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espa of Hong Kong, then, when the ecomes at the end of the century, I n see no reason why the lease of the New Territories should not be renewed, ith the courtesy of a host providing a stroom for an honoured guest who rings long life and happines.
We have, then, a dual task. We have to build up a viable economy in Hong Kong which will not depend on the capital inflow continuing for ever, and we have also to build up mutual interest between Peking and ourselves in maintaining and increasing the prosperity of Hong Kong. This debate occurs at a time when the Chinese Vice-Minister for Trade, Mr. Lou, is on a visit to London. I am sure that we all hope that his visit has been worth while and that it will lead to growth of trade and good relations between his country and ours.
China is today looking for practical technological know-how ", for experi- ence in modern industry. for plant and machinery for advanced engineering products for the manufacture of ferti- lisers, chemicals, steel, and so on. This is precisely the kind of industry which Hong Kong lacks, partly because of its shortage of land and water, but mainly because of a lack of a large domestic market for products with high transport
costs.
If such industry were placed in Hong Kong, China would hardly wish to find the foreign exchange to buy its pro- ducts, so that would not help. On the other hand, such industry could be built up by China under her own control and ownership on her own territory, next to Hong Kong and complementary to Hong Kong's industry. A modern ferti- liser, oil, petrochemical and steel com- plex needs access to deep water berths for 100,000 ton tankers and ore carriers which could well be built round Hong Kong.
No less important than access for bulk materials is nearness of supporting in-
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Hong Kong is the natural site for this type of heavy industrial dev lupmen in South China.
Chiva, notar lly, an spek davulojment to ries. to build up
enriculture structure of industrialism would be more an indi ment caercise than I!.
fashioned spot sale. Payment w
need to be arranged so that it 1.ne out of, for example, the incred production which would be nebleve the use of fertiliser from new fertili plants. China would, therefore, est, fur credits. The British Government in London could easily raise loans in Hon. Kong to finane such credits, provided that they ca da guarantee from London, for which, in turn, London would obtain a guarantee from Peking. An arrangement on these lines could well provide an export trade from this country of £30 or £40 million a year for many years.
Such a development scheme would give Hong Kong the solid base which needs. By industrialising and rising the standard of living in Chinu, it would also avoid the sharp economic dutier- cnces between the two sides of the bor- der which can make it humanly and. therefore, politically unstable. It would give both China and ourselves a major interest in the continued prosperity o Hong Kong.
This may seem to many a daring scheme, but I ask the House to consider whether anything less is possible.
It seems to me to be in line with the most constructive efforts of British foreign policy in the past. It is, of course, a matter for us in Westminster, and we should not expect-we obviously cannet expect--the Hong Kong Governinent io take the initiatives involved. Certainly, everything will depend on the reaction of people in Hong Kong and of Pakia and, in turn, their reaction will depend