TNAG-1727-FCO40-2440-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 29

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1 on our economy especially for industry. [S

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Some commentators are very

optimistic. They believe that Hong Kong and the Pearl River Delta has

formed a new regional division of labour. On the one hand, we have

Hong Kong that has taken great strides in development in market develop-

ment, product design and quality, development in technology and

management. Hong Kong is particularly suited to this because of its

being an international port, financial centre and communications centre.

On the other hand, the Pearl River Pelta has a great advantage in labour

and land. They can support greater development than Hong Kong export.

Simply put, new individual division - industrial division of labour will

enhance the development of Hong Kong's traditional industries. However,

some other commentators feel that Hong Kong industrialists are merely

taking advantage of cheap labour in China to maintain low costs and

competitiveness of their products and that any new and a real progress

in maintaining competitiveness ought to be based on technological advance.

However, Hong Kong in technological advance stands many years behind

the other three countries in the four dragons of Asia. I am worried

that the trasfer of processes, whether in part or in whole, to China

is but a substitute for the purpose of easing external competitive pressure and it will lead to a slower process of technological reform

and in the long run will impede our healthy overall growth.'

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23 Some commentators feel that if Hong Kong industrialists only move low-

24 tech labour intensive industries to China, then in the long run Hong

Kong and Pearl River Delta competitiveness will be difficult to maintain. So the two areas to strive for are a higher level of copperation and

division of labour. Such discussions on the closer ties between Hong

Kong and the Pearl River Delta and on the comprehensive economic development strategy are worth giving serious thought. What sort of strategy would be conducive to reasonable and healthy development? What sort of cooperation and division of labour and at what level of technology is necessary for mutual benefit, and as the nucleus of the

2# system of division of labour, what facilities and support services does Hong Kong need? How does this affect plans for training of manpower? There are many problems to solve. Unfortunately, studies or discussions on such new trends in economic development and very piecemeal, by no

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