XN000022-1987-11-04 — Page 31

VIENUOLY, HOTEMIR 4, 1987

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"THEREFORE, THE FUTURE PROSPECT FOR HONG KONG EXPORTERS WILL DEPEND ON THEIR ABILITY TO FURTHER DIVERSIFY THE EXPORT MARKET.

DR CHAM ALSO SAID THAT ONLY IN THE SHORT-TERM WOULD HONG KONG BENEFIT FROM A STABLE AND RELATIVELY LOWER RATE OF CURRENCY EXCHANGE. IN THE LONG RUN, FURTHER DEVELOPMENT OF EXPORTS AND INDUSTRIES WOULD HINGE MAINLY ON TECHNOLOGICAL PROGRESS.

HE SAID IT WAS SENSIBLE FOR HONG KONG TO CONCENTRATE ON ADAPTATION OF INNOVATIVE ACTIVITIES AND GREATER EFFORT SHOULD BE MADE TOWARDS SPEEDING UP THIS PROCESS.

"IT WOULD PUT THE HONG KONG ECONOMY ON A MORE ADVANTAGEOUS POSITION VIS-A-VIS ITS EXPORT COMPETITORS SO THAT IN THE LONGER RUN, HONG KONG INDUSTRIES WILL BE ON A MORE CONCRETE FOUNDATION.

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DR CHAM SAID IT WAS ENCOURAGING THAT HONG KONG WAS ENJOYING FULL EMPLOYMENT AT PRESENT.

THERE HAD BEEN A TREMENDOUS GROWTH IN EXPORTS AND, IF THIS HEALTHY GROWTH WAS TO BE SUSTAINED, HONG KONG MUST STRENGTHEN ITS INDUSTRIAL CAPABILITY BY DEVOTING MORE EFFORT то ENCHANCING ITS "HUMAN CAPITAL".

HE URGED THE GOVERNMENT TO DEVISE WAYS AND MEANS OF MINIMISING THE OUTFLOW OF PRECIOUS HUMAN RESOURCES.

DR CHAM SAID THE ESSENCE OF ECONOMIC GROWTH WAS TO PROMOTE ECONOMIC WELFARE OF THE PEOPLE AND HENCE IMPROVE THEIR STANDARD OF LIVING.

GIVEN THIS OVER-RIDING OBJECTIVE, HONG KONG MUST DO EVERYTHING FEASIBLE TO NUTURE THIS GROWTH, INCLUDING PRESERVING FREE TRADE.

AVOID ANY STRESS WHICH REDUCES CONFIDENCE

ANY STRESS WHICH KONG'S FUTURE SHOULD BE AVOIDED AS FAR AS CLYDESDALE SAID TODAY (WEDNESDAY).

MIGHT REDUCE

BUSINESS CONFIDENCE IN HONG POSSIBLE, THE HON THOMAS

POLICY SPEAKING IN THE LEGISLATIVE COUNCIL DURING THE

BE MR CLYDESDALE SAID THAT IF HONG KONG WAS TO CONTINUE TO AS A GENUINE AND SUBSTANTIAL CENTRE FOR INTERNATIONAL OPERATIONS, IT COULD NOT AFFORD TO PERMIT THE KIND OF ACTIONS

FUTURES AND STOCK OPERATION OF THE

EXCHANGES WHICH HAD BROUGHT EXTENSIVE INTERNATIONAL CRITICISM AND OPPROBRIUM.

DEBATE,

DEVELOPED FINANCIAL IN THE RECENTLY

/"WE SIMPLY