XN000022-1991-12-20 — Page 6

FRIDAY, DECEMBER 20, 1991

TURNING TO THE PROBLEM OF INFLATION, MR MACLEOD SAID THREE MAIN ELEMENTS MAKE UP THE ESSENCE OF THIS PROBLEM IN HONG KONG.

"THE

HAS

FIRST STRUCTURAL CHANGE.

TO A SHIFT FROM MANUFACTURING "THERE

BEEN COUPLED WITH A TRANSFER SECTOR,

OF THE MORE LABOUR MANUFACTURING TO SOUTHERN CHINA, TOGETHER WITH NEW HONG KONG, MR MACLEOD SAID.

It

ACHIEVING IS HONG KONG HAS SUCCEEDED IN

A

MAJOR

THE

SERVICE INTENSIVE INVESTMENTS FROM

"SECONDLY,

THIS STRUCTURAL CHANGE HAS HAD A VARYING EFFECT OUR PRICE STRUCTURE," HE SAID.

ON

"ON THE ONE HAND, THE EXPANSION OF OUR INDUSTRY INTO CHINA IN

TURN

THE DEMAND FOR SERVICES IN STIMULATES UNFORTUNATELY, IT ALSO PUSHES UP PRICES.

HONG

SOUTHERN

KONG.

"ON THE OTHER HAND, OUR RESTRUCTURED INDUSTRY HAS BEEN ABLE KEEP ITS PRICES DOWN, THROUGH A COMBINATION OF INCREASED AND HAVING SOME PROCESSING DONE IN CHINA.

ΤΟ

PRODUCTIVITY

AND "THE THIRD IS THE SEVERE SHORTAGE OF LAND AGGRAVATES THE PRESSURE ON CONSUMER PRICES AND RESTRAINS GROWTH.

LABOUR

WHICH

BY

**THIS ADDITIONAL DEMAND CREATED FOR OUR GOODS AND SERVICES

CHINA THE GROWTH IN OVERSEAS ORDERS AND OUR EXPANDED ROLE IN SOUTHERN WOULD HAVE BEEN FAR LESS INFLATIONARY HAD OUR LAND AND LABOUR NOT BEEN IN SHORT SUPPLY," HE SAID.

MR MACLEOD POINTED OUT THAT THE GOVERNMENT'S APPROACH TO TACKLE WHAT ECONOMIC, THE PROBLEM HAS BEEN TO LOOK CALMLY AND CAREFULLY AT FISCAL OR MONETARY MEASURES ARE AT ITS DISPOSAL TO EASE THE SITUATION, AND TO BE AWARE OF THE DANGER OF CAUSING ADVERSE SIDE EFFECTS.

IN SHORT, THESE MEASURES ARE :

OUTSIDE HONG BEEN BROUGHT IN

* SINCE 1989, THE GOVERNMENT HAS INTRODUCED A NUMBER OF SCHEMES

FOR THE SELECTIVE IMPORTATION OF WORKERS FROM KONG. TO DATE, SOME 14 000 WORKERS HAVE UNDER THESE EXPERIMENTAL SCHEMES.

THE DECISION TO RELEASE MORE LAND RESIDENTIAL UNITS;

FOR SALE FOR BUILDING

THE LEGISLATIVE SALE AND PURCHASE BEFORE THE PROPERTY

* THE INTRODUCTION OF DRAFT LEGISLATION INTO

STAMP

ALL DUTY ON COUNCIL TO

FOR RESIDENTIAL PROPERTY

AGREEMENTS

ASSIGNED;

CHARGE

IS .

* THE BANKING INDUSTRY'S ACTION TO TIGHTEN MORTGAGE LENDING AND

IMPOSE A 70 PER CENT MORTGAGE LIMIT.

PUBLIC

MR MACLEOD NOTED THAT IN MANY OTHER PARTS OF THE WORLD, EXPENDITURE HAS BEEN A MAJOR SOURCE OF INFLATION, ALTHOUGH THIS IS NOT THE CASE HERE IN HONG KONG.

/"WE MUST