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gion. People will attach great importance to the role that Hongkong will play promoting the development of the economy in the Asian-Pacific region as well as in the entire world. Many countries, such as the United States, Japan and the West European countries, have a great amount of funds invested in Hongkong and very active trading interests. The capital from the South-East Asian countries is also at work there. Do foreign capitalists have confidence in Hongkong's prospects, after all?

I only need to cite one example for reference. When we were last in Hongkong, we were invited to dinner by the US Consul-General, Levin, and his Deputy Principal Officer, Williams. In our talk, they both expressed full confidence in the Sino-British talks. They believed that the Sino-British talks would certainly lead to a solution which would be beneficial to both the Chinese and the British sides as well as to other countries concerned. Levin said that, on his last trip home, he had called for more investment in Hongkong by American merchants. In fact, they have confidence in Hongkong's prospects. In addition, we know what the Japanese and West Germans have invested in Hongkong; they have displayed their trust in the guarantees given by the Chinese govern- ment that Hongkong's economic stability and prosperity will be maintained and that Hongkong's social and economic system will remain unchanged. They believe that, after sovereignty reverts to China, Hongkong will remain a free port, the normal interests of foreign capital will be protected, and thus they feel quite at ease. Recently, foreign capital has steadily flowed into Hongkong and this is very sound proof.”

Strengthen unity and give greater play to wisdom and talents

"While in Hongkong, you had extensive contacts with Hongkong compatriots of Various strata. Is there anything else that you want to say to them now that you are back?****

Qian Junrul: "The compatriots in Hongkong are very clever and capable persons. The absolute majority of them are patriotic. They advocate and support the restoration of sovereignty over Hongkong by their motherland. The talks given by Mrs Thatcher in Hongkong were strongly opposed by the students and the residents of Hongkong, which is sound proof of this. Of course, because the Hongkong British authorities play the "public opinion card" they disseminate rumours and distort the policy of our country, small number of people have some doubts, this is understandable. However, they should profoundly understand that, only 34 years after the founding of new China, the Chinese people have really stood up, and that China is no longer a country that can be dominated by others. The status of our overseas Chinese has risen greatly in the world.

In the course of our socialist construction, because of a lack of experience and other factors, we committed many mistakes, especially the grave mistakes made in the great cultural revolution and during the resistance against British oppression in 1967. Since 1978, we have done our best to bring order out of chaos and have corrected these mistakes. Facts have proved that the line and policy of our Party and government are entirely correct. This is also recognized by the majority of Hongkong compatriots. They should believe that for many years the government of their motherland has kept their publicly stated word. The whole set of policies of the government of their motherland. towards Hongkong will remain unchanged for a long time to come.

I hope that Hongkong compatriots will unite even closer, work still harder for the prosperity of the land, and make greater contributions to the stability and prosperity * of Hongkong and for the construction of the four modernizations of the motherland.

"The Hongkong compatriots should have a higher degree of national self- respect and confidence, and they should believe that the wisdom and talents of the Chinese people are in no way inferior to those of other nations. At present, there are 10 kinds of products, including watches, toys, garments and electric torches, which are the first in the world in terms of export volume. It is a really outstanding and unique achieve- ment that the export of watches can exceed those of Switzerland and Japan. Some people have calculated that the successful trial production of a new product takes nine months in

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