“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. Among Hong Kong’s industrial assets, Mr. Marden lists its freedom from controls, its political stability, its low income tax on individuals and corporations and its resistance to inflation. It is his conviction that Hong Kong industry should concentrate on quality products, and those which require a high labor content. He cites transistor radios of the less complicated type as an example of the colony’s high-labor products. “I think we should emphasize that there is something more at stake than profits,” Marden says. “The colony is seeking to create 300,000 new jobs for the young people who will be coming on the job market soon; if we can do this without appealing for outside aid, then we’ve made a contribution to the economy of the entire free world.”