countries of South-east Asia and elsewhere in the world, it is possible
to operate those industries nearer to the source of the raw materials with
the large amount of cheap labour that is effective. What we must do,
I believe, is to encourage, where possible, the industries in those
countries to observe an ongoing benefit within those industries.
181. You are saying that if we do not get into joint ventures in
high technology, we will be eventually digging a trading grave for
ourselves?
(Mr Young) There is that danger.
Mr Mikardo
182. Is it not a fact that the movement from low to less low to
slightly higher technology in developing countries follows along the
gradual transition from a low wage to a less low wage to a higher wage?
It is all a balance of capital and labour cost, as you were saying in
relation to the United Kingdom, and as there is a tendency for very low
wage economies gradually to move up wage levels, will there not be a
parallel tendency for them to go in for more labour-saving equipment?
(Mr Young) Yes, there is that, and that is already the case
There is an uplift in the level of technology
and this is bringing its problems within the Singapore economy, I
in Singapore, I believe.
believe.
Mr MoNally
183. When we went, again, to the Far East, we often heard the
argument, "Oh well, we would buy British but the delivery date was wrong",
or, "We were affected by a strike in Britain", but the general message
was a poor one: poor performance, poor delivery. When we challenged
British manufactures about this, most of them said, "Well, that used to
be true but it is not true any longer". If that is the case, the
challenge really is how do we get that message over to potential
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