TNAG-0101-FCO40-137-Visits-from-members-of-the-Legislative-Council-of-Hong-Kong-1987 — Page 21

should be set up consisting of representatives from Government, industry, professional

engineers and financial and economic

shane)

experts. The Councilwould have three

main functions to establish priorities

in development, to provide inducements

for new industries and to discourage

over-expansion of existing ones.

(b) the Government should offer backing

to commercial banks to enable them to

extend long-term, fixed-period and fixed-interest loans to industry, not only for the modernisation of plant

and qquipment but also for credit

facilities in boosting the export of capital goods. Such backing is necessary because existing labour-intensive

industries are standing on a knife-

edge due to competition from lower labour. cost countries Abre technologically advanced industries requiring greater capital investment are therefore he de d

endaalso, because of competition in¬

consumer goods from nearby countries,

it is necessary to change over to the

production of capital goods for the

purchase of which customers must be

offered long-term credit. (In the Officials' reply to the Budget Debate the Director of Commerce and Industry

said that the Government would be

studying the possibility of establishing

a loan institution specialising in

helping small-scale industry with

medium-term finance at fixed rates for

re-equipment).

(c) Free primary education is necessary

to ensure Hong Kong's continuing success

in industrial and economie development.

should

I

be introduced over a period of

three to five years.

a need for

more

(a) There is, for many children, 2 gap

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