TNAG-0579-FCO40-712-Discussions-with-Sir-Murray-MacLehose--Governor-of-Hong-Kong-1976 — Page 115

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adaptability of our economy to changes in demand in overseas markets. Hong Kong is good at doing these things and I am sure we can keep pace with our competitors, but we must continue to search out, seize and exploit new opportun-

ities.

Our performance will also continue to be dependent on develop- ments in our major markets and sources for raw materials. There are signs that the economic policies of most major countries in the world will continue to be strongly influenced by fear of inflation, if so the growth in international trade may be

slower if surer. Nevertheless, so long as it does continue to grow, as we

confidently expect it will, Hong Kong's industry is sufficiently flexible to win the

share that will keep our capacity fully occupied. So I believe we may count on our

economy continuing to expand for the rest of this decade at an average rate of at

least 6% per annum in real terms.

INDUSTRY AND FINANCE

Land

But we must do everything within our power to maximise and maintain this expected prosperity. I am convinced that, for our industry to expand so as to diversify and achieve higher levels of technology the principal stimulant the

Government can inject is land.

In the first place, the layouts of the new towns are being reviewed so as

to provide for wider development of industry.

Secondly, the Government will continue its policy of granting land on

special terms for industries introducing new technology of value to the economy. The progress of this policy is already apparent, for instance, on Tsing I Island.

Thirdly, I believe a major contribution can be made through the concept

of industrial estates. A Provisional Industrial Estates Authority has already been

established, and subject to the advice of Executive Council legislation to convert