Sir Michael Turner, head of the Hongkong & Shanghai Bank, emphasizes that local industries, confronted with restrictions in their export markets, must seek new markets for their output.
“Our land and labor costs are rising,” Sir Michael says. “But we must be able to compete with Japan, Formosa, and ultimately, Red China. Red China can ignore costs and flood our markets, as they did previously in shoes and textiles.”
Sir Michael has a limited faith in the doctrine that the colony’s market problems can be solved by diversification of its industries.
“Even diversification means that we’ll encounter resistance in the new lines we enter.” He believes that the colony’s industries must maintain quality and raise it where possible, rather than lowering standards to compete with inferior products.
He says that Hong Kong has attracted investment capital from all over Southeast Asia because of its exceptional political stability, and because local industry was not disrupted by union work-stoppages. He cites the traditional Chinese dislike of regulation and regimentation as a factor inhibiting the expansion of union power.
“The shortage of land and water is still our greatest limitation,” Sir Michael says. “Land development is very costly, and although the builder of an apartment house may recover his costs in one year, that is not possible in the construction of factories.”
He notes that the colony has a serious problem of “under-employment,” rather than unemployment. He adds that the colony’s predominantly young population would necessitate a sharp increase in government spending for schools and hospitals. Like Mr. Barton, he recognizes that thousands of additional jobs must be ready for young people when they begin moving into the employment market.
He regards the preservation of Imperial Preference as vital to the colony in meeting Japanese competition, but he believes that Hong Kong will not be injured by the European Common Market if the colony’s economic needs are recognized in the agreement.
Although the Hongkong & Shanghai Bank is commonly viewed as the incarnation of everything British, its founders included an American, two Parsees, two Germans and an Ottoman Jew. For many years it has been a leader in employing and training Portuguese office workers, accepting them on individual merit instead of drawing a rigidly British line. The bank celebrates its centennial in 1964.
John L. Marden is the chief executive of a company which dates from 1933 under its present title, but has corporate origins going back to the opening of the China trade. The Wheelock Marden companies have interests in shipping, shipbuilding, textiles, finance, aviation, land, insurance, merchandising and many other lines.