XN000022-1987-05-12 — Page 2

TUESDAY, MAY 12, 1987

HK TO STAND FIRM AGAINST PROTECTIONISM

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HONG KONG SHALL TAKE ALL THE STEPS IT CAN TO PROTECT THE TERRITORY'S TRADING INTERESTS AND TO ARGUE THE VIRTUES OF A FREE TRADING SYSTEM AGAINST THE THREAT OF PROTECTIONISM HANGING OVER THE WORLD TRADING SYSTEM, THE GOVERNOR, SIR DAVID WILSON, SAID THIS (TUESDAY) EVENING.

SPEAKING AT A DINNER CELEBRATING THE 20TH ANNIVERSARY OF THE HONG KONG EXPORT CREDIT INSURANCE CORPORATION, SIR DAVID SAID THE GOVERNMENT WAS CLOSELY MONITORING DEVELOPMENTS, PARTICULARLY IN THE UNITED STATES.

HE SAID IN RECENT YEARS GROWTH IN HONG KONG'S EXTERNAL TRADE HAD LED TO VERY HEALTHY DEVELOPMENT IN MANUFACTURING INDUSTRIES.

+OVER THE FIVE YEARS 1981/86 OUR TOTAL TRADE DOUBLED IN VALUE. + IN RECENT MONTHS THE GROWTH HAS BEEN PARTICULARLY ENCOURAGING. IN THE FIRST QUARTER OF THIS YEAR TOTAL EXPORTS INCREASED BY 41 PER CENT OVER THE SAME PERIOD LAST YEAR. IMPORTS GREW BY A SIMILAR AMOUNT, HE ADDED.

SIR DAVID SAID THE HONG KONG GOVERNMENT DID NOT APPLY A TOTALLY HANDS-OFF POLICY TOWARDS THE MANUFACTURING INDUSTRIES DESPITE ITS TRADITIONAL PRACTICE OF MINIMUM INTERFERENCE,

+HONG KONG OPERATES ON THE PHILOSOPHY THAT FOR THE GOVERNMENT TO INTERFERE WITH THE OPERATION OF MARKET FORCES, OR ATTEMPT TO PLAN THE ALLOCATION OF RESOURCES BETWEEN DIFFERENT INDUSTRIES, IS LIKELY TO DO MORE HARM THAN GOOD, HE EXPLAINED.

HOWEVER, HE SAID THAT THE GOVERNMENT RECOGNISED THE NEED TO PROVIDE THE INFRASTRUCTURAL SUPPORT VITAL TO THE EXISTENCE AND DEVELOPMENT OF HONG KONG'S MANUFACTURING INDUSTRIES, THAT IS, AN ADEQUATE SUPPLY OF TREATED WATER, ENERGY, INDUSTRIAL LAND, TRANSPORT AND COMMUNICATIONS.

+THE GOVERNMENT WILL CONTINUE TO INVEST IN THIS KIND OF INFRASTRUCTURAL SUPPORT,+ SIR DAVID SAID, IT WILL ALSO ENCOURAGE THE PRIVATE SECTOR TO DO THE SAME.

HE SAID THAT IT WAS NOT JUST INTERNAL INFRASTRUCTURE THAT MADE THE ECONOMY DYNAMIC, IT WAS PEOPLE THAT MADE A SOCIETY AND IT WAS PEOPLE THAT MADE AN ́ECONOMY A SUCCESS OR A FAILURE. +HONG KONG HAS BEEN VERY FORTUNATE IN ITS PEOPLE.

+BUT WE CANNOT REST ON OUR LAURELS. WE MUST PLAN FOR THE FUTURE, HE SAID.

/+FUR OUR