People say that China depends on Hong Kong to obtain large sums of foreign exchange but few people have given it a thought that without China, where would Hong Kong be today? Just how much China carns from Hong Kong is a matter of much discussion, speculation and even sheer guess work. But when the experts have finished peering at their computer printouts and adding up sums on bits of paper the figures they produce usually end up as representing between 30 and, 140 per cent of China's total foreign exchange earnings. Guangdong alone earns very large sums in foreign exchange from Hong Kong. This may surprise some people. The exchange earned by Guangdong is entirely through an abundant and diversified supply of products. including all daily staples for the livelihood of the Hong Kong people. Therefore to say China depends on Hong Kong to obtain foreign exchange we should also say Hong Kong relies on China for her existance.
Before the Pacific War, Hong Kong's revenue was derived mainly from a modest entrepot China trade, but after the War, the scene changed almost completely. Around the time of liberation (1949), many capable people from China came to Hong Kong to start industries. Hong Kong suddenly became a manufacturing centre with an ample supply of ready labour on hand. Profits are earned in foreign exchange from the export of industrial products. With the money earned; 'materials and modern machinery are imported and wages paid. The wages are used in buying food and daily necessities which are mainly supplied by China. The Hong Kong dollars earned by China are now used towards the modernization programme and so the circle goes round and round. Where would Hong? Kong be without the Chinese labour force and without the relatively cheap 'food supply for such a large population? Hong Kong and China are therefore interdependent to each other.
London and Beijing both realize
the importance of this relationship and each has been trying hard to improve on it during the last few years. I therefore consider that Hong Kong's future is bright provided that conditions continue to be stable and people continue to work hard with a positive non-intervention policy from government, particularly for industries.
Some of you may say that I am over optimistic. You may ask what would happen in the year 1997? A delegation of British Members of Parliament of the Two Houses, led by Mr Edward Du Cann, visited Beijing this year at the invitation of the Chinese Government. It is understood that they furged the Chinese authorities to begin negotiation with London on 1997.
No one is sure what exactly Mr Du Cann meant by the word 'negotiation'. Surely he could not have meant negotiation on the Treaty with which" Hong Kong was ceded to Britain under the duress of gunboats,