XN000022-1992-07-07 — Page 2

TUESDAY, JULY 7, 1992

1

HK A PLACE FOR TRADE AND INVESTMENT: STI

THE SECRETARY FOR TRADE AND INDUSTRY, MR T.H. CHAU, SAID THE GOVERNMENT WOULD CONTINUE TO DO ALL IT COULD TO PROVIDE A PRO-BUSINESS ENVIRONMENT WHILE LEAVING THE PRIVATE SECTOR FREE го DECIDE WHAT OPPORTUNITIES TO PURSUE, AND WHERE TO INVEST.

SPEAKING AT THE 32ND ANNUAL GENERAL MEETING AND LUNCHEON OF THE FEDERATION OF HONG KONG INDUSTRIES THIS (TUESDAY) AFTERNOON,

MR CHAU SAID THE GOVERNMENT BELIEVED AS FIRMLY AS EVER IN THE MERITS OF THE MARKET ECONOMY AND OF COMPETITION; IN LOW TAX AND MINIMUM RED TAPE; IN COMBINING EFFECTIVE REGULATION WHERE NEEDED WITH MAXIMUM OPPORTUNITY FOR ECONOMIC AND BUSINESS GROWTH.

HE STRESSED THAT HONG KONG REMAINED AN EXCITING PLACE FOR TRADE AND INVESTMENT, ADDING THAT THERE WAS NO SHORTAGE OF GOOD BUSINESS AND NO SHORTAGE OF PEOPLE WITH THE VISION AND TALENT TO TURN THEM TO ADVANTAGE.

OPPORTUNITIES

"FOR

-

THAT

THE GOVERNMENT'S PART, WE ARE COMMITTED TO ENSURING THE BUSINESS ENVIRONMENT IN HONG KONG REMAINS ONE IN WHICH EXISTING INDUSTRIES CAN DEVELOP AND NEW INDUSTRIES CAN TAKE ROOT.

HE SAID THE GOVERNMENT'S POLICIES REFLECTED THAT COMMITMENT.

'EDUCATION AND TRAINING ARE BEING EXPANDED. MORE LAND IS BEING PROVIDED FOR TECHNOLOGY-INTENSIVE INDUSTRIES. AND THE INFRASTRUCTURE HELP INDUSTRY TO BE MORE PRODUCTIVE, MORE QUALITY CONSCIOUS AND MORE INNOVATIVE IS BEING WIDENED.

TO

IS

"OUR AIM IN PROVIDING THESE VARIOUS FACILITIES AND SERVICES TO MAKE AVAILABLE TO ALL INDUSTRIES, AT A REASONABLE COST, ASSISTANCE, SUPPORT AND ADVICE WHICH CANNOT EASILY BE OBTAINED ELSEWHERE," HE SAID.

MR CHAU SAID SOME PEOPLE TOOK THE VIEW THAT THE LOCAL MANUFACTURING INDUSTRY HAD SUFFERED FROM HONG KONG'S GROWING ECONOMIC TIES WITH CHINA.

"THEY POINT TO INDUSTRY'S DECLINING SHARE OF GROSS PRODUCT, TO THE REDUCTION IN THE MANUFACTURING WORK FORCE, LEVELLING OFF IN DOMESTIC EXPORTS IN THE PAST COUPLE OF YEARS.

DOMESTIC то THE

"I DO

NOT AGREE TO SUCH A NEGATIVE VIEW. LOCAL INDUSTRY IS CERTAINLY LEANER AND FITTER THAN IT WAS 10 YEARS AGO. BUT THAT IS NO BAD THING: PRODUCTIVITY IS UP, QUALITY IS BETTER AND AT THE SAME TIME, HONG KONG INTERESTS HAVE MAINTAINED CONTROL, AND INFLUENCE THE INDUSTRIES WHICH HAVE EXPANDED INTO CHINA, HE SAID.

"IN THE PROCESS, SCARCE MANPOWER HAS BEEN RELEASED ΤΟ OTHER HIGH VALUE-ADDED SECTORS OF THE ECONOMY," HE SAID.

AND DIGGING BENEATH THE SURFACE, IT BECOMES CLEAR INVESTORS ARE STILL PUTTING THEIR MONEY ON INDUSTRY IN HONG ALTHOUGH THE EMPHASIS OF THAT INVESTMENT IS CHANGING, HE SAID.

OVER

JOIN

THAT KONG,

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