XN000022-1990-04-18 — Page 5

WEDNESDAY, APRIL 18, 1990

"THE TRUTH OF THE MATTER IS THAT THE GOVERNMENT'S INDUSTRIAL POLICIES ARE NOT SO MUCH FOUNDED UPON DOCTRINE THAN THE SIMPLE RECOGNITION THAT MANUFACTURERS ARE GENERALLY BETTER JUDGES OF THE IR OWN INTERESTS THAN CIVIL SERVANTS.

"AS A RESULT, THE GOVERNMENT TRIES TO AVOID INTERVENING IN THE MARKET PLACE AS FAR AS POSSIBLE.

"ITS SUPPORT FOR THE MANUFACTURING INDUSTRIES HAS BEEN LARGELY PRAGMATIC, ESSENTIALLY CONFINED TO HELPING TO OVERCOME CONSTRAINTS OR OBSTACLES TO GROWTH IN AREAS WHERE GOVERNMENT IS THE BEST OR ONLY AGENT FOR ACTION, OR WHERE A CLEAR NEED FOR GOVERNMENT SUPPORT 13 JUSTIFIED," HE SAID.

MR LEUNG SAID THE DEVELOPMENT OF GOVERNMENT'S PRO-ACTIVE INDUSTRIAL POLICIES HAD ALSO MANIFESTED ITSELF IN OTHER WAYS.

HE SAID ONE OF THESE WAS THAT THE GOVERNMENT'S INDUSTRIAL SUPPORT INITIATIVES, TOGETHER WITH EXPERIENCE ELSEWHERE, HAD HIGHLIGHTED THE IMPORTANCE OF A CLOSE WORKING PARTNERSHIP AMONG INDUSTRY, ACADEMIA AND GOVERNMENT.

"THIS HAS BEEN EXEMPLIFIED AS MUCH BY THEIR REPRESENTATION ON OUR NETWORK OF ADVISORY COMMITTEES, CULMINATING IN THE INDUSTRY DEVELOPMENT BOARD, AS BY THE FORMATION OF SUCH INDUSTRIAL SUPPORT ORGANISATIONS AS THE PLASTIC TECHNOLOGY CENTRE, HE SAID.

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FURTHERMORE, HE SAID, THE REALISATION THAT A COMPANY STRUCTURE WOULD RESPOND MORE FLEXIBLY TO CHANGE HAD LED ΤΟ INCREASING CORPORATISATION OF GOVERNMENT'S INDUSTRIAL SUPPORT FACILITIES

THE HONG KONG INDUSTRIAL ESTATES CORPORATION, THE HONG KONG DESION INNOVATION COMPANY LIMITED, THE HONG KONG PLASTIC TECHNOLOGY CENTRE LIMITED, THE CLOTHING TECHNOLOGY DEMONSTRATION CENTRE, THE HONG KONG QUALITY ASSURANCE AGENCY AND THE FORTHCOMING TECHNOLOGY CENTRE.

MR LEUNG SAID THAT WHILE THE GENERAL DIRECTION OF GOVERNMENT'S INDUSTRIAL POLICIES CONTINUED TO BE VALID, THEY WOULD HAVE ΤΟ REMAIN RESPONSIVE TO THE CHANGING DYNAMIC ENVIRONMENT AND, IN PARTICULAR, THEY WOULD HAVE TO TAKE ACCOUNT OF CERTAIN LIKELY DEVELOPMENTS.

HE SAID ONE LIKELY DEVELOPMENT WAS THE EXPANSION OF WORLD TRADE, PARTICULARLY TRADE IN THE ASIA PACIFIC REGION.

ECONOMIC REALITIES ALSO NECESSITATE THE CONTINUAL EXPANSION OF CHINA'S TRADE WITH THE REST OF THE WORLD. HONG KONG IS EXPECTED TO PLAY AN INCREASINGLY PIVOTAL ROLE BOTH AS A REGIONAL CENTRE AND AS THE GATEWAY TO CHINA, HE SAID.

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HE ADDED THAT HONG KONG'S MANUFACTURERS WOULD CONTINUE TO FACE COMPETITION FROM THE SERVICE SECTOR FOR MANPOWER AND OTHER RESOURCES AND THE PRESENT SLOW DRIFT OF EMPLOYMENT FROM MANUFACTURING INTO SERVICES WAS LIKELY TO CONTINUE.

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