HONGKONG (October 15): PROF. M. L. Qureshi, the Pakistani Economist, who has been here on a short visit, left for Karachi yesterday. He has been much impressed with the progress and prosperity of Hongkong. Whereas before the war the Colony was the commercial entrepot for South China, it is now the commercial entrepot for the whole of Far East, he said. The Professor ascribed the substantial increase in the volume of trade to Hongkong's being a free port, its political stability, sound budgetary position, comparatively stable currency and the availability of sound banking, warehousing and other port facilities. In addition, it had given shelter to a good deal of refugee capital from China. As a commercial centre, Prof. Qureshi believed that Hongkong had a bright future, because it was sure to handle an increasing part of the foreign trade of the countries of Asia and the Far East, which, he thought, was bound to increase in volume as a result of economic development. As to the Colony's future as an industrial centre, however, he was very doubtful. Taking into consideration the high costs of labour and of factory accommodation here, it was not likely, he thought that industries could compete with other countries that possessed distinct natural advantages. Root of Trouble Prof Qureshi said the disparity in the various cross rates as well as the free exchange market of Hongkong had the undesirable effect of diverting trade into channels into which it would not otherwise have flown. However, he was of the opinion that the free exchange market was the result and not the cause of disorderly cross rates. The root of the trouble was that the rates of exchange of many currencies were not in equillibrium with their internal purchasing powers. The remedy would be for the Governments concerned to make necessary adjustments of their rates of exchange in consultation with the International Monetary Fund. But insofar as the disorderly cross rates resulted from speculation due to international political developments, the problem was insoluble.