT ALSO TO THE MAINTENANCE AND FURTHERANCE OF OUR COMPETITIVENESS IN OVERSEAS MARKETS,+ HE SAID.

TURNING TO THE SECOND THEME OF THE CONFERENCE +COMPETITION+, MR JACOBS SAID AS HONG KONG'S ECONOMY WAS EXTERNALLY ORIENTED, THE GOVERNMENT SHOULD FACILITATE THE ECONOMY'S ABILITY TO ADJUST EFFICIENTLY SO THAT INDUSTRY MAINTAINED ITS EXTERNAL COMPETITIVENESS THROUGH ITS OWN EFFORTS.

HE SAID THE GOVERNMENT HAD MAINTAINED AN ENVIRONMENT IN WHICH PRIVATE ENTERPRISES WERE ENCOURAGED TO MAXIMISE THEIR RETURN ON INVESTMENT, CONSTRAINED THE GROWTH OF PUBLIC SECTOR SPENDING, AND MAINTAINED A PREDICTABLE AND CERTAIN LEGAL FRAMEWORK WITHIN A LOW TAX REGIME.

HE ALSO SAID THE AIMS OF POLICIES IN RELATION TO INDUSTRY WERE TO SUPPORT AND FACILITATE ITS GROWTH AS A WHOLE RATHER THAN PROMOTING THE INTERESTS OF ANY ONE PARTICULAR INDUSTRY.

MR JACOBS SAID HONG KONG'S INDUSTRIAL DEVELOPMENT PRIORITIES WOULD CONTINUE TO BE CLOSELY ASSOCIATED WITH THE AVAILABILITY AND DISSEMINATION OF USEFUL TECHNOLOGY.

HE NOTED THAT THE GOVERNMENT, THROUGH THE PROVISION OF INDUSTRIAL SUPPORT SERVICES, THE PROMOTION OF INWARD INDUSTRIAL INVESTMENT AND THE PROVISION OF APPROPRIATE MANPOWER TRAINING, FACILITATED THE ACQUISITION AND DISSEMINATION OF USEFUL TECHNOLOGY.

TO IDENTIFY