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The UK is now in its fifth year of sustained economic growth. In 1983 United Kingdom growth topped the European Community (EC) growth league, whilst last year, despite the coal strike, the economy grew at the same rate as the EC average. In 1985, the OECD expect the UK to be the fastest growing economy

economy within

within the

Community a far cry from the 1970s when we had the dubious distinction of being league.

bottom of the growth

Our policies have been successful in bringing down inflation, total fixed investment is at an all time high, employment is increasing and 1984 marked the UK's

fifth consecutive year of current account surplus. As these surpluses have been based

based on North Sea Oil, a non-renewable asset, it has made sense to replace its foreign currency earning capacity in part by investing

in overseas assets. As a result of this policy the

UK's Overseas assets amounted to US$85 million at the

last count. In 1979 they stood at only US$25 million.

We are thus a much stronger trading partner for

Hong Kong than 5 years ago, just as y ou a re a major

market for us. British companies are active here, and

we believe they have the capacity and expertise to

continue to play a major role in Hong Kong. This

important, not only for commercial reasons, but also as

visible expression of the UK's commitment to the

future of Hong Kong.

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