TNAG-0607-FCO40-755-Monitoring-progress-made-on-planning-papers-on-Hong-Kong-1977 — Page 122

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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faster than exports because of the rapid growth in construction and other

domestic consumption, and also because of sluggish demand for some of our

products in overseas markets. As the Financial Secretary recently said this

that is to say is not sustainable

situation is not sustainable

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indefinitely though it is sustainable in the short term. It therefore

needs watching, though there is no cause for immediate anxiety. The

problem could be resolved in various ways; for instance by a revival in

demand for our exports, and also as I should expect by a drop next year in

the demand that private real estate developers are making on the construction

industry. And if neither of these factors develop sufficiently to correct

the situation there is still the inevitable mechanism of market forces

operating in this instance through the exchange rate, interest rates and the

money supply.

(ii) The need for diversification in the face of restrictions on textiles

26. The other point of concern is the threat to our textile industry's

ability to continue to grow in the face of restrictive attitudes in our

major markets. We believe such attitudes not only to be contrary to our

interests but wrongly based and dangerous to the expansion of world trade

and we will fight such attitudes as hard as Te can. levertheless, they add

new urgency to the long term desirability of broadening our industrial

bose. They require us to ask ourselves again whether we as a Government

are doing everything we can to facilitate the process or are unintentionally

doing anything that discourages it.

Iand production

27

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I think that Honourable Members would agree that the major

contribution the Government can make is through provision of adequate

supplies of land on which new industry can be built. The report of the

Special Committee on Land Production, which included two Unofficial

/members...

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